Making Marketing decisions

• differentiation is the process of making your products or services unique in the market
• the design mix consists of:

  • cost
  • function
  • appearance
• stages of the product life cycle:

  • development
  • introduction
  • growth
  • maturity
  • decline
• ways to extend a products life:

  • adding features
  • new packaging
  • targeting new markets
  • lowering price
• internal factors that affect price:

  • technology
  • method of production
  • product life cycle
• price skimming is when a business charges high prices at first, then gradually lowers them as competitors enter the market.
• penetration pricing is charging lower than average prices to attract customers away from rivals.
• competitive pricing is setting prices based on what competitors are doing.
• penetration pricing is charging lower than average prices to gain market share quickly.
• external factors that influence price:

  • competition
  • marget segments
  • cost of raw materials