Essays on Pricing Issues in International Marketing - Apple Incorporation in China Case Study

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The paper 'Pricing Issues in International Marketing - Apple Incorporation in China" is a good example of a marketing case study. One of the most significant of the 4Ps is pricing in international marketing because it generates the most revenue for a firm (Aulakh & Koatabe 17). A product pricing strategy changes as the product move from one stage of its life cycle to another. However, a company can use various strategies for price setting is skimming, which involves setting high initial prices to earn more revenue in the market.

For instance, Apple launched the iPad as a new electronic product. Apple is well-known for its price skimming as their marketing strategy. This approach is used by the company to have their products appeal to the customers in the market. Price skimming is the practice of keeping a product price higher as a strategy to encourage perception among the consumers based on the price (Theodosiou 248). The method is intended to exploit fully the tendency for consumers with a perception that expensive products are an indication of exceptional quality and distinction.

Apple sets the prices of its products higher than similar products in the market. This strategy is used to maximize profit in areas where the consumers, particularly if there are no substitutes. The effect of marketing is that the customers are will to spend more on the products and not on other substitutes. In other words, Skimming price is used to create a brand value for which makes the customers pay more for the product. There are ethical issues regarding price skimming involved in Apple products. However, the prices should be maintained in such a way that it generates high demand to be profitable to the firm.

The pricing issues are intensified at the international level. One of the pricing issues is government intervention, which prevents various competitive pricing strategies. Second, greater market diversity makes a company set different prices in different countries due to cost situations. Price escalation in exports forces companies to sell products to intermediaries at a lower price to minimize price escalation. Lastly, currency and prices change in the market influence the pricing decisions in a foreign country.

References

The paper 'Pricing Issues in International Marketing - Apple Incorporation in China" is a good example of a marketing case study. One of the most significant of the 4Ps is pricing in international marketing because it generates the most revenue for a firm (Aulakh &Koatabe 17). A product pricing strategy changes as the product move from one stage of its life cycle to another. However, a company can use various strategies for price setting is skimming, which involves setting high initial prices to earn more revenue in the market. For instance, Apple launched iPad as a new electronic product. Apple is well-known for their price skimming as their marketing strategy. This approach is used by the company to have their products appeal the customers in the market.

Price skimming is the practice of keeping a product price higher as a strategy to encourage perception among the consumers based on the price (Theodosiou 248). The method is intended to exploit fully the tendency for consumers with a perception that expensive products are an indication of exceptional quality and distinction. Apple sets the prices of its products higher than similar products in the market. This strategy is used to maximize profit in areas where the consumers, particularly if there are no substitutes. The effect of marketing is that the customers are will to spend more on the products and not for other substitutes. In other words, Skimming price is used to create a brand value for which makes the customers pay more for the product. There are ethical issues regarding price skimming involved in the Apple products.

However, the prices should be maintained in such a way that it generates high demand to be profitable to the firm. The pricing issues are intensified at the international level. One of the pricing issues is government intervention, which prevents various competitive pricing strategies. Second, greater market diversity makes a company set different prices in different countries due to cost situations. Price escalation in exports forces companies to sell products to intermediaries at a lower price to minimize price escalation. Lastly, currency and prices changes in the market influence the pricing decisions in a foreign country.

Download full paperFile format: .doc, available for editing
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