Business Studies, asked by honeygarg5410, 1 year ago

Factors influence decision of export type of business

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Answered by Anonymous
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Some of the important factors that influence the setting of an export price in international marketing are as follows:

The consequences of price changes are more direct and immediate than those of any other elements of the marketing mix, as they result in subsequent customer and, in most cases, competitor reactions. Given their power, pricing issues have attracted surprisingly little research interest compared with other marketing tools. What applies to a single market-setting holds even more true for the global marketplace, because additional context factors increases complexity.

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In order to understand the structure of a price, we need first to examine those basic factors that influence the setting of an export price. These factors include the following:

1) Costs,

2) Market conditions and customer behaviour (demand or value),

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3) Competition,

4) Legal and political issues,

5) General company policies, including policies on financial matters, production, organisation structure; and on marketing activities such as the planning and development of products, the product mix, marketing channels, sales promotion, advertising, and selling.

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