Developing Product and Pricing Strategies Prentice Hall 2005

Developing Product and Pricing Strategies © Prentice Hall, 2005 Business In Action 3 e 1

What Is Marketing? • • Conception Pricing Promotion Distribution © Prentice Hall, 2005 Business In Action 3 e 2

Types of Marketing • Product marketing • Place marketing • Cause-related marketing © Prentice Hall, 2005 Business In Action 3 e 3

The Role of Marketing • Needs and wants • Exchange process • Transactions © Prentice Hall, 2005 Business In Action 3 e 4

The Four Utilities • • Form Time Place Possession © Prentice Hall, 2005 Business In Action 3 e 5

The Marketing Concept • Customers • Profitability • Coordination © Prentice Hall, 2005 Business In Action 3 e 6

The Consumer’s Decision Process • • • Need recognition Information search Evaluation of alternatives Purchase Postpurchase evaluation © Prentice Hall, 2005 Business In Action 3 e 7

Factors That Influence the Buyer’s Decision • Culture • Social class • Reference groups • Self-image • Situational factors © Prentice Hall, 2005 Business In Action 3 e 8

Purchasing in Organizations • Decision-making factors – Economics and logic – Formal buying procedures – Multi-party participation – Buyer-seller relationship © Prentice Hall, 2005 Business In Action 3 e 9

Marketing Research • Observations • Surveys and questionnaires • Experiments • Interviews • Small samples • Focus groups © Prentice Hall, 2005 Business In Action 3 e 10

Database Marketing • Customers – Preferences – Interactions – Behaviors © Prentice Hall, 2005 Business In Action 3 e 11

Relationship Marketing • Keeping customers is cost effective • Long-term customers are more profitable • Satisfied customers spread the news • Customers will pay for superior service • Dissatisfied customers tell everyone © Prentice Hall, 2005 Business In Action 3 e 12

One-To-One Customer Marketing • Identification • Differentiation • Interaction • Customization © Prentice Hall, 2005 Business In Action 3 e 13

Strategic Planning • Examine current marketing situation • Assess opportunities and set objectives • Develop marketing strategies © Prentice Hall, 2005 Business In Action 3 e 14

Examine the Current Marketing Situation • Review performance • Evaluate competition • Examine internal strengths and weaknesses • Analyze the external environment © Prentice Hall, 2005 Business In Action 3 e 15

Assess Opportunities and Set Objectives • Market penetration • New product development • Geographic expansion • Diversification © Prentice Hall, 2005 Business In Action 3 e 16

Develop the Marketing Strategy • Segments and niches • Target markets • Market position • Marketing mix © Prentice Hall, 2005 Business In Action 3 e 17

Segmenting Markets • • • Demographics Geographics Psychographics Geodemographics Behavioral patterns Usage patterns © Prentice Hall, 2005 Business In Action 3 e 18

Target Market Strategies • Undifferentiated • Differentiated • Concentrated © Prentice Hall, 2005 Business In Action 3 e 19

Positioning the Product • • Features Services Image Category leadership © Prentice Hall, 2005 Business In Action 3 e 20

Developing the Marketing Mix • • Product Price Place Promotion © Prentice Hall, 2005 Business In Action 3 e 21

Develop Product Strategies 1. 2. 3. 4. 5. 6. 7. Generate new ideas Develop and screen concepts Develop marketing strategies Analyze business potential Design and develop products Test the market Commercialize the product © Prentice Hall, 2005 Business In Action 3 e 22

The Product Continuum • Tangible – Goods – Products • Intangible – Services – Ideas © Prentice Hall, 2005 Business In Action 3 e 23

Consumer Products • • Convenience products Shopping products Specialty products Unsought goods © Prentice Hall, 2005 Business In Action 3 e 24

Business Products • Expense items – Short-term • Capital items – Long-term © Prentice Hall, 2005 Business In Action 3 e 25

Uses of Business Products • • • Raw materials Components Supplies Installations Equipment Business services © Prentice Hall, 2005 Business In Action 3 e 26

The Product Life Cycle • • Introduction Growth Maturity Decline © Prentice Hall, 2005 Business In Action 3 e 27

Product Identities • Branding • Packaging • Labeling © Prentice Hall, 2005 Business In Action 3 e 28

Branding Products • • Brand names Brand marks Trade marks National brands Private brands Co-branding Generic products © Prentice Hall, 2005 Business In Action 3 e 29

Packaging and Labeling • Function – The product – Information – Inventory control • Strategy – Display – Differentiation – Appeal © Prentice Hall, 2005 Business In Action 3 e 30

Selecting Products Product Line Product Mix l Line filling l Width l Line extension l Length l Brand extension l Depth l Line stretching l Risks and rewards © Prentice Hall, 2005 Business In Action 3 e 31

Developing Pricing Strategies • • Marketing objectives Government regulations Consumer perceptions Consumer demand © Prentice Hall, 2005 Business In Action 3 e 32

Common Pricing Approaches • • • Cost-based Price-based Skimming Penetration Discounting © Prentice Hall, 2005 Business In Action 3 e 33