This document discusses pricing strategies over the different stages of a product's life cycle. It covers the introduction, growth, maturity, and decline stages. In the introduction stage, pricing strategies like skim pricing are used to target early adopters. In growth, prices may be lowered to attract more customers. Maturity brings increased competition, so differentiation and cost leadership are important. As demand declines, firms may adopt strategies like retrenchment, harvesting, or consolidation. The document provides examples and considerations for pricing in each life cycle stage.
Principles of Marketing - Pricing Strategies- Ch-11Sadril ASif
This document provides an overview of various pricing strategies. It discusses market-skimming pricing and market-penetration pricing, which set high and low initial prices respectively. It also covers product mix pricing like optional and two-part pricing. Additional strategies include segmented pricing based on customers, locations, or time periods. Promotional pricing uses tactics like discounts, rebates, or bundles to temporarily lower prices. The document outlines risks and considerations for international, geographical, and dynamic pricing as well. It concludes with a discussion of public policy, ethical issues, and compliance relating to pricing practices.
This document outlines different pricing strategies and concepts discussed in a chapter on pricing from a marketing textbook. It covers new product pricing strategies like market skimming and market penetration pricing. It also discusses product mix pricing strategies, price adjustment strategies, factors to consider when changing prices, and public policy issues related to pricing. The overall topic is pricing strategies and concepts for marketing products and services.
The document discusses various pricing strategies and concepts for companies to consider when developing their pricing approach. It covers 6 steps in setting price, including selecting a pricing objective, determining demand, estimating costs, analyzing competitors, selecting a pricing method, and choosing the final price. Some key pricing methods discussed are markup pricing, target-return pricing, and perceived-value pricing. The document also outlines price adaptation strategies companies can employ and how brands may respond to competitive price cuts.
The document discusses various pricing strategies used by companies. It describes strategies for pricing new products, such as market skimming pricing and market penetration pricing. It also discusses strategies for pricing multiple products, adjusting prices based on customers or locations, using promotions, and setting international prices. The goal is to maximize profits by understanding how to effectively set and adjust prices.
This document discusses various topics related to how retailers buy and manage their merchandise, including national brands and private labels. It covers how retailers negotiate with vendors for national brands, develop private label merchandise, source products globally, and manage legal and ethical issues in buying. Key points include the different types of private labels, global sourcing challenges, building strategic vendor partnerships, and laws around pricing, commercial bribery, and exclusive contracts.
This document discusses price management and pricing strategies. It defines price as the cost plus profit that a consumer is willing to pay. Pricing decisions are influenced by internal factors controlled by the company and external uncontrolled factors like demand, competition and legal regulations. The objectives of pricing include maximizing profits, market penetration, and flexibility. Pricing methods include cost-based methods, demand-based methods, and competition-based methods. For new products, companies may use skimming pricing, penetration pricing, or price discrimination. Pricing services also considers factors like the market structure, competitors' prices, and regulations.
This document discusses various pricing strategies and concepts. It begins by defining price and explaining that pricing strategies are designed for brands and commodities. It then provides details on 12 different pricing strategies including market skimming pricing, penetration pricing, competitive pricing, product line pricing, and geographical pricing. The document also covers price adjustment strategies such as discount pricing, segmented pricing, and psychological pricing. It concludes by discussing factors that influence price changes and how companies may respond to competitors' price changes.
This document discusses various competition-based pricing strategies that companies can use, including price leadership, predatory pricing, penetration pricing, skimming pricing, prestige pricing, price discrimination, and promotional pricing. It notes that price leadership involves a dominant firm setting prices that competitors then follow. Predatory pricing aims to drive out rivals but can be anti-competitive. Penetration pricing uses low initial prices to gain market share, while skimming pricing charges high initial prices for innovative products before competitors enter. The document also outlines advantages and disadvantages of competition-based pricing strategies.
Principles of Marketing - Pricing Strategies- Ch-11Sadril ASif
This document provides an overview of various pricing strategies. It discusses market-skimming pricing and market-penetration pricing, which set high and low initial prices respectively. It also covers product mix pricing like optional and two-part pricing. Additional strategies include segmented pricing based on customers, locations, or time periods. Promotional pricing uses tactics like discounts, rebates, or bundles to temporarily lower prices. The document outlines risks and considerations for international, geographical, and dynamic pricing as well. It concludes with a discussion of public policy, ethical issues, and compliance relating to pricing practices.
This document outlines different pricing strategies and concepts discussed in a chapter on pricing from a marketing textbook. It covers new product pricing strategies like market skimming and market penetration pricing. It also discusses product mix pricing strategies, price adjustment strategies, factors to consider when changing prices, and public policy issues related to pricing. The overall topic is pricing strategies and concepts for marketing products and services.
The document discusses various pricing strategies and concepts for companies to consider when developing their pricing approach. It covers 6 steps in setting price, including selecting a pricing objective, determining demand, estimating costs, analyzing competitors, selecting a pricing method, and choosing the final price. Some key pricing methods discussed are markup pricing, target-return pricing, and perceived-value pricing. The document also outlines price adaptation strategies companies can employ and how brands may respond to competitive price cuts.
The document discusses various pricing strategies used by companies. It describes strategies for pricing new products, such as market skimming pricing and market penetration pricing. It also discusses strategies for pricing multiple products, adjusting prices based on customers or locations, using promotions, and setting international prices. The goal is to maximize profits by understanding how to effectively set and adjust prices.
