Pricing Challenges in Global Marketing: A Model for Export Pricing

Abstract

Among the four marketing mix, product, distributing channels, promotion and price, only price creates income and the other three generate costs. Price, besides creating income, plays a major role as a strategic factor in developing competitive advantage in the market. The amount of income and promotion of a company regarding the positioning and finding a suitable position in the mind of customers are related to suitable pricing. Decision making for pricing is not an easy task and many factors are affecting in this decision. The reason for some companies which are not so active for export pricing is that they have a good sale in internal market because of their product character which has good internal market or in some countries due to limiting import regulation. These companies are worried about heir global competitive positions too, and need a prescription for their future activity because they also feel that in the global marketing acting ethnocentric will not be enough. Two main factors for this company to be considered are internal market condition and the amount of authority granted to export managers for declaring price to different customers. In this article we discuss kind of factors affecting pricing and kinds of pricing and demonstrate a model which could be important in export pricing for the global marketing pricing by considering the amount of authority for pricing and the conditions of internal market.