Halaman 1 Matakuliah: J0084 / Introduction to Management and Business Tahun: 2007 Versi: 1 / 3 Pertemuan 22 (Twensecond Meeting) Making and Determining Price

Halaman 2 Learning Outcome Student should be able to show product line, and product mix in relation to market target, and also calculate factors which affect price determination decision -> C3

Halaman 3 Learning Outline Background of Product Identify Market Target Create New Products Product Differentiation Price Determination Strategy Decision of Additional Price

Halaman 4 1. Background of Product: Convenience product Specialty product Shopping product

Halaman 5 a. Product Line b. Product Mix c. To Increase Product Ease d. Product Life Cycle

Halaman 6 Introduction phase Growth phase Maturity Decline phase Time Sales Volume Product Life Cycle

Halaman 7 2. To Identify Target Market Consumer Markets Industrial Markets

Halaman 8 a. Factors Influencing Target Market: 1) Demographics 2) Geography 4) Social values 3) Economic factors

Halaman 9 b. Using of E-Marketing to Broader Target Market Using internet to execute designing, price determination, distribution and promotion. E-marketing is a part of e-commerce: using electronic technology to execute various of business transaction, such as product selling and information acquisition concerning consumer more efficient.

Halaman Create New Products  Fashion obsolescence  Technological obsolescene

Halaman 11 a.Using Marketing Research to Create New Products b. Using Research and Development to Create New Products Intellectual property right

Halaman 12 c. Steps needed to Create New Product 1) Develop product idea 2) Evaluate properness of product idea 3) Design and test product 4) Distribute and promote product 5) Audit product

Halaman Product Differentiation a. Unique Design b. Unique Packaging c. Unique Branding Producer brands Family brandingIndividual branding Store brands Generic brand Advantages of branding

Halaman Price Determination Strategy a. Production Cost b. Stock availability c. Competitor Price Defensive pricing Penetration pricing Predatory pricing Price Elastic Prestige pricing Price Inelastic

Halaman 15 d. Break-Even Point Fix Cost Impasse quantity = Unit Price – Variable Cost For example: Fix cost = US $ 4.000,00 Unit price = US $ 1,80 Variable cost = US $ 0,60 US $ 4.000,0 Impasse quantity = US $ 1,80 – US $ 0,60 = 3.333

Halaman Decision of Additional Price a. Discount b. Sale Price c. Credit Requirement