Price Policy

The purpose of this essay is one-thirdfold. First,to identify specialized elements and the environment affecting an export wrong policy. Second, to analyse thisthese factors within our wet and to extract the best decisions empowern our starting point. Fin alone(a)y, to consider the above and to give lufflines governing thatwhat should be applied in the world(prenominal) selling price. It should be noted that in almost cases due to an in discrepancyation deficiency, assumptions should be madee. determine is the moment of truth (Stottinger,2001).Probably this af plasteredation is essentially valid in home(prenominal) marketing, even more than than in international marketing. Surprisingly, the literature in this scene of action is characterized by a gapthere is a gap in the literature in this area. Given theirits greatness, determine drophas not attracted much academic research absorb compared with other tools of marketing (Stottinger, 2001). Nevertheless, this sho uld not be and cannot be a bar for the quality of this essay. Albaum and Duerr (2008) no havehave not given a clear essence regarding the take of difficulty almost practice of establishing an international price.However, for a blown-up influx of authors export price differs from ho expenditure servant price, and due to thatthis the environment is sui generis in each country (Jain, 1989). It is the writer? s opinion that an overview of the challenge gives the plan that it is somewhat more difficult than in domestic marketing. Sometimes the set affair is too tangled to be pliant to a planetary sort of description (Diamantipoulous and Mathews, 1995). In summary, despite of finding similar market threats in the international arena, every market havehas non-identical consequences and a shapeof elements (Kublin,1900). alone of this leads to talk of international factors affecting price. The goal is to lose it the factors and bring them in line with our intersection point. Somet imes these factors are so-called such aslabelled Internal and international factors (Tellis, 1986). The writers intention is not to get hitched with the system of both author concretely and to blend the most important literature and pair with the whole. To avoid excessive interminable enlarge, these factors are exclusively factors that differ from domestic factors, or actorsthose such as competition, or buyers information that are present in the domestic market but without delay are completely unknown in the new scenario. Cost has been and is cosmos one of the most vital factors affecting price determination (Albaum & Duerr, 2008). It is efficacious because the system cost creates a limit where prices below are not permitted to stayit creates a system where prices are not permitted to stay below a certain limit. (Simon,1995). Historically, the quandary is somewhere between at once cost and right cost.The choice of the cost floor depends on the comp boths goal. In the fut ureLater the companysthis goal go forth be explained, but so far, it is enough to say that full cost fits better. The company objectives are to build a new market in the longsighted-run, and using full cost enabling the company to recovered all the cost.. Apart from a new packaging, the new central cost is establish on transportation. It is important to take into account theat volume of the product when consideringis other important costs. (Albaum & Dueer).In some cases companies fail due to only takinge into account this factor (Backman, 1953). It given that should we mightis essential that we emphasize other factors. Market fits it is time to analyze demand. An important idea of our demand is the concept of elasticity. Should I give as beare thatThe elasticity of our node tends not to be nonresilientgreat. A pPerson who owns a parenthood dog or an exotic carnal, tends to give allwant the best for their animals, and then are less price-sensivitysensitive (or there is less price sensitivity).Broadly speaking, they buy regardless of price, but always in the limits of consumer? s price awareness. The better secern the product, the more difficult it is to make a comparison between unlike products and the risqueer the quality and the prestige image of the product, the lower the price sensivity. (Nagle, 1987). Theseis three characteristics should beare present in our product, therefore the customer should tend to be inelastic Competition is a pivotal factor and reflects supply in frugal theory.Cost draws a minimum price, demand delineates a maximum price, and competitors impede condition a final price between these limits. (Albaum & Duerr, 2008). Due to lack of information, it should be assumingassume some level of competition. The firm must expect some stage of competition, but owing to the kind of product ( amplitude product for a pedigree animal) the market should be clearly de exceptional. Anyway, in this stage the advice for the firm should b e to stay aware of our nearest competitors and extract value information of the minimise of our competitorsfrom our competitors background.Legal or political widely speaking, after the Treaty of Maastricht and the constitution of the European Community the legal or political issues between European countries have been removed. It Ccan be interesting to mention one aspect of the legislation associate with our product, and in last instance it can affect price decision. The European Parliament has passed some regulation concerning to animal feeds, certifying that Community legislation on animal health is properly binding and fulfilling.The law of the EU is instanter applicable in UK, therefore, it should be noticed that if our firm has passed the controls for selling in UK there is not going to be a problem achieveing a license to sell around Europe. It is not necessary to argue virtually economic themes since has been created a homogeneous economic area has been created. Company p olicies and marketing mix It is inevitable to speak closely the product of the company. Price should be related to product considerations (Albaum & Duer, 2008).The characteristics of the product i. e type of demand, physical and psychological attributes, packaging, quality, degree to which competitors are considered acceptable substitutes differentiation, state of maturity and so on influence the prizeprice. (Kaplan, Dirlam, Lanzillotti,). Assuming that Edzell Wood has a product range and product viewing similar to that sold for garden and aviary birds under the Charnwood shuffling some specifications should be made for relating price and product.If the product range is full-grown and product positioning is premium, this makes it advisable to establish a rather high price. To what extent will depend more or less highon its free weight with other factors. Some studies, under some premises, have showned that high price is associated with high quality( ) It can be interesting to speak about the nature of the product that Edzell is selling and to connect this with the buyers perception, some other relevant factor.Following Nelson (1970) (Darbi and Karni 1973) fulls can be divided into two types experience good and adoption goods. An experience good is one whose features can be ascertained only upon consumption. A second category might be that of credence goods, when quality cannot be determined even after consumption. With all probability, our product whitethorn be among experience goods and credence goods. It is the writers opinion that in this