A good market segmentation can reduce operational costs by efficiently allocating the resources to the most suitable segments, while taking under careful consideration the differences across different cultures (Hofstede et.al., 1999). The main alternative to this pricing strategy is by establishing the prices according to the local buying power. However, the customers from those countries where the company adopts a higher price may feel that this strategy is not very fare to them. Finally, the last approach is probably the one that fits better the current manufacturing global market trends. Thus, in those countries where is cheap to produce, the products will have a low price and vice-versa.

7. Factors that influence channel structures and strategies available to global marketers

Channels can be organised as networks, hierarchies and markets. Williamson (1991a, b) divided the channels into hierarchies - the companies internalize activities along the value chain - or choose not...
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