International Marketing chapter 9

These flashcards cover key concepts, strategies, and definitions related to the International Marketing 2025 course.

What are the key components of international marketing planning process?

Global external analysis, internal analysis, entry mode decisions, and in-market strategic decisions.

What is price skimming?

Price skimming is a pricing strategy where a higher price is charged initially due to substantial competitive advantages.

Penetration price

Price set artificially low in order to gain market share, after achieving the price is raised

How is psychological pricing defined?

Psychological pricing is the practice of setting prices slightly lower than rounded numbers to make them appear more attractive to consumers.

What does markup represent in pricing?

Markup is the difference between the selling price and the cost of a product, expressed as a percentage of the cost.

Markup math

(Sales price-unit cost)/ unit cost ) * 100

What is the difference between markup and gross margin?

Markup is based on cost, while gross margin is based on revenue.

Gross margin math

(Selling price-unit cost)/ selling price/revenue)*100

Why is mark-up crucial

They provide a quick and easily calculated way of maintaining consistent gross profit percentage in a mix of various goods.

Keystone

A pricing method whereby merchandise is priced for resale at an amount that is double the wholesale price or cost of product

How to deal with unwanted prise decrease

Innovate with: products declinations new formats or simply same product with a new code (enriched formula, seasonal collection)

What are common risks with international pricing?

Dumping and gray market operations are common risks in international pricing.

What is a gray market?

A gray market refers to products bought from legitimate foreign sources and then re-imported, bypassing official distribution channels. It is a perfectly legal practice unauthorized but not illegal

What is dumping?

Sale of product in an export market at a price lower than normally charged in the domestic market or country of origin.

What is a price corridor?

A price corridor establishes an acceptable price range, minimizing price differences across countries or channels.

What strategy can businesses use to protect against gray markets?

Implementing a same price policy everywhere and differentiating products for each market.

What factors influence pricing of goods and services in international marketing?

Economic costs, eco-costs, market conditions, and consumer behavior.