Discussion Problems

1. How can pricing serve as a means of strategy or as a competitive tool with buyers? Please provide an example or two.

2. Global companies face many challenges in determining a pricing strategy as part of their worldwide marketing effort. Individual companies, even those worth free trade agreements, may impose considerable competitive, political, and legal constraints on the pricing latitude of companies. Therefore, a standardized price for a company's products across all countries simplifies one aspect of planning for a company.

3. How do channels vary from direct, producer-to-consumer types to elaborate, multilevel channels employing many types of intermediaries?

4. Channel or distribution decisions have been simplified by the term "place" when referencing this function within the marketing mix. Place refers to delivery types, intermediary functions in the distribution channel, and the retail location.

Researchers suggest that approximately 25% of the selling price for a product can be attributed to "place". Therefore, it becomes very important to understand the function that is responsible for 25 cents on every dollar for a product. Many factors contribute to this figure, among them are the number and type of intermediaries, transportation companies, and image. On a global scale, marketers must consider a multitude of issues when selecting specfic factors.