14 Product and
Price
Product: everything
one receives in an exchange, including tangible/intangible attributes &
benefits
What is the difference between consumer and
industrial products?
Convenience products:
Shopping products:
Specialty products:
Raw Materials, major equipment, accessory equipment,
component parts, process material, supply and
industrial service are all INDUSTRIAL PRODUCT CLASSIFICATIONS.
A.
Product Life Cycle
* Introduction
* Growth
* Maturity
* Decline
B.
Product line: group of similar products that differ only in relatively
minor characteristics
Product mix: all the products a firm has for sale
C.
Managing the product mix
1. Changing existing
products: includes quality,
functional & aesthetic modifications
2. Deleting products: weak
products are deleted to save time, money, and resources.
3. Developing new products
* Idea Generation
* Screening
* Concept Testing
* Business Analysis
* Product Development
* Test Marketing
* Commercialization
4. Why do products fail?
D.Branding,
Packaging, and Labeling
1. BRANDING:
What is a brand, brand name, brand mark, and trademark?
What is the difference between a manufacturer brand, a private brand,
and a generic product?
What are the benefits of branding, and what are some branding
strategies?
2. PACKAGING:
What are the functions?
What are the main considerations?
3. LABELING:
What are some
requirements and what is an expressed warranty?
E. Price:
amount of money a seller is willing to accept in exchange for a product
* How does supply/demand
impact price?
* Price and Non-price
competition and the perceptions of price
1. Pricing Objectives
2. Pricing Methods
* Cost based-
* Demand based-
* Competition based-
3. Pricing Strategies
* Skimming
* Penetration
* Odd Pricing,
Multiple-unit, Prestige, Price lining, and Discounts