Business 100 Introduction to Business Dr. Kathy Broneck

Review Marketing Types of Markets Marketing Research Consumers

Preview Marketing a Product Branding Product Development Pricing a Product

Product Development & Value Package Value- Total Product Offer Product Line Product Mix Product Differentiation

How Six Products Were First Marketed ProductTechnique Corn Flakes Mail Order Only Ragu Spaghetti Sauce Door-to-Door Tea Wrapped in Silk Bags Perforated Toilet Paper On The Street Noxzema Skin Cream As Sunburn Remedy Tabasco Sauce In Used Cologne Bottles

Mickey Mouse’s Product Mix Theme parks & resorts ABC Television Network TV & radio stations Film studios & production Video programs & licensing Consumer products Publishing

Marketing Classes of Goods & Services Consumer Convenience Shopping Specialty Unsought Industrial

Packaging Protect Attract Describe Explain Warranties Price, Value, Uses

Branding Brand & Trademark  Categories Manufacturers’ Knockoff Dealer/Private Generic Equity Loyalty Awareness Association

A Good Brand Name... Speaks directly to product’s target customers Attracts/motivates consumers to try it Is memorable/sticks in customers’ minds Is distinctive enough to protect it legally

New-Product Development Idea Generation Screening AnalysisDevelopment TestingCommercialize

Sales & Profits During the PLC

Pricing Objectives ROI Traffic Market Share Sales Image Social Cost-Based Value- Service Break-Even Fixed Cost Variable Cost Strategies Skim Penetration EDLP High-Low Market Forces

Total Revenue or Total Cost Number of Units Breakeven Chart

Pricing Using Breakeven Analysis Problem Should we charge $2 or $3 per box? Costs Total Fixed Costs$400,000 Costs Total Fixed Costs$400,000 Variable Cost$ 1 per box Market Research Forecast Company can sell: 290,000 boxes at 210,000 boxes at Breakeven point = total fixed cost price - variable cost (per unit) (per unit) $2 price = $400,000 = 400,000 units to breakeven $2 - $1 $3 price = $400,000 = 200,000 units to breakeven $3 - $1 Breakeven point = total fixed cost price - variable cost (per unit) (per unit) $2 price = $400,000 = 400,000 units to breakeven $2 - $1 $3 price = $400,000 = 200,000 units to breakeven $3 - $1 BreakevenAnalysis

Personal “Barbie” Dolls Product Design Marketing Packaging Pricing

Thinking Ahead How does your group plan to “market” your product? Branding? Packaging?