EXPORT MARKETS

EXPORT MARKETS

MARKETING MIX (5P)
1. Product
2. Positioning
3. Place
4. Promotion
5. PRICE
  1. Attracts potential customers, motivates and makes them buy.
  2. A high price can cause negative feelings about the products
  3. A low price can be misleading for other product features such as quality
  4. Neoclasical price theory
    1. The theory states that customers have different tastes and preferences, and choose among products to maximize satisfaction or utilit.
  5. Pricing estrategies
    1. Economy and Premium
    2. Penetration or Low Price
    3. Skimming
    4. Competitor’s Pricing
    5. Rigid Cost-Plus Strategy
    6. Flexible Cost-plus Strategy
    7. Dynamic Incremental Strategy
  6. EXPORT PRICING
    1. Marginal Costing
      1. The marginal costing to ensure that their products are competitively priced. Marginal costing ignores the fixed cost incurred by companies, on the assumption that these costs will be incurred by domestic sales anyway
    2. The Right Optimum Price
      1. The optimum pricing strategy for a product or service meets the needs of both the buyer and the seller. Because when you find the right price, profits will skyrocket and your business will prosper.
    3. The Loss Leader
      1. No matter the cost, even at a loss in profits, this strategy has one objective to eliminate the competition
    4. Psychology of Pricing: Value Bundling and Discounting
      1. It helps build the perception of price and value. The psychology of retail pricing is probably more important than the price itself
REASONS FOR EXPORTING
1. Pull
  1. The attractiveness of a potential foreign market.
2. Push
  1. Products for intenacional and export markets
  2. Minimize and spread the risk, and reduce its dependence on one geographical market
  3. Product life cycle reaches its maturity stages
3. Increased sales and opportunities
PITFALLS OF EXPORTING
1. Plant facilites
2. Producers
3. Time to start
4. Language
5. Alteration in the product
6. Local custom and transit time
EXPORTING VS DOMESTIC SELLING
1. New parameters
  1. Import duties ,restrictions,transport,currency,documentation,marketing channel.
2. New environments
  1. Foreign markets,cultural, legal, political, social and economic.
FACTORS PEST
1. Political Factors
  1. The pricing is influenced by laws and regulations,health and safety standards,environmental regulations.
2. Social Factors
  1. Firms need to examine carefully target market country’s characteristics and purchasing behaviors, to select appropriate pricing strategy
3. Technological Factors
  1. Firms need to examine carefully target market country’s characteristics and purchasing behaviors, to select appropriate pricing strategy
4. Economic Factors
  1. The level of PIB,population and density, inflation and economic growth, age and distribution of income, level of urbanization as well as other economic activities that will affect markets and pricing.

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	Created by Ingry Esperanza Arias Silva almost 7 years ago