Product, Price, Place

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Product, Price, Place

• H Edu 4310

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Marketing Strategy - Product/Service

• What is a product or service?

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Three dimensions
Core
Tangible
Augmented
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Tangible vs Intangible
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Five Is

• Intangibility
• Inconsistency
• Inseparability
• Inventory
• Interaction

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Product planning

• Focal points
• Consumers wants and needs
• Current resources and technology
• Environmental opportunities

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Levels of planning

• Product class (SIC, automobiles)
• Product mix (cars vs vans or trucks)
• Product line (Beetles)
• Product item (new, colors, features)

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Levels of planning (cont)

• Breadth
• Depth

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Life Cycle

• Introduction
• Growth
• Maturity
• Decline

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Product Strategies

• Market development
• Product development
• Positioning
• Packaging
• Branding

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Acceptance

• Innovators (2.5)
• Early adoptors (13.5)
• Early majority (34)
• Late majority (34)
• Laggards (16)

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Marketing strategy Price

• Identify constraints
• Newness in life cycle
• Production cost
• Channel length
• Market structure

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Pricing objectives

• Profit
• Sales
• Market share

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Market Share
High
Low
Premium pricing Meet competitor Follow the
leader Skimming pricing
Maintain price Price leadership Meet
competitor Penetration pricing Set high prices
High
Market Growth
Hold steady Meet lower prices Protect share Lower
prices
Price emphasis Meet competitor
Low
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Pricing objectives (cont)

• Image
• Stabilization
• Cross-subsidization

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Price Sensitivity
Inelastic
Price
Elastic
Demand
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Cost vs volume

• Fixed and variable costs
• Break-even analysis
• Marginal cost pricing

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Pricing strategies

• Price lining
• Odd pricing
• One-price vs flexible pricing
• Prestige price

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Pricing strategies (cont)

• Leader pricing
• Bundled pricing
• Going-rate pricing
• Discounts

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Distribution (Place or Access)

• What comes to mind?
• How do we get our services to our customers?

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Channels of distribution

• Bread vs health care

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Bread
Farmer
Wholesaler
Baker
Market
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Hospital care
Patient
Primary care
Specialist
Hospital
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Channels (cont)

• The tangible product must first exist
• The services the patient consumes arent
  produced until the end of the process.
• The consumer isnt involved in the distribution
  of the tangible product.
• The patient initiates health care and is in the
  process all the way.

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Functions

• Place location facilities
• Facilities layout, look, feel, safety
• Time hours, waiting, next appointment
• Possession
• Form (Miami Herald)
• Information/communication other languages,
  symbols

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Intensity of distribution

• Intensive
• Selective
• Exclusive

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Vertical marketing

• Purpose
• Cost savings
• Management factors
• Environmental changes
• Corporate
• Administered
• Contractual

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Power of channels

• Coercive
• Economic
• Reward
• Referent
• Expertise

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Retail positioning matrix
Broad
Mayo Clinic
Low-cost Hospital
Breadth of product line
Boston Childrens Hospital
Solo Practice Internist
Narrow
High
Low
Value-added
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Channel Control

• Push
• Pull