2 Core Customer and Marketplace Concept Products, services, and experiencesNeeds, wants, and demandsCoreMarketingConceptsMarketsNeedState of felt deprivationExample: Need foodWantsThe form of needs as shaped by culture and the individualExample: Want a Big MacDemandsWants which are backed by buying powerValue, satisfaction,and qualityExchange, transactions,and relationships
3 Marketing Mix Marketing Mix Place Product Price Promotion Distribution CustomerSolutionDistributionCustomer CostCommunication
4 Features : qualities, tangible and intangible What Is a Product ?Features : qualities, tangible and intangibleBenefits : the want-satisfying valueValue package : bundle of value-adding attributesFeatures are the qualities, tangible and intangible, that a company builds into its productsBenefits are what the consumer derives from the product: the want-satisfying valueValue package is a product marketed as a bundle of value-adding attributesFeatures ?Benefits ?
5 Value & Benefit Value Benefit Value is the relative comparison of a products benefits versus its costsBenefitBenefits include the functions of the product and the emotional satisfactions associated with owning, experiencing or possessing itValue = BenefitsCosts
6 What is Marketed? Goods Services Events & Experiences Persons Places & PropertiesOrganizationsInformationIdeas
9 The Product MixProduct mix is a group of products that a firm makes available for sale (e.g )Product line is a group of similar products intended for a similar group of buyers who will use them in similar ways
13 The Seven-Step Development Process Product IdeasCommercializationTesting & MarketingScreeningPrototypeConcept TestingBusiness Analysis
14 Branding ProductsBranding is the process of using symbols to communicate the qualities of a product made by a particular producerBrand equityBrand awarenessBrand equity is the degree of consumers’ loyalty to and awareness of a brand and its resultant market shareBrand awareness is the extent to which a brand name comes to mind when the consumer considers a particular product category
15 Private brand or Private label Types of Brand NamesNational brandLicensed brandPrivate brand or Private labelTypes of brand namesNational brand is a product produced by, widely distributed by, and carry the name of the manufacturerLicensed brand is a product for whose name the seller has purchased the right from an organization or individualPrivate brand (or Private label) is a product that a wholesaler or retailer has commissioned from a manufacturer
16 Illegal copies of national brand-name goods. What about knockoff brands?Illegal copies of national brand-name goods.
21 Good PackagingBoston Beer Company, maker of Samuel Adams, constantly innovates
22 What Is Pricing ? Process of determining what a company will receive in exchange for its products
23 Pricing Objectives Achieving a target return on investment or profit. Building traffic.Achieving greater market share.Creating an image.Furthering social objectives.
24 Simple Price-setting tools Cost-oriented pricingMark-upBreak Event AnalysisVariable costFixed costBreak event point (BEP)Cost-oriented pricing considers the firm’s desire to make a profit and its need to cover production costsMarkup is the amount added to an item’s cost to sell it at a profit
25 Pricing Strategies E-Business Existing Product - Dynamic pricing - Fixed pricingPricing StrategiesDynamic pricing works because information flow on the Web notifies millions of buyers of instantaneous change in product availability.Sellers can alter prices privately, on a one-to-one, customer-to-customer basis.Fixed pricing is still the most common option for cybershoppers.New Product- Price skimming- Penetration pricing
26 Pricing Tactics Price lining Psychological pricing Odd-even pricing DiscountPrice lining is setting a limited number of prices for certain categories of productsPsychological pricing takes advantage of the fact that consumers do not always respond rationally to stated pricesOdd-even pricing is based on the premise that customers prefer prices not stated in even dollar amountsDiscount is a price reduction offered as an incentive to purchase
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