International Market

International Market

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Different countries have different prices, but companies must manage costs in order to reap profit. Prices differ because of taxes, needs of local markets, tariffs, exchange rates and cost structures. Different companies in different countries have different consumer with different prices. Prices in different differ because not everybody is willing to pay the same. Pricing systems of countries in international markets are affected by globalization. The international market faces high competition, changes in technology and market communication. Countries that take part in the international market should implement the best pricing tactics and should focus on the factors that need to be considered before setting prices.

For example, companies in Germany focus on competitive bidding in order to survive in the international market. This method improves their chances of acquiring a contract and less time and energy is lost in the process. In Germany, consumers are very sensitive to prices; price is an important factor in the competitive market. Grocery pricing strategies have also been implemented in Germany considering the concentration the country gets in food retailing. Price competition of food retailing is intense thus the implimentation of pricing strategies. Scanner-data evidence provides the analysis of strategies of food pricing used. Research shows that retailers have a habit of low pricing which separates them from their competitors who adapt high-low pricing. On the other hand, the success of US companies in regards to pricing is attributed to the pricing strategies that are mostly implemented which include price skimming and economy pricing. Pricing is the highest factor that generates revenue in the international market. Price is also the most flexible factor in marketing. Therefore, pricing is a very important factor in the international market (Sousa et al., 2008).

References

Sousa, C. M., & Bradley, F. (2008). Antecedents of international pricing adaptation and export performance. Journal of world business, 43(3), 307-320.