1. Product ideas
–typically come from consumers, the sales force, R&D departments, suppliers, or engineering personnel
2. Screening
–eliminate ideas that do not mesh with the firm’s abilities or objectives
3. Concept testing
–companies use market research to get consumers’ input about benefits and prices
4. Business analysis
–marketers compare production costs and benefits
5. Prototype development
–engineering, R&D, or design groups produce a prototype.
6. Product testing and test marketing
–test the product to see if it meets performance requirements.
7. Commercialization
–the company begins full scale production and marketing
Product Life Cycle (Plc)
–series
of stages in a
product’s commercial life
Stages in the product life cycle
i)Introductionii)Growth
iii)Maturity
iv)Decline
Identity Products
i)Branding
–symbols to communicate the qualities
–symbols to communicate the qualities
ii)Brand Awareness
–extent to which a brand name comes to mind
–the seller’s pricing decision is critical for determining the firm’s revenue, which is the result of the selling price times the number of units sold
2)Market Share
–company’s percentage of the total industry sales for a specific product type
3) Cost-Oriented Pricing
–pricing that considers the firm’s desire to make a profit and its need to cover production costs
4) Markup
–amount added to an item’s purchase cost to sell it at a profit
5)Variable Cost
–cost that changes with the quantity of a product produced and sold
6)Fixed Cost
–cost that is incurred regardless of the quantity of a product produced and sold
7)Breakeven Analysis
–for a particular selling price, assessment of the seller’s costs versus revenues at various sales volume
8)Breakeven Point
–sales volume at which the seller’s total revenue from sales equals total costs (variable and fixed) with neither profit nor loss
–extent to which a brand name comes to mind
Pricing to Meet Business Objectives
1)Profit-Maximizing Objectives–the seller’s pricing decision is critical for determining the firm’s revenue, which is the result of the selling price times the number of units sold
2)Market Share
–company’s percentage of the total industry sales for a specific product type
3) Cost-Oriented Pricing
–pricing that considers the firm’s desire to make a profit and its need to cover production costs
4) Markup
–amount added to an item’s purchase cost to sell it at a profit
5)Variable Cost
–cost that changes with the quantity of a product produced and sold
6)Fixed Cost
–cost that is incurred regardless of the quantity of a product produced and sold
7)Breakeven Analysis
–for a particular selling price, assessment of the seller’s costs versus revenues at various sales volume
8)Breakeven Point
–sales volume at which the seller’s total revenue from sales equals total costs (variable and fixed) with neither profit nor loss
