An effective pricing strategy is a key component of the international marketing plan.
Many factors influence pricing decisions including corporate objectives, market size, price controls and reimbursement systems in the different markets, number of close comparators, prices of competitors, etc. A strategy built around a uniform global price for a product is usually not feasible because of different regulations and expectations in the various markets. When customers differ in terms of willingness to pay, a differential pricing strategy may yield maximum revenues, however the risk of competition from parallel imports is also a factor in some markets. Setting a premium price may limit market access as a product may not be reimbursed or may have limited reimbursement under public and/or private health plans.
