Product and Pricing Strategies PDF

 Product A product is anything that can be offered to a market to satisfy a want or need. This includes physical goods, services, experiences, or ideas. Products can be categorized into several types: Types of Products 1.Consumer Products: These are products purchased by the end consu...

 Product A product is anything that can be offered to a market to satisfy a want or need. This includes physical goods, services, experiences, or ideas. Products can be categorized into several types: Types of Products 1.Consumer Products: These are products purchased by the end consumer for personal use. They can be further divided into:Convenience Products: Low-priced items that are bought frequently with minimal effort (e.g., groceries, toiletries). 2.Shopping Products: Items that consumers compare on attributes such as quality, price, and style before purchasing (e.g., clothing, electronics). 3.Specialty Products: Unique items that have specific characteristics or brand identification for which consumers are willing to make a special purchasing effort (e.g., luxury cars, designer clothing). 4.Unsought Products: Products that consumers do not think about regularly or do not know about until they need them (e.g., life insurance, funeral services). 1.Industrial Products: These are products used in the production of other goods or services. They can be categorized into:Materials and Parts: Raw materials and components used in manufacturing (e.g., steel, engines). 2.Capital Items: Long-lasting goods that facilitate developing or managing the finished product (e.g., machinery, buildings). 3.Supplies and Services: Operating supplies and services that support production (e.g., office supplies, maintenance services). 4.Digital Products: Products that are delivered electronically and can include software, e-books, online courses, and digital media. 5.Services: Intangible products that involve a deed, performance, or effort that cannot be owned (e.g., consulting, healthcare, education).  Price Price is the amount of money charged for a product or service. It is a critical component of the marketing mix and can influence consumer purchasing decisions. Pricing strategies can vary based on the type of product, market conditions, and business objectives. Types of Pricing Strategies 1.Cost-Plus Pricing: Setting the price based on the cost of production plus a markup for profit. This is a straightforward method but may not consider market demand. 2.Value-Based Pricing: Setting the price based on the perceived value of the product to the customer rather than the cost of production. This approach is common for luxury goods and unique offerings. 3.Competitive Pricing: Setting the price based on the prices of competitors for similar products. This strategy is often used in highly competitive markets. 4.Penetration Pricing: Introducing a new product at a low price to attract customers and gain market share quickly. Once established, the price may be increased. 5.Skimming Pricing: Setting a high price initially for a new or innovative product to maximize profits from early adopters, then gradually lowering the price.