PRICING IN INTERNATIONAL MARKETING
Businesses must constantly evolve, and if you've already achieved significant results in the domestic market, start moving on. The modern development of E-commerce has made it possible for companies of all sizes to sell their products to countries around the world, but the process of selling abroad still has many uncertainties.
The main purpose of this article is to present the importance of global pricing and to show some of the challenges companies face in addressing this issue.
Domestic and international prices differ from each other. This is due to economic differences in countries. Developing an international pricing strategy is more difficult as there are so many different factors involved in its creation.
Therefore, first, you need to familiarize yourself with internal factors: tasks, goals, business strategies, brand positioning. While the company may have control over these elements, it may sometimes not be easy to do so. When developing a pricing strategy for a global market, determine the goals that you want to achieve with pricing. You can maximize current profits or create a premium brand image.
External factors have a great influence on pricing decisions, but cannot be fully controlled by the company. These include macroeconomic conditions in countries, the behavior of target customers, competitive structure and legal restrictions of various markets.
Purchasing power, needs, and target audiences can vary between countries, as can the willingness to pay for a particular product or service. In order to maximize profits, it is necessary to conduct research for each market.
Conducting in-depth market research is essential. While marketers have been focusing on business value, convenience, or personalization in recent years, price is still the most important weapon if you know how to use it. The company suffers losses if prices are too high. As well as too low prices will negatively affect profits.
A striking example of international pricing is the American company Apple. It is considered the largest in the world in terms of revenue in the field of information technology.
Apple products can be found just about anywhere, so you can see variations in the price of an iPhone in different countries.
It is quite obvious that in its homeland the company uses the lowest prices for products. At the same time, there is an increase in prices in other countries. The reason can be many political and economic factors.
Large companies can maintain competitive prices in world markets by strengthening their positions and improving production.
Decisions regarding product, pricing and distribution for international markets are unique to each country. At first, you can set a low price for market penetration (compared to other countries). Once you are well established in the market, you can change your goals and align them with your business plan.
Companies seek to increase the scale of their activities in order to minimize and distribute risk, as well as reduce dependence on one market.
Expanding your business internationally is a big step for any company. It brings endless possibilities - a new market, more customers, profit growth. But to come to this, you need to make significant efforts. Do not spare your own efforts and go to the goal - then you will definitely succeed!