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Product and Price - Coggle Diagram
Product and Price
CRM
Methods
Targeted Marketing
Customer Service & Support
Informative
Social Media
USP
Benefits
Promotion focused on differentiating feature
Charge higher prices
Free publicity
Higher sales
'it's different'
Tangible attributes
Intangible attributes
Product positioning
Branding
Price
Uses
Added Value
Revenue and Profit due to demand
Marketing Objectives
Psychological image
Identity of a product
Price Elasticity of Demand
How much
change in demand
following a
change in price
PED
= % change in quantity demanded / % change in price
Values and Meanings
0
∆%price no effect on ∆%demand (
Perfectly inelastic
)
0 - 1
∆%price > ∆%demand (
Inelastic
)
1
∆%price = ∆%demand (
Unit elasticity
)
1 - ∞
∆%price < ∆%demand (
Elastic
)
∞
∆%price infinitely large effect on ∆%demand (
Perfectly elastic
)
Factors
that effect PED
Product Necessity
Product competitors
Consumer Loyalty
Price
Applications
More accurate forecasts
Pricing decisions
Limitations
Assumes nothing else has changed
Quickly outdated
Hard to calculate
Choosing a price
Factors
Costs of
production
Market
Competitive
condition
Competitors' price
Objectives
PED
Age
of product
Methods
Cost-based pricing
Mark-up pricing
Target pricing
Full-cost pricing
Contribution-cost pricing
Competition-based pricing
Market Pricing
Perceived-value pricing
Price discrimination
Dynamic Pricing
Pricing for new products
Penetration pricing
Market Skimming
Other
Loss Leaders
Psychological Pricing
Issues
Competition
Price wars for market share
Non-price competition
Collusion
Marketing mix
Product
Price
Promotion
Place
Role of customer
Customer solution
Cost to customer
Communication with customer
Convenience to customer
Product Life Cycle
Stages
Growth
Maturity / Saturation
Decline
Extension Strategies
New Markets
Repackaging
Relaunching
New Features (Updates)
Introduction
Uses
Assisting
with planning
When to lower price?
When to advertise?
When to variate?
Identifying
cash flow
Cash flow is negative during development
Heavy promotional cost during Introduction
Large positive cash flow during maturity
Decline reduces cash flow
Recognising
need for a balanced product portfolio
As product declines, new product is developed
Products at every stage = stable positive cashflow
Evaluation & Product Analysis
Use with sales forecast and management experience
Launched Products must be:
Developed
Marketed
Managed