mon_elisa

• 1.Develop Product Objectives
• 2.Design Product Strategies
• 3.Make Tactical Product Deisions 

• Tactic = short term 
• Strategy = Long term (5 year outline)

• 1. Introduce New Product
• 2. Regional Product: Introduce Nationally
• 3. Mature Product: Increase consumer enthusiasm for the    product

A firm's total product offering designed to satisfy a single need or desire of target customers

Lenth(Depth) of a product line 

The total set of all products a firm offers for sale, the entire range of products

Width of Product Mix

• Upward Line Stretch - Adding a higher end product
• Downward Line Stretch - Adding a lower end product
• Two-Way Line Stretch - Both products

The product is no long in use, there for I drop it from the line

ie. walkman

• Full Line - Ipod nano in every color every storage size
• Limited Line - Google Nexus - one color one storage size

Increase the depth of product lines to attract buyers with different preferances, and increase slaes and profits by further segmenting the market. 

Ipod nano 

Quality: ability satisfies consumer's expecations. ie. durable, reliable, verstile, product safety

Consistency: the confidence that they product will be made that way every time every where else 

Voluntary standards for quality management set by International Organization for Standardization 

Meeting standards on environmental impact management

No more than 3.4 defects per million (getting it right 99.9997% of the time) 

• Introduction - no profits
• Growth - profits increase and peak
• Maturity - sales peak
• Decline - market shrinks/ sales fall

• Product - single company produces
• Sales - Increas steady and slow
• Profits - Negative
• Pricing - high to recover from production and marketing
• Marketing - Informatin customers

• Sales - Rapid Increase
• Profits - Increase and Peak
• Price - Competition may appear
• Marketing - Introduce product variations
• Advertising - Heavy against competitors

• Sales - Peak, level off
• Profits - Margin Narrows
• Competition - Intense
• Product - Mostley replacement products
• Distribution - Sell through all suitable retailers
• Markting - Attract new users 

• Sales - Decline
• Profit - Decline
• Comepetors - Large Number
• Product - Should it be kept?
• Marketing - Keep product, phase out gradually, or drop product immediently 

• Branding
• Packaging
• Labeling

A name, term, symbol, or any other unique element of a product that identifies one firm's product(s) and sets it apart from the competition

The legal term for brand name, brand market, or trade character; legally registered by a government and obtain protection of exclusive use in that country 

a brand's value to its organization over and above the value of the generic version of the product 

one firm sells the right to use a legally protected brand name for a specific purpose and for a specific period of time 

when to brands comet together to make a product

when two brands come together and one of two is apart of the product 

The covering or container for a product that provides 1) product protection, 2) facilitates product use and storage and 3) supplies important marketing communication 

Food and Drug Administration requires food labels to tell how much fat, saturated fat, cholestrol, calories, carbs. protein, trans fat, and vitamins are in each product serving.

is a value that customers give up/exchange to obtain a desired product 

payment may be in the form of anything that has value to the other party

consumers rank "reasonable price" as most important consideration in purchase 

• 1. Develop Pricing Objective
• 2. Esitimate Demand
• 3. Determine Costs
• 4. Evaluate the Pricing Environment
• 5. Choose a Pricing Strategy
• 6. Develop Pricing Tactics 

Want to figure customers desire for product. 

• a) Total (market) demand = esitmated potential buyers X average amount of each buyer's purchase
• b) what is the company's share of the total market? 

Law of Demand: as price goes up, quantity demanded goes down. 

Normal: Demand increases as price decrease

Prestige: Demand decreases as price decreases 

Determining the number of units a firm must produce and sell at a given price to cover all its costs (How many units of this product must I sell as this price to break even) 

• The economy
• -broad economic trends
• -recessions/inflation
• The competition
• Consumer trends
• Other determinants 
• -stages in product life cycle 
• -distrubution
• -promotion strategies
• -impact of internet shoppin

• Cost - Plus  pricing
• selling price = cost + markup

• Target costing pricing
• Selling price = cost + markup

• Price at or near, below or above competition
• Price leadership
• -industry giant announces price, and competitors get in line or drop out 

• Value pricing or EveryDay Low Price (EDLP)
• pricing strategy in which a firm sets prices that provides ultimate value to customers 

• Skimming Pricing - effective when demand is inelastic
• Penetration - consumers are price - sensitive, low prices also discourage competators
• Trial Pricing - Offers a low price for a limited period of time

Two part pricing: offering two seperate types of payments to purchase product

Payment Pricing: breaking total price into smaller amounts payable over time. 

Price Bundling: selling two or more goods or services as a single package for one price

Captive Pricing: pricing two products that work only when used together

FOB Pricing - FOB Origin: Customer pays, FOB Delivered: Seller pays

Freight Absorption Pricing: Seller takes on all of cost of shipping

Uniform Delivered Pricing: Average shipping cost is added to price for all customers 

Price that manufactures sets as approproate for end consumer to pay

set percentage discounts off list price for each channel level

reduced prices for purchases of larger quanitities

enticements to customers to pay bills quickly (e.g 2% 10 days, net 30 days)

price reductions offered during certain times of years 

Price/Quality Inferences: consumers assume high-priced product has higher quality 

• Internal reference price: consumers use a price/price range to evaluate product's cost 
• -assimiliation effect
• -contrast effect 

• Odd-even pricing: prices ending in 99 rather than 00 lead to increase sales. 
• -prestige products usually don't use odd pricing. 

items in a product line sell at different price points e.g. $25, $50, $75 and no prices in between

groups of prices within a firm's products to lessen consumer choices, consumers likely pick the middle price. 

Channel members purchase large quantities from manufacturers and sell smaller quantities to many different customers 

channel members provide a variety pf products on one location 

• Consumer Market Channels
• - manufacturers - consumer (DIRECT) 
• -manufacturers - retailer - consumer
• - manufacturers - wholesaler - retailer - consumer

• Business - to Business channels
• -manufacturer - business customer
• -manufacturer - industrial distributer - business customer

all firms that handle the flow of products from the manufactureers to retailers or business customers 

• the final stop on the distribution path
• the process by which products are sold to consumers for personal use 

• Short Channels essential 
• - highely technical items
• -perishable items
• - bulky items

• Long Channenls permissible
• -smalll, non perishable, everyday purchases 

• Exlusive - only one retailer in trading area sells product
• Selective - moderate number of retailers in each trading area sell the product
• Intensive - all possible pretailers in the trading area sell the products 

Conventional - multi level distribution channel in which members work independently of one another

Horizontal - two or more firms at the same channel level agree to work together to move their products to the consumer

Vertical - channel in which there is cooperation among channel member at two or more different levels of the channel 

Informs --> Reminds --> Persuades --> Builds Relationships

• Direct Marketin - interaction between company & customer
• Personal Selling - same 
• Advertising- nonpersonal comm. from sposor using mass media
• Sales Promotion- short term incentives to encourage sales during specific time
• PR and Publicity - portrays and create/maintain a positive image of firm and its products