Pricing and Distribution Complement Each Other at Costco

935 Words4 Pages
Pricing and Distribution: As an extremely important decision for a company, pricing is the only element of the marketing mix that generates revenue. The positioning of a product in the market is dependent on its pricing since customers tend to greatly resist attempts to change price once it has been set up. As compared to other elements in the marketing mix, price is the variable with which a competitive response can be quickly implemented. On the contrary, distribution basically involves the process of getting the product from the manufacturer to the intended consumer. How Pricing and Distribution Complement each other at Costco: Costco is a company that has itself as a means with which brides and grooms can create an unforgettable wedding day through reasonable prices. In the past few years, the warehouse store sells all wedding-related accessories including engagement rings, invitations, flowers, and trips for honeymoon. While it's difficult to quantify the actual size of the company's bridal business, Costco has been mainly been growing through its retailer website that enable customers to choose invitations and flowers. The success of Costco's business is also attributed to the way pricing and distribution complements each other, particularly when gowns are available at the retail store. Through its distribution channels, Costco ensures that wedding dresses are available to customers in several locations. For instance, the company entered into partnership with

More about Pricing and Distribution Complement Each Other at Costco

Open Document