Pricing for International Business Development

Pricing is a primary factor in international business success. Conventional price definitions are too narrow and a wider definition, taking account of intangible as well as tangible product qualities, is more applicable. A firm needs to know the identities and strengths of its competitors. It must identify market segments and choose those in which to concentrate its efforts. Other factors must also be considered, including the stage in the product life cycle and the firm′s marketing strategy. This article describes the five major pricing axioms in international marketing and concludes that although pricing in international markets is not an easy task, by better understanding the international marketing environment, a company can more effectively set prices and be competitive.