This lecture focuses on two of the 4 Ps of the marketing mix: product and price.

1. Product Development
& Pricing
Chapter 13

2. Pop quiz

3. M’m, m’m good.

4. that was easy

5. the every pain reliever

6. the computer is
personal again

7. it’s the real thing

8. Answers

9. M’m, m’m good.

11. that was easy

13. the every pain reliever

15. the computer is
personal again

17. it’s the real thing

20. Product Development
& Pricing Strategies
• Developing goods & services
• Branding
• New product development and the
marketing mix
• Pricing goods and services

21. Developing
Goods & Services

23. Coca Cola Commercial
• http://www.youtube.com/watch?v=EnUKurl7Fo

24. Diet Coke Commercial
• http://www.youtube.com/watch?v=rsyrbEyVAyU

25. Coke Zero
Commercial
• http://www.youtube.com/watch?v=j7LMZJ_Fb1g

26. • core product
• + actual product
• + augmented product
• total product offering

28. Product Differentiation

29. product line
vs.
product mix

30. Product mix:
• Combination of all product
lines offered for sale by a
company

31. Product line:
• A group of similar products
marketed to one general
market

32. Product Mix &
Product Lines

33. Branding

34. What is brand loyalty?

36. 1. Give your fans a name

37. (tattoo it on your body)

38. (tattoo it on your body)

39. 2. Develop shared symbols

40. 3. Make your customers
feel like rockstars

41. 4. Leverage social media

42. What is brand equity?

43. Brand equity:
• the overall value of a brand’s
strength in the market

44. What are the world’s
most valuable brands?
2011

45. $96 billion

46. $76 billion

47. $71 billion

48. $66 billion

49. $63 billion

50. $62 billion

51. $61 billion

52. $61 billion

53. $60 billion

54. $59 billion

55. 6
Branding Strategies

56. Generic Brands
a product that has no brand at all

57. Manufacturer’s Brand
a brand created by producers

58. Private Brand
a brand created by a distributor or middleman

59. Family Brand
many products under the same brand name

60. Individual Brand
a brand assigned to each product w/in product mix

61. Co-Brand
use of multiple brands with a single product

62. Brand Licensing

63. A good brand name is:

64. the importance of
brand packaging

65. the importance of
labeling

66. New Product
Development &
the Marketing Mix

69. Pricing

70. Pricing Strategies
• cost-based pricing
• demand-based pricing
• competition-based pricing
• alternative pricing strategies
• pricing skimming
• penetration pricing

71. Adjusting Prices
• quantity discounts
• cash discounts
• seasonal discounts
• rebates
• bundling
• dynamic pricing
• everyday low pricing (EDLP)

72. Group Project
Time
(Make good use of it!)