Global Marketing Management, 6th Edition

HAPTER OVERVIEW

1. DRIVERS OF FOREIGN MARKET PRICING
2. MANAGING PRICE ESCALATION
3. PRICING IN INFLATIONARY ENVIRONMENTS
4. GLOBAL PRICING AND CURRENCY FLUCTUATIONS
5. TRANSFER PRICING
6. GLOBAL PRICING AND ANTIDUMPING REGULATION
7. PRICE COORDINATION

Global pricing is one of the most critical and complex issues that multinational firms face. Price is the only marketing mix instrument that creates revenues. All other elements entail costs. Thus, a company's global pricing policy may make or break its overseas expansion efforts. Furthermore, a firm's pricing policy is inherently a highly cross-functional process based on inputs from the firm's finance, accounting, manufacturing, tax, and legal divisions. Predictably, the interests of one group (say, marketing) may clash with the objectives of another group (say, finance).

The basic pricing challenges companies face in domestic marketing (e.g., skimming versus penetration pricing) also apply in global marketing. However, global pricing becomes further complicated due to the very nature of the global marketplace (e.g., currency movements, inflation, cross-border variations in willingness to pay, competition).

One special form of pricing in global marketing is prices set between subsidiaries for goods or services provided by one country affiliate for another ...