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

2. 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

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

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

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

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

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

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

9. 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.

10. Halaman 10 3. Create New Products  Fashion obsolescence  Technological obsolescene

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

12. 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

13. Halaman 13 4. Product Differentiation a. Unique Design b. Unique Packaging c. Unique Branding Producer brands Family brandingIndividual branding Store brands Generic brand Advantages of branding

14. Halaman 14 5. Price Determination Strategy a. Production Cost b. Stock availability c. Competitor Price Defensive pricing Penetration pricing Predatory pricing Price Elastic Prestige pricing Price Inelastic

15. 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

16. Halaman 16 6. Decision of Additional Price a. Discount b. Sale Price c. Credit Requirement