International Marketing 118. 330 Slides

Marketing Communications

• Production and Cost Limitations
• International Control of Information/Advertising

Sales Force Management

• Sources of Personnel
• Expatriates
• Virtual Expatriates
• Local Nationals
• Third-Country Nationals
• Host-Country Restrictions

Sales Force Management

• Selection of Personnel
• Maturity
• Knowledge
• Positive Outlook
• Cultural Empathy
• Flexibility
• Tolerance
• Hard Working

Sales Force Management

• Training
• Generally poor
• Minimal criteria
• Awareness of cultural setting
• Cultural imperatives and restrictions
• Economic reward
• Good communication
• Proper training re products/services
• Support of family

Pricing in International Markets

• Pricing Objectives
• Enhance Market Share
• Enhance ROI
• Manage Demand
• Cost Recovery

Pricing in International Markets

• Major Issues to Consider
• Nature of the Product
• Degree of Competition
• Degree of Substitutibility
• Channel Efficiency
• Price and Income Elasticity Considerations

Pricing in International Markets

• Major Pricing Components
• Production Costs
• Marketing Costs
• Profit Margins
• Transportation and Distribution Costs
• Taxes, Tariffs, Duties, etc.
• Documentation Costs
• Exchange Rate Movements
• Interest Rates
• Insurance and Risk Bearing Costs
• Inflation

Approaches to International Pricing

• Cost-Based Methods
• Cost Plus
• Fully Allocated Cost
• Market Based Methods
• Zone Pricing
• “What the Market Will Bear”
• Incremental Cost Pricing
• Transfer Pricing
• Countertrade
• Dumping

Manufacturing Price (Domestic) $362.00 $362.00
Transportation to Wholesaler 18.00 23.00
$380.00
Export Documentation 4.00
Overseas Shipping & Handling 2.50
Overseas Freight and Insurance 58.50
$450.00
Import Tariff: 20% of Landed Cost 90.00
$540.00
Handling at Foreign Port of Entry 3.00
$543.00
Transportation form Port to Importer 17.00
$560.00
Importer Margin ( to Wholesaler) 10% 56.00
$616.00
Wholesale Margin: 8% 30.40 49.28
$410.40 $665.28
Retail Margin: 40% 164.16 266.12
FINAL RETAIL PRICE $574.56 $931.40
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