This document discusses various topics related to how retailers buy and manage their merchandise, including national brands and private labels. It covers how retailers negotiate with vendors for national brands, develop private label merchandise, source products globally, and manage legal and ethical issues in buying. Key points include the different types of private labels, global sourcing challenges, building strategic vendor partnerships, and laws around pricing, commercial bribery, and exclusive contracts.
This document discusses price management and pricing strategies. It defines price as the cost plus profit that a consumer is willing to pay. Pricing decisions are influenced by internal factors controlled by the company and external uncontrolled factors like demand, competition and legal regulations. The objectives of pricing include maximizing profits, market penetration, and flexibility. Pricing methods include cost-based methods, demand-based methods, and competition-based methods. For new products, companies may use skimming pricing, penetration pricing, or price discrimination. Pricing services also considers factors like the market structure, competitors' prices, and regulations.
This document discusses various pricing strategies and concepts. It begins by defining price and explaining that pricing strategies are designed for brands and commodities. It then provides details on 12 different pricing strategies including market skimming pricing, penetration pricing, competitive pricing, product line pricing, and geographical pricing. The document also covers price adjustment strategies such as discount pricing, segmented pricing, and psychological pricing. It concludes by discussing factors that influence price changes and how companies may respond to competitors' price changes.
This document discusses various competition-based pricing strategies that companies can use, including price leadership, predatory pricing, penetration pricing, skimming pricing, prestige pricing, price discrimination, and promotional pricing. It notes that price leadership involves a dominant firm setting prices that competitors then follow. Predatory pricing aims to drive out rivals but can be anti-competitive. Penetration pricing uses low initial prices to gain market share, while skimming pricing charges high initial prices for innovative products before competitors enter. The document also outlines advantages and disadvantages of competition-based pricing strategies.
Chapter 8a carefully select which sales presentation method to usebillclintonvn
The document discusses different sales presentation methods that a salesperson can use - memorized, formula, need-satisfaction, and problem-solution. It provides details on the characteristics and steps of each method. The key takeaways are that the salesperson must carefully select the presentation method based on their prior knowledge of the customer, the sales call objective, and their customer benefit plan in order to have an effective presentation.
Price is a key element of the marketing mix that generates revenue. It communicates the value of a product and is determined based on customer perceived value and costs. When setting prices, companies analyze factors like demand, costs, competition and select objectives like profit maximization. Appropriate pricing requires estimating demand curves and price elasticity to understand customer sensitivity.
The document discusses various factors and strategies companies consider when setting prices. It covers internal factors like costs, objectives, and competitors as well as external factors like demand, the market, and regulations. The document also outlines three main approaches to setting prices - cost-based, value-based, and competition-based - as well as various pricing strategies companies use like discounts, price discrimination, and adjusting prices.
This document summarizes key considerations for retail locations, including:
1) Various location types like freestanding sites, shopping centers, malls, and mixed-use developments each have advantages and disadvantages for retailers.
2) Factors like trade area size, occupancy costs, traffic patterns, and property restrictions influence location choices.
3) A retailer's target market size and density, as well as their product or service uniqueness, shape optimal location and retail strategy.
4) Legal issues like zoning, codes, licensing and signage also impact suitable retail locations.
There are two main pricing strategies for products in the introduction stage of the lifecycle: skimming and penetration. Skimming involves setting a high initial price for distinctively new products purchased by less price-sensitive customers, then lowering price over time. Penetration uses a low initial price for products where customers are highly price sensitive or competitors pose a strong threat. In the growth stage, companies face pressure to lower prices as more competitors and customers enter the market. During maturity, competitors are well-established and companies must cut prices to gain market share. In decline, companies can maintain prices by reducing costs if they have a strong reputation, cut prices to increase sales above break-even, or selectively raise prices for less price-sensitive
Product life cycle & marketing strategiesAmar Ingale
The document discusses the product life cycle and marketing strategies at different stages. It defines the product life cycle as having 5 stages: development, introduction, growth, maturity, and decline. Each stage poses different challenges and opportunities for sellers. The strategies discussed include penetrating pricing in introduction, expanding distribution in growth, modifying products/markets/marketing in maturity, and harvesting/divesting in decline.
This document discusses distribution channels and sales and distribution management. It defines distribution channels as sets of interdependent organizations that make products available for consumption. Effective distribution channels help address spatial, temporal, breaking bulk, assortment, and financial discrepancies between production and consumption. The key types of distribution channel members discussed are C&FAs, distributors, dealers, stockists, agents, wholesalers and retailers. The document also outlines different distribution strategies like intensive, selective and exclusive distribution.
The document discusses developing service concepts, including distinguishing core and supplementary elements. It describes augmenting the core product with supplementary services and delivery processes. Flowcharts can document the sequence of service delivery over time. The "Flower of Service" model identifies core products and two types of supplementary services - facilitating and enhancing. There are various branding alternatives for services. New services can be developed through reengineering processes, using physical goods as ideas, and research.
Consumer Behaviour and Retail Operations discusses key concepts in consumer behaviour and how they relate to retail operations. It defines consumer behaviour and explains why studying it is important for retailers. It describes the needs, wants, and demands that drive the consumer purchase process. It also summarizes models of consumer decision making, the factors that influence consumption, and segmentation strategies used by retailers. Overall, the document provides an overview of theoretical frameworks for understanding consumer motivation and decision making in a retail context.
