Pricing and Distribution in Marketing Decisions (SLP)

Answer the following questions in an essay about Southwest Airlines:

(1) Briefly describe the pricing strategies implemented by the company.

(2) Given the company’s target market, explain why you think these pricing strategies will or will not motivate customers to buy and continue to buy.

(3) Discuss the role of discounts in this company’s strategy. If discounting and price cutting would not be appropriate, explain.

(4) Briefly explain the distribution strategy for this product: how does it fit with the designated target market? Is there an incongruency with the store or other outlet?

This paper needs an introduction, subheadings throughout, and a conclusion.

References:

Florissen, Andreas; Maurer, Boris; Schmidt, Bernhard; & and Vahlenkamp, Thomas (2001, August). The race to the bottom: When industries deregulate, their managers face unfamiliar challenges. Price wars are often the unfortunate—and unnecessary—result. McKinsey Quarterly. McKinsey & Company.

Rafi, Mohammed Ditch the Discounts. Harvard Business Review; Jan/Feb2011, Vol. 89 Issue 1/2, p23-25, 3p, 2 Color Photographs
http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=56696805&site=ehost-live

Bertini, Marco, and Luc Wathieu, How to Stop Customers from Fixating on Price. Harvard Business Review Vol. 88 (May), p. 84-91 The race to the bottom
W
hen established companies launch a price war, they generally believe that prices will eventually rise again. But psychologically and practically, price increases can be much trickier than price cuts. Throw a stubborn attacker into the mix, and incumbents can find themselves trapped in unsustainable price structures. This article from 2001 shows companies how to analyze the four main factors in pricing decisions: competitors’ prices, switching rates, the value of customers, and costs to serve. These factors may seem obvious, but the authors’ time-tested ideas about them are not.

Available on 2011 March 17 at http://mkqpreview2.qdweb.net/PDFDownload.aspx?ar=1078
Hill, Dan (2010 November 09). Hill-Pricng-MktProfs.doc. Seven Reasons Why Leading With Price Will Kill Your Advertising, Your Branded Offers—and Your Company, Marketing Profs.

Henricks, Mark (2010 November 19). Price-Cutting Peril: Do You Know What You’re Doing — Really? The Debunker. BNet.
Do you think that lowering prices will drive more customers to your business? Do this paper exercise first to make sure you really know what you’re doing. How many daily washes at $11.00 for each wash will you need to earn the dollar profit you are earning when you charge $12.50 for each wash?

Available on 2010 November 24 at http://www.bnet.com/blog/business-myths/price-cutting-peril-do-you-know-what-you-8217re-doing-8212-really/477?promo=857&tag=nl.e857
Distribution
With Its New Music Storage and Player, Can Amazon Deliver in the Cloud?
Published: May 11, 2011 in Knowledge@Wharton
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2768
JoS. A. Bank Clothiers, Inc.; JoS. A. Bank Clothiers Expands Its Internet Channel to Ship Orders to International Customers
Anonymous. Investment Weekly News. Atlanta: May 21, 2011. pg. 698 http://proquest.umi.com/pqdweb?did=2343121531&sid=1&Fmt=3&clientId=29440&RQT=309&VName=PQD
Berk, Christina Cheddar (2011 March 7). Here Comes the Bride, All Dressed by Costco. CNBC
Available on 2011 March 8 at http://www.cnbc.com/id/41950692

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