product and pricing strategies
DESCRIPTION
Product and Pricing Strategies. Product Characteristics. Fundamentals Decisions Pricing. The Product Continuum. Tangible Goods Products Intangible Services Ideas. Characteristics of Service Products. Intangible quality Perishable nature. Consumer Products. Convenience products - PowerPoint PPT PresentationTRANSCRIPT
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 1
Product and Pricing Product and Pricing StrategiesStrategies
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 2
Product CharacteristicsProduct Characteristics
• Fundamentals• Decisions• Pricing
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 3
The Product ContinuumThe Product Continuum
• Tangible –Goods–Products
• Intangible–Services– Ideas
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 4
Characteristics of Characteristics of Service ProductsService Products
• Intangible quality• Perishable nature
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 5
Consumer ProductsConsumer Products
• Convenience products• Shopping products• Specialty products• Unsought goods
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 6
Industrial ProductsIndustrial Products• Expense items– Short term• Pencils • Printer cartridges
• Capital items– Long term• Copy machines• Computers
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 7
Products and Their UsesProducts and Their Uses
• Raw materials• Components• Supplies• Installations• Services• Business equipment
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 8
The Product Life CycleThe Product Life Cycle
• Introduction• Growth• Maturity• Decline
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 9
New Product New Product DevelopmentDevelopment
1. Idea generation2. Idea screening3. Business analysis4. Prototype development5. Test marketing6. Commercialization
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 10
Idea GenerationIdea Generation
• Customers• Competitors• Employees
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 11
Idea ScreeningIdea Screening
• Industrial products–Feasibility study
• Consumer products–Concept testing
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 12
Business AnalysisBusiness Analysis
• Forecast sales• Estimate costs• Project profits
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 13
Prototype DevelopmentPrototype Development
• Packaging• Marketing mix• Production• Resources
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 14
Test MarketingTest Marketing
• Introduce the product• Monitor customer reactions
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 15
CommercializationCommercialization
• Production • Distribution
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 16
Product IdentitiesProduct Identities
• Branding• Packaging• Labeling
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 17
Branding ProductsBranding Products• Brand names• Brand marks• Trade marks• National brands• Private brands• Co-branding• Generic products
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 18
Product Line SelectionProduct Line Selection
Product Product ExpansionExpansion
Line filling Line extension Brand extension Line stretching
Product Product MixMix
Width Length Depth Risks and rewards
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 19
Product PositioningProduct Positioning
• Features• Services• Image• Price• Category
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 20
Product Positioning Product Positioning ErrorsErrors
• Under positioning• Over positioning• Confused positioning
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 21
International StrategiesInternational Strategies
• Standardization• Customization
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 22
Developing Pricing Developing Pricing StrategiesStrategies
• Marketing objectives• Government regulations• Consumer perceptions• Consumer demand
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 23
Cost-Based PricingCost-Based Pricing
Fixed costsSelling price per unit-Variable costs per unit
Break-EvenPoint =
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 24
Other Pricing StrategiesOther Pricing Strategies
• Price-based• Optimization• Skimming• Penetration
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 13 - 25
Price Adjustment Price Adjustment StrategiesStrategies
• Discount pricing• Bundling• Dynamic pricing