Your SlideShare is downloading. ×
Product and Pricing Strategies
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Product and Pricing Strategies

1,333

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,333
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
61
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 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

×