Price and Place Channel Strategy
Assignment ID Number AFFGEHU83939HD Type of Document Essay Writing Format APA/MLA/Harvard Academic Level Masters/University References/Sources 4 References
Price and Place Channel Strategy
Price and Channel Strategy
Price and Channel Strategy
Nike continues preparing a marketing plan for its new sportswear apparel products with price and place strategies. Nike strategizes its product pricing addressing dynamic and static pricing strategies along with daily, promotion, and list pricing techniques. Nike also completes place strategizing through channel distribution, mass, selective, exclusive, and positioning tactics.
Price and Place/Distribution
Dynamic/Static Pricing Strategies
Nike uses dynamic or discriminatory sportswear product pricing as its primary pricing strategy to support its short-term and long-run objectives. Dynamic pricing is where the product price is established but not set in stone for the life of the product, and the price fluctuates within the stages of the product life-cycle and other mitigating circumstances such as geographical locations economies. Nike’s customers historically support its dynamic pricing strategy and enjoy its products brand value.
Static pricing is when a product price is created and sustained for the product over lengthy time periods. Nike does not use the static pricing strategy because it is not practical to set standard prices for sportswear that has many versions for different product lines. Although, Nike does establish prices that are consistent with new and existing products assuring consumers that there is an average price point to expect.
Daily, Promotion, and List Pricing
Nike sets its sportswear products daily prices at the high, medium and low price points. Nike has a pricing department that is dedicated to establishing product prices. Sportswear prices are elastic and will endure change. Daily pricing supports the company penetrating the market, determining its standing, earning profit and market share, creating competitive advantage, and adjusting prices as necessary to sustain growth.
Nike uses promotion pricing versus the EDLP as other competitors. Promotions allow the company flexibility to maximize its profits and exemplify its high revenue sportswear apparel products. Promotions may be factory direct or retail endorsed for reasoning or seasoning sales. “Three prominent retail pricing strategies are frequency discounting, where retailers offer frequent but small discounts; depth discounting, where retailers offer infrequent large discounts; and everyday low pricing (EDLP), where retailers offer products at a constant low regular price” (Danziger, Hadar & Morwitz, 2014, p. 761).
List price is a skimming technique where Nike sets its newly introduced sportswear products at higher prices and then lowers them over time. Nike has to maximize its revenue from its innovative products before competitors match their technology and flood the market. List pricing along with daily is especially important for its global market pricing aspect.
Nike will use marketing channels of not only the consumer but also the industry to distribute its sportswear apparel. “A marketing channel refers to “a set of interdependent organizations involved in the process of making a product or service available for use or consumption” (Watson, Worm, Palmatier & Ganesan, 2015, p. 547). Nike has a robust marketing channel system in place to distribute at all four levels from the manufacturer directly to the consumer and the manufacturer through various partnerships to customers, (see below fig. 17.3). Nike also uses both the vertical and horizontal marketing systems by embracing different levels of partnerships to maximize its product placement. These partnerships are especially crucial within the global market because Nike does not have the same control abroad as within the domestic market.
Channels, Mass, Selective, and Exclusive
Nike uses exclusive distribution when channeling from manufacturer directly to the consumer. Nike has mastered this channel using digital online to its technological limits. Reducing the middle-man enhances company revenue immensely and provides customer value with limited interruptions.
Selective distribution is used by Nike in full force. Nike has many factory outlet stores and retail stores that are close and trusted partners that sell their sportswear within their terms. Nike supports the aspect of maintaining a manageable number of intermediates for the proper placement and distribution of its product and limiting conflict.
Nike also uses the intensive distribution strategy and places its sportswear apparel products with wholesalers and retailers for sale to consumers. Nike not only uses this intensive placement domestically but also globally. The intensive global distribution is crucial in Nike expanding the global market, gaining market share and expanding its global footprint.
Positioning Within Channels
Nike has different product distribution channels to ensure customers are reached, satisfied and loyal. “By monitoring their environment and harnessing technological advances, retailers can (1) remain more in touch with consumer preferences, (2) take advantage of opportunities created by new consumer preferences, and (3) enhance the value they offer to consumers” (Grewal, Roggeveen, Compeau & Levy, 2012, p. 1). Proper positioning ensures products are where they need to be when they are needed. Nike also positions itself to stay one step ahead of competitors and create competitive advantage. Nike ensures that competent and trusted intermediaries are part of their market channel system and value network.
Nike has planned for its sportswear apparel products pricing and distribution strategies. Nike has a dedicated pricing department that uses dynamic pricing within daily, promotion, and list pricing to accomplish company sales objectives. Nike also has robust distribution strategies using exclusive, selective, and intensive channeling with crucial positioning to meet company strategic plans.
Danziger, S., Hadar, L., & Morwitz, V. G. (2014). Retailer pricing strategy and consumer choice under price uncertainty. Journal of Consumer Research, 41(3), 761-774. doi:10.1086/677313. Retrieved from The University of Phoenix MKT571 website.
Grewal, D., Roggeveen, A. L., Compeau, L. D., & Levy, M. (2012). Retail value-based pricing strategies: New times, new technologies, new consumers. Journal of Retailing, 88(1), 1-6. doi:10.1016/j.jretai.2011.12.001. Retrieved from The University of Phoenix MKT571 website.
Kotler, P. & Keller, K. L. (2016). Marketing Management (15th ed.). Retrieved from The University of Phoenix eBook Collection database.
Watson, G. F., Worm, S., Palmatier, R. W., & Ganesan, S. (2015). The evolution of marketing channels: Trends and research directions. Journal of Retailing, 91(4), 546-568. doi:10.1016/j.jretai.2015.04.002. Retrieved from The University of Phoenix MKT571 website.
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME]and Have It Done by Our PhD Qualified Writers!!
Tired of getting an average grade in all your school assignments, projects, essays, and homework? Try us today for all your academic schoolwork needs. We are among the most trusted and recognized professional writing services in the market.
We provide unique, original and plagiarism-free high quality academic, homework, assignments and essay submissions for all our clients. At our company, we capitalize on producing A+ Grades for all our clients and also ensure that you have smooth academic progress in all your school term and semesters.
High-quality academic submissions, A 100% plagiarism-free submission, Meet even the most urgent deadlines, Provide our services to you at the most competitive rates in the market, Give you free revisions until you meet your desired grades and Provide you with 24/7 customer support service via calls or live chats.