The following will be discussed in this chapter: Management process, What is a product? developing new products, identifying products, determining prices, pricing strategies & tactics. | Lecture 22 Chapter 11 Developing And Pricing Products Chapter Outline What Is A Product? Developing New Products Identifying Products Determining Prices Pricing Strategies & Tactics Product? A product is a combination of benefits, features and intangible reward Features - Qualities Tangible Intangible Benefits Value Package – Product marketed as a bundle of value adding attributes, including reasonable cost Goods/Services- Classification Consumer Industrial Consumer Products Convenience- Rapidly Consumed, inexpensive and are purchased often Shopping Moderately Priced Infrequent Purchase Compare Brands Evaluate Alternatives Specialty Expensive Rarely Purchased Accept No Substitute Industrial Products Expense Items Regularly Purchased Consumed Rapidly Capital Items Expensive Long-lasting Infrequently Purchased Product Mix The Group Of Products That A Company makes Available For Sale Product Line Similar Products Similar Buyers Similar Use Single Multiple/Diversified New Product Development Product Mortality- Failure Or Obsolescence Speed To Market- Market Changes New Product Development Process Product Ideas Screening Concept Testing Business Analysis Prototype Testing & Marketing Commercialization Services Process Variations Differences in Step 1 and 5 Service Package- Tangible & Intangible Features Service Process Design Process Selection – Sequencing and time Worker Requirements Facility Requirements Product Life Cycle Stages Of Product Life Cycle Introduction- New Product, extensive promotion and development cost erase all profits Growth Consumers Attracted Sales Climb Slight profit Competition increases Maturity- Sales Level-Off Highest profit early in this stage Increased competition results in price cuts Sales fall toward the end of stage Decline Other Competing New Products Introduced Sales & Profits Decline Ends or reduce . | Lecture 22 Chapter 11 Developing And Pricing Products Chapter Outline What Is A Product? Developing New Products Identifying Products Determining Prices Pricing Strategies & Tactics Product? A product is a combination of benefits, features and intangible reward Features - Qualities Tangible Intangible Benefits Value Package – Product marketed as a bundle of value adding attributes, including reasonable cost Goods/Services- Classification Consumer Industrial Consumer Products Convenience- Rapidly Consumed, inexpensive and are purchased often Shopping Moderately Priced Infrequent Purchase Compare Brands Evaluate Alternatives Specialty Expensive Rarely Purchased Accept No Substitute Industrial Products Expense Items Regularly Purchased Consumed Rapidly Capital Items Expensive Long-lasting Infrequently Purchased Product Mix The Group Of Products That A Company makes Available For Sale Product Line Similar Products Similar Buyers Similar Use Single Multiple/Diversified New Product Development Product Mortality- Failure Or Obsolescence Speed To Market- Market Changes New Product Development Process Product Ideas Screening Concept Testing Business Analysis Prototype Testing & Marketing Commercialization Services Process Variations Differences in Step 1 and 5 Service Package- Tangible & Intangible Features Service Process Design Process Selection – Sequencing and time Worker Requirements Facility Requirements Product Life Cycle Stages Of Product Life Cycle Introduction- New Product, extensive promotion and development cost erase all profits Growth Consumers Attracted Sales Climb Slight profit Competition increases Maturity- Sales Level-Off Highest profit early in this stage Increased competition results in price cuts Sales fall toward the end of stage Decline Other Competing New Products Introduced Sales & Profits Decline Ends or reduce promotion
