Presentation is loading. Please wait.

Presentation is loading. Please wait.

Business in Action 6e Bovée/Thill Product and Pricing Strategies Chapter 14.

Similar presentations


Presentation on theme: "Business in Action 6e Bovée/Thill Product and Pricing Strategies Chapter 14."— Presentation transcript:

1 Business in Action 6e Bovée/Thill Product and Pricing Strategies Chapter 14

2 Consumer Products  Convenience Products  Everyday goods and services that people buy frequently, usually without much conscious planning  Shopping Products  Fairly important goods and services that people buy less frequently with more planning and comparison Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-2

3 Consumer Products  Specialty Products  Particular brands that the buyer especially wants and will seek out, regardless of location or price Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-3

4 Industrial and Commercial Products  Expense Items  Inexpensive generally use within a year of purchase  Capital Items  More expensive organizational products with a longer useful life, ranging from office and plant equipment to entire factories Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-4

5 The Product Life Cycle  Product Life Cycle  Four stages through which a product progresses: introduction, growth, maturity, and decline Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-5

6 The New-Product Development Process  Product Development Process  A formal process of generating, selecting, developing, and commercializing product ideas Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-6

7 The Product Development Process (cont.)  Prototypes  Pre-production samples of products used for testing and evaluation  Test Marketing  The stage of product development in which a product is sold on a limited basis to gauge its market appeal Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-7

8 The Product Development Process  Commercialization  Large-scale production and distribution of a product Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-8

9 Product Identities  Brand  A name, term, sign, symbol, design, or combination of those used to identify the products of a firm and to differentiate them from competing products Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-9

10 Product Identities (cont.)  Brand Equity  The value that a company has built up in a brand  Brand Loyalty  The degree to which customers continue to purchase a specific brand Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-10

11 Brand Name Selection  Brand Names  The portion of brands that can be expressed orally, including letters, words, or numbers  Brand Marks  The portion of brands that cannot be expressed verbally Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-11

12 Brand Name Selection (cont.)  Logo  A graphical and/or textual representation of a brand  Trademarks  Brands that have been given legal protection so that their owners have exclusive rights to their use Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-12

13 Product Identities Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-13

14 Brand Ownership  National Brands  Brands owned by manufacturers and distributed nationally  Private Brands  Brands that carry the label of a retailer or a wholesaler rather than a manufacturer Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-14

15 Expanding a Product Line Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-15

16 Cost Structure  Fixed Costs  Business costs that remain constant regardless of the number of units produced  Variable Costs  Business costs that increase with the number of units produced Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-16

17 Break-Even Analysis  Break-Even Analysis  A method of calculating the minimum volume of sales needed at a given price to cover all costs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-17

18 Pricing Methods (cont.)  Skim Pricing  Charging a high price for a new product during the introductory stage and lowering the price late  Penetration Pricing  Introducing a new product at a low price in hopes of building sales volume quickly Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14-18


Download ppt "Business in Action 6e Bovée/Thill Product and Pricing Strategies Chapter 14."

Similar presentations


Ads by Google