1. Business 100 Introduction to Business Dr. Kathy Broneck

2. Review Marketing Types of Markets Marketing Research Consumers

3. Preview Marketing a Product Branding Product Development Pricing a Product

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

5. 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

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

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

8. Packaging Protect Attract Describe Explain Warranties Price, Value, Uses

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

10. 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

11. New-Product Development Idea Generation Screening AnalysisDevelopment TestingCommercialize

12. Sales & Profits During the PLC

13. 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

14. Total Revenue or Total Cost Number of Units Breakeven Chart

15. 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 $2 @ 210,000 boxes at $3 @ 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

16. Personal “Barbie” Dolls Product Design Marketing Packaging Pricing

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