© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 1

Developing Product Developing Product and Pricing and Pricing StrategiesStrategies

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 2

What Is Marketing?What Is Marketing?

• Conception

• Pricing

• Promotion

• Distribution

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 3

Types of MarketingTypes of Marketing

• Product marketing

• Place marketing

• Cause-related marketing

• Permission marketing

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 4

The Role of MarketingThe Role of Marketing

• Needs and wants

• Exchanges and transactions

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 5

The Four UtilitiesThe Four Utilities

• Form

• Time

• Place

• Possession

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 6

The Marketing ConceptThe Marketing Concept

• Customers

• Profitability

• Integration

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 7

The Buyer’s Decision The Buyer’s Decision ProcessProcess

• Need recognition

• Information search

• Evaluation of alternatives

• Purchase

• Postpurchase evaluation

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 8

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

ProcessProcess• Culture

• Social class

• Reference groups

• Self-image

• Situational factors

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 9

Analyzing Customer Analyzing Customer PreferencesPreferences

• Marketing research

• Database marketing

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 10

Building Customer Building Customer RelationshipsRelationships

• Relationship marketing

• One-to-one marketing

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 11

Planning Marketing Planning Marketing StrategiesStrategies

• Examine current marketing situation

• Assess opportunities and set objectives

• Develop marketing strategies

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 12

Examine the Current Examine the Current Marketing SituationMarketing Situation

• Reviewing performance

• Evaluating competition

• Examining internal strengths and

weaknesses

• Analyzing the external environment

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 13

Assess Opportunities Assess Opportunities and Set Objectivesand Set Objectives

• Market penetration

• New product development

• Geographic expansion

• Diversification

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 14

Develop the Marketing Develop the Marketing StrategyStrategy

• Segments and niches

• Target markets

• Market position

• Marketing mix

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 15

Segmenting MarketsSegmenting Markets

• Demographics

• Geographics

• Psychographics

• Geodemographics

• Behavior

• Usage

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 16

Target Market StrategiesTarget Market Strategies

• Undifferentiated

• Differentiated

• Concentrated

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 17

Positioning the ProductPositioning the Product

• Features

• Services

• Image

• Category leadership

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 18

Developing the Marketing Developing the Marketing MixMix

• Product

• Price

• Place

• Promotion

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 19

The Product ContinuumThe Product Continuum

• Tangible – Goods– Products

• Intangible– Services– Ideas

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 20

Characteristics of Characteristics of Service ProductsService Products

• Intangible quality

• Perishable nature

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 21

Consumer ProductsConsumer Products

• Convenience products

• Shopping products

• Specialty products

• Unsought goods

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 22

Business ProductsBusiness Products

• Raw materials

• Components

• Supplies

• Installations

• Equipment

• Business services

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 23

The Product Life CycleThe Product Life Cycle

• Introduction

• Growth

• Maturity

• Decline

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 24

Product IdentitiesProduct Identities

• Branding

• Packaging

• Labeling

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 25

Branding ProductsBranding Products

• Brand names

• Brand marks

• Trade marks

• National brands

• Private brands

• Co-branding

• Generic products

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 26

Selecting ProductsSelecting Products

Product LineProduct Line

Line filling

Line extension

Brand extension

Line stretching

Product MixProduct Mix

Width

Length

Depth

Risks and rewards

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 27

Developing Pricing Developing Pricing StrategiesStrategies

• Marketing objectives

• Government regulations

• Consumer perceptions

• Consumer demand

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 28

Common Pricing Common Pricing ApproachesApproaches

• Cost-based

• Price-based

• Skimming

• Penetration

• Discounting