1 / 23

1- 1

Developing and Pricing Products and Services. 1- 1. Product Development & Value Package. Value/Total Product Offer Product Line Product Mix Product Differentiation. Marketing Different Classes of Goods & Services. Consumer Convenience Shopping Specialty Unsought Industrial.

denniston
Download Presentation

1- 1

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Developing and Pricing Products and Services 1-1

  2. Product Development& Value Package • Value/Total Product Offer • Product Line • Product Mix • Product Differentiation

  3. Marketing Different Classesof Goods & Services • Consumer • Convenience • Shopping • Specialty • Unsought • Industrial

  4. Importance Of Packaging • Protection • Attraction • Description • Explain Benefits • Information on warranties, warnings, etc. • Indication of price, value, and uses

  5. Brand & Trademark Categories Manufacturers’ Dealer/Private Generic Knockoff Equity Loyalty Awareness Association Branding

  6. Characteristics of a Good Brand Name • Short, sweet, and easily pronounced, but flexible and expandable, and does not lend itself to abbreviation • Unique within its industry and retain its age • Legally available and defensible • Good alliteration and linguistically clean • Embraces company personality / brand portfolio Source: The Brand Name Awards 2005

  7. Best/Worst/Weirdest Car Brand Names Source: FT Weekend, November, 2005

  8. Betty Crocker Chef Boyardee Uncle Ben Colonel Sanders Little Debbie Fake Real Both Real guy, fake rank Real Brand Characters: Are They Real or Fake? Source: Fast Company, August 2004

  9. 10 Most Valuable Brands Source: Business Week, August 7, 2006

  10. Top 10 Favorite Mascots of America • M&Ms figures / Mars • Doughboy / General Mills, Smucker’s • Duck / Aflac • Tony the Tiger / Kellogg • Gecko / Berkshire Hathaway’s Geico • Chester the Cheetah / Pepsi’s Frito-Lay • Energizer Bunny / Energizer Holdings • Kool-Aid Man / Kraft Foods • Trix Rabbit / General Mills • Snap, Crackle and Pop / Kellogg Source: Forbes, January 9, 2006

  11. Idea Generation Screening Analysis Development Testing Commercialize New-ProductDevelopment Process

  12. First Products Producedby Five Major Companies • Hershey - Caramels • Amway - No-rinse car wash • Heinz - Horseradish • Avon - Little Dot perfume set • 3M - Sandpaper Source: World Features Syndicate

  13. People Behind Product Innovation • Liquid Paper – an American Secretary • Paper Clip – a Norwegian Patent Clerk • Fax Machine – a Scottish Clock Maker • Lewis Waterman Fountain Pen – an American Insurance Salesman • Pencil Sharpener – French Mathematician • Ballpoint pen – a Hungarian Journalist • Eraser Head – English Chemist Source: World Features Syndicate

  14. Best ProductInnovation of ALL Time % of Consumers’ Choice Source: American Demographics

  15. Consumers Attitudes about New Products Source: USA Today

  16. Why People Purchase New Products Source: USA Today

  17. Sales & Profits During the PLC

  18. Objectives ROI Traffic Market Share Image Social Cost-Based Demand-Based Competition-Based Break-Even Fixed Cost Variable Cost Strategies Skimming Penetration EDLP High-Low Bundling Psychological Market Forces Pricing

  19. What They CostWhen First Introduced 1927 Transatlantic Call $ 75/3 min. 1947 Microwave Oven $ 3,000 1964 FAX unit rental $ 850/month 1970 Pocket Calculator $ 150 1974 VCR Tape $ 50 Source: World Features Syndicate

  20. Breakeven Chart Total Revenue or Total Cost Number of Units

  21. Pricing UsingBreakeven Analysis Problem Should we charge $2 or $3 per unit? Costs Total Fixed Costs $400,000 Variable Cost $ 1 per unit Market Research Forecast Company can sell: 290,000 boxes at $2 / unit 210,000 boxes at $3 / unit Breakeven point = total fixed cost price - variable cost (per unit) (per unit) $2 price = $400,000 = 400,000 units to breakeven $2 - $1 $3 price = $400,000 = 200,000 units to breakeven $3 - $1 Breakeven Analysis

  22. Advanced Breakeven Analysis

  23. Example of aUPC Barcode 12 34567 89012 8 Example only: not a valid UPC barcode

More Related