© Prentice Hall, 2005 Business In Action 3eChapter 13 - 1 Developing Product and Pricing Strategies

© Prentice Hall, 2005 Business In Action 3e Chapter 13 - 1

Developing Product Developing Product and Pricing and Pricing StrategiesStrategies


What Is Marketing?What Is Marketing?

• Conception

• Pricing

• Promotion

• Distribution


Types of MarketingTypes of Marketing

• Product marketing

• Place marketing

• Cause-related marketing


The Role of MarketingThe Role of Marketing

• Needs and wants

• Exchange process

• Transactions


The Four UtilitiesThe Four Utilities

• Form

• Time

• Place

• Possession


The Marketing ConceptThe Marketing Concept

• Customers

• Profitability

• Coordination


The Consumer’s Decision The Consumer’s Decision ProcessProcess

• Need recognition

• Information search

• Evaluation of alternatives

• Purchase

• Postpurchase evaluation


Factors That Influence Factors That Influence the Buyer’s Decision the Buyer’s Decision

• Culture

• Social class

• Reference groups

• Self-image

• Situational factors


Purchasing in Purchasing in

OrganizationsOrganizations• Decision-making factors

– Economics and logic

– Formal buying procedures

–Multi-party participation

– Buyer-seller relationship


Marketing ResearchMarketing Research

• Observations

• Surveys and questionnaires

• Experiments

• Interviews

• Small samples

• Focus groups


Database MarketingDatabase Marketing

• Customers

– Preferences

– Interactions

– Behaviors


Relationship MarketingRelationship Marketing

• Keeping customers is cost effectiveKeeping customers is cost effective

• Long-term customers are more profitableLong-term customers are more profitable

• Satisfied customers spread the newsSatisfied customers spread the news

• Customers will pay for superior serviceCustomers will pay for superior service

• Dissatisfied customers tell everyoneDissatisfied customers tell everyone


One-To-One Customer One-To-One Customer MarketingMarketing

• Identification

• Differentiation

• Interaction

• Customization


Strategic PlanningStrategic Planning

• Examine current marketing situation

• Assess opportunities and set objectives

• Develop marketing strategies


Examine the Current Examine the Current Marketing SituationMarketing Situation

• Review performance

• Evaluate competition

• Examine internal strengths and

weaknesses

• Analyze the external environment


Assess Opportunities Assess Opportunities and Set Objectivesand Set Objectives

• Market penetration

• New product development

• Geographic expansion

• Diversification


Develop the Marketing Develop the Marketing StrategyStrategy

• Segments and niches

• Target markets

• Market position

• Marketing mix


Segmenting MarketsSegmenting Markets

• Demographics

• Geographics

• Psychographics

• Geodemographics

• Behavioral patterns

• Usage patterns


Target Market StrategiesTarget Market Strategies

• Undifferentiated

• Differentiated

• Concentrated


Positioning the ProductPositioning the Product

• Features

• Services

• Image

• Category leadership


Developing the Marketing Developing the Marketing MixMix

• Product

• Price

• Place

• Promotion


Develop Product Develop Product StrategiesStrategies

1. Generate new ideas

2. Develop and screen concepts

3. Develop marketing strategies

4. Analyze business potential

5. Design and develop products

6. Test the market

7. Commercialize the product


The Product ContinuumThe Product Continuum

• Tangible – Goods– Products

• Intangible– Services– Ideas


Consumer ProductsConsumer Products

• Convenience products

• Shopping products

• Specialty products

• Unsought goods


Business ProductsBusiness Products

• Expense items– Short-term

• Capital items– Long-term


Uses of Business Uses of Business ProductsProducts

• Raw materials

• Components

• Supplies

• Installations

• Equipment

• Business services


The Product Life CycleThe Product Life Cycle

• Introduction

• Growth

• Maturity

• Decline


Product IdentitiesProduct Identities

• Branding

• Packaging

• Labeling


Branding ProductsBranding Products

• Brand names

• Brand marks

• Trade marks

• National brands

• Private brands

• Co-branding

• Generic products


Packaging and LabelingPackaging and Labeling

• Function– The product– Information– Inventory control

• Strategy– Display– Differentiation– Appeal


Selecting ProductsSelecting Products

Product LineProduct Line

Line filling

Line extension

Brand extension

Line stretching

Product MixProduct Mix

Width

Length

Depth

Risks and rewards


Developing Pricing Developing Pricing StrategiesStrategies

• Marketing objectives

• Government regulations

• Consumer perceptions

• Consumer demand


Common Pricing Common Pricing ApproachesApproaches

• Cost-based

• Price-based

• Skimming

• Penetration

• Discounting

Documents

© Prentice Hall, 2005 Business In Action 3eChapter 13 - 1 Developing Product and Pricing Strategies