The Roles of Distribution & Pricing in Marketing Decisions

The Roles of Distribution & Pricing in Marketing Decisions

Introduction

The role of distribution and pricing in marketing is very important because the sales of the companies rely a lot on these strategies and decisions. Old Navy is an American brand of clothing. It is owned by Gap, Incorporation. This means that the company should make sure that it looks after the marketing and the distribution of the company in an efficient way. This paper will discuss how the pricing and distribution strategy of Old Navy has played a role in its promotion.

Discussion

Pricing

Pricing is an important factor. The price should be set keeping in mind the expenses and the profits (Smith, 2011). Old Navy should ensure that the price set for the new launch should be in line with its old pricing strategy. This will ensure that the customers of the company remain with the company and do not switch to other brands. The company has introduced a new line of men clothing, which means that the company is now focusing more on the men.

Currently the prices of the company are affordable. People can afford the products offered by Old Navy, and they are much cheaper than the products offered by Gap. The company has ensured that it prices the new line in the same way. It has formulated a pricing strategy that is affordable for people because they are the ones who are buying the product.

This has helped the company in maintaining its position in the market and has also helped the company in earning more. The promotion strategy of the company of using videos instead of television has also helped the company in promoting the company. The prices of the company's products are low, and the new promotion strategy has ...