POM

• packaging - serves to contain and protect, and, sometimes, identify and promote the product.
• Labelling - is a display of information about a product on its container, packaging, or on the product itself.
• Step 1: Idea Generation - The initial stage of the new product development process where any or all of several idea generation techniques (need/problem identification, attribute listing, forced relationships, morphological analysis, brainstorming, etc.)
• Step 2: Idea Screening - the stage where the ideas generated in the initial step are screened using predetermined criteria to reduce them to a manageable few.
• Step 3: Concept development and testing - where new product ideas are converted to customer- centered product concepts and tested by a representative sample of consumers for acceptability, believability, and potential intent.
• Step 4: Business Analysis - Pencil-pushing stage where, based on concept development and testing results, probable sales of the new product are calculated together with its costs and potential profitability.
• Step 5: Product Development - the new product development stage where the product concept is converted into a tangible working prototype
• Step 7: Product Commercialization - The final stage of the process where a new product is launched.
• Price is the amount of money charged for a product or service; the sum of the values that customers exchange for the benefits of having or using the product or service.
• Price is also one of the most flexible marketing mix elements.
• Product Cost Estimation - before determining the price of a product or service, the total cost of production must be computed
• Unit Variable Cost - refers to how much it would cost to manufacture one unit of the product
• Fixed Cost refers to the unit share of operating and other expenses.
• Direct Materials refer to the materials used in manufacturing a product
• Direct Labor includes the wages of all workers directly responsible for production.
• Direct Overhead is the amount that was spent in the manufacturing the product or unit. This may include energy, water, and other utility costs.
• Break-even point refers to the lowest possible price the company can set for its products (under normal circumstances).
• Customer Valued-Based Pricing - setting price based on buyer's perceptions of value rather than on the seller's cost.
• Good-value pricing - offering the right combination of quality and good service at fair price.
• Value-added pricing - attaching value-added features and services to differentiate a company's offers and charging higher prices.
• Cost-Based Pricing - setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.
• Fixed costs (overhead) costs that do not vary with production or sales level.
• Variable costs costs that vary directly with the level of production.
• Total costs the sum of the fixed and variable costs for any given level of production.
• Costs at different levels of production - to price wisely, management needs to know how its costs vary with different levels of production.
• Cost-plus pricing (mark-up pricing) adding a standard mark-up to the cost of the product.
• Break-even pricing (target return pricing) setting price to break even on the costs of making and marketing a product or setting price to make a target return.
• Competition-Based Pricing setting prices based on competitor's strategies, prices, costs, and market offerings.
• Internal Factors - Company's overall marketing strategy, objectives, and marketing mix
• External Factors - The nature of the market and demand
• Odd Pricing or Psychological Pricing is premised on the theory that consumers will perceive products with odd price endings as lower in price that they actually are.
• LOSS LEADER PRICING is a pricing strategy frequently utilized by supermarkets.
• PRICE LINING a pricing strategy designed to simplify a consumer's buying decision. This method involves reducing the number of price points on merchandise to as little as possible in extreme cases, to only one price point.
• PRESTIGE PRICING a pricing strategy that disregards the unit cost of a product or service.
• MARGINAL PRICING where a business organization prices its product at a range below its unit cost but higher than its unit variable cost
• PREDATORY PRICING a pricing strategy where the firm prices its product lower than unit variable cost, initially resulting in short-term losses.
• GOING RATE PRICING a pricing strategy where a company prices its product at the same level as or very close to its competitors price.
• