Professional Documents
Culture Documents
Last Lesson - Marketing
Last Lesson - Marketing
Which differences?
Not all brand differences are meaningful or worthwhile. Not every
difference makes good differentiator. Each difference has the potential
to create company costs as well as customer benefits.Therefore ,
companies and even visitor destinations must carefully select the ways
in which it will distinguish itself from competitors
Product
The product life cycle presents two major challenges: First, because
all products eventually decline, a firm must find new products to
Product Idea
Envisions a possible product that a company managers might offer to
the market.
Product Concept
A detailed version of a product idea stated in a meaningful consumer
terms
Product Development
1.
2.
3.
4.
5.
6.
7.
8.
4.
Decline Stage
Maintain the product, possibly rejuvenating it by adding new
features and finding new uses
Decline stage is signalled by an long-run drop in sales
Reduce costs and continue to offer it, possibly to a loyal niche
segment
Discontinue product and liquidating remaining inventory or
selling it to another firm that is willing to continue the product
PRICE
1.
1.
1.
2.
3.
4.
5.
1.
A. Marketing Mix Strategy Price must be coordinated with product
design, distribution, & promotion decision to form a consistent
marketing program
B. Cost
1. Fixed Costs cost that do not vary with production or sales level
2. Variable Costs cost that vary directly with the level of
production
1.
A. Organization Considerations Management must decide who
within then organization should set prices. In small companies,
this will be top management; large companies, pricing is typically
handled by corporate department or by regional or unit
managers. Putting up a Revenue Management Department
which is responsible for pricing and coordinating with other
department that influence price.
2.
1.
External Factor
1.
2.
3.
4.
5.
6.
7.
8.
9.
3.
4.
1.
2.
3.
Value-Based Pricing
Uses buyers perceptions of value, not the sellers cost as the
key to pricing. All the other tools in the marketing mix are use
simultaneously with the pricing
Competition Based Pricing
The strategy of going-rate pricing is the setting of price based
largely on following competitors prices rather than on company
costs or demand.
Pricing Strategies for New Product
Pricing Prestige
Firm seeking to position themselves as luxurious and elegant
enter the market with a high price to support this position
Market-Skimming Pricing
Setting high price when the market is price-insensitive. Price
skimming can make sense when lowering the price will create
less revenue (if no competitions, or more demands than rooms in
hotel
Market Penetration Pricing