Copyright © 2009 Pearson Education Canada11-1 Chapter 11 Developing Product and Pricing Strategies Developing Product and Pricing Strategies.

Copyright © 2009 Pearson Education Canada 11-1

Chapter 11Chapter 11

Developing Developing Product and Product and

Pricing Pricing StrategiesStrategies


What Is Marketing?What Is Marketing?

IndividualIndividualobjectivesobjectives

OrganizationalOrganizationalobjectivesobjectives

ConceptionConception PricingPricing PromotionPromotion DistributionDistribution

IdeasIdeas ServicesServices GoodsGoods


Types of MarketingTypes of Marketing

Product marketingProduct marketing

Place marketingPlace marketing

Cause-related marketingCause-related marketing


The Role of The Role of MarketingMarketing

Exchanges andExchanges and

transactionstransactionsNeeds andNeeds and

wantswants


TimeTimeFormForm

PlacePlace PossessionPossession

The FourThe FourUtilitiesUtilities


The Marketing ConceptThe Marketing Concept

CustomersCustomers

ProfitabilityProfitability

IntegrationIntegration


The Buyer’s The Buyer’s Decision-making Decision-making

ProcessProcessNeed

recognitionNeed

recognitionInformation

searchInformation

search

Evaluationof

alternatives

Evaluationof

alternativesPurchasePurchase

Postpurchaseevaluation

Postpurchaseevaluation


Factors That InfluenceFactors That Influencethe Buyer’s Decisionthe Buyer’s Decision

CultureCulture

Social classSocial class

Reference groupsReference groups

Self-imageSelf-image

Situational factorsSituational factors


Analyzing Customer Analyzing Customer PreferencesPreferences

• Marketing Research– Gathering and analyzing information about

customers and markets– Research tools include:

• Personal observations• Surveys and questionnaires• Experiments• Interviews • Focus groups


Analyzing Customer Analyzing Customer PreferencesPreferences

• Database Marketing– Recording and analyzing customer interactions,

preferences, and buying behavior for improved communication.

– Information is gathered by:

• engaging in two-way dialogues with clients,

• customer purchase files

• e-mails, WebPages, fax machines, and toll-free #’s.


Building Customer Building Customer RelationshipsRelationships

RelationshipRelationship

marketingmarketingOne-to-oneOne-to-one

marketingmarketing


Planning Marketing Planning Marketing StrategiesStrategies

Examine currentmarketing situation

11

Assess opportunitiesand set objectives

22

Develop marketingstrategy

33


Examine the CurrentExamine the CurrentMarketing SituationMarketing Situation

ReviewReviewperformanceperformance

Examine strengthsExamine strengthsand weaknessesand weaknesses

EvaluateEvaluatethe competitionthe competition

Analyze theAnalyze theexternal external

environmentenvironment


Assess Opportunities Assess Opportunities and Set Objectivesand Set Objectives

Market Market penetrationpenetration

GeographicGeographicexpansionexpansion

New-productNew-productdevelopmentdevelopment

DiversificationDiversification


Develop the Develop the Marketing StrategyMarketing Strategy

Segments andSegments andnichesniches

Market positionMarket position

Target marketsTarget markets

Marketing mixMarketing mix


Segmenting MarketsSegmenting Markets

BehaviouralBehavioural patterns patternsBehaviouralBehavioural patterns patterns

PsychographicsPsychographicsPsychographicsPsychographics

DemographicsDemographicsDemographicsDemographics

Usage patternsUsage patternsUsage patternsUsage patterns

GeodemographicsGeodemographicsGeodemographicsGeodemographics

GeographicsGeographicsGeographicsGeographics


Target Market StrategiesTarget Market Strategies

Marketing Mix 1Marketing Mix 1



Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3

CompanyCompanyMarketing MixMarketing Mix

Company Company Marketing MixMarketing Mix

MarketMarket

Undifferentiated(Mass)

Differentiated Concentrated(Niche)

Segment 1Segment 1

Segment 2Segment 2

Segment 3Segment 3


Positioning the Positioning the ProductProduct

• Features

• Services

• Image

• Category leadership


Developing the Marketing MixDeveloping the Marketing Mix

Social ResponsibilitySocial Responsibility

Social ResponsibilitySocial Responsibility

Bu

sin

ess

Eth

ics

Bu

sin

ess

Eth

ics B

usin

ess Eth

icsB

usin

ess Eth

ics

PromotionPromotionPlacePlace

PricePriceProductProductCompetitionCompetition EconomicsEconomics

NatureNature

PoliticsPoliticsRegulationRegulationTechnologyTechnology

SocietySociety Target Market


The Product The Product ContinuumContinuum

GoodsProducts

IdeasServices

Salt Shoes DVD Auto FastFood

Cruise Consulting EducationInsurance

TangibleDominant

IntangibleDominant


Characteristics ofCharacteristics ofService ProductsService Products

IntangibleIntangible

qualityqualityPerishablePerishable

naturenature


Consumer ProductsConsumer ProductsConsumer ProductsConsumer Products

SpecialtySpecialtyproductsproductsSpecialtySpecialtyproductsproducts

ConvenienceConvenienceproductsproducts

ConvenienceConvenienceproductsproducts

UnsoughtUnsoughtgoodsgoods

UnsoughtUnsoughtgoodsgoods

ShoppingShoppingproductsproducts

ShoppingShoppingproductsproducts


Organizational Organizational ProductsProducts

Raw Raw materialsmaterials

Raw Raw materialsmaterials

InstallationsInstallationsInstallationsInstallations

SuppliesSuppliesSuppliesSupplies

BusinessBusinessservicesservices

BusinessBusinessservicesservices

ComponentsComponentsComponentsComponents

EquipmentEquipmentEquipmentEquipment


The Product Life CycleThe Product Life Cycle

TimeTime

IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline

VCRs

++00

Sa

les

Vo

lum

e (

un

its

)S

ale

s V

olu

me

(u

nit

s)

Sales

Profits

Hybrid Gas-Electric Cars

DVD’sI-Pod


PackagingPackagingPackagingPackaging

LabellingLabellingLabellingLabelling

BrandingBrandingBrandingBranding

Product IdentitiesProduct Identities


Branding ProductsBranding Products

Brand namesBrand namesBrand namesBrand names

Brand marksBrand marksBrand marksBrand marks

Trade marksTrade marksTrade marksTrade marks

NationalNationalbrandsbrands

NationalNationalbrandsbrands

PrivatePrivatebrandsbrandsPrivatePrivatebrandsbrands

Co-brandingCo-brandingCo-brandingCo-branding

GenericGenericproductsproductsGenericGeneric

productsproducts


Selecting ProductsSelecting Products

Product LineProduct Line

Line filling

Line extension

Brand extension

Line stretching

Product MixProduct Mix

Width

Length

Depth

Risks and rewards


Developing Pricing Developing Pricing StrategiesStrategies

CustomerCustomerperceptionsperceptionsCustomerCustomer

perceptionsperceptions

MarketingMarketingobjectivesobjectivesMarketingMarketingobjectivesobjectives

ConsumerConsumerdemanddemand

ConsumerConsumerdemanddemand

GovernmentGovernmentregulationsregulations

GovernmentGovernmentregulationsregulations


Pricing ApproachesPricing Approaches

Cost-basedCost-based

Price-basedPrice-based

SkimmingSkimming

PenetrationPenetration

DiscountingDiscounting

Copyright © 2009 Pearson Education Canada11-1 Chapter 11 Developing Product and Pricing Strategies Developing Product and Pricing Strategies.

Documents

customer interactions

developing product

customer purchase filesemails

pricing strategieswhat

personal observationssurveys

marketsresearch tools

twoway dialogues

fax machines