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Pricing and Distribution in Marketing Decisions - Research Paper Example
Author : maddisonwyman
Pages 3 (753 words)
Pricing and Distribution in Marketing Decisions For a company to attain and retain a competitive marketing position, it has to make the right pricing and distribution strategies. Making the right choice in price determination will help the company to win consumer loyalty, because it will not have to keep changing prices (Florissen, et…
In reference to Blue Mountain Coffee Company and Starbucks Coffee, pricing and distribution strategies will help them acquire these useful utilities for their efficient functioning. This paper aims at contrasting the pricing and distribution strategies of these two products. Though the two companies produce the same products, they are not competitors because they serve different markets. Pricing Strategies The worst mistake that can easily collapse a company lies in decision making that concerns pricing strategies. Wrong pricing decisions are almost a guarantee on damaging the company as well as eroding services tot the community and customers (Florissen, et. al, 2001). In many cases, manager’s cut-off prices so as to fend off new market rivals and then, they launch price wars that are full fledged hoping to compete attackers and hence emerging victorious. At any rate, this is just hope because reality is normally very different. For example, Blue Mountain Coffee Company that mainly specializes in exporting its products bases its decisions on pricing in reference to international market prices. In pricing, companies should take into account the competitor’s prices, cost to serve, switching rates, and customer value in order to ensure profitability. ...
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