Product management W10-14 Flashcards
- when a promising concept has
been developed and tested, it is
time to design an initial marketing
strategy for the new product.
MARKETING STRATEGY DEVELOPMENT
is the amount that consumers will be
willing to pay for a product.
Marketers must link the price to the product’s real
and perceived value, while also considering supply
costs, seasonal discounts, competitors’ prices, and
retail markup.
Price
focuses on the
perceived
value of the
product or
service to the
customer.
Value Based Pricing
focuses
on the internal
factors of a
business,
primarily the
costs associated
with producing
or acquiring the
product.
Cost Based Pricing
Rent and Lease
Payments
Salaries and
Wages
Insurance
Premiums
Loan Repayments
FIXED COST
Raw Materials
Direct Labor
Utilities
Packaging
Materials
Sales
Commissions
VARIABLE
COST
is the consideration of where
the product should be available—in
brick-and-mortar stores and
online—and how it will be displayed.
Place
The goal of ——– is to communicate to
consumers that they need this product and
that it is priced appropriately. ———-
encompasses advertising, public relations,
and the overall media strategy for
introducing your product.
Promotion
It’s essential to outline the ——— features
and benefits while emphasizing significant
changes made from the approval stage to
concept testing. This involves describing the
product thoroughly and explaining any
alterations implemented based on feedback
received during the approval process.
Subsequently, insights gathered from concept
testing are discussed, guiding the adoption of
necessary adjustments for finalization. This
iterative process ensures that the product
aligns closely with market needs and
preferences, enhancing its potential for
success upon launch.
Product
plays a crucial role in the success of new product development initiatives. It systematically evaluates market conditions, customer preferences, and organizational capabilities to guide
the development of new products that meet market needs and drive business growth.
it helps organizations comprehensively understand the market landscape in the context of new product development. It involves conducting market research to identify customer trends, preferences, and unmet needs. By analyzing this information, organizations
Business Analysis
mechanism is the process of incurring expenses and securing funding to cover those expenses to launch and establish a new business. This process typically involves identifying and budgeting
for all necessary expenses and securing funding to cover those costs through investments or loans.
These costs are mandatory for a company to start and become operational. However, with sufficient funding to cover such costs, a business can establish or struggle to become profitable in the long term.
Business ——–also help entrepreneurs identify potential challenges and risks associated with their business idea and develop a financial plan to manage them. By carefully budgeting and planning for such costs, entrepreneurs can make informed decisions about the feasibility and sustainability of their
business idea.
Start-up costs
Prices are set based largely on competitors’ prices rather than on
company costs or demand.
COMPETITOR-BASED PRICING
usually change as a product passes through its life cycle. The introductory stage of the product life cycle is particularly
challenging.
Pricing strategies
Involves setting a high price for a new
product to skim maximum revenue from
the segments willing to pay the high
price. Fewer sales but more profitable
sales.
eg. Iphone
MARKET-SKIMMING PRICING
Setting a low price
for a new product
in order to attract
a large number of
buyers and large
market share.
eg. Netflix
MARKET-PENETRATION PRICING
