MARKETING TILTS AT TARIFF WINDMILLS

Abstract

Many firms are now undertaking their final analysis of the effects on their businesses of Britain's entry into the E.E.C. New opportunities in Europe and new threats at home are being anticipated and planned for. One obvious fact that is being focussed upon by many is the phased elimination over the next five years of tariff barriers between Britain and the six present member countries. This leads firms to examine their pricing policies for Europe, if they are already operating there, and ponder such questions as whether the tariff saving is to be passed on to the consumer in the form of a price reduction, or retained by the firm. Alternatively, if firms are not already operating in Europe then the tariff reductions are seen as an opportunity for them to consider marketing there. We attempt here to explore the effects of Britain's entry on the overall marketing strategies of British firms in Europe and to put the tariff reduction question into its broad commercial perspective.