1. Product, Price, Place H Edu 4310

2. Marketing Strategy - Product/Service What is a product or service?

3. Three dimensions Core Tangible Augmented

4. Tangible vs Intangible

5. Five “I”s Intangibility Inconsistency Inseparability Inventory Interaction

6. Product planning Focal points Consumers’ wants and needs Current resources and technology Environmental opportunities

7. Levels of planning Product class (SIC, automobiles) Product mix (cars vs vans or trucks) Product line (Beetles) Product item (new, colors, features)

8. Levels of planning (cont) Breadth Depth

9. Life Cycle Introduction Growth Maturity Decline

10. Product Strategies Market development Product development Positioning Packaging Branding

11. Acceptance Innovators (2.5%) Early adoptors (13.5%) Early majority (34%) Late majority (34%) Laggards (16%)

12. Marketing strategy: Price Identify constraints Newness in life cycle Production cost Channel length Market structure

13. Pricing objectives Profit Sales Market share

14. Market Share HighLow Market Growth High Low Maintain price Price leadership Meet competitor Penetration pricing Set high prices Premium pricing Meet competitor Follow the leader Skimming pricing Hold steady Meet lower prices Protect share Lower prices Price emphasis Meet competitor

15. Pricing objectives (cont) Image Stabilization Cross-subsidization

16. Price Sensitivity Price Demand Inelastic Elastic

17. Cost vs volume Fixed and variable costs Break-even analysis Marginal cost pricing

18. Pricing strategies Price lining Odd pricing One-price vs flexible pricing Prestige price

19. Pricing strategies (cont) Leader pricing Bundled pricing Going-rate pricing Discounts

20. Distribution (Place or Access) What comes to mind? How do we get our services to our customers?

21. Channels of distribution Bread vs health care

22. Bread

23. Hospital care

24. Channels (cont) The tangible product must first exist The services the patient “consumes” aren’t produced until the end of the process. The consumer isn’t involved in the distribution of the tangible product. The patient initiates health care and is in the process all the way.

25. Functions… Place: location & facilities Facilities: layout, look, feel, safety Time: hours, waiting, next appointment Possession Form (Miami Herald) Information/communication: other languages, symbols

26. Intensity of distribution Intensive Selective Exclusive

27. Vertical marketing Purpose Cost savings Management factors Environmental changes Corporate Administered Contractual

28. Power of channels Coercive Economic Reward Referent Expertise

29. Retail positioning matrix Breadth of product line Broad Narrow Value-added HighLow Mayo Clinic Low-cost Hospital Boston Children’s Hospital Solo Practice Internist

30. Channel Control Push Pull