Running Head: Strategic Marketing

Running Head Strategic Marketing

STRATEGIC MARKETING 4 Pricing Strategy Strategic Marketing Professor Simone Farrar Bridget King Strayer University October 30,2019 Strategic Marketing Western company is a Northern America based company located in Denver, Colorado. The company deals with the sale of remarkable western apparel and footwear for both men, women, and children. Over time, the company has advanced significantly on the aspects of using technology to promote their products and services. On the same note, it has done very well in using social media platforms to interact with the customers to identify their various needs and thus provide exceptional services that enhance customer satisfaction. Besides, the Western company embraces a customer-centered culture characterized by love in the essence of providing of quality of products, and offering of efficient and reliable customer services (Kreutzer, 2019).

The company is committed to offering door to door service deliveries a strategy that has enabled it to grow substantially compared to its competitors. Despite the high rates of success that is recorded by the company, it has been struggling with the pricing strategies. Notably, the sale of apparel and footwear experiences stiff competition over the target market. Many companies are producing similar products and selling them lower prices. This situation has made it difficult for the western company to come with a suitable pricing strategy that will make it gain a competitive advantage over its opponents.

Pricing strategies

The top three selling products are combat boots, fashion boots, and chukka boots. These products are sold in most markets in the United States, France, and Africa. These three products are of high demand in those markets, and therefore clients are demanding more products of different designs but at relatively lower prices. With factoring these, the western company is committed to using modern technology to provide improved products that satisfy consumer preferences (Kreutzer, 2019). Substantially, the company has utilized social platforms in the cover of advanced technology to reach out to its potential customers.

Considerably, the company has ensured that its products meet various regulations for it to enter into target markets. For instance, the company ensured that it has complied with various tax policies and other environmental regulations that can hinder the sale of these products. The said factors affect the client's pricing decision in different ways. In some instances, the client is forced to increase the prices of the products to cater to costs incurred to meet such policies. The company’s pricing strategy varies significantly depending on the nature of the product and the geographic distance from the primary sources.

Prices in the local markets are cheaper than in the foreign markets (Li et al., 2016). Selling off their products at a lower cost to domestic consumers has attracted many consumers increasing its performance and profitability as well. Also, the company has segmented markets to Africa, France, and Asia, where the prices are relatively higher than in the local markets. Because of the excellent products that the company offers in terms of quality, the company sales have been reported to increase significantly in the foreign markets. As a result, the company has expanded its general performance, making it among the leading company in the sale of footwear and apparel in the global markets.

The pricing and value communication strategies have effectively influenced the company to realize its goals. For example, the lower prices in the local markets have increased the number of sales, making the company more productive and eventually profitable (Li et al., 2016).

References

• Li, B., Hou, P. W., Chen, P., & Li, Q. H. (2016). Pricing strategy and coordination in a dual-channel supply chain with a risk-averse retailer. International Journal of Production Economics, 178, 88-100.
• Kreutzer, R. T. (2019). Strategic and Operational Marketing Plan. In Toolbox for Marketing and Management (pp. 45-67). Springer, Cham.