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Lecture ten:
Global pricing decisions
Pricing decisions
Standardisation
Adaptation
Corridor/Invention
In emerging markets
Pricing objectives
Rate of return
Market stabilisation
Demand-led pricing
Competition-led
pricing
To reflect product
differentiation
Market skimming
Market penetration
Early cash recovery
Prevent new entry
Pricing approaches
Markup Pricing
Where a standard markup is added to the cost of the product or service
Full or marginal costing methods
Target-return Pricing
Basically a cost based approach
Price is determined by a target ROI
Market-based Pricing
Perceived value pricing based on markets view of pricing
Psychological pricing based on price and quality perceptions
Market penetration or dynamic incremental pricing aim to retrieve only the variable and
international marketing costs, regardless of fixed costs.
Price adaptation
Geographical pricing
Price discounts and allowances
Promotional pricing
Market/use pricing
Product mix pricing
13 ounces
List price in US: $2.99
Price per ounce of jelly: $0.23
0.35 ounce
List price in US: $1.99
Price per ounce of jelly: $5.69
Global Marketing
Lecture ten:
Global pricing decisions
Module leader: Giovanna Battiston
g.battiston@shu.ac.uk