1. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON18-1 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. INTERNATIONAL PRICING ACTIVITIES

2. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 2 Price Planning for International Marketing Costs Consumer demand Competition

3. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 3 Markup Pricing Markup is the amount added to the cost of the product to determine the selling price.Example: Percentage×Cost=Markup 40%×$50.00=$20.00 Cost+Markup=Selling Price $50.00=$20.00=$70.00

4. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 4 New Product Pricing Competitive pricing Skim pricing Penetration pricing

5. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 5 Psychological Pricing Promotional pricing Loss leader Odd-even pricing Prestige pricing Price lining

6. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 6 Discount Pricing Seasonal discounts Cash discounts Quantity discounts Trade discounts

7. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 7 Pricing in Global Markets Countertrade Dumping

8. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON18-2 GOALS  Contrast direct and indirect channels of distribution.  Describe the activities of agents, wholesalers, and retailers.  Explain the role played by global intermediaries. GLOBAL DISTRIBUTION ACTIVITIES

9. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 9 Intermediaries Common Distribution Channels Channel AChannel BChannel CChannel D Consumer Producer Retailer Wholesaler Agent Retailer Wholesaler Producer

10. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 10 Distribution Channel Members Agent Wholesaler Retailer Convenience stores General merchandise retailers Specialty stores Direct sellers Online retailers Automatic vending

11. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 11 Global Intermediaries Export management company (EMC) Export trading company (ETC) Freight forwarder Customs broker

12. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON18-3 GOALS  Summarize the shipping requirements for international distribution.  Compare transportation modes available to international distributors. MOVING GOODS AROUND THE WORLD

13. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 13 Preparing for Shipping Packing and labeling Documentation Bill of lading Certificate of origin Export declaration Destination control statement Insurance certificate

14. © SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 14 Transportation in the Global Market Motor carrier Railroad Waterway Pipeline Air carrier Intermodal movements