GMS 522 Chapter Notes - Chapter 10: Class Action, Mylan, Marginal Cost
21 Jan 2018
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Global pricing strategy: pricing: the only element of the marketing mix which is revenue generating. Pricing in foreign markets driven by a number of factors. These may be internal to the rm or may be exogenous. Increase / defend market share: pricing situation. Cost: provides a oor under which prices cannot go in the long run. Considerations: offshoring of certain supplies/ functions may reduce costs and increase competitiveness, location of manufacturing and r&d facilities. Demand sets a ceiling on pricing decisions: price elasticity of demand. Mylan increased the price of its epipen (treats potentially fatal allergy reactions) from in 2009 to more than in 2016. Mylan has little or no competition in this space. Company hit with a class action law suit earlier this year: consumer perceptions of the product. Value? (dependent on culture: relationship with intermediaries. Competition helps rm set prices between cost and demand.
