Pricing for Convenience Goods - 12585 Words

CH 12] Business 101 — The Basics 12-1 Chapter 12 Product and Pricing Strategies Learning Goals 1. Identify the components of the total product concept. 2. List the types of consumer goods, industrial goods, and services. 3. Explain the product mix and product lines. 4. List and describe the stages of the product life cycle. 5. Identify the stages in the new-product development process. 6. Describe how products are identified. 7. Outline the different types of pricing objectives. 8. Discuss how prices are set in the marketplace. 9. Explain how breakeven analysis can be used in pricing strategy. 10. Differentiate between skimming and penetration pricing strategies. 12-2 Product and Pricing Strategies Chapter Overview†¦show more content†¦A young couple intent on buying a new television may visit many stores, competing goods in competing examine perhaps dozens of TV sets, and spend days making the final decision. The stores. couple follows a regular routine from store to store in surveying competing offerings and ultimately selects the most appealing set. Specialty goods are particular products desired by a purchaser who is familiar specialty goods with the item sought and is willing to make a special effort to obtain it. A specialty good has no reasonable substitute in the Figure 12.1 The Total Product Concept mind of the buyer. The nearest BMW dealer may be 40 miles away, but a buyer might go there to obtain what they considers one of the world s best-engineered cars. This classification of consumer goods may differ among buyers. A shopping good for one person may be a convenience good for another. Majority buying patterns determine the item s product classification. Marketing Strategy Implications. The consumer goods classification is a useful tool in marketing strategy. For example, once a new lawn edger has been classified as a shopping good, insights are gained about its marketing needs in promotion, pricing, and distribution methods. The impact of the consumer goods classification on various aspects of marketing strategy is shown in Table 12.1. Classifying Industrial Goods The five mainShow MoreRelated4ps and How the Firm Position Their Products for Maximum Competitive Advantage in the Marketplace1455 Words   |  6 Pagesadvantage. For the ignored customers, the firm should design a spcial product to satisfy their needs and keep in touch with them. On the other hand, this company should operate in one or a few geographic areas. It helps customers buy your products more convenience and the firm can make more profit. How the firm has managed its decisions on the 4Ps of the marketing mix Marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Consumers often callRead MoreHow Consumers And How Large Supermarket Chains Match Their Needs For Terms Of Products, Price And Customer Services1360 Words   |  6 Pagesstimulate shoppers’ consumption, it has little influence because of cost-savings, convenience as well as better choice they obtain. OK ====== It is an indisputable fact that product assortments sold in supermarkets are overarching which contain all sorts of food, daily use, and so forth. Based on consumer purchasing behaviour, Chernev (2006) in Boyd et al. (2009) demonstrates that their decisions are relative to goods categories which have been interpreted as a hierarchical process. This processRead MoreCore Business Features Defining Ecommerce Capabilities1431 Words   |  6 Pagesoffers clear cost-value benefits for each B2B company precisely because each business has its own goals and marketing strategy and needs customized features to promote those goals. Custom Access Custom access not only allows companies to hide the good stuff but also facilitates offering those same items to preferred customers as soon as they visit the website even on a small-screen mobile device. UX custom access and high functionality empower customers and stakeholders at different levels by facilitatingRead MorePriceline.Com: Changing Business in the New Millennium1093 Words   |  5 Pagesnumber of products at the near of their hands. But the traditional form of marketing is no more suitable for consumer groups. That’s why they want easier to achieve of their needed products in one single place. With the keywords aggregation and convenience, internet has come forward to begin the new millennium of marketing concept. The internet offers almost unlimited shopping possibilities with all desired products of consumers. This enables one from anywhere around the world to get his expectedRead MoreOnline Shopping Research1286 Words   |  6 Pagesthey have time constraint to reach the physical outlet even though it is developing trend it has some limitations in online shopping due to technological limitations ,limitations in availability of goods compare with offline outlets. They are consumer. Sometimes online outlets unable deliver the goods in right time. The colour, size may varies and based upon type of product they may add custom and shipping charges in order to overcome this problem as researcher trying to get some alternate with differentRead MoreGeneral Pricing Approach1085 Words   |  5 Pages4. General Pricing approach. Value based pricing, everyday low pricing (EDLP ) and high-low pricing. Value based pricing Source:http://www.smallbusinessnotes.com/operating/marketing/pricing/valuebased.htmlHow high can a price be before the product or service is priced out of the market?To understand the customer s perception of the value of your product or service, look at more subjective criteria such as customer preferences, product benefits, convenience, product quality, company image andRead MoreMarketing Stacys Pita Chips1750 Words   |  7 Pagesand needs of a target market of customers, and then working to satisfy those customers better than the competition. This involves doing market research on customers, analyzing their needs, and then making strategic decisions about product design, pricing, promotion and distribution or place (Bethel, 2007). Understanding ways to identify the target market is crucial in developing market strategy. This paper is intended to define target marketing and examine a market analysis of Stacy s Pita Chip CompanyRead MoreHistory Of Energy Drink Consumption On Austr alia1632 Words   |  7 Pagesenergy drinks in the market (supermarket, petrol stations, convenience stores). What pricing strategies do businesses use to sell these products? How does it compare with their competition? In a modern market where pricing is competitive and consumers are not loyal to a singular brand, the customer base is not strong and without a consistent effort to maintain them, customers will leave. Effective sales are often based on competitive pricing strategies, and this can be identified in different energyRead MoreMarketing Mix The 4 Ps - MKT 4211113 Words   |  5 Pagesthe product, place, price, or promotion--the manager also provides what Robert Lauterborn says corresponds with the customers four Cs: customer solution, customer cost, convenience, and communication (as cited in Kotler Keller, 2006, p. 20). Product The product the customer wants or needs is not necessarily a physical good; it could be the additional benefits one receives because of a service provided. For example, at Wal-Mart, the door greeter is a service provided to make customers feel appreciatedRead MoreEconomics : The Supply And Demand Curve Essay1441 Words   |  6 PagesIntroduction This term paper would discuss Uber’s pricing in term of facing the fundamental concept of economics: the supply and demand curve. Uber is one of the pioneers of ride-sharing and its’ brand name has dominated headlines over the past year alongside mentions of the â€Å"sharing economy†. The Uber’s pricing that would be discussed is their surge price, because this volatile pricing will impact their demand within their limited supply of drivers, and important factor to survive from the competition