Channel and Pricing Strategies

In: Business and Management

Submitted By mishka81
Words 1958
Pages 8
Channel and Pricing Strategies

May 31, 2012

Understanding various markets and strategies when dealing with the launch of a new product can be challenging. Below is a breakdown of the channel strategies, pricing strategies, and environmental factors. In addition, the government and economic factors, innovation and technology, and the demographics of the new product are factored in the plan for the launch.
Channel Strategies
Most manufacturers do not sell their goods directly to the final consumer. Between the final consumer and the manufacturer stands a group of intermediaries who perform various functions. The intermediaries are referred to as marketing channels, groups of interdependent organizations involved in the process to help make a product or service available for consumption or use, marketing channels (Kotler, & Keller, 2007). Every manufacturer needs a marketing strategy in order to promote their product and make it readily available to the public. So choosing the correct strategy is a critical decision facing management. Apples launch of the new mini iPad will need two channel strategies, one for their domestic market (U.S.A), and one for their international market (Japan). Since the product is new choosing the correct market is crucial for the success of the mini iPad. Apples reputation in their domestic market is one of high brand loyalty. Apple has many brand loyal customers that demand Apple products and choose to purchase Apple products before they go to the store. For this reason a pull strategy is the best route to take concerning the launch of the mini iPad in the domestic market. The pull strategy involves manufacturers promoting their product in a way that consumers start asking intermediaries for the product and in response inducing intermediaries to order the product. Apple may be in high…...

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