field the labels depute up didnt succeed because it is a kindthe type of good where the spot pranks a all important(p) role.Have you seen animal feeds branded by tesco? The consumers are in part blind and are using non physical attributes to value the utility program of the product and transform this utility in terms of money. It might be a compulsory stop to speak at length about terms such us value and utility but it is beyond the scope of this essay. Suffice it to say that if the consumer is not in a position to judge accurately the value of the product directly, consumers in concern to reduce the risk will be willing to pay higher prices as safeto remain safe.Pet owners or Zoological centres want to give all the best for their animals. People dont eat feeds animalsanimal feed and consequently cannot check the quality of the product. It is the score package including complementary features such as veterinarian advice, delivery, support with any problem related with the animal and food, analysis of components, demonstration about quality, certificates, as well as the symbolic features such as prestige and stead that are perceived as delivering more value than our competitors in a pricing point (Hanna & Dodge, 1995).The company should take advantage of this. It is time put on the table matto analyse how the pricing philosophy and pricing objectives play a strong role in this proc ess. In line with earlier aspects it should be speak about price outline. It is strongly adviceadvisable to the firm to follow a strategic pricing related to a product differentiation. The firm should stressed differentiation through product characteristics and position in the assiduity that are conducive to putting the emphasis on the value of our brand name and enjoying some price premiumpremium prices in consequence.Pricing models can be blend and matched. Probably there is no a strategy price (skimming,sliding coldcock the demand curve, ando so on) that fsuits perfectly with our task. The price strategy should be a relatively high price related with a high premium product, putting the emphasis in the quality and the complementary features. It should try to down some promotions to try to encourage the customer to know the product in the first stage. It can be dangerous to play upping or imbibe the price, becausedue to the quality image can be affected.The objective of our price strategy should integrated goals such uas, obtaining the highest return on investment, maintaining or increaseing market share, meet a specified sales goal, meeting a specified pull ahead goal, profit maximisation, meeting competition and so on (Teacher). The objective of our price strategy should integrate goals such as, obtaining the highest return on investment, maintaining or change magnitude market share, meeting a specified sales goal, meeting a specified profit goal, profit maximisation, meeting competition and so on (Teacher)Firm and management the international experience of the firm and commitment to the venture are important factors. Assuming that Edzell does not have international experience and it is a small enterprise it should be noticeded that it is important to advise the firms members about the importance of pricing decisions. Furthermore, the firm should be completely conscious and to have a strong commitment withto go internationalexpanding international ly. This is commonly forgotten in some companies, especially smaller ones. , Aall of thisthese factors influence setting the right price.It is usual to forget this in some companies, especially in small companies. A polar place occupies the price decision controlPrice decision control occupies a crucial place the step within the firm at which the decision is tooktaken. (Myers,Cavusgil, Diamantopoulous, 2002). To verifyied that the psyche who sets the prices has the skills to do it. It is important not to forget channel distribution as a factor affecting price. A product ishas much more than a physical value,value it is also on how it is sold and after-sales service and so on.The customers willingness to pay is directly influenced by these features. The firm should discover the channel distribution how to give this high quality service. Remembering that animal feed is a very intangible product for the buyer and these details are the key point to give a message in consonance with our price. In our case, assuming that direct export has been choosedchosen the goal should be relatively factibleachievablee(? ). Also regarding channels and distribution our firm should avoid structures tending to result in export-price scalationthe escalation of export price (Cavusgil and Zou, 1994).It is necessary to highlight that a good relationship with the channels is very useful to control the final price. (Bowersox et al, 1992). It is the writer? s opinion that the choice ofto choose a direct mode of exportationing hasis have been influenced by theseis parameters. Our company should weight up the benefits of pricing the goods and services in euros or in sterling. Intuitively, most eurozone customers will like to see prices in euros. Using a sterling prices list may lose part of our business. The main disadvantage of making and accepting euro payments is that it exposes our firm to currentness risks.One way to hedge against exchange rate movements can be to arrange a forwar d foreign exchange contract this is an balance initiated by you to buy or sell a specific meter of foreign currency at a certain rate, on or before a certain date. In the field of price quotation, our exportations should use the system definition based on Incoterms (International Commercial Terms). Although the detail of which incoterms should be choosechosen is beyond the scope of this essay, exporters should consider some factors.Between others shipment, insurance coverage, availability of information, currency convertibility problems, and son on (Albaum Duerr, 2008). Ultimately, price quotations should be in a form that customers and channels find suitable, and at least as convenient for the customer as those offered by competitors. Anyway, the price quotations should be reflected in the final price. All of these factors should be complemented with some basic guidelines. Pricing flexibility is a prescript that should guide all the decisions. The right placeprice(? today, can not be the right price tomorrow. The issue, more than to think if our price havehas to be higher, lower or the same level compared with our domestic prices or the competition prices it is to set the right price in the right moment. Probably, some factors hashave been omitted but not forgotten due to limited space. And always remember that setting a price It is not a science, but it is an art. (John I. Leahy, Black Decker) Bibliography Stottinger, B. (2001) Strategic export pricing a long and winding road. Journal of International Marketin, 9 (1). 40-55Jain, S. C (1989) Standardization of international marketing strategy some research hyphoteses Journal of marketing, Vol 53, January, pp. 70-9 Kublin, M. (1990) A guide to export pricing, Industrial Management, Vol. 32 No. 3, pp. 29-32 Diamantopoulos, A. and Mathews, B. (1995), Making pricing decisions A study of Managerial Practice, Chapman Hall, London. Mathews, B. Cavusgil, Diamantopoulos, A. (2002), Antecedents and actions of ex port pricing strategy A conceptual framework and research propositions. European Journal of Marketing, Vol. 36, No ? , 2002, pp. 159-188.