EXPORTING AND PRICING

Name: Manuel esteban Perez

1. Make a chart where you mention 5 advantages and 5 disadvantages of Direct Exporting
and 5 advantages and 5 disadvantages of Indirect Exporting.

You can use these links:

• DIRECT

https://www.thebalancesmb.com/direct-exporting-advantages-and-disadvantages-1953310

• INDIRECT

https://www.thebalancesmb.com/advantages-disadvantages-of-indirect-exporting-
1953328advantages-1953310

DIRECT EXPORTING INDIRECT EXPORTING

ADVANTAGES DISADVANTAGES ADVANTAGES DISADVANTAGES

You know your It takes more time, It is an almost risk- Earnings are lower.
customers energy and money free way to start.
than you can afford.
There is a greater You have full As you go along, you Control over foreign
degree of control responsibility for learn about sales is lost.
over all aspects of the what happens. There international
transaction. is no buffer zone. marketing.
Business travel is You have to handle all You have limited The broker could also
much more efficient the logistics of the liability for product offer products similar
and effective. transaction. marketing issues. to yours.
Develop a better It is difficult to answer It requires a When you visit it,
understanding of the all customer minimum there is one step
market. communications. participation in the removed from the
export process. actual transaction.
There is better More power is You can field test Little is known about
protection for required to establish your products for customers and
trademarks, patents a relationship with export potential. therefore you lose the
and copyrights. customers. opportunity to tailor
your offerings to your
changing needs.
 2. Go to this link and read about the Types of Pricing Strategies:
https://www.cleverism.com/pricing-four-ps-marketing-mix/

Then make a chart where you mention an example of each.

PRICING STRATEGY EXAMPLE

Penetration Pricing
Discount stores like Wal-Mart use
price penetration by offering new
products through their stores at
much lower prices than other
stores.

Skimming Pricing
The launch of a new product like the
Play Station 4 goes on the market
with a high price, $12,000 and the
skimming is carried out strategically
over time, to end in a lower price.
$7,000.
Competition Pricing

If competition reduces the price

then management must adjust the
price to cope with the
competition.

Product Line Pricing Product line prices range from

gas pumps to car dealers and
from ice cream shops to fast food
restaurants. A basic car wash
could come at a price, a super
wash with wash and wax will cost
a bit more, and a premium full-
service wash will be the most
expensive.
Bundle Pricing
Fast food restaurants sell a package
with a hamburger, fries and a soft
drink at a single price.

Psychological Pricing
Even prices are developed against odd $
9.99 associated with discounts.

Premium Pricing
A lotion lacoste has an
average price of $ 200,000
which the client is very
satisfied because it meets
their expectations although
the client can get the same
product but with lower
quality.
Optional Pricing
A car has
optional products electric windows, the
sound equipment, leather seats,
sunroof, among others, and for each
accessory the
car price will increase.
Cost Based Pricing
A distribution business, without a
manufacturing process, may seem
at first glance to be easy to set
prices, since a “significant”
contribution margin is assigned to
the purchase cost and “ready”.
Cost Plus Pricing
The maker of a toaster probably also
used pricing over margin. If your
standard cost to produce the roaster
was $ 16, you could have added a
premium of 25%, which would give
the retailer a price of $ 20.