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Price & Product Management, need to review these strategies carefully,…
Price & Product Management
Product Management
1. What is Product?
User
based classification
Industrial products
Capital goods
Accessory goods
Raw materials
Semi-finished goods
Components and parts
supplies
Services
Consumer products
Shopping
Specialty
Unsought
Convenience
Definition
Offer to a market to satisfy want/ need
Build profitable relationship with customers
Newly perceived by customers
Core Benefit
Actual/ Tangible products
Augmented product
Product
based classification
durable goods
non
durable goods
services
2. Objectives of product management
Products offering
fits ( customers needs
to achieve a long term and sustainable competitive advantage
3. New product development
Basic Terms
Product line
product item
product line length
product line depth
product mix width
Sequential
product development
Simultaneous
(team based) product development
Product mix
Phases in new product development
idea generation
product concept development and testing
marketing strategy development
business analysis
technical development
Test marketing
commercialization
Test Methods
concept test
product test
test market simulation
storetest
mini market test
regional test market
Product design
Characteristics of product design
deep understanding of customer needs
more than just the shape and color
an integral part of the product
Adoption and diffusion process
perspective
company perspective:
product diffusion
customer perspective: product adoption
stages
Awareness
interest
evaluation
trial
adoption
1 more item...
Adopter categories
Innovators
early
adopters
early
majority
late
majority
laggards
Product factors affecting rate of adoption
relative advantage
compatibility
complexity
trialability
observability
Data Analysis
4. Product Stateries
Steps in managing products
developing product objectives
designing a product strategy
making tactical product decisions
Product quality as a major aspect of product strategies
Dimensions of product quality
durability
reliability
precision
versatility
need satisfaction
ease of use
product safety
degree of pleasure
Product line and product mix strategy
Types of product strategies
Product line strategies
Product line extension
product mix strategies
changing several product lines
more line consistency
less line consistency
lengthening the product mix
deepening the product mix
widening product mix
The relevance of product strategies for product managers
5. Product Life Cycle
Concept and characteristics
Factors that influence the PLC development
Stages of the PLC
introduction --> growth --> maturity --> decline
Marketing Mix Strategies for stages
6. Brand Management
Important terms
Brand
Brand architecture
trade mark
The role of brand equity
Brand name selection
Types of brand name
freestanding
associative
descriptive
Brand personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness
The importance of branding
Brand logos
Characteristics
Criteria for designing succesful logos
Comprehensibility
noninterchangeability
memorability
Stepwise vs. immediate logo change
Manufacturer vs. Retailer brands
Brand positioning and repositioning, rebranding
Three levels of brand positioning
Positioning on strong beliefs and values
Positioning on associating the brand name with a desirable benefit
positioning on product attributes
Differentiation positioning vs. similarity positioning
Brand position needs to be periodically audited
Rebranding
idea
risk
opportunities
evaluation
Branding strategy
Brand architecture strategies
Branded house
Sub branding
endorsed branding
house of brands
hybrid
Brand development strategies
brand extension
multibranding
Special brand strategies
licensing
cobranding
ingredient branding
Data Analysis
7. Packaging decisions
Packaging types and functions
Types
Primary container
secondary package
shipping package
Functions
utilitarian
psychological
communication
Designing effective packaging
Important aspects
New trends
Price Management
1. What is price? :moneybag:
The Concept of price
Reference price
Price-quality inferences
Monetary vs. Non-monetary pricing
Monetary - negative :no_entry:
Non-monetary - positive :check:
2. Pricing objectives
Psychographic
Economic
3. Customer price perception and processing
Acquisition of price information
evaluation of price information
storing of price information
spending and product usage behavior
4. The pricing decision
Internal factors affecting pricing decisions
Marketing objectives
Marketing mix strategy
Organizational considerations
Costs
External factors
market and demand
demand-based pricing
value-based pricing
competitors' costs, prices, offers
competition-based pricing
3 types of behavior
peaceful
cooperative
aggresive
other economic factors
e.g., boom or recession, inflation, interest rates
Resellers reaction
fair profit, encourage support , sell product effectively -> resellers
government
social concerns
5. Discount pricing
Idea
typical forms
cash discount
quantity discount
objectives
6. Pricing strategies
Low, medium, premium or luxury price strategy
New product pricing strategies
skimming strategy
penetration strategy
Product mix strategies
product line pricing
optional-product pricing
captive-product pricing
by-product pricing
7. Measuring consumers' willingness to pay
Measuring how reasonable consumers judge a price to be
Objective
Procedure
Measurement approaches
measure price estimate
measure price perceptions
measure willingness to pay
Measuring how consumers judge the price-quality ratio of a product
purchase simulation with varying prices
Conjoint analysis
Measuring consumers' bidding behavior
Price experiments
8. Price Response Functions
Characteristics
PRF: specifies demand for the product of a single seller as a function of the price. Constrasts with the concept of a market demand curve which specifies how an entire market will respond to changing prices
Linear & Multiplicative Price Response Functions
PRF and elasticity of demand
Data analysis
Determining the optimal price
Determining the optimal price under restrictions
Determining prices for multi-attribute products
9. Price presentation techniques
Odd vs. Even prices
Price partitioning
Temporal reframing of prices
10. Price Differentiation
Types
Demographic
Geographical
Temporal
Benefit-based
Quantity based
Bundling
Dynamic pricing
Customer-based (PWYW)
11. Price Changes
Initiating price changes
Responding to competitor price changes
need to review these strategies carefully
need to review these strategies carefully
Optimal price ?? :question:
profit contribution functions :question:
