Professional Documents
Culture Documents
Fourteen
*
Developing
and Pricing
Goods and
Services
McGraw-Hill/Irwin
*
RATAN TATA
Profile
*
DEVELOPING VALUE
Product
Development and
the Total Product
Offer
LG1
14-3
PRODUCTS UNTOUCHABLE
by SPENDING CUTS
Product
Development and
the Total Product
Offer
LG1
Internet service
Cell phone service
Cable television
Discount apparel
Haircuts and coloring
Fast-food
Source: www.bigresearch.com.
14-4
PRODUCTS EXPENDABLE
by SPENDING CUTS
Product
Development and
the Total Product
Offer
LG1
Luxury handbags
Satellite radio
Specialty apparel
High-end cosmetics
Facials
Source: www.bigresearch.com.
14-5
HOME COOKING in
HALF the TIME
*
*
DEVELOPING a
TOTAL PRODUCT
*Developing a
Total Product
Offer
LG1
*Developing a
Total Product
Offer
Year
Product
1929
Electric Razors
1930
Car Radios
1930
Supermarkets
1933
1933
Laundromats
LG1
14-8
POTENTIAL COMPONENTS
of a TOTAL PRODUCT OFFER
*Developing a
Total Product
Offer
LG1
14-9
UNDERSTANDING
PRODUCT LINES
*Product Lines
& Product Mix
LG1
14-10
*Product Lines
& Product Mix
LG1
- Cosmetics
- Diapers
- Potato chips
- Bar soap
14-11
DIFFERENTIATING PRODUCTS
*Product
Differentiation
LG2
*
CLASSIFYING CONSUMER
GOODS and SERVICES
Marketing Different
Classes of
Consumer Goods
and Services
LG2
14-13
*
CLASSIFYING SHOPPING
GOODS and SERVICES
Marketing Different
Classes of
Consumer Goods
and Services
LG2
14-14
*
CLASSIFYING SPECIALTY
GOODS and SERVICES
Marketing Different
Classes of
Consumer Goods
and Services
LG2
- Lamborghini automobiles
- Ritz Carlton Hotels
14-15
*
CLASSIFYING UNSOUGHT
GOODS and SERVICES
Marketing Different
Classes of
Consumer Goods
and Services
LG2
14-16
IDENTIFYING CONSUMER
GOODS CLASSIFICATIONS
Marketing Different
Classes of
Consumer Goods
and Services
LG2
- Oreo Cookies
- Harvard University degree
14-17
Marketing Different
Classes of
Consumer Goods
and Services
LG2
CLASSIFYING INDUSTRIAL
GOODS and SERVICES
Marketing
Industrial Goods
and Services
LG2
*
PROGRESS ASSESSMENT
Progress
Assessment
*
What value enhancers may be included in a total
product offer?
Whats the difference between a product line and
a product mix?
Name the four classes of consumer goods and
services and give examples of each.
Describe three different types of industrial goods.
14-20
*Packaging
Changes the
Product
LG3
*Packaging
Changes the
Product
LG3
UNDERSTANDING BRANDING
*Branding and
Brand Equity
LG4
14-23
*Branding and
Brand Equity
LG4
14-24
*Branding and
Brand Equity
LG4
14-25
*Generating
Brand Equity
and Loyalty
LG4
14-26
ORIGINS of
AUTOMOBILE SYMBOLS
*Generating
Brand Equity
and Loyalty
LG4
14-27
*
*
(Thinking Green)
Tesco (U.K.) puts carbon labels on all products including grocery bags.
China and India, though, are building coalpowered plants and expanding car-use.
The focus on climate change varies from country
to country.
14-28
*Generating
Brand Equity
and Loyalty
LG4
14-29
BUILDING BRAND
ASSOCIATIONS
*Generating
Brand Equity
and Loyalty
LG4
14-30
*
PROGRESS ASSESSMENT
Progress
Assessment
*
What six functions does packaging now perform?
The New
Product
Development
Process
LG5
14-32
The New
Product
Development
Process
LG5
14-33
The New
Product
Development
Process
LG5
14-34
*The Product
Life Cycle
LG6
*The Product
Life Cycle
LG6
14-36
*The Product
PROFITS BEYOND the GRAVE
Life Cycle
LG6
Celebrity
Earnings
Year of Death
Elvis Presley
$52 Million
1977
Charles Schultz
$33 Million
2000
Heath Ledger
$20 Million
2008
Albert Einstein
$18 Million
1955
Aaron Spelling
$15 Million
2006
Dr. Seuss
$12 Million
1991
John Lennon
$9 Million
1980
14-37
*
PROGRESS ASSESSMENT
Progress
Assessment
*
What are the six steps in the new-product
development process?
Whats the difference between product screening
and product analysis?
What are the two steps in commercialization?
Whats the theory of the product life cycle?
14-38
*
PRICING OBJECTIVES
Competitive
Pricing
LG7
Building traffic
Achieving greater market share
Creating an image
Furthering social objectives both short-run and
long-run
14-39
*
PRICING STRATEGIES
Competitive
Pricing
LG7
14-40
*
USING BREAK-EVEN ANALYSIS
Break-Even
Analysis
LG7
14-42
*
PRICING ALTERNATIVES
Other Pricing
Strategies
LG7
PRICING STRATEGIES
of RETAILERS
Other Pricing
Strategies
LG7
14-44
*
PROGRESS ASSESSMENT
Progress
Assessment
*
List two short-term and two long-term pricing
objectives. Can the two be compatible?
What are the limitations of a cost-based pricing
system?
Whats psychological pricing?
14-45