BU121 Lecture Notes - Product Classification, Price Skimming, Planned Obsolescence
Document Summary
Stages of life cycle: indicators of stage, industry/product, altering the speed of cycle, slow down: new users, new uses, speed up: planned obsolescence (ex. clothes-> buying new clothes every season) Pricing: objectives, how markups are determined, pricing strategies. Intensity of distribution - related to product classification. * important to see your product as customer does. Promotion: objectives, promotional mix and integrated communications, factors affecting the mix- push vs. pull. Convince customer that product provides unique benefit (through. Integrated consistent systems of activities: all parts of organization must have clear idea of unique benefit, core benefit proposition (cbp) Clear, concise, statement of product"s unique benefit or value proposition. Four p"s: product (includes both tangible and intangible), place, price, promotion. Total product concept: physical features necessary to support cbp, total package of benefits/value package as seen from eyes of customer, brand, package, service, warranty, delivery, credit, atmosphere, image/reputation, accessibility. Price must equal perceived value to target consumers: approaches:
