Once marketing managers have determined a global product and promotion strategy,they can select the remainder of the marketing mix.However,entry into many developing nations presents special pricing problems because:
A)the rate of capital accumulation exceeds the rate of population growth.
B)there is always an expectation of countertrade by developing countries.
C)the demand for low quality products is very less compared to developed countries.
D)there is a lack of mass purchasing power.

Question

Quizplus · Accepted Answer

Developing nations often have a lack of mass purchasing power due to lower levels of income and higher levels of poverty. This can make it difficult for companies to price their products competitively while still making a profit. Additionally, there may be local competition that is able to offer lower prices due to lower operating costs. Therefore, pricing strategies must be carefully considered when entering developing markets. Countertrade (B) may be a consideration, but it is not always an expectation in developing nations. The demand for low quality products (C) may also exist in some developing nations, but it is not the primary pricing problem. Capital accumulation (A) is not directly related to pricing strategies.

Once Marketing Managers Have Determined a Global Product and Promotion