1. INTERNATIONAL PRICING ACTIVITIES
Chapter 18
10/31/2000
LESSON
18-1
GOALS
INTERNATIONAL PRICING ACTIVITIES
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.
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2. Price Planning for International Marketing
Costs
Consumer demand
Competition

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. New Product Pricing Competitive pricing Skim pricing
Penetration pricing

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

6. Discount Pricing Seasonal discounts Cash discounts Quantity discounts
Trade discounts

7. Pricing in Global Markets
Countertrade
Dumping

8. GLOBAL DISTRIBUTION ACTIVITIES
Chapter 18
10/31/2000
LESSON
18-2
GOALS
GLOBAL DISTRIBUTION ACTIVITIES
Contrast direct and indirect channels of distribution.
Describe the activities of agents, wholesalers, and retailers.
Explain the role played by global intermediaries.
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9. Common Distribution Channels
Channel A
Channel B
Channel C
Channel D
Producer
Producer
Producer
Producer
Intermediaries
Agent
Wholesaler
Wholesaler
Retailer
Retailer
Retailer
Consumer
Consumer
Consumer
Consumer

10. Distribution Channel Members
Agent
Wholesaler
Retailer
Convenience stores
General merchandise retailers
Specialty stores
Direct sellers
Online retailers
Automatic vending

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

12. MOVING GOODS AROUND THE WORLD
Chapter 18
10/31/2000
LESSON
18-3
GOALS
MOVING GOODS AROUND THE WORLD
Summarize the shipping requirements for international distribution.
Compare transportation modes available to international distributors.
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13. Preparing for Shipping
Packing and labeling
Documentation
Bill of lading
Certificate of origin
Export declaration
Destination control statement
Insurance certificate

14. Transportation in the Global Market
Motor carrier
Railroad
Waterway
Pipeline
Air carrier
Intermodal movement