Price strategies as a determinant of performance on romanian companies in export markets

Abstract

Pricing strategy is considered to be one of the more critical components of the marketing mix (Product, Place, Price and Promotion) and is focused on generating revenue and ultimately profit for the company. The current research study aims to analyze what pricing strategies Romanian exporting companies use in order to strife for better results. As the study focuses on exporting companies, not only setting one or more pricing strategy is important, but also how do these companies adapt their strategies to different industries and different geographical markets. The applied methodology sustains, that the results are rooted on a case study within the preferred pricing strategies of the analyzed companies. The information towards the research was gathered throughout in-depth interviews with the managers in charge of this process, document analysis and observations. The systematic approach of identifying the most adequate price strategies is opening the path for factors taking in account when adaptation process begins and also for analyzing the impact of pricing adaptation. This can lead to measure the data for export performance and what influence did it had on a company’s turnover. By analyzing the export data provided, a comparison can be made, taking into consideration price strategies used, price adaptation processes, level of impact on different geographical markets, the market response to exported products and terms and conditions necessary for conducting international trade