INTERNATIONAL MARKET Welcome to GROUP BÔNG BLUE 02/12/2021 – GROUP 7! HELLO 1.Lê Huỳnh Lan Anh 2.Vũ Trúc Uyển Nhi 3.Lê Thị Hoàng Anh 4.Phạm Thị Ngọc Linh 5.Trần Võ Tường Vy 6.Diêu Tiểu Yến 02/12/2021 – GROUP 7.Nguyễn Thị Như Quỳnh Session – Chapter Pricing International Markets 02/12/2021 – GROUP O-U-T-L-I-N-E ▹ LO1 Components of pricing as competitive tools in international marketing ▹ LO2 How to control pricing in parallel import or gray markets ▹ LO3 Price escalation and how to minimize its effect ▹ LO4 Countertrading and its place in international marketing practices ▹ LO5 The mechanics of price quotations ▹ LO6 The mechanics of getting paid 02/12/2021 – GROUP 4 LO1 Components of pricing as competitive tools in international marketing 02/12/2021 – GROUP - Setting prices and changing prices are strategies that determine importance in marketing - Set the fit for a product or service that can be the key to success or failure - The calculated price remains the main source of revenue for most businesses 02/12/2021 – GROUP - Price is one of the important and effective factors that help companies attract customers, maintain their loyalty and satisfaction => This shows that price is becoming more and more important as a tool of competition and price competition changes the structure of the market 02/12/2021 – GROUP What is the price? Price is money is the feature for a product or a service 02/12/2021 – GROUP Price policy The policy updates the subject to how a company prices its services and products based on the country in which business is conducted, product type, value, demand, production costs, and availability market competition The policy is necessary for all companies as it provides a guideline for making profits 02/12/2021 – GROUP “ Pricing Objectives - Pricing decisions are made in two directions: + + Pricing as an active tool to accomplish further goals Pricing as a factor in a business decision - The more control a company has over the final selling price of its products, the better it can achieve its subsequent goals 10 Letters of Credit Bills of Exchange Cash in Advance Open Accounts Forfaiting 02/12/2021 – GROUP Letters of Credit (LC)): - Is a letter issued by the bank L/C payment method can also be understood as an advance that 68 the bank gives to the importer or exporter 02/12/2021 – GROUP The most common types of documentary Letters of Credit are: ▹ ▹ ▹ ▹ Revocable L/C 69 Irrevocable L/C Confirmed irrevocable L/C Transferable L/C 02/12/2021 – GROUP Bills of Exchange Is an unconditional demand for money, issued by the Exporter, the seller, or the service provider to collect the money The importer, the buyer, the service recipient; and require these people to pay a certain amount at a certain place and time to the Beneficiaries specified in the bill of exchange; or at the behest of one beneficiary to another 02/12/2021 – GROUP Features of bills of exchange 71 Mandatory: The drawee is obligated to pay the bill of exchange which cannot be refused for any reason 02/12/2021 – GROUP Features of bills of exchange Abstract: On the bill of exchange, the amount to be paid to whom, the time and place of the bill of exchange is written without specifying the cause of the bill of exchange; the economic content of the bill of exchange 02/12/2021 – GROUP 72 Features of bills of exchange Circulatability: A bill of exchange is transferable from one hand to another through endorsement during the validity period of the draft 02/12/2021 – GROUP 73 74 02/12/2021 – GROUP “ 3.Cash in Advance A method of doing business in which a customer must send their payment for goods at the same time as they send their order 75 02/12/2021 – GROUP 4 Open Accounts The seller opens an account or a book to debit the buyer after the seller has completed the delivery of the goods or services, at regular intervals which may be months, quarters or years the buyer pays the seller 02/12/2021 – GROUP 76 77 02/12/2021 – GROUP Forfaiting The seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable 78 02/12/2021 – GROUP Pricing is one of the most complicated decisions areas encountered by international marketers International marketers must take many factors into account    Summary For each country For each market within a country Market prices at consumer level are much more difficult to control in international than in domestic marketing 02/12/2021 – GROUP 79 - Controlling costs that lead to price escalation when exporting products is: > One of the most challenging pricing tasks facing the exporter - Countertrading is an important tool in pricing policy - Pricing in the international marketplace > Requires a combination of intimate knowledge of market costs Summary and regulations > An awareness of possible countertrade deals, - Infinite patience for detail > A shrewd sense of market strategy 02/12/2021 – GROUP 80 THANK YOU ! Any questions? 81 You can find me at:1954012442yen@ou.edu.vn 02/12/2021 – GROUP ... authorities the country regulates the market 12 02/12/2021 – GROUP What are the effects of the gray market? - Parallel imports may cause lasting damage to the market for trademarked products - Customers... 7.Nguyễn Thị Như Quỳnh Session – Chapter Pricing International Markets 02/12/2021 – GROUP O-U-T-L-I-N-E ▹ LO1 Components of pricing as competitive tools in international marketing ▹ LO2 How to control... consumers blame the trademark owner and the product's quality image is tarnished 02/12/2021 – GROUP 13 Measures - To prevent parallel markets from developing when such pricing and marketing strategies