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Introduction The second phase of the new-product development process focuses on the actual development of the new product. This phase includes the following: Stage 4: Business Case Analysis Stage 5: Development Making ...

Introduction Rent the Runway is a company that lets customers borrow expensive designer dresses for a short time at a low price—to wear on a special occasion, e.g.— and then send them back. A customer can rent a Theia gown that retails for $995 for four day...

The Customer and the Pricing Decision We have discussed common company objectives that affect pricing and the competitive impact on pricing. The most important perspective in the pricing process is the customer’s. Value-based pricing brings the voice of the...

Introduction It’s important to remember that pricing is just one component of the marketing mix, and even very specific pricing decisions need to take into account the other components. This is particularly true in a competitive marketplace. Actions by diff...

Introduction Regardless of the pricing strategy a company ultimately selects, it is important to do a break-even analysis beforehand. Marketers need to understand break-even analysis because it helps them choose the best pricing strategy and make smart decisi...

Introduction Companies set the prices of their products in order to achieve specific objectives. Consider the following examples: In 2014 Nike initiated a new pricing strategy. The company determined from a market analysis that its customers appreciated th...

What you’ll learn to do: explain the primary factors to consider in pricing Now that we’ve considered the customer perspective, we need to understand how pricing fits into the company strategy. It’s important to remember that all elements of the marketing m...

Many consumers pay a premium price for branded eyewear. How does the brand name influence the price and value? The following video shows the mechanics behind these brands and considers the impact on price. You can view the transcript for “Expensive Glasses”...

You will notice that when we discussed the value equation in the previous reading, we referred to perceived benefits and perceived costs, rather than absolute/actual benefits and costs. Every customer perceives benefits and costs differently, and many of these...

What you’ll learn to do: discuss how price affects the value of an organization’s products or services Price determines how much revenue a company is going to earn. It determines whether the business is covering the costs to create and deliver its products. P...

Introduction The final phase of the new-product development process focuses on commercializing the new product. This phase includes: Stage 6: Test Marketing Stage 7: Launch Stage 8: Evaluation At last the product is ready to go. It has survived the de...

THE HACK Multitasking is actually not possible for humans; what we think of as multitasking is really just switching our attention between tasks Remove distractions before you study as distractions result in decreased learning The Story You just finished...

Why use pricing strategies to enhance marketing of products and services? When Amazon.com was created in 1994, the company sold books online. While many viewed it as a real threat to traditional bookstores, few, other than its founder and CEO, Jeff Bezos, ima...

Instructions Write a post for the Discussion on this topic, addressing the questions below. You may use either written paragraph or bullet-point format. Part 1 should be 2–3 paragraphs in length or an equivalent amount of content in bullet-point form. Respons...

In this module we’ve covered a wide range of topics related to the role of the product in the marketing mix. As you’ve seen, creating clear value for the customer, understanding the product life cycle, and creating a balanced product portfolio are all interrel...

One common cause of failure in the developing and marketing of new products is something called “product-market fit.” Marc Andreesen, a technology entrepreneur and investor who has written about this, explains that product-market fit is simply being in a good ...

Just as the product life cycle has a typical bell-shaped pattern, there is a predictable—and similar-shaped—pattern of buying, or adoption, when it comes to new products. This customer adoption pattern is important because it can be used to inform marketing de...

What you’ll learn to do: identify the challenges associated with marketing a new product successfully Have you ever waited in line to be among the first to buy a new product when it was released? Are you careful, maybe pragmatic, about trying new products? ...

Target’s design products include many of the success factors we’ve discussed in this module. As you watch the following video, see if you can identify which aspects of Target’s approach and design process are key to their success. What role does the corporate ...

What you’ll learn to do: compare common pricing strategies Thus far we have discussed many pricing considerations: the impact of pricing on value perceptions,  the effects of elasticity, and approaches to common pricing objectives. In this section we are goin...