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OVERVIEW, LEARNING OBJECTIVES, CLASS PREPARATION

CHAPTER 13-Creating and Pricing Products that Satisfy Customers

OVERVIEW
In this chapter, we examine basic concepts and definitions for the first two elements in the marketing mix: product and price. Since a product’s classification largely determines appropriate pricing, distribution, and promotion, we begin by analyzing several categories of consumer and business products. We outline the four stages of a product’s life cycle—introduction, growth, maturity, and decline—and consider the three major approaches for changing the product mix. Then we discuss branding, packaging, and labeling. Next, we focus on pricing. We explain the function of pricing, noting that supply and demand, along with various competitive factors, play a part in determining price. We also consider several objectives of pricing and examine the effectiveness of cost-based, demand-based, and competition-based pricing in reaching those objectives. The discussion of pricing strategies includes new product and psychological strategies directed primarily at consumers, and geographic pricing and discounting, which are more applicable to organizational buyers.


Learning Objectives
After studying this chapter, students should be able to:
1. Explain what a product is and how products are classified.
2. Discuss the product life cycle and how it leads to new product development.
3. Define product line and product mix and distinguish between the two.
4. Identify the methods available for changing a product mix.
5. Explain the uses and importance of branding, packaging, and labeling.
6. Describe the economic basis of pricing and the means by which sellers can control prices and buyers’ perceptions of prices.
7. Identify the major pricing objectives used by businesses.
8. Examine the three major pricing methods that firms employ.
9. Explain the different strategies available to companies for setting prices.
10. Describe three major types of pricing associated with business products.
Class Preparation

Format for Discussion Questions: Typed, (Question in bold) followed by double space and then your answer.
Assignments may be submitted in class paper copy, email, or via Blackboard.
Late assgnments will recieve a maximum of 50% credit

CLASS PREPARATION

READ Chapter 13, Video Case 13.1 Be prepared to discuss the questions at the end of the case.
Answer Discussion Questions 1,5,9

 
Crossword: Please download to desktop then open

 

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