1. İntroduction to Business 2 BUS 102 Erlan Bakiev, Ph. D. Zirve University BUS 102

2. Product and Pricing Strategies

3. Types of Products Stages Product Characteristics

4. The Product Continuum Goods Products Ideas Services SaltShoesVCRAutoFast Food CruiseConsultingEducationInsurance Tangible Dominant Intangible Dominant

5. Augmenting the Basic Product Core Benefits Actual Product Brand Name Features Quality Level Design Packaging Augmented Product InstallationWarranty UpgradesAccessories Delivery and Credit After-Sale Service

6. Characteristics of Service Products IntangibleQualityIntangibleQualityPerishableNaturePerishableNature

7. Consumer Products SpecialtyProductsSpecialtyProducts ConvenienceProductsConvenienceProducts UnsoughtProductsUnsoughtProducts ShoppingProductsShoppingProducts

8. Industrial Products Expense Items Capital Items Pencils Printer Cartridges Printer Cartridges Computers Copy Machines Copy Machines Short-Term Long-Term

9. Products and Their Uses  Raw materials  Components  Supplies  Installations  Equipment  Business services

10. TimeIntroductionGrowthMaturityDecline In-Flight Internet Service Digital Music Players DVD PlayersVCRs +0 Sales Volume (units) Sales Profits The Product Life Cycle

11. Product Makeovers Reinvigorated Designs Reinvigorated Designs Refreshed Marketing Efforts Refreshed Marketing Efforts

12. ©,Excellence in Business, 3eChapter 13 - 12 1.Screening of ideas 2.Business analysis 3.Prototype development 4.Test marketing 5.Commercialization New Product Development

13. Idea Generation Customers Competitors Employees

14. Consumer Products Concept Testing Industrial Products Feasibility Study Idea Screening

15. Business Analysis Forecast Sales Estimate Costs Project Profits

16. Prototype Development PackagingPackaging Marketing Mix ProductionProduction ResourcesResources

17. Test Marketing Introduce the Product Monitor Customer Reactions

18. Commercialization Production Distribution Manufacturing Packaging Distribution Pricing Promotion

19. Product Identities Legal Protections Unique Name, Symbol or Design Unique Name, Symbol or Design Company or Organization Brand Company or Organization Brand The Product Brand The Product Brand Recognizing Products Specifying Products Marketing Products Valuing Products

20. Branding of Products EquityName SelectionSponsorship Brand Preference Brand Insistence Brand Loyalty Brand Awareness Trademarks Public Domain Brand Names Brand Marks Generic Products Co-Branding and Licensing Co-Branding and Licensing National Brands Private Brands

21. Packaging and Labeling Strategy Inventory Control The Product Information Appeal Display Differentiation Function

22. Product Strategies ProductExpansionProductExpansion Product Line InternationalMarketsInternationalMarkets Product Mix

23. Product Line and Product Mix Length Width Depth Strengths and Weaknesses Strengths and Weaknesses Long-Term Strategy Long-Term Strategy Managerial Depth Managerial Depth Financial Resources Financial Resources Retail Channel Retail Channel Goods or Services Risks or Rewards

24. Product Expansion Add Items in a Product Category Under the Same Brand Name Add New Products with the Same Product Name Translate a Successful Brand in a Different Product Format Apply a Successful Brand Name to a New Category

25. International Markets Entry Requirements Entry Requirements Government Tariffs and Trade Barriers Tariffs and Trade Barriers Culture Language Consumer Preferences Consumer Preferences Exchange Rates Exchange Rates Business Customs Business Customs Standardization Customization

26. Product Positioning Features Services Image Price Category Size, ease of use, style Convenience, customer support Reliability, sophistication Low cost or premium Leading online seller

27. Product Positioning Errors UnderPositioningOverPositioningConfusedPositioning

28. Developing Pricing Strategies QualityPerceptionsQualityPerceptions MarketingObjectivesMarketingObjectives ConsumerDemandConsumerDemand GovernmentRegulationsGovernmentRegulations

29. Break-Even Analysis Break-Even Point $$ Profits $$ More Than $$ Losses $$ Less Than Fixed costs Selling price per unit-Variable costs per unit Cost-Based Pricing

30. Break-Even Point Haircuts at $20 Each

31. Break-Even Point Haircuts at $30 Each

32. Other Pricing Strategies Price-Based Optimization Skimming Penetration

33. Price Adjustment Strategies Discount Pricing Bundling Dynamic Pricing