Introduction to Management—CH13.pptVIP

Product and pricing Strategies Chapter 13 objectives Identify main factors that affect a product’s target market Identify the steps involved in creating a product Explain the common methods used to differentiate a product Identify the main phases of a product life cycle Identify the factors that influence the pricing decisions Background of products Product Physical goods as well as services that can satisfy consumer needs Convenience products Products that are widely available to consumers, are purchased frequently, and are easily accessible Milk, newspaper Shopping products Products that are not purchased frequently Furniture Specialty products Products that specific consumers consider to be special and therefore make a special effect to purchase Personal preference Rolex watch Background of products Product line A set of related products or services offered by a single firm A product line tends to expand over time as a firm recognizes other consumer needs. Product mix The assortment of products offered by a firm Most firms tend to expand their product over time as they identify other consumer needs or preferences. Diversify the product mix A common diversification strategy is for a firm to diversify products within its existing production capabilities. A Target market Target market A group of individuals or organizations with similar traits who may purchase a particular product Consumer markets Markets for various consumer products and services ( such as cameras, clothes, and household items) Industrial markets Markets for industrial products that are purchased by firms ( such as plastic and steel) Common traits used to describe a target market are the consumer’s gender, age, and income bracket. Factors affected a target market Demographics人口统计资料 Characteristics of human population or specific segments of the population Geography The total demand for a product is also influenced by geography. Southern V.S. Northern Economic factors As economic conditions change,