Channel and Pricing Strategies

1202 WordsMar 4, 20115 Pages
Channel and pricing Strategies University of Phoenix Date Due: 30, August 2010 Channel and pricing Strategies Team C examines the channeling and pricing strategies of the Toyota Motor Corporation for the team’s product launch. The assignment explores the appropriate channel strategy for both the domestic market as well as the international market through direct exporting channels. The team justifies Toyota international market through extensive research on the chosen product. According to Toyota New Release “Toyota Motor Corporation (TMC) announces that cumulative sales in Japan of its hybrid vehicles have topped the one million mark, while more than 2.68 million units have been sold globally as of July 31, 2010” (Sales in Japan…show more content…
Domestic and International Pricing Strategies The price of a product is a key element that produces revenue and is the most flexible because price changes can occur quickly if needed. The decision to place a price on a product can be complex thus, warranting marketers to consider a number of elements; the company, its marketing strategy, target markets and brand positioning, the customer, and the competition and the marketing environment. Companies generally set prices according to the geographical demand and cost, market segment requirements, purchase timing, order levels, delivery frequency, guarantees, and other factors (Armstrong & Kotler, 2009). Should the company decide to explore an international market, marketers should take in consideration that companies channeling a product into another country prices its products with the customers as a satisfied benefactor. The marketers must consider the cost of shipping or decide the geographical pricing strategies; purchasing a foreign vehicle, the consumer usually absorbs the cost of shipping in each geographical location (Armstrong & Kotler, 2009). Most companies adjust prices to reflect local market conditions and cost considerations. The price that a company should charge in a specific country depends on many factors,
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