Essay Sample on Place and Price Analysis

Paper Type:  Essay
Pages:  4
Wordcount:  1013 Words
Date:  2022-11-11


According to (Cravens, 2011), the price is a significant component when a company markets its products. Cost is termed as the sum of money that the customers are required to pay after they are offered goods and services. In marketing determining the right price component of a product is very important in ensuring the company has a competitive advantage over its competitors.

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The place is also an essential component in ensuring the company products are availed to the final consumer through distribution and logistics plans. Place deals with the means through which the products will be moved from the manufacturer via the wholesalers/retailers and finally to the intended user (Westerbeek, 2012).In marketing determining the right place means having the right place strategy that will ensure the goods are availed to the final consumer at the shortest period of time and will ensure the company gets improved level of satisfaction in customers hence ensuring the company retains the customer and this provides they are increasing their profit levels within the organization.

Pricing Strategy

According to (Peter, et al 2013), the pricing strategy should be able to conform to the product's placing in the market and the resulting price, and it will cover the profit margins. Lower pricing hinders the growth of any business while high pricing singles out a company from other rival industries. Some of the pricing strategies I will discuss include.

"Cost Plus"

This is the process of taking the production cost depending on the perception of customers of the product value. The awareness of the buyer is reliant on the quality of the product, the image of the company.


The cost of a product or service is dependent on the quality and right specification of goods and services provided to the buyer and varies depending on the satisfaction of a specific customer in the market. So the company should ensure if they employ this strategy, they should consider offering quality products and services to restore the worth of the price they will indicate on each product.


The pricing strategies here will be determined by the power of competitors in the market. Companies always endeavor in defeating their rival companies by lowering their price if the price of the rival company is high. For example, if Tyson foods Inc. are selling chicken and full chips at $80, another company by the name Kraft Foods Inc. will result to lowering the price of the same meal by maybe making it $50., the primary motive will attract more customers hence increase sales.

The pricing strategies are more effective in selling set. In a free market price are set by demand and supply of commodities while in some markets the government influences the cost of goods and services since they have some shares in that company. Discounts and incentives is another strategy used by the company to lure customers into buying products and offering services that have stalled or in goods that are almost becoming obsolete. It helps in reducing inventory in the organization, by allowing the movement of stocks through sales.

Place Strategies

Place strategy deals with how an organization will distribute their product or service to the end customer. Efficient and effective distribution is vital in ensuring the company meets its objectives in marketing. A company can employ two distribution strategies; indirect and direct placement.

Indirect Distribution will involve several intermediaries before the goods reach the final consumer. For example, the retailer and wholesaler who make sure the products reach the final customer (Luca, 2013). Each component plays an integral role in the marketing field. The manufacturer is the person who makes the goods. Wholesalers sell goods to other businesses and not directly to the customer. Retailers will sell the products to the end customer. Direct distribution will deal with the final consumer directly, and no intermediaries are involved.

There are several places and supply strategies.

Concentrated Distribution: applies when the company wants to market cheap products, e.g., soft drinks.

Limited Distribution: applies when a company wants to market expensive products and also reducing the number of distribution outlets to a single outlet.

"Selective Supply": This involves reducing the number of retail outlets to specific outlets in strategic places in the marketplace. This type of supply involves electrical products and house appliances.

According to (Luca, 2013), creating an effective marketing plan involves having an appropriate place strategy. This will ensure there is a flow of goods from the point of manufacture to the marketplace where the client is. The location of the business should be strategic to allow customer easily access the company and if it will involve transportation ensure there is sufficient flow of goods and ensure they reach the customer at the shortest period. The buying decisions of a company depend on where its products are sold. Place strategy will be critical in ensuring the reduction of inventory in the organization, as the manufactured goods will be transported to the market quickly and the company can employ production method based on the number of demands placed (Westerbeek, 2012). An example of a company with such strategic plans includes Amazon which uses this strategy to market its products and also employs both online and offline methods. In terms of making a company have a competitive edge, the place will play a significant role in creating a good impression on its clients.


Place and Price plays a significant role in ensuring the organization has an effective marketing strategy and thee two components are essential in the four marketing mix. Effective and efficient place and price strategies are critical to ensuring the company thrives in this competitive business environment.


Cravens, D. W., & Piercy, N. (2011). Strategic marketing (Vol. 6). New York: McGraw-Hill.

Peter, J. P., Olson, J. C., & Grunert, K. G. (2013). Consumer behavior and marketing strategy (pp. 329-48). London: McGraw-Hill.

Luca, N. R., & Suggs, L. S. (2010). Strategies for the social marketing mix: A systematic review. Social Marketing Quarterly, 16(4), 122-149.

Westerbeek, H. M., & Shilbury, D. (2012). Increasing the focus on "place" in the marketing mix for facility dependent sports services. Sports Management Review, 2(1), 1-23.

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