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Pricing and Distribution in Marketing Decisions - Essay Example
Pages 3 (753 words)
Instructor: Pricing and Distribution in Marketing Decisions This paper seeks to draw a comparison between the Ford Escort and Lexus Compact (Lexus ES) in relation to their pricing and distribution in marketing decisions…
On the other hand, Lexus is regarded as a luxury car. It is manufactured by Toyota Motor Corporation. Currently, Lexus features as Japan’s largest-selling model of premium cars. OrlandoSentinel (2011) reveals that for many years, the Ford Escort was among the top selling auto mobiles in America. The Ford Motor company uses the value pricing strategy to gain a market share in the global market. This strategy has been used as an initial step of eliminating the common costly customer returns. This initiative seeks enhance the customer’s buying experience with a view of curbing the distrust in relation to the sale of retail cars. It is for this reason that the Ford Motor Company has at one time tried low-pricing on its vehicle models including the Ford Escort (Batra and David Sheperds Associates, 1999). Such moves are meant to increase the profit margins of the company. As a result, the scantly equipped models were eliminated. They were then replaced with fairly loaded automobiles which had comparable prices. The company eventually witnessed increased sales. A true account is that production of vehicles with similar options increases manufacturing efficiency. A number of models irrespective of the model style were sold for the same price. As much as many consumers around the world found it hard to believe the existence of such an offer, they still went ahead to purchase the products. ...