ABSTRACT
Pricing is an integral part of the marketing mix. It is an expression of the positioning of the brand, and at the same time the foundation for the profitability and competitiveness of the firm. This chapter explores special factors relating to international pricing. Depending on the operation mode, different kinds of costs will be included in the base price calculus. Cost plus and contribution – or market-based methods are the two main approaches to pricing in general. The chapter introduces two approaches which in principle are variants of the two main methods: flexible and marginal pricing. The risk of market-based pricing is the spill-over effect from one market to another, so-called grey markets. Markets differ from one country to the other, and even within countries. Competition, demand, purchase behaviour, government regulations, distribution structure and product life cycle are factors that occur with different strength in different settings.