Price is determined by several factors including costs, customer perceived value, and competition. There are three main approaches to pricing: cost-based pricing which adds a markup to costs, value-based pricing based on customer perceptions, and competition-based pricing which matches competitors' prices. Other pricing strategies include penetration pricing to gain market share, market skimming to extract profits from early adopters, loss leader pricing to attract customers, and psychological pricing to influence perceptions. Product line, bundle, and segmented pricing are also used to target different customer groups.
Pricing Products: Pricing Considerations and ApproachesMehmet Cihangir
The document discusses various considerations and approaches for setting prices. It identifies internal factors like costs, organizational structure, and marketing objectives, and external factors like demand, competitors' prices, and the economic environment. It contrasts three general pricing approaches: cost-based pricing which adds a markup to costs; value-based pricing which considers customers' perceived value; and competition-based pricing which sets prices relative to competitors.
This document outlines 10 key concepts about retailing, wholesaling, and logistics. It defines retailing and wholesaling, describes the major types of each, and explains how franchising works. It also discusses how market logistic decisions are made and trends in logistics, such as frequent deliveries, shorter order times, and customized packaging.
Kotler developing pricing strategies and programsJohn Muriango
This document discusses developing pricing strategies and programs. It begins with questions about how consumers evaluate prices and how companies should set and adapt prices. It then covers topics like how the internet has changed pricing, common pricing mistakes, consumer psychology around pricing, estimating costs, competitor price analysis, different pricing methods, selecting a final price, price discounts and changes, and how to respond to competitive pricing changes. The goal is to help companies determine the optimal ways to set, adjust, and manage their prices.
designing of distribution strategy, distribution marketing, distribution channel, marketing channel, channel sales, distribution channel management.
All this method is useful for business to retailers and retailers to the customer.
The document discusses the marketing mix, which consists of the 4 P's - product, price, place, and promotion. It defines each P and provides examples. For product, it explains the product mix, product line, and product life cycle. It also covers branding, packaging, and the new product development process. For price, it discusses objectives and methods of pricing like cost-based, customer-oriented, and competition-oriented pricing. The marketing mix is the combination of marketing elements that a company uses to achieve its goals in the target market.
Retailers must make competent decisions about what merchandise to buy, how much to buy, and when to buy it. The merchandise selection communicates the type of company to consumers and allows stores to differentiate themselves. Merchandise management focuses on planning and controlling retailer inventories by balancing financial requirements with a merchandise purchasing strategy. It involves acquiring, handling, and monitoring merchandise categories for a retail organization. Retailers use various methods to plan and calculate inventory levels like basic stock, percentage variation, weeks' supply, and stock-to-sales methods. Visual merchandising is the art of product presentation that puts merchandise in focus to educate and create desire in customers.
This document discusses marketing channels and their evolution. It describes how marketing channels link producers to buyers, influence pricing strategies, and customize services. It then outlines the historical development of marketing channels from agricultural to industrial systems and the rise of independent intermediaries. Finally, it categorizes possible channel formats that are product-driven, seller-driven, or service-driven and lists the functions performed by marketing channels.
Personal selling involves one-on-one communication to sell products or services. It plays a dominant role in industrial firms but a smaller role in other firms. Personal selling differs from other promotions in allowing immediate feedback. When determining the role of personal selling, firms examine alternatives and their effectiveness and cost. Personal selling has evolved from simply providing offerings to collaborating with customers to create customized solutions. It is an important part of relationship marketing and integrated marketing communications.
Chapter 7- Pricing Over the Product Life Cycle.pptxShane Fillan
The document discusses pricing strategies over a product's life cycle. It describes the four stages as development, growth, maturity, and decline. In development, the goal is educating buyers about a new product's value through trial promotions or direct sales. In growth, prices may be reduced to gain market share. In maturity, competition increases and buyers are price sensitive, so firms focus on cost control and expanding product lines. In decline, strategies include retrenchment, harvesting, or consolidation to strengthen position.
Chapter 8a carefully select which sales presentation method to usebillclintonvn
The document discusses different sales presentation methods that a salesperson can use - memorized, formula, need-satisfaction, and problem-solution. It provides details on the characteristics and steps of each method. The key takeaways are that the salesperson must carefully select the presentation method based on their prior knowledge of the customer, the sales call objective, and their customer benefit plan in order to have an effective presentation.
Price is a key element of the marketing mix that generates revenue. It communicates the value of a product and is determined based on customer perceived value and costs. When setting prices, companies analyze factors like demand, costs, competition and select objectives like profit maximization. Appropriate pricing requires estimating demand curves and price elasticity to understand customer sensitivity.
The document discusses various factors and strategies companies consider when setting prices. It covers internal factors like costs, objectives, and competitors as well as external factors like demand, the market, and regulations. The document also outlines three main approaches to setting prices - cost-based, value-based, and competition-based - as well as various pricing strategies companies use like discounts, price discrimination, and adjusting prices.
This document summarizes key considerations for retail locations, including:
1) Various location types like freestanding sites, shopping centers, malls, and mixed-use developments each have advantages and disadvantages for retailers.
2) Factors like trade area size, occupancy costs, traffic patterns, and property restrictions influence location choices.
3) A retailer's target market size and density, as well as their product or service uniqueness, shape optimal location and retail strategy.
4) Legal issues like zoning, codes, licensing and signage also impact suitable retail locations.
There are two main pricing strategies for products in the introduction stage of the lifecycle: skimming and penetration. Skimming involves setting a high initial price for distinctively new products purchased by less price-sensitive customers, then lowering price over time. Penetration uses a low initial price for products where customers are highly price sensitive or competitors pose a strong threat. In the growth stage, companies face pressure to lower prices as more competitors and customers enter the market. During maturity, competitors are well-established and companies must cut prices to gain market share. In decline, companies can maintain prices by reducing costs if they have a strong reputation, cut prices to increase sales above break-even, or selectively raise prices for less price-sensitive
Product life cycle & marketing strategiesAmar Ingale
The document discusses the product life cycle and marketing strategies at different stages. It defines the product life cycle as having 5 stages: development, introduction, growth, maturity, and decline. Each stage poses different challenges and opportunities for sellers. The strategies discussed include penetrating pricing in introduction, expanding distribution in growth, modifying products/markets/marketing in maturity, and harvesting/divesting in decline.
This document discusses distribution channels and sales and distribution management. It defines distribution channels as sets of interdependent organizations that make products available for consumption. Effective distribution channels help address spatial, temporal, breaking bulk, assortment, and financial discrepancies between production and consumption. The key types of distribution channel members discussed are C&FAs, distributors, dealers, stockists, agents, wholesalers and retailers. The document also outlines different distribution strategies like intensive, selective and exclusive distribution.
The document discusses developing service concepts, including distinguishing core and supplementary elements. It describes augmenting the core product with supplementary services and delivery processes. Flowcharts can document the sequence of service delivery over time. The "Flower of Service" model identifies core products and two types of supplementary services - facilitating and enhancing. There are various branding alternatives for services. New services can be developed through reengineering processes, using physical goods as ideas, and research.
Consumer Behaviour and Retail Operations discusses key concepts in consumer behaviour and how they relate to retail operations. It defines consumer behaviour and explains why studying it is important for retailers. It describes the needs, wants, and demands that drive the consumer purchase process. It also summarizes models of consumer decision making, the factors that influence consumption, and segmentation strategies used by retailers. Overall, the document provides an overview of theoretical frameworks for understanding consumer motivation and decision making in a retail context.
Price is determined by several factors including costs, customer perceived value, and competition. There are three main approaches to pricing: cost-based pricing which adds a markup to costs, value-based pricing based on customer perceptions, and competition-based pricing which matches competitors' prices. Other pricing strategies include penetration pricing to gain market share, market skimming to extract profits from early adopters, loss leader pricing to attract customers, and psychological pricing to influence perceptions. Product line, bundle, and segmented pricing are also used to target different customer groups.
Pricing Products: Pricing Considerations and ApproachesMehmet Cihangir
The document discusses various considerations and approaches for setting prices. It identifies internal factors like costs, organizational structure, and marketing objectives, and external factors like demand, competitors' prices, and the economic environment. It contrasts three general pricing approaches: cost-based pricing which adds a markup to costs; value-based pricing which considers customers' perceived value; and competition-based pricing which sets prices relative to competitors.
This document outlines 10 key concepts about retailing, wholesaling, and logistics. It defines retailing and wholesaling, describes the major types of each, and explains how franchising works. It also discusses how market logistic decisions are made and trends in logistics, such as frequent deliveries, shorter order times, and customized packaging.
Kotler developing pricing strategies and programsJohn Muriango
This document discusses developing pricing strategies and programs. It begins with questions about how consumers evaluate prices and how companies should set and adapt prices. It then covers topics like how the internet has changed pricing, common pricing mistakes, consumer psychology around pricing, estimating costs, competitor price analysis, different pricing methods, selecting a final price, price discounts and changes, and how to respond to competitive pricing changes. The goal is to help companies determine the optimal ways to set, adjust, and manage their prices.
designing of distribution strategy, distribution marketing, distribution channel, marketing channel, channel sales, distribution channel management.
All this method is useful for business to retailers and retailers to the customer.
The document discusses the marketing mix, which consists of the 4 P's - product, price, place, and promotion. It defines each P and provides examples. For product, it explains the product mix, product line, and product life cycle. It also covers branding, packaging, and the new product development process. For price, it discusses objectives and methods of pricing like cost-based, customer-oriented, and competition-oriented pricing. The marketing mix is the combination of marketing elements that a company uses to achieve its goals in the target market.
Retailers must make competent decisions about what merchandise to buy, how much to buy, and when to buy it. The merchandise selection communicates the type of company to consumers and allows stores to differentiate themselves. Merchandise management focuses on planning and controlling retailer inventories by balancing financial requirements with a merchandise purchasing strategy. It involves acquiring, handling, and monitoring merchandise categories for a retail organization. Retailers use various methods to plan and calculate inventory levels like basic stock, percentage variation, weeks' supply, and stock-to-sales methods. Visual merchandising is the art of product presentation that puts merchandise in focus to educate and create desire in customers.
This document discusses marketing channels and their evolution. It describes how marketing channels link producers to buyers, influence pricing strategies, and customize services. It then outlines the historical development of marketing channels from agricultural to industrial systems and the rise of independent intermediaries. Finally, it categorizes possible channel formats that are product-driven, seller-driven, or service-driven and lists the functions performed by marketing channels.
Personal selling involves one-on-one communication to sell products or services. It plays a dominant role in industrial firms but a smaller role in other firms. Personal selling differs from other promotions in allowing immediate feedback. When determining the role of personal selling, firms examine alternatives and their effectiveness and cost. Personal selling has evolved from simply providing offerings to collaborating with customers to create customized solutions. It is an important part of relationship marketing and integrated marketing communications.
Chapter 7- Pricing Over the Product Life Cycle.pptxShane Fillan
The document discusses pricing strategies over a product's life cycle. It describes the four stages as development, growth, maturity, and decline. In development, the goal is educating buyers about a new product's value through trial promotions or direct sales. In growth, prices may be reduced to gain market share. In maturity, competition increases and buyers are price sensitive, so firms focus on cost control and expanding product lines. In decline, strategies include retrenchment, harvesting, or consolidation to strengthen position.
The product life cycle progresses through four stages: introduction, growth, maturity, and decline. In the introduction stage, firms focus on building awareness, branding, and distribution. In the growth stage, firms build preference and market share while maintaining quality. In the maturity stage, competition increases as firms defend market share through differentiation and pricing. In the decline stage, firms may rejuvenate, harvest, or discontinue the product.
This document discusses product and pricing decisions. It defines what a product is and describes different levels and classifications of products. It then explains the new product development process, from idea generation to commercialization. The document also covers managing new product development through different strategies. It introduces the concept of product life cycle and different strategies used in each stage. Finally, it discusses pricing decisions, factors to consider when setting price, and various pricing approaches and strategies.
Michael Porter identified three generic strategies for gaining competitive advantage: cost leadership, differentiation, and focus. Cost leadership involves having the lowest costs in the industry. Differentiation means creating unique product attributes that are valued by customers. Focus involves targeting a narrow customer segment and achieving either cost advantages or differentiation within that segment. Firms pursuing each strategy require different internal strengths and face different risks from competitors.
The document discusses new product development and a product's life cycle. It describes the typical stages in new product development as idea generation, screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, and commercialization. It also outlines the stages in a product's life cycle as development, introduction, growth, maturity, and decline. The document provides strategies for marketing a product through each stage of its life cycle.
The document discusses various marketing strategies for entering new markets as either a pioneer or late entrant. It notes that pioneers typically have significant market share advantages but can lose their lead if they become complacent. Late entrants can succeed through distinctive positioning or by taking advantage of gaps in pioneers' offerings. The strategies discussed include reducing price, improving products/services through niche targeting, entering new geographic markets, and developing new distribution channels.
The document discusses product mix strategies and the product life cycle. It defines a product mix as the set of all products offered for sale by a company, with dimensions of breadth (different product lines) and depth (varieties within lines). Product lines are groups of similar products. Strategies for managing a product mix include positioning, expansion, alteration, contraction, and trading up/down. The product life cycle model describes stages of introduction, growth, maturity, and decline that typical products experience over time.
The product life cycle theory describes the typical stages a product goes through from introduction to decline. The stages are introduction, growth, maturity, and decline. During introduction, a product is new to the market and the goal is raising awareness through advertising. In the growth stage, production increases and competition grows as sales momentum builds. The maturity stage sees slower sales growth and increased competition, requiring more promotion to maintain market share. Finally, the decline stage occurs when sales begin decreasing to the point of obsolescence. The goal of life cycle management is to maximize value and profitability at each stage through appropriate marketing strategies.
This document discusses pricing strategies over a product's life cycle. It outlines the four stages of a product life cycle: introduction, growth, maturity, and decline. For each stage, it provides pricing strategies and considerations. For example, in the introduction stage prices can be set high if the product is unique, or low to attract customers and compete if the market already has alternatives. In maturity, discounts and promotions can create curiosity to combat saturation. The goal is to understand how pricing impacts sales and profits at each phase of a product's time in the market.
The document discusses the product life cycle model, which describes the stages through which products typically pass from introduction to decline. It outlines the four main stages: introduction, growth, maturity, and decline. Each stage presents different challenges and opportunities for product marketing, pricing, distribution, and finances. The introduction stage focuses on promotion to raise awareness. Growth involves expanding market share. Maturity sees increasing competition and price wars. Decline requires cost control and withdrawing weak variations. The concept helps understand competition dynamics over a product's lifetime.
The document discusses Porter's three generic strategies: cost leadership, differentiation, and focus. It provides details on each strategy, including the strengths companies need to successfully implement each one and risks involved. It gives examples of companies like McDonalds, Apple, Medimix, and PepsiCo that have used cost leadership, differentiation, or focus strategies.
This document discusses pricing as part of the marketing mix. It begins with definitions of marketing management and pricing. Pricing objectives aim to achieve organizational goals like profits or market share. Price is determined based on customer benefits and perceptions of value. Companies consider cost-based, need-based, and market-based approaches to set prices. The conclusion emphasizes that price should relate to customer perceived value of product benefits.
The document discusses the marketing strategy for launching a new product by Mobile Manufacturing Inc. It outlines the key elements of the marketing mix - product, price, place, and promotion. For the product, it recommends a thorough analysis of the lifecycle. For price, it recommends a penetration pricing strategy to gain market share. For promotion, it suggests an integrated approach using various channels. For place, it recommends focusing on youth and early adopters. The marketing strategy aims to aid Mobile Manufacturing in gaining market penetration in overseas markets as well.
1556258761147_Product Development ceutics.pptxHafsaKhan950550
This document outlines the new product development process, including the key stages from idea generation through commercialization. It discusses strategies for new product development such as being customer-centered, using cross-functional teams, and taking a systematic approach. The document also explains the product lifecycle model, describing the typical stages of introduction, growth, maturity, and decline that products progress through.
The document discusses the product life cycle, which comprises four stages: introduction, growth, maturity, and decline. It provides details about each stage, including characteristics of the product, sales trends, costs, competition levels, and implications for the marketing mix of product, price, placement, and promotion. The life cycle concept is useful for managers to forecast sales and plan marketing strategies as a product progresses through different stages over time.
The product life cycle has four main stages: introduction, growth, maturity, and decline. During the introduction stage, the objective is to attract early adopters with strategies like rapid or slow skimming. In the growth stage, competition increases and strategies focus on expanding distribution and product lines. The maturity stage sees sales and profits stabilize as the market becomes saturated. In decline, sales decrease due to factors like new technologies, and strategies aim to cut costs or terminate the product.
Unique luggages has faced increased competition after decades as the leader in the moulded luggage market. To defend its position, it has implemented strategies including continuing product augmentation, proliferating low-priced models, trade pushes and sales promotions, and expansion and diversification. While these strategies help, the company could also consider market integration, test markets, a total market strategy, first entry markets, product repositioning, and product design strategies to better adapt to changes. Suggestions include setting up a creative team, more advertising/research, recruiting talent, experimenting, and improving branding.
The document discusses the product life cycle, which outlines the typical stages a product goes through from introduction to decline. It identifies five key stages: research, introduction, growth, maturity, and decline. Each stage presents different challenges and opportunities for marketing, financing, manufacturing and more. Examples are provided to illustrate common products at each phase of the life cycle.
Similar to Chapter-7-Pricing-Over-the-Product-Life-Cycle.pptx (20)
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
2. CHAPTER 7
Pricing Over the Product Life Cycle
Prepared by:
Group 1
Alcoriza, Marysol
David, Kristine Jane
Eleponga, Alyana
Insigne, Joyce
Liwag, Niño Jose
Vecinal, Vhalene
Verroya, Maris
3. Objectives
LO1 Discuss the rationale behind the marketing
concept of product life cycles
LO2 Explain key pricing considerations and
strategies relative to the product life cycle.
7. New Products and the Product Life
Cycle
Two reasons that makes new product pricing especially
important:
• New products represent a primary source of organic
volume and profit growth and avoiding pricing mistakes
can have both short and long-term impact on financial
performance.
• New product launch creates an excellent opportunity to
reengage with customers to change what and how they
purchase.
8. Pricing the Innovation for Market
Introduction
An innovation is a product so new and unique that
buyers find the concept somewhat foreign.
9. Recognition of diffusion process is extremely
important in formulating pricing strategy for two reasons:
When information must diffuse through a population of
potential buyers, the long-run demand for an
innovative product at any time in the future depends on
the number of initial buyers.
The early adopters are people particularly suited to
evaluate the product before purchase.
Pricing the Innovation for Market
Introduction
10. Communicating Value with Direct
Sales
Education usually involves a direct sales force trained to
evaluate buyers’ needs for innovations that involve a large
dollar expenditure per purchase.
11. Marketing Innovations through
Distribution Channels
Innovative products that are sold indirectly through
channels of distribution do not have sufficiently
large sales per customer to make direct selling
practical. The problem of educating buyers and
minimizing their risk does not go away when the
product is handed over to a distributor
12. Pricing New Products for Growth
Once a product concept gains a foothold in the
marketplace, the pricing problem begins to change.
In growth, the buyer’s concern about the product’s
utility begins to give way to a more calculating
concern about the cost and alternative brands.
13. Two Marketing Strategies
Differentiated Product Strategy
Cost Leadership Strategy
Pricing New Products for Growth
14. Pricing within a Differentiated
product strategy
The role of pricing in differentiated product strategy is to collect
the rewards from producing attributes that buyers find uniquely
valueable.
Ex. Skim pricing
- Godiva (chocolate), BMW (automobiles), and Gucci
(apparel), use skim pricing to focus their differentiated product
strategies.
15. Skim pricing/Price skimming a pricing strategy that
set new product price high and subsequently
lowers them as competitors enter the market.
Penetration pricing is also possible for a
differentiated product, this is common in industrial
products.
- Microsoft used penetration pricing to ensure
that its product became the dominant architecture
and default standard for software application
programmers.
16. Pricing within a Cost-leadership
Strategy
The firm directs its marketing efforts toward becoming a
low-cost producer. In growth, the firm must focus on
developing a product that it can produce at minimum
cost, usually but not necessarily by making the product
less differentiated. The firm expects that its lower cost
will enable it to profit despite competitive pricing.
Ex. Penetration pricing
- Japanese manufacturers used this to exploit
their cost advantages and dominate world markets for
TV sets.
17. Price Reductions in Growth
The best price for the growth stage, regardless of
one’s product strategy, is normally less than the
price set during the market development
In most cases, new competition in the growth stage
gives buyers more alternatives from which to
choose. The growth stage is characterized by a
rapidly expanding sales base. New firms can
generally enter and existing ones expand without
forcing their competitors’ sales to contract. stage.
18. Pricing the Established Product in
Maturity
A typical product spends most of its life in maturity,
the phase in which effective pricing is essential for
survival. Earning a profit in maturity hinges on
exploiting whatever latitude one has.
19. Pricing latitude is further reduced by the following
factors that increase price competition as the market
moves form growth to maturity:
the accumulated purchase experience of repeat buyers
improves their ability to evaluate and compare competing
products, reducing brand loyalty and the value of a
brand’s reputation.
the imitation of the most successful product designs,
technologies, and marketing strategies reduces product
differentiation, making various brands of different firms
more directly competitive with one another.
And buyers’ increased price sensitivity and the lower risk
that accompanies production of a proven standardized
product attract new competitors whose distinctive
competence is efficient production and distribution of
commodity products.
20. Unbundling Related Products and
Services
The goal in the market development stage is to
make it easy for the potential buyers to try the
product and experience its benefits. In growth, it
makes sense for the leading forms to continue
bundling products for a different reason because the
bundle make it more difficult for competitors to enter.
21. Improved Estimation of Price
Sensitivity
In maturity, when the source of demand is repeat
buyers and when competition becomes more stable,
one may better gauge the incremental revenue from
a price change and discover that a little fine tuning
of price can significantly improve profits.
22. Improved Control and Utilization
Costs
As the number of customers and product variations
increases during the growth stage, a firm may
justifiably allocate cost among them arbitrarily.
23. Expansion of the Product Line
Although increased competition and buyer sophistication in the
maturity phase erode one’s pricing latitude for the primary
product, the firm may be able to leverage its position to sell
peripheral goods or services that it can price more profitability
by expanding its product line.
24. Re-evaluation of Distribution
Channels
Finally, in the transition to maturity, most
manufacturers begin to reevaluate their wholesale
prices with an eye to reducing dealer margins.
There is no need in maturity to pay dealers to
promote the product to new buyers.
25. Pricing a Product in Market
Decline
The goal of strategy in decline is not to win anything;
for some it is to exit with minimum losses. For others
the goal is simply to survive the decline with their
competitive positions intact and perhaps
strengthened by the experience.
26. There are three general strategic approaches that
can be adopted in a declining market, they are:
Retrenchment;
Harvesting; or
Consolidation.
Alternatives Strategies in Decline
27. Retrenchment is a carefully planned and executed
strategy to put the firm in a more viable competitive
position, not to stave off collapse.
28. Harvesting strategy is a phased withdrawal from
an industry. It begins like retrenchment with
abandonment of the weakest links. The goal of
harvesting is not a smaller, more defensible
competitive position but a withdrawal from the
industry.
29. Consolidation strategy is an attempt to gain a
stronger position in a declining industry. Such a
strategy is a viable only for a firm that begins the
decline in a strong financial position, enabling it to
weather the storm that forces its competitors to flee.
Products, like people, typically pass through predictable phases. A product is conceived and eventually “born;” it “grows” as it gradually gains in buyer acceptance, eventually it “matures” as it attains full buyer acceptance, and then it ultimately “dies” as it is discarded for something better. There are, of
course, exceptions to this process. Death sometimes comes prematurely, dashing expectations before they even begin to materialize; youth sometimes extends inordinately, deceiving the unwary into thinking it can last forever. Still, the exceptions notwithstanding, the typical life pattern affords managers a chance to understand the present and anticipate the future of most products. Such understanding, anticipation, and preparation make up a firm’s long-run strategic plan. Profitable pricing is the bottom line measure of that plan’s success.
The market defined by the introduction of a new product evolves through four phases: development, growth, maturity, and decline, as Exhibit 7-1 illustrates.
In each of its phases, the market has a unique personality. Accordingly, one’s pricing strategy must vary if it is to remain appropriate, and one’s tactics
must vary if they are to remain effective.
This lesson will cover the market defined by the introduction of a new product and how it develops through the four phases. These phases are:
Development/Introduction;
Growth;
Maturity; and
Decline.
In each of these phases, the market has a unique personality. Pricing strategy must vary if it is to remain appropriate, and tactics must vary if they are to remain effective.
New products play an integral, frequently misunderstood, role in the product life cycle. Every product cycle begins with the launch on an innovative new product. When Apple iPod first hit stores in 2002, it transformed the way that consumers purchased, stored, and consumed music. Today, the market for portable music players with electronic storage capacity is in the growth stage of the product life cycle with few signs of reaching maturity any time soon. Understanding the unique aspects of pricing new products, regardless of the stage of the life cycle, is crucial for a number of reasons.
First, new products represent a primary source of organic volume and profit growth, and avoiding pricing mistakes can have both short and long-term impact on financial performance. If priced too high at launch, a new product will fail to achieve the volume necessary to maintain short-term profitability. Conversely, if priced too low, a new product may achieve its volume targets while failing to deliver sufficient profits. The latter scenario, pricing too low at launch, can have long-term implications for future profit growth because existing products are the primary reference price for future products. As we explained in Chapter 6, customers with a low reference price will frame the purchase as a loss, leading to greater price sensitivity and lower willingness-to-pay.
Successful launches of innovations hinge upon the education process that customers undergo. Most of what individuals learn about innovative products comes from seeing and hearing about the experiences of others. The diffusion of that information from person to person has proved especially influential for large-expenditure items, such as consumer durables, where buyers take a significant risk the first time they buy an innovative product.
The attainment of initial sales is often the hardest part of marketing an innovation.
In many cases they are the also people to whom the later adopters, or imitators, look for guidance and advice.
The first refrigerators, for example, were sold door-to-door to reluctant buyers who did not yet know they needed such an expensive device. The salesperson’s job was to help buyers imagine the benefits that a refrigerator offered, beyond those that an ice chest was already capable of providing. Only then would those first buyers abandon tradition to make a large capital expenditure on new, risky technology.
Business buyers are equally skeptical of the value of new innovations.
The innovator must somehow convince the distributors who carry the product promote it vigorously. One way to do this is with low wholesale pricing to distributors. The purpose of low wholesale prices is to leave distributors and retailers with high margins, giving them an incentive to promote the product with buyer education and service.
Once a product concept gains a foothold in the marketplace, the pricing problem begins to change. Repeat purchasers are no longer uncertain of the product’s value since they can judge it from the previous experience. As competition begins to break out in the innovative industry, both the original innovator and the later entrants begin to assume competitive positions and prepare to defend them. In doing so, each must decide where it will place its marketing strategy on the continuum between a pure differentiated product strategy and a pure cost leadership strategy.
A differentiated product strategy may be focused on a particular buyer segment or directed at multiple segments. In either case, the role of pricing is to collect the rewards from producing attributes that buyers find uniquely valuable. If the differentiated product strategy is focused, the firm earns its rewards by skim pricing to the segment that values the product most highly
1. This is common in industrial products where a company may develop a superior piece of equipment, computer software, or service, but price it no more than the competition. The price is used to lock in a large market share before competitors imitate, and therefore eliminate, the product’s differential advantage. Although the Windows operating system is clearly a unique product, Microsoft used penetration pricing to ensure that its product became the dominant architecture and default standard for software application programmers
Like the differentiated product strategy, a cost leadership strategy can also be either focused or more broadly based. If a firm is seeking industry-wide cost leadership, penetration pricing often play an active role in the strategy’s implementation. When the source of the firm’s anticipated cost advantage depends on selling a large volume, it may set low penetration prices during growth to gain a dominant market share.
The growth stage will not precipitate aggressive price competition except when the production economies are large and the market is price-sensitive, the sales volume determines the industry standard, and when the growth of production capacity jumps ahead of the growth in sales.
In these cases, price competition can become bitter as firms sacrifice short-term profit during growth to ensure their profitability in maturity. The most profitable price strategies in growth are usually segmented whether or not pricing competition becomes intense. The logic behind this is that in the introduction phase, all customers are new to the market and technology is simple while in growth, customers naturally segment themselves between those who are coming new to the market and those who are knowledgeable and experienced purchasers. Additionally, different groups of customers emerging during the growth stage may receive different levels of value or have different costs-to-serve.
Many products fail to make the transition to market maturity because they failed to achieve strong competitive positions with differentiated products or a cost advantage. Pricing latitude is further reduced by the following factors increasing price competition as the market moves from growth to maturity:
All of these factors worked to reduce prices and margins for photocopiers during the early 1980s and for personal computers and peripherals during the 1990s. Effective pricing in maturity focuses on valiant efforts to buy market share but on making the most of whatever competitive advantages the firm has.
Even before industry growth is exhausted and maturity sets in, a firm does well to seek out opportunities to improve its pricing effectiveness to maintain its profits in maturity, despite increased competition among firms and increased sophistication among buyers. Fertile ground for such opportunities lies in the following areas:
As the market moves toward maturity, bundling normally becomes less a competitive defense and more a competitive invitation. Competitors imitate the differentiating aspects of products in the leading company’s bundle. This makes it easier for someone to develop just one superior part. In maturity, when the source of demand is repeat buyers and competition remains more stable, one may better gauge the incremental revenue form a price change and discover that a little fine tuning may significantly improve profits.
Given the instability of the growth stage of the life cycle, when new buyers and sellers are constantly entering the market, formal estimation of buyers’ price sensitivity is often a futile exercise.
Estimates of price-volume trade-offs during growth frequently rely on qualitative judgments and
experience from trial-and-error experimentation
The techniques for making such estimates of price sensitivity are outlined in Chapter 12.
In the transition to maturity, a more accurate allocation of incremental costs to sales may reveal opportunities to significantly increase profit. A careful cost analysis will identity those products and customers that are simply not carrying their weight.
The discounters who earlier could destroy one’s market development effort can in maturity ensure one’s competitiveness among price-sensitive buyers.
A downward trend in demand driven by customers adopting alternative solutions characterizes the market in decline. The effect of such trends on price depends on the difficulty the industry has in eliminating excess capacity.
The harvesting firm does not price to defend its remaining market share but rather to maximize its income. The harvesting firm may make short-term investments in the industry to keep its position from deteriorating too rapidly, but it avoids fundamental long-term investments, preferring instead to treat its competitive position in the declining market as a cash cow for funding more promising ventures in other markets.
A successful consolidation leaves a firm poised to profit after a shake-out, with a larger market share in a restructured less-competitive industry. Consolidation is the approach adopted by Nikon and Canon that recognized that the high-end market for art photography is likely to remain viable for may years. The lesson from the camera industry is that there are strategic choices that can improve even the worst phases of life cycles.