CHAPTER 10 PRODUCT STRATEGIES CHAPTER 10 PRODUCT STRATEGIES MKT531 PRODUCT MANAGEMENT GROUP NBMMF5A EN SHAMSUL BAHARIN SAIHANI NURAIDA BINTI MUHAMMAD NORAZMI BEN

WHAT IS PRICE? Price refer to certain observable component of a product that results in consumers purchasing or not purchasing and it directly affects margin per unit sold. Product managers make decisions about prices to charge intuitively and routinely, usually based on cost. Price is the only element in the marketing mix that produces revenue all other elements represent cost. Price is also one of the most flexible marketing mix elements. At the same time, pricing is the number one problem facing many marketing executives, and many companies do not handle pricing well.

PRICING TACTICS PRODUCT LINE PRICING Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors prices. For example, Rossignol offers seven different collections of alpine skis of all designs and sizes, at prices that range from $150 for its junior skis such as Fun Girl, to more than $1,100 for a pair from its Radical racing collection PRICE BUNDLING Using product bundle pricing, sellers usually combine several products and offer the bundle at a reduced price. For example, fast-food restaurants bundle a burger, fries, and a soft drink at a combo price.

ADVERTISING Advertising refers to any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. FUNCTIONS OF ADVERTISING / ADVERTISING OBJECTIVES INFORMATIVE ADVERTISING -Communicating customer value - Suggesting new uses for a product -Building a brand and company image - Correcting false impressions PERSUASIVE ADVERTISING -Building brand preference - Persuading customers to receive a sales call -Persuading customers to purchase now - Encouraging switching to a brand REMINDER ADVERTISING -Maintaining customer relationships -Reminding consumers where to buy the product

MEDIA MEDIUMADVANTAGESLIMITATIONS TelevisionGood mass-marketing coverage, low cost per exposure, combines sight, sound and motion. High absolute costs, high clutter, fleeting exposure, less audience selectivity. InternetHigh selectivity, low cost, interactive capabilities. Potentially low impact, the audience controls exposure. NewspapersFlexibility, timeliness, good local market coverage. Short life, poor reproduction quality, small pass-along audience RadioGood local acceptance, high geographic and demographic selectivity, and low cost Audio only, low attention OutdoorFlexibility, high repeat exposure and low cost Little audience selectivity

BRANDING Brand can defined as a name, term, sign, symbol, or design, or a combination of these. That identifies the products or services of one seller or group of sellers and differentiates them from those of competitors. Consumers view a brand as an important part of a product, and branding can add value to a consumers purchase. Customers attach meanings to brands and develop brand relationship. As a result, brands have meaning well beyond a products physical attributes.

PACKAGING Packaging involves designing and producing the container or wrapper for a product. Traditionally the primary function of the package was to hold and protect the product. The important of packaging consist of the elements such as on the use of color in packaging, have the ability to communicate many things to prospective buyers including quality, taste and the products ability to satisfy various psychological needs. Design and shape cues in packaging consist of design, line of package, shape, physical material in packaging and product information a package.

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