Product, Price, Place H Edu 4310. Marketing Strategy - Product/Service What is a product or service?

Product, Price, Place

H Edu 4310

Marketing Strategy - Product/Service

What is a product or service?

Three dimensions

CoreTangible

Augmented

Tangible vs Intangible

Five “I”s

Intangibility Inconsistency Inseparability Inventory Interaction

Product planning

Focal pointsConsumers’ wants and needsCurrent resources and

technologyEnvironmental opportunities

Levels of planning

Product class (SIC, automobiles)

Product mix (cars vs vans or trucks)

Product line (Beetles)

Product item (new, colors, features)

Levels of planning (cont)

BreadthDepth

Life Cycle

IntroductionGrowthMaturityDecline

Product Strategies

Market developmentProduct developmentPositioningPackagingBranding

Acceptance

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

Marketing strategy: Price

Identify constraintsNewness in life cycleProduction costChannel lengthMarket structure

Pricing objectives

ProfitSalesMarket share

Market Share

High Low

Mark

et

Gro

wth

Hig

hLo

w

Maintain pricePrice leadershipMeet competitorPenetration pricingSet high prices

Premium pricingMeet competitorFollow the leaderSkimming pricing

Hold steadyMeet lower pricesProtect shareLower prices

Price emphasisMeet competitor

Pricing objectives (cont)

ImageStabilizationCross-subsidization

Price Sensitivity

Price

Demand

Inelastic

Elastic

Cost vs volume

Fixed and variable costsBreak-even analysisMarginal cost pricing

Pricing strategies

Price liningOdd pricingOne-price vs flexible pricingPrestige price

Pricing strategies (cont)

Leader pricingBundled pricingGoing-rate pricingDiscounts

Distribution (Place or Access)

What comes to mind? How do we get our services to our

customers?

Channels of distribution

Bread vs health care

Bread

Hospital care

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.

Functions…

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

symbols

Intensity of distribution

Intensive Selective Exclusive

Vertical marketing

Purpose Cost savings Management factors Environmental changes

Corporate Administered Contractual

Power of channels

Coercive Economic Reward Referent Expertise

Retail positioning matrix

Breadthof

productline

Broad

Narrow

Value-addedHigh Low

MayoClinic

Low-costHospital

BostonChildren’sHospital

SoloPracticeInternist

Channel Control

Push Pull