Custom term paper on Strategic Marketing: Pricing and Distribution in Marketing Decisions

Ford Escort and Lexus are cars that belong to absolutely different segments of the market. Nevertheless, their pricing and distribution strategies are very important for the overall success of either product. At the same time, the strategy Ford and Lexus prefer for their cars may differ consistently because they have different target customer groups and their cars belong to different segments of the market. In addition, it is necessary to take into consideration the fact that Ford Escort and Lexus can use some common trends in developing their marketing pricing and distribution strategies. To put it more precisely, both Ford and Lexus can use internet and online distribution to reach their target customer group and to distribute their products successfully. In such a situation, Ford Escort and Lexus can use different pricing and distribution strategies but they can also use similar or identical media because they have to reach the target customer group and all media are applicable for Ford Escort and Lexus as long as they are effective.
Pricing strategy of Ford Escort and Lexus
The pricing strategy of Ford Escort and Lexus differs consistently because the two cars belong to absolutely different segments of the market and have different target customer groups. In fact, Lexus focuses on the premium segment of the market and the company can develop its products successfully in this segment of the market, whereas the turn to the lower segment of the market would lead to negative effects for the company because it would deteriorate its brand, which is traditionally associated with premium, luxurious cars. Hence, Lexus developed its pricing strategy respectively to the buying power of its target customer group. Lexus luxurious cars always had the high price but customers could enjoy luxurious cars for the price they paid.
In contrast, Ford Escort focused on the middle and lower-class customers. At any rate, the company has always attempted to make its cars available to a large customer group, which could afford paying a relatively low price for a good car, which, though, had nothing in common with luxurious car. Instead, Ford Escort was a democratic, simple vehicle of a good quality. At the same time, to make its car available to the mass audience, Ford had to set the affordable price, which average customers can pay to purchase a Ford Escort. In such a way, the pricing strategy of Ford Escort focused on minimization of costs to make the car affordable for the target customer group. custom term paper
At the same time, it is worth mentioning the fact that Lexus often attempted to raise the price of its cars due to their exclusiveness and uniqueness. Instead, Ford Escort attempted to sell its cars at affordable prices. As a result, Lexus attempted to earn maximum profits due to the high price, whereas Ford Escort attempted to maximize its profits due to the high sale rates of its cars.
Distribution strategy of Ford Escort and Lexus
The distribution strategy of Ford Escort and Lexus is also quite different because they have different marketing goals and target customer groups. To put it more precisely, the two cars focus on different segments of the market and Lexus cannot obviously use the same strategy of distribution as Ford Escort does. In fact, Ford Escort uses the strategy of mass distribution because the company focuses on the mass customer group. As a result, the company needs to deliver a large amount of cars to a possibly larger number of customers in time.
In stark contrast, Lexus offers customers exclusive, luxurious cars, which are often manufactured for specific customers with a large amount of specifications, which meet individual preferences of each customer. As a result, Lexus focuses on the customer-centered approach to the distribution because the company attempts to meet needs and wants of each customer. In fact, the distribution is not oriented on the mass customers as is the case of Ford Escort. Instead, Lexus focuses on needs of each individual customer that naturally limits its distribution. On the other hand, the pricing policy of the company makes Lexus’ vehicles unavailable for a considerable part of customers because they just cannot afford paying the high price for luxurious vehicles. In such a way, Lexus uses absolutely different strategy compared to Ford Escort.
Online distribution of Ford Escort and Lexus
At the same time, both companies, Ford and Lexus, can use the online distribution effectively, although each company should remember about specificities of their target customer group. What is meant here is the fact that the online distribution should meet needs and wants of the target customer group. In this regard, Ford Escort should use online promotion and distribution to attract a possibly larger number of customers. In fact, the online distribution should become a tool with the help of which the company can sell more cars to its target customer group and online distribution should facilitate the delivery of vehicles to customers.
In case of Lexus, the online distribution should provide customers with detailed information on vehicles the company can offer to its customers. Moreover, the online distribution should enhance the exclusiveness of vehicles sold to customers. What is meant here is the fact that the company should provide customers with the possibility to add as much specificities to the ordered vehicle as possible to reach the higher customer satisfaction.
Conclusion
Thus, it is obvious that the different position of Ford Escort and Lexus in the market, their focus on different customer groups define the difference in their pricing and distribution strategies. In this regard, Ford Escort focuses on the middle and lower-class customers, whereas Lexus focuses on the premium segment of the market and upper-class customers. In such a way, both companies attempt to reach their target customer group through their specific pricing and distribution strategies.