Product Mix Pricing Strategy PDF

PRODUCT MIX PRICING STRATEGY product line pricing - company set a price steps between various products in product line. optional product pricing - the pricing of optional or accessory product along with a main product to attract potential buyer. captive product pricing - product that must b...

PRODUCT MIX PRICING STRATEGY product line pricing - company set a price steps between various products in product line. optional product pricing - the pricing of optional or accessory product along with a main product to attract potential buyer. captive product pricing - product that must be used with a main product. by product pricing company set a by product price at low value to help them make the price of the main product more competitive. product bundle pricing - combination or a bundle of several product to reduce its price PRICE ADJUSTMENT STRATEGIES discount and allowances pricing - reduction in price (i) discount - quantity discount, seasonal discount, functional and trade discount and cash discount. (ii) allowances - trade in and promotional segmented pricing - selling product or service at two or more price (i) customer segment pricing - different customer different price for the product or services. (ii) product for pricing - different version of product priced differently according to situation and cost. (iii) location pricing - different location different price eventhough the cost of offering each location is the same. (iv) time pricing - price by season , month, day and hour. MANAGING NEW PRODUCT DEVELOPMENT TYPES OF NEW PRODUCT (i) new to the world product - It is new innovative products that create an entirely new market. (ii) new product lines - new product that allow a companuly to enter an established market to the first time. (iii) additions to existing product lines - new product that supplement a company's established product lines. (iv) improvement and revisions of the market product that provide improve perfomarmances or greater perceived value and replace existing product. (v) repositioning - existing products that are targeted to new markets or market segments. (vi) cost reduction - new product that provide performance similar to competing brands at lower cost. The new product development process is designed to developed, test and consider the vialibility of products which are new to the market in order to ensure the growth or survival of the organization STAGE IN THE PROCESS OF DEVELOPING : Idea generation Idea screening Concept development and testing Product development Business analysis Marketing strategy development Testing marketing Commercialization BRAND STRATEGY Define brand : name, term, design or combination of them intended to identify the goods and services of one seller or group of seller and to differentiate them from thus competitors. Branp equity refers to the value of company and brand names. A brand that has high awareness, perceived quality and brand loyalty among consumer has high brand equity such as maybank and bsn. MAJOR BRAND STRATEGIES DECISION THAT A COMPANY SHOULD DO (i) brand positioning - brand must be postioned clearly at three level that is attributes, benefit, beliefs and value. (ii) brand and name selection - qualities for a brand name include it should easy to pronounce, recognize and remember such as lux and dove. (iii) brand sponsorship - launched ad manufacters brand, private brand, licensed brand name and co brand name. (iv) brand development - line extension, brand extension , new brand and multi brand MARKET POSITIONING Define : Location of your product in the mind of your customer. Postioning map is a mean of displaying or graping in two or more dimensions, the location of the product, brands or groups in customer mind. high quality - high price low quality - low price positioning bases on (i) product features (ii) price and quality (iii) use and application (iv) product user (v) product class (vi) user (vii) competitor TARGET MARKETING Define : The act of evaluating and comparing the identified groups and the selecting one or more of them as prospect with the highest potential. FACTOR IN EVALUATING DIFFERENT MARKET SEGMENT (i) segment size and growth (ii) segment structural attractiveness (iii) company objectives and resources BASIC CATEGORIES OF MARKETING STRATEGY (i) Undifferentiated marketing - firms decide to ignore market segment differences and go after the whole market with one offer. (ii) Differentiated marketing - also know as segmented marketing and its firms decide to target several market segment and designs seperate offer for each. (iii) Concentrated marketing - also know as niche marketing and its smaller and many attract only one or few competitors. THE MARKETING PLAN IS GUIDE TO IMPLEMENTATION AND CONTROL STEP IN STRATEGY PLANNING ( DSDP ) (i) Defining the company mission (ii) Settings company objectives and goals (iii) Designing the business portfolio (iv) Planing marketing and other fuctional strategy DEVELOPING STRATEGIES FOR GROWTH AND GROWING (i) Market penetration - existing product , existing product such as zara selling nasi lemak (product) at college unitar (market). (ii) Product development - new product , existing market such as miss sarah selling kimchi (product) at college unitar (market). (iii) Market development - existing product , new market such as via selling nasi lemak (product) at south korea (market). (v) Diversification - company growing by starting up or buying business outside their current product or market. ORGANIZATION MICROENVIRONMENT Define : Consist of the forces that closes to the company that affect its ability to serves its customers. Actor / forces : (i) The company - In creating marketing plans marketer need to work with other company groups such as top management and accounting. The should work harmoniously to provide consumer value and satisfaction. (ii) Supplier - Firms and individuals that provide the needs by the company to produce its goods and services. The role of marketervis to make sure that supplier provide the raw materials according to schedule. (iii) Marketing Intermediaries - Firms that help the company to sell, promote and distribute its good to final buyer. (iv) Customers - (CBRGI) Devided into five types that is Customer market, Business market, Business market, Government market and International market. (v) Competitors - To suceed company must satisfy consumer wants and needs of consumers better than its competitors do. (vi) Publics - Is any group that has potential in impact on an organization's ability to achieve its objectives such as citizen and media CLASSIFICATION OF MARKETING THE PRODUCTION CONCEPT The first concept in business , holds that consumer prefer product that are available and highly affordable. THE PRODUCT CONCEPT Holds that consumer will prefer product that offer the most in highly quality and innovative features. THE SELLING CONCEPT Holds that consumers will not buy enough of the organization's product unless it undertakes large scale selling and effort promotion. THE MARKETING CONCEPT Basic philosophy that guides all marketing activities. Its an idea that an organization should satisfy consumer's needs through coordinated activities that also allow it to achieve its own goals. THE SOCIETAL MARKETING CONCEPT Holds that the organization's task is to determined the needs, wants and interest of the target market.