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Product and Pricing Strategies
Product and Pricing Strategies
Product and Pricing Strategies
Product and Pricing Strategies
Product and Pricing Strategies
Product and Pricing Strategies
Product and Pricing Strategies
Product and Pricing Strategies
Product and Pricing Strategies
Product and Pricing Strategies
Product and Pricing Strategies
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Product and Pricing Strategies

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  • 1. Product and Pricing Strategies © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 1 Product Characteristics Types of Products Stages of Products © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 2 The Product Continuum Goods Ideas Products Services Salt Shoes VCR Auto Fast Cruise Consulting Insurance Education Food Tangible Intangible Dominant Dominant © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 3 1
  • 2. Augmenting the Basic Product Augmented Product Delivery After-Sale and Credit Service Actual Product Brand Features Name Upgrades Core Benefits Accessories Quality Packaging Design Level Installation Warranty © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 4 Characteristics of Service Products Intangible Perishable Quality Nature © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 5 Consumer Products Convenience Shopping Products Products Specialty Unsought Products Products © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 6 2
  • 3. Industrial Products Expense Items Capital Items Short-Term Long-Term Printer Copy Pencils Computers Cartridges Machines © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 7 Products and Their Uses Raw materials Components Supplies Installations Equipment Business services © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 8 The Product Life Cycle Introduction Growth Maturity Decline In-Flight Digital Music DVD Players VCRs Internet Players Sales Volume (units) Service Sales + 0 Profits ± Time © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 9 3
  • 4. Product Makeovers Reinvigorated Designs Refreshed Marketing Efforts © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 10 New Product Development 1. Screening of ideas 2. Business analysis 3. Prototype development 4. Test marketing 5. Commercialization © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 11 Idea Generation Customers Competitors Employees © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 12 4
  • 5. Idea Screening Industrial Products Feasibility Study Consumer Products Concept Testing © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 13 Business Analysis Forecast Sales Estimate Costs Project Profits © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 14 Prototype Development Packaging Marketing Mix Production Resources © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 15 5
  • 6. Test Marketing Introduce the Product Monitor Customer Reactions © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 16 Commercialization Production Distribution Manufacturing Packaging Distribution Pricing Promotion © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 17 Product Identities Recognizing Products Marketing Products The Product Brand Specifying Products Valuing Products Unique Name, Company or Legal Protections Symbol or Design Organization Brand © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 18 6
  • 7. Branding of Products Equity Name Selection Sponsorship Brand Loyalty Brand Names National Brands Brand Awareness Brand Marks Private Brands Brand Preference Trademarks Generic Products Co-Branding Brand Insistence Public Domain and Licensing © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 19 Packaging and Labeling Function Strategy The Product Display Information Differentiation Inventory Control Appeal © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 20 Product Strategies Product Line Product Mix Product International Expansion Markets © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 21 7
  • 8. Product Line and Product Mix Goods or Risks or Width Length Depth Services Rewards Long-Term Strengths and Managerial Financial Retail Strategy Weaknesses Depth Resources Channel © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 22 Product Expansion Add Items in a Product Category Under the Same Brand Name Add New Products with the Same Product Name Apply a Successful Brand Name to a New Category Translate a Successful Brand in a Different Product Format © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 23 International Markets Exchange Government Standardization Rates Entry Language Requirements Tariffs and Consumer Trade Barriers Preferences Business Culture Customization Customs © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 24 8
  • 9. Product Positioning Features Size, ease of use, style Services Convenience, customer support Image Reliability, sophistication Price Low cost or premium Category Leading online seller © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 25 Product Positioning Errors Under Over Confused Positioning Positioning Positioning © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 26 Developing Pricing Strategies Marketing Government Objectives Regulations Quality Consumer Perceptions Demand © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 27 9
  • 10. Cost-Based Pricing Break-Even Analysis Less Than Break-Even More Than $$ Losses $$ Point $$ Profits $$ Fixed costs Selling price per unit-Variable costs per unit © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 28 Break-Even Point Haircuts at $20 Each © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 29 Break-Even Point Haircuts at $30 Each © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 30 10
  • 11. Other Pricing Strategies Price-Based Optimization Skimming Penetration © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 31 Price Adjustment Strategies Discount Pricing Bundling Dynamic Pricing © Prentice Hall, 2007 Excellence in Business, 3e Chapter 13 - 32 11

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