Welcome back everybody to Learning Blogging Marketing!
May peace find you all in these sorrowful moments. Please, receive my best wishes. Let’s get through this together.
In today’s post, I simply wish to announce a new series that will be posted on this blog, and that deals with the concept in Marketing with which I have worked the most. As you might deduct from the title, this series will deal with one of the infamous 4 Ps: Pricing.
Marketing and Finance
Besides being an important term for marketers, Pricing also involves financial issues. Indeed, prices are usually set by adding revenue margins to those costs considered as necessary to deliver a good or service (the so-called mark-ups).
Mark-ups depend on a number of factors, ranging from the cost of raw materials to the competition scheme. Inside the same industry, there might be different mark-up ranges depending on the brand image and perceived quality of the products.
Globalisation and Cost Competition
In a global world, cost competition is an issue to look at. In order to stay competitive, some companies tend to acquire raw materials from countries where the prices are cheaper. Some theorists believe that this situation is the unavoidable consequence of globalisation in the capitalist scheme. However, other economic agents accuse these supplier nations of allowing companies to over-exploit their workforce.
Tax Avoidance and Transfer Pricing
Besides, cross-country transactions might also be behind tax avoidance: companies from the same group might decide to allocate their costs in low-tax jurisdictions by selling products at non-competitive prices. This issue is currently tried to be overcome by the OECD through its transfer pricing guidelines.
These are the topics with which I intend to work at the moment. Nevertheless, it is not a closed list, and I might come up with new themes in the future.
I hope you are as excited for this new section as I am!