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【正文】 the product ? Describes the product’s use ? Describes the product’s benefits ? Has a positive connotation ? Reinforces the desired product image ? Is legally protectable in home and foreign markets Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1421 3 The Functions of a Package Help promote the product Protect the product Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1425 NewProduct Development Process NewProduct Strategy Idea Generation Idea Screening Business Analysis Development Test Marketing/Product Commercialization New Product Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1429 5 ? Sales grow at an increasing rate ? Healthy profits ? Many petitors enter market ? Large panies may acquire pioneering firms ? Promotion emphasizes aggressive brand ads and the differences between brands ? Adequate distribution is a major key to success ? Prices normally fall at end of growth phase ? Priority is increasing/retaining market share and enhancing profits Growth Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1433 6 Value pricing Target return on investment Profit maximization Offering the target market a high quality product at a fair price and with good service. The price of a product is set to give a pany the desired profitability in terms of return on its money. Producing a product as long as revenue exceeds the cost of producing it Pricing Objectives Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1437 7 Markup Pricing Markup Percentage = Markup Retail Price Breakeven Analysis Breakeven point = Markup (in Units) Fixedcost contribution How Managers Set Prices Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1441 8 Bundling Grouping two or more related products together and pricing them as a single product OddEven Pricing Setting a price at an odd number to connote a bargain and at an even number to suggest quality Leader Pricing Pricing products below the normal markup or below cost to attract customers to a store where they would not otherwise shop Prestige Pricing Increasing the price of a product so that consumers will perceive it as being of higher quality, status, or value Chapter 14 Understanding Business Luan Ling E
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