Adriene TOPIC 4: Warehouse & Transportation One way that manufacturers can redu

Sep 1, 2021 | business & finance / accounting


TOPIC 4: Warehouse & Transportation

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One way that manufacturers can reduce the price of a product is by decreasing the warehousing and transportation costs using the demand and inventory planning techniques discussed in Section 6.6 of the main text. This adds value to the customer.

Warehousing and transportation tends to be outsourced by most manufacturers so they don't have to develop those core competencies. Sometimes the warehousing or transportation channel member becomes the channel leader. 

Can you think of an example of a product for which the warehouse or the method of transportation is the channel leader? You might need to do a little web searching to find examples. Think creatively for both online delivery and physical delivery.

Any good or service that needs to be delivered to a customer, will need to be transported. Companies that transport goods to customers will use methods like air, rail, truck, water or pipeline (Principles of Marketing, 2015). One of the top leaders in the transportation industry is UPS. UPS is a global service used by companies and private deliveries. UPS allows people to go into a store and essentially ship anything (as long as the item is legal) to anyone, anywhere. These items will all be shipped through the same company as well. UPS has mastered the transportation market with the mass amount of capability. If the shipment falls within driving distance, UPS will ship the item between one party to another with the use of the company’s trucks. If the shipment falls within a larger distance, UPS will ship the products through the air in a plane owned by the company (UPS, n.d.).

Principles of Marketing. (2015). Creative Offerings. Retrieved September 20, 2020 from

UPS. (n.d.). Retrieved September 27, 2020 from



TOPIC 1: Pricing Strategies

Choose one of the pricing approaches and discuss the product, the pricing approach, and why you think it is the most appropriate approach for that particular product given your consumer characteristics. Be sure you understand the definition of your approach before tackling this topic. 

Prestige Pricing- “a pricing strategy in which prices are set at a high level, recognising that lower prices will inhibit sales rather than encourage them and that buyers will associate a high price for the product with superior quality; also called Image Pricing ("Prestige Pricing", 2018)”.

When I think of prestige pricing the first thing that comes to mind is designer bags, particular the Dior Canvas Tote bag. This bag retails from about $2300-$2500, but it is strictly because of the brand that it is made by. Now the bag is beautiful but it is made from a basic canvas material but its sublime crafting, and high class touch makes this basic worth it for certain consumers.

Just like the YouTube video in this week’s learning activities, the gentleman was reluctant to go get a $310 haircut but once he experienced a high level or service, care, the environment to match he suddenly deemed the price to be worth the end result because of the experience.


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