Pricing is especially important in international marketing strategy decisions, due to its effect on product positioning, market segmentation, demand management, and market share dynamics. Price is the only part of marketing mix where policy can change rapidly and effect the firm. Price is only source of profit from the marketing mix, the others lead to costs

Firm-level factors (6) International pricing is influenced by past and current corporate philosophy, organization and managerial policies. o Following are factors to think about: " Corporate and marketing objectives " Companies may pursue a variety of value-oriented objectives, such as maximizing sales revenue, maximizing market share, maximizing customer volume, minimizing customer volume, maintaining an image, maintaining stable price etc. " Companies need to be careful of discounts/product offers/reductions as they are often emphasized by managers at the expense of its strategic role. " Example. Japanese firms have approached new markets with the intention of building market share over a period of years by reducing price levels, establishing the brand name and setting up effective distribution and servicing networks. They might get market share but take longer time to gain profit. " Competitive strategy. How competitors price and sell their products will have a tremendous effect on a firm's pricing decisions. " Position of firm. Well know brand or new on market? Reputation they have. Registered on market? " Product development. Is it an idea or a ready product on market? " Production location. What are the costs of production inputs so far? " Market entry modes. E.g A manufacturer with a subsidiary in a foreign country has a high level of control over the pricing policy in that country.