1. Global Pricing and Distribution Strategies
CHAPTER 18
11/19/2018
CHAPTER 18
Global Pricing and Distribution Strategies
18-1 International Pricing Activities
18-2 Global Distribution Activities
18-3 Moving Goods Around the World
INTERNATIONAL BUSINESS

2. LESSON 18-1 International Pricing Activities
GOALS
Identify the factors that must be considered by businesses when setting prices.
Describe pricing methods used by businesses.
Discuss some pricing factors that are unique to global markets.

3. Price Planning for International Marketing18
Price Planning for International Marketing
Costs
Consumer demand
Competition

4. Pricing Methods 18 Markup pricing New product pricing
Psychological pricing

5. 18
Markup Pricing
Markup is the amount added to the cost of the product to determine the selling price.
Example:
Cost × Percentage = Markup
$50.00 × 40% = $20.00
Cost + Markup = Selling Price
$ $20.00 = $70.00

6. New Product Pricing 18 Competitive pricing Skim pricing
Penetration pricing

7. Psychological Pricing18
Psychological Pricing
Promotional pricing
Loss leader
Odd-even pricing
Prestige pricing
Price lining

8. Discount Pricing 18 Seasonal discounts Cash discounts
Quantity discounts
Trade discounts

9. Pricing in Global Markets18
Pricing in Global Markets
Countertrade
Dumping

10. LESSON 18-2 Global Distribution Activities
GOALS
Contrast direct and indirect channels of distribution.
Describe the activities of agents, wholesalers, and retailers.
Explain the role played by global intermediaries.

11. Distribution Channels18
Distribution Channels
A distribution channel is the path taken by a good or service to get from the producer to the final user.
In a direct distribution channel, producers sell goods or services directly to the final user.
An indirect distribution channel occurs when goods or services are sold with the use of one or more intermediaries between the producer and the consumer.

12. Common Distribution Channels18
Common Distribution Channels

13. Distribution Channel Members18
Distribution Channel Members
Agents
Wholesalers
Retailers
Convenience stores
General merchandise retailers
Specialty stores
Direct sellers
Online retailers
Automatic vending

14. Functions of Wholesalers18
Functions of Wholesalers
FUNCTION
DESCRIPTION
Providing information
Communicating between manufacturers and retailers
Processing orders
Providing needed products for retailers to sell
Storing and transportation
Maintaining warehouses and shipping capabilities
Financing and taking possession
Accepting ownership of finished goods and extending credit to customers
Promoting
Advertising and selling to retailers and helping retailers promote to their consumers

15. Services Provided by Retailers18
Services Provided by Retailers
SERVICES
DESCRIPTION
Product selection
Variety of sizes, styles, and brands
Convenience
Location, hours of operation, parking availability, and ease of making purchases
Product quality
Product excellence and reputation
Sales staff assistance
Information about product features, uses, and store policies
Special services
Delivery, ease of exchanging or returning items, and special sales

16. Global Intermediaries18
Global Intermediaries
Export management company (EMC)
Export trading company (ETC)
Freight forwarder
Customs broker

17. LESSON 18-3 Moving Goods Around The World
GOALS
Summarize the shipping requirements for international distribution.
Compare transportation modes available to international distributors.

18. Preparing for Shipping18
Preparing for Shipping
Packing and labeling
Documentation
Bill of lading
Certificate of origin
Export declaration
Destination control statement
Insurance certificate

19. Transportation in the Global Market18
Transportation in the Global Market
Motor carrier
Railroad
Waterway
Pipeline
Air carrier
Intermodal movements