Pricing and Distribution in Marketing Decisions

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Introduction: Pricing is a key element within the marketing mix. Pricing determines the amount that companies will charge for products or services and is the only income generating factor within the marketing mix. The below paper will attempt to contrast Nordstrom and Walmart for women’s or men’s business suits’ pricing and distribution strategies. The essay will identify the pricing strategy in which each company uses and the reasons for or against price reduction. Additionally, it will explore how the products are distributed in order to reach customers and how this fits the target market adequately. Finally, the paper will state an opinion deciding if this product would be a good candidate for online distribution. Pricing Strategy: Nordstrom uses a prestige pricing strategy in order to lure their target market. The store may stock the same quality suits as the Men’s Warehouse, however due to higher prices the customers believe they are purchasing better quality. The company would be against discounting business suits because the socioeconomic class that shops for this product prides themselves on paying higher prices and claiming their purchases being made at Nordstrom. (Wilson, 2000) Walmart, as opposed to Nordstrom targets a lower socioeconomic class. Walmart’s entire marketing scheme is comprised of discounted pricing. The store pushes lower priced business suits and in many cases discounts them even more. The store realizes that their customers are searching for bargains and not trying to keep up with the Jones. Walmart, also is comfortable in knowing that the company is large enough, stable enough, and has enough market shares that it does not worry about getting into prices wars with competing companies. Product Distribution: Both, Nordstrom and Walmart use the same distribution methods in order to reach their target markets. The companies both

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