Good quality at a fair price the foundation of marketing Adapting products to new markets is an ongoing challenge Product development is a key activity in any modern business Total product offer Everything that a consumer considers when deciding to buy a product Evaluated on many different dimensions Value package includes value total product offer product line product mix product The combination of all product lines offered by a manufacturer or service provider Example proctor and gamble sells laundry detergent make up diapers chips and soap Creation of real or perceived product differences Marketers use a mix of pricing advertising and packaging to create different images Chapter 14 Value differentiation Product mix Product differentiation Types of goods Consumer Convenience Shopping Specialty Unsought Industrial good Products used in the production of other products and sold in the B2B market Installations capital items accessory equipment supplies service Info or warranties warnings etc Indication of prices value and uses Importance of packaging Protection Attraction Description Explain benefits Brand competitors offerings Trademark Branding categories Manufacturers Dealer private Generic Knockoff Name symbol or design that identifies the goods or services and distinguishes them from Brand that has exclusive legal protection for both its brand name and design Life cycle Intro Growth Sales Low sales Rapid rise Profits Competitors Loss may occur Very high Few Growing number Maturity Decline Pricing objectives Peak sales Falling Declining Losses Stable then few Declining Achieving a target return on investment or profit Building traffic Achieving greater market share Creating an image Furthering social objective both short and long terms Process used to determine profitability at various levels of sales where revenues cost Break even analysis Total fixed costs Variable costs Costs that remain the same no matter how much is produced or sold Change according to the level of prodcution
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