© Prentice Hall, 2007Excellence in Business, 3eChapter Product and Pricing Strategies

© Prentice Hall, 2007Excellence in Business, 3eChapter Types of Products Stages Product Characteristics

© Prentice Hall, 2007Excellence in Business, 3eChapter The Product Continuum Goods Products Ideas Services SaltShoesVCRAutoFast Food CruiseConsultingEducationInsurance Tangible Dominant Intangible Dominant

© Prentice Hall, 2007Excellence in Business, 3eChapter Augmenting the Basic Product Core Benefits Actual Product Brand Name Features Quality Level Design Packaging Augmented Product InstallationWarranty UpgradesAccessories Delivery and Credit After-Sale Service

© Prentice Hall, 2007Excellence in Business, 3eChapter Characteristics of Service Products IntangibleQualityIntangibleQualityPerishableNaturePerishableNature

© Prentice Hall, 2007Excellence in Business, 3eChapter Consumer Products SpecialtyProductsSpecialtyProducts ConvenienceProductsConvenienceProducts UnsoughtProductsUnsoughtProducts ShoppingProductsShoppingProducts

© Prentice Hall, 2007Excellence in Business, 3eChapter Industrial Products Expense Items Capital Items Pencils Printer Cartridges Printer Cartridges Computers Copy Machines Copy Machines Short-Term Long-Term

© Prentice Hall, 2007Excellence in Business, 3eChapter Products and Their Uses  Raw materials  Components  Supplies  Installations  Equipment  Business services

© Prentice Hall, 2007Excellence in Business, 3eChapter TimeIntroductionGrowthMaturityDecline In-Flight Internet Service Digital Music Players DVD PlayersVCRs +0 Sales Volume (units) Sales Profits The Product Life Cycle

© Prentice Hall, 2007Excellence in Business, 3eChapter Product Makeovers Reinvigorated Designs Reinvigorated Designs Refreshed Marketing Efforts Refreshed Marketing Efforts

© Prentice Hall, 2007Excellence in Business, 3eChapter Screening of ideas 2.Business analysis 3.Prototype development 4.Test marketing 5.Commercialization New Product Development

© Prentice Hall, 2007Excellence in Business, 3eChapter Idea Generation Customers Competitors Employees

© Prentice Hall, 2007Excellence in Business, 3eChapter Consumer Products Concept Testing Industrial Products Feasibility Study Idea Screening

© Prentice Hall, 2007Excellence in Business, 3eChapter Business Analysis Forecast Sales Estimate Costs Project Profits

© Prentice Hall, 2007Excellence in Business, 3eChapter Prototype Development PackagingPackaging Marketing Mix ProductionProduction ResourcesResources

© Prentice Hall, 2007Excellence in Business, 3eChapter Test Marketing Introduce the Product Monitor Customer Reactions

© Prentice Hall, 2007Excellence in Business, 3eChapter Commercialization Production Distribution Manufacturing Packaging Distribution Pricing Promotion

© Prentice Hall, 2007Excellence in Business, 3eChapter Product Identities Legal Protections Unique Name, Symbol or Design Unique Name, Symbol or Design Company or Organization Brand Company or Organization Brand The Product Brand The Product Brand Recognizing Products Specifying Products Marketing Products Valuing Products

© Prentice Hall, 2007Excellence in Business, 3eChapter Branding of Products EquityName SelectionSponsorship Brand Preference Brand Insistence Brand Loyalty Brand Awareness Trademarks Public Domain Brand Names Brand Marks Generic Products Co-Branding and Licensing Co-Branding and Licensing National Brands Private Brands

© Prentice Hall, 2007Excellence in Business, 3eChapter Packaging and Labeling Strategy Inventory Control The Product Information Appeal Display Differentiation Function

© Prentice Hall, 2007Excellence in Business, 3eChapter Product Strategies ProductExpansionProductExpansion Product Line InternationalMarketsInternationalMarkets Product Mix

© Prentice Hall, 2007Excellence in Business, 3eChapter Product Line and Product Mix Length Width Depth Strengths and Weaknesses Strengths and Weaknesses Long-Term Strategy Long-Term Strategy Managerial Depth Managerial Depth Financial Resources Financial Resources Retail Channel Retail Channel Goods or Services Risks or Rewards

© Prentice Hall, 2007Excellence in Business, 3eChapter Product Expansion Add Items in a Product Category Under the Same Brand Name Add New Products with the Same Product Name Translate a Successful Brand in a Different Product Format Apply a Successful Brand Name to a New Category

© Prentice Hall, 2007Excellence in Business, 3eChapter International Markets Entry Requirements Entry Requirements Government Tariffs and Trade Barriers Tariffs and Trade Barriers Culture Language Consumer Preferences Consumer Preferences Exchange Rates Exchange Rates Business Customs Business Customs Standardization Customization

© Prentice Hall, 2007Excellence in Business, 3eChapter Product Positioning Features Services Image Price Category Size, ease of use, style Convenience, customer support Reliability, sophistication Low cost or premium Leading online seller

© Prentice Hall, 2007Excellence in Business, 3eChapter Product Positioning Errors UnderPositioningOverPositioningConfusedPositioning

© Prentice Hall, 2007Excellence in Business, 3eChapter Developing Pricing Strategies QualityPerceptionsQualityPerceptions MarketingObjectivesMarketingObjectives ConsumerDemandConsumerDemand GovernmentRegulationsGovernmentRegulations

© Prentice Hall, 2007Excellence in Business, 3eChapter Break-Even Analysis Break-Even Point $$ Profits $$ More Than $$ Losses $$ Less Than Fixed costs Selling price per unit-Variable costs per unit Cost-Based Pricing

© Prentice Hall, 2007Excellence in Business, 3eChapter Break-Even Point Haircuts at $20 Each

© Prentice Hall, 2007Excellence in Business, 3eChapter Break-Even Point Haircuts at $30 Each

© Prentice Hall, 2007Excellence in Business, 3eChapter Other Pricing Strategies Price-Based Optimization Skimming Penetration

© Prentice Hall, 2007Excellence in Business, 3eChapter Price Adjustment Strategies Discount Pricing Bundling Dynamic Pricing