1. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 4

2. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Product and Price Planning 4.1 Product Development 4.2 Product Life Cycle 4.3 Price Planning 2 CHAPTER 4

3. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 4.1 Product Development Goals Identify the stages of new product development. Explain the various levels of products and the components that make up the product mix. Terms product mix product line trademark licensed brand 3 CHAPTER 4

4. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. It Starts with a Product New products Stages of new product planning Generate ideas Screen ideas Prepare a business analysis Develop a marketing strategy Develop and test the product Market the product 4 CHAPTER 4

5. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Product Mix Product levels Product mix components Product line Package and label Brand 5 CHAPTER 4

6. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 4.2 Product Life Cycle Goals Explain the stages of the product life cycle. Describe real-world applications of the product life cycle. Terms product life cycle brand extension intensive distribution obsolescence 6 CHAPTER 4

7. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. The Stages of a Product Introduction stage Brand extension Benefits and risks of brand extensions Growth stage Maturity stage Decline stage Marketing strategies for the decline stage Obsolescence 7 CHAPTER 4

8. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Real Strategies Using the Product Life Cycle Kinko’s BMW PepsiCo and Coca-Cola Blockbuster and Netflix 8 CHAPTER 4

9. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 4.3 Price Planning Goals Discuss pricing objectives used by businesses when setting prices. Compare and contrast pricing strategies. 9 CHAPTER 4

10. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 4.3 Price Planning Terms price skimming penetration pricing markdown price competition nonprice competition price equilibrium elastic demand inelastic demand consumer credit trade credit 10 CHAPTER 4

11. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Pricing Objectives Maximize profits Earn a return on investment Increase sales or market share Create a price-quality image 11 CHAPTER 4

12. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Pricing Strategies Product life cycle pricing strategies Competition pricing strategies Supply and demand pricing strategies Using credit as part of the pricing strategy 12 CHAPTER 4