How do the strategic pricing and distribution decisions made by management impact the overall image and positioning of a brand?
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Are you a Marketing Expert? Have you considered marketing your services on the Internet?
There are 4 P’s in marketing they are Product, Price, Promotion and Place. All these are essential to the success of a product.
Strategic pricing depends on the specific objectives of the firm, but may follow two general trends. Skimming the market and penetration pricing. The pricing has to be geared to the products target market. If a high priced product was distributed by a store like walmart it may not sell because the buyers can’t afford, or want high priced goods. Where the product sells and how it is sold must be considered in the pricing stage also. A product that is overpriced and wrongly placed will earn a reputation as a luxury item, and people may begin to equate that brand as expensive, no matter what the product is. It is imperative that pricing will be profitable to the company but also attractive to the buyer. If the product is correctly priced and placed in the correct market then it should sell.
Positioning has everything to do with distribution and pricing. Think about it….close your eyes and think of the work “Calvin Kline”….the words that come to mind are “fashion”, “stylish”, “sexy”…that is positioning of CK. Now if CK was available in K-Mart….which has a positiong of “value”, “discount”- it dosenot support the brands positioning and the brand will loose it “equity” and eventually collapse. BMWs have a certain positioning partly because of their price- eventough on paper an Audi or an Acura can deliver same and probably better on different characteristics- but a higher price point sets it apart from the crowd.