StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Marketing distribution management - Essay Example

Cite this document
Summary
The company uses its cost to determine price floor and price ceiling. The strategy results at competitive prices and may attract…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.5% of users find it useful
Marketing distribution management
Read Text Preview

Extract of sample "Marketing distribution management"

Pricing Strategies Cost-based pricing is a pricing strategy that uses production or manufacturing cost as a basis forsetting out the price of manufactured products. The company uses its cost to determine price floor and price ceiling. The strategy results at competitive prices and may attract consumers who are looking for inexpensive commodities. On the other hand, value-based pricing strategy determines the value of its products or services rather than the cost the company incurred in creating and producing it (Oxenfeldt 107).

The company utilizing this pricing strategy earns high profits from its operations. Conversely, some consumers may not be willing or afford to pay the high price and therefore may purchase from a competitor. Microsoft Company utilizes value-added pricing strategy to sell its product in the market. In this perspective, the company determines the value of window operating system in determining the value to place on the product in the software market. The company sells the product at a high price because the product provides special, unique and valuable features not available in the market (Schindler 51).

The strategy is the best for the company since it determines the cost of the product by what customers are willing to pay. On the other hand, the uniqueness and company’s brand name validate this pricing strategy. Traditionally, skimming and penetrating pricing approaches were used to determine the price of a new product in the market. Microsoft Company utilized the skimming pricing strategy in presenting the new window software in the market. The rationale behind this approach was to skim off the top of the market and therefore dominate (Schindler 96).

On the other hand, penetrating pricing strategy involves introducing a new or innovative product at a low price in an attempt to gain a share of the market.Works CitedOxenfeldt, Alfred R. Pricing Strategies. New York: Amacom, 2006. Print.Schindler, Robert. Pricing Strategies: A Marketing Approach. Thousand Oaks, Calif: Sage Publications, Inc, 2012. Print.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Marketing distribution management Essay Example | Topics and Well Written Essays - 250 words - 1”, n.d.)
Marketing distribution management Essay Example | Topics and Well Written Essays - 250 words - 1. Retrieved from https://studentshare.org/marketing/1632175-marketing-distribution-management
(Marketing Distribution Management Essay Example | Topics and Well Written Essays - 250 Words - 1)
Marketing Distribution Management Essay Example | Topics and Well Written Essays - 250 Words - 1. https://studentshare.org/marketing/1632175-marketing-distribution-management.
“Marketing Distribution Management Essay Example | Topics and Well Written Essays - 250 Words - 1”, n.d. https://studentshare.org/marketing/1632175-marketing-distribution-management.
  • Cited: 0 times

CHECK THESE SAMPLES OF Marketing distribution management

Peoples Bank: A Marketing Management case study

om)Part 2: "distribution channels can thus have a number of levels.... om provide a high level of service standard providing the bank with an effective marketing channel.... ) Environmental characteristics: The web based marketing channels are the least effected by the legal and economic environments of different countries or in the case of change (Bakrate.... The first and the foremost aim of developing a marketing channel are to reduce the number of intermediaries involved in the marketing process....
3 Pages (750 words) Essay

Global Vs Domestic Distribution

This paper under the headline "Global Vs Domestic distribution" focuses on the fact that in today's world, it is not difficult to see a number of multi-national companies competing with each other for the available market share, especially in developing economies.... Issue of how to reach buyers effectively and efficiently and thereby maintain the profitability of the organisation is the prime concern of the distribution process.... Some of the difficulties which are sure to be overcome in a multi-national market distribution are appended in succeeding paragraphs....
7 Pages (1750 words) Assignment

Key Marketing Process

From management definition marketing is “the art of selling products”.... The paper “Key marketing Process” focuses on a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.... hellip; The author states that for calculating the benefits the company must-have marketing tool in finding out buyer wants, behavior and market size....
3 Pages (750 words) Assignment

Marketing Plan for Ammersee Music Distribution Company

The paper contains a marketing plan for the Ammersee music distribution company which strives to be the market leader in providing talent management services to new and independent bands in San Francisco.... Our music distribution company strives to be the market leader in providing talent management services to new and independent bands in San Francisco.... We will price our CDs at 10 percent below the prices of the major distribution companies such as Universal Records....
8 Pages (2000 words) Case Study

Practical Replication of Any Business Start-Up

It created practical replication of any business start-up, day to day management of business enterprises, as well as the… However, the company CEO was faced with broader problems of identifying markets, as well as establishing the market strategies for his products (Lionais, Sherry and Melissa 23).... It created practical replication of any business start-up, day to day management of business enterprises, as well as the individual activities.... Further to this, they identified various distribution channels that would handle the distribution and advertising duties (Lionais et al....
2 Pages (500 words) Case Study

Marketing distribution management#3

Direct marketing involve channel agnostic advertisements like mobile messaging, online display ads or interactive consumer websites.... Advertising forms the non-personal way of promotion and presentation of Microsoft services via television, radio or pictures on internet pages.... Advertising can be… Personal selling employs oral power to persuade and help customers to use Microsoft services and goods....
1 Pages (250 words) Essay

Ticket Distribution Firms

The literature on operations management, and especially with regard to ticket distribution, indicate that the increased use of the internet is bringing in new challenges for the businesses in this field (Lewis, 2003).... The paper “Ticket distribution Firms” discusses the issue of ticket distribution, which is an interesting one due to the fact that new technology is bringing in a paradigm shift in the way things are done.... Ticketmaster has been in business since1976 and has offered its services to entertainers in the area of ticket distribution....
5 Pages (1250 words) Assignment

Electrical Goods Distributors

This coursework "Electrical Goods Distributors" centers towards the electric goods distribution system.... The electric goods distribution system can be regarded as the final stage in electric goods delivery.... Some of the major competitors in the context of electric goods distribution are R&M electrical group, TLA and Schneider Electric SE.... lectrical goods distribution services help to sell and distribute different electrical products in various parts of Europe....
8 Pages (2000 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us