Professional Documents
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Under product line pricing, a seller offers merchandise at a limited number of prices rather than having individual prices for each item. For instance, a boutique might offer lines of women's sportswear priced at 1200, 1500, and 2000. Product line pricing is a common marketing practice among retailers. As a pricing strategy, product line pricing prevents the confusion common in situations where all items are priced individually. It makes the pricing function easier. But marketers must clearly identify the market segments to which they are appealing.
Some firms diversify to survive To expand sales To reduce costs Any shift in consumers buying patterns may signal the need for line diversification
Both internal and external sources generate new ideas Sales department Production department Research and development department Ex: cool cats decorated ceiling fans, nestle chocolates, cibaca lime toothpaste
The frequency of design change The extent to which designs should be protected from copying Product design is the process of creating a new product to be sold by a business to its customers. In a systematic approach, product designers conceptualize and evaluate ideas, turning them into tangible inventions and products. The product designer's role is to combine art, science, and technology to create new products that other people can use. Their evolving role has been facilitated by digital tools that now allow designers to communicate, visualize, analyze and actually produce tangible ideas in a way that would have taken greater manpower in the past.
Product Quality and service policy Quality is defined as fitness for purpose.
Quality is a perceptual, conditional and somewhat subjective attribute and may be understood differently by different people. Consumers may focus on the specification quality of a product/service, or how it compares to competitors in the marketplace. Producers might measure the conformance quality, or degree to which the product/service was produced correctly. Support personnel may measure quality in the degree that a product is reliable, maintainable, or sustainable. Simply put, a quality item (an item that has quality) has the ability to perform satisfactorily in service and is suitable for its intended purpose. Guarantee policy
Policies on marketing channels A marketing channel consists of individuals and firms involved in the process of making a product or service available for consumption or use by consumers and industrial users. Sales volume potential For each channel option, the key question is: Can
enough potential buyers be reached to absorb the desired quantity of products?
Pricing policies
Policy on Discounts
Trade discounts
Different prices offered to each class of customers
Quantity discounts
Price reductions granted for purchases in a stated quantity
Delivered pricing
Seller pays the freight
Pure competition
No single buyer or seller is large enough to the market that it can single handedly control total demand or supply
Competitive setting where the number of competitors is small enough that they are individually identified and known to each other and it is difficult for new competitors to enter the market.