Marketing Analysis: Pricing and Placing Issues - Term Paper Example

? MARKETING ANALYSIS Price and place are important aspects of marketing strategy that is instrumental for promotionof a product. Price is the consideration that is paid for a commodity or a service whereas place determines the availability of a commodity in areas where it is required (Burrow, 2008). The pricing strategies that are adopted by a company will greatly influence the quantity of purchases that will be made. If not appropriately set, the turnover will drastically reduce and the margin will be low (Hartline, 2010). The availability of products in stores will be convenient to customers and will certainly enhance the customers’ reliability on a company’s goods (Boone & Kurtz, 2011). The North Face in the marketing of Men’s Steep Tech Apogee jacket has exploited these two marketing strategies. The North Face products wide spread and availability in most of the shop outlets has made them realize a substantial sale and realize favorable competition against their competitors. The different Apogee jackets designs are available in most of the cloth shop outlets in towns and US cities. The products have also been distributed to other continents like Asia and Europe to make their products be global. At the same time, customers have been motivated by the direct attention that they receive from the sales agent and representatives (Zucker, 2010). The queries of the customers and those who miss to get their desired products design can make a special request to the company and have their products delivered within the duration demanded. One of the customers attested that the sales representative gave him attention for about 20 minutes, something that was of more impact on the customer’s loyalty (Hondo, 2011). To ensure that the jackets are availed in overseas markets, the company has engaged in direct shipping of the jackets. North Face opened their stores in overseas areas where their brands were sold and advertised to the target customers (Butcher, 2009). The company to ensure that the product price is not adversely affected to the customer incurs the shipping cost. The company has also established stores in different regions including Asia and Europe where there retailers can access their products and break the stock for the customer’s to obtain their demands. It is also important to note that the, need to make a product accessible at the customer convenience is a necessity in having the retention and acquisition of completely new customers. The use of technology and online sites to create awareness of the existence of the company’s products is also a strength in marketing the product. The North Face advertises its products online using twitter, face book and other social network sites that are accessed by a wide number of the targeted market (Miller, 2010). Through the online sites, the customers are able to get accurate and exact information on the availability of the product at the nearest outlets. This has realized a reduction in the marketing cost and a reduction in the product cost for it to realize a high sales level. The other strategy that was used in the promotion of the product entailed the sending of messages as a direct promotion strategy. The strategy was not very widely used given the customers reservation on whether to give their details. Moreover, North Face supported various sporting activities in which the company’s brand was marketed with the company name being advertised as the core sponsor. This therefore made the company’s jackets be identified with the sports fan. At the same time, the company’s brands were sold in such times and places to the customers. In addition, North Face paid for advertisements in magazines circulating in the cities (Hartline, 2010). All this advertisement strategies and promotion tools were geared towards creating awareness on the places where the apogee jackets are sold and the brands that were in stock. In availing the different product designs, North Face ensured that they considered market segmentation where some brands were specifically distributed to specific areas. For example, the company targeted their distribution to cold areas and mountainous areas where the skiers and snowboarders required the jackets. In cities where North Face had many stores, the messages were customized according to the weather i.e. in San Francisco, Seattle and Boston. The use of placecast was used in these cities according to the weather and advertisement that was to be passed (Zucker, 2010). North Face realized that the demand of some of their designs was higher in certain areas with geographical or natural factors. The warm jackets were preferred in cold regions and the snow safety checklist was used for the skiers and mountain climbers. This distribution and wide availability of the jackets ensured that the products were bought on demand. The second marketing strategy that is important in marketing is the price. As a consideration to the service or goods, customers will require value for their money. The price that is charged on any good depends on the core objective of the business. Businesses have the main goal of maximizing returns on their investments and increase their sales level. The price charged on a highly competitive market should be made as low as possible to ensure that the customers do not shift to competitors goods (Boone & Kurtz, 2011). The North Face prices were also priced in a manner that the buyers perceived that the quality of the products were superior. Premium pricing is always adopted to boost the confidence of the customers on the quality of the product. A premium price is charged where a product has a competitive edge against the competitors and there is a unique characteristic of the goods or services (Miller, 2010). The premium prices are justified by the huge difference between the list prices and the sales price. Sales price is always determined after incorporating the cost of production and adding a mark up on the sales price. The North Face jackets unique qualities like the adjustable belts and the many pockets of the jacket make them look unique and outstanding against those of the competitors. The skiers and the mountain climbers who required to be protected from the cold prefer the design of the necks made them. The different colors made the different customers have their tastes and preferences satisfied. In the case of Apogee Men’s ST jackets, the price that was set varied according to the design and the brand. The different prices charged on the goods means that the company was aimed at increasing their sales and attracting different customer segments (Zucker, 2010). The Apogee jackets are priced on the cost-plus basis where the cost of the price is considered and a margin charged to ensure that the profits is attained. This is the reason as to why the different brands are priced differently with some prices being below $70. The jackets may also be high because of the high quality that is associated with the materials that is used in the making of the jackets. Some of the customers who bought the jackets confessed that they were willing to pay the high price because the prices are worth if the jackets were used for their rightful purpose. The prices of the jackets can thus be said to be based on the cost incurred in production. In conclusion, the pricing strategies of price and place determines the success in sales of goods and understanding how the variables affects the customer’s choice is value additive to the company. A company that fails to have their products made available for their customers or which fails to set the attractive and price acceptable to their customers is bound to have poor financial performance. Apogee jackets would only remain competitive if the marketing strategies become effective. Reference List Boone, L. E., & Kurtz, D. L. (2011). Contemporary Marketing. South-Western: Cengage Learning. Burrow, J. L. (2008). Cengage Learning. South-Western: Cengage Learning. Butcher, D. (2009). North Face targets skiers, snowboarders with iPhone app. . retrieved from http://www.mobilemarketer.com/cms/news/content/4552.html Hartline, M. (2010). Marketing Strategy. South-Western: Cengage Learning. Hondo. (2011). The North Face launches KNOW Boundaries series to promote snow safety. Retrived from http://snowboarding.transworld.net/1000161766/news/the-north-face- launches-know-boundaries-series-to-promote-snow-safety/ http://www.buzzillions.com/reviews/men-north-face-st-apogee-jacket-2026891- reviews#readreviews http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=35431 HYPERLINK "http://www.nextag.com/the-north-face-steep-tech-apogee-jacket-mens/stores-html" http://www.nextag.com/the-north-face-steep-tech-apogee-jacket-mens/stores-html http://www.ruderfinn.com/life-style/luxury/case-studies/the-north-face.html http://www.thenorthface.com Miller, C. C. (2010). Take a Step Closer for an Invitation to Shop . Retrieved from HYPERLINK "http://www.nytimes.com/2010/02/23/business/media/23adco.html" http://www.nytimes.com/2010/02/23/business/media/23adco.html Zucker, S. (2010). The North Face To Begin Texting Customers. retrieved from http://www.brandchannel.com/home/post/2010/02/23/The-North-Face-To-Begin- Texting-Customers.aspx Read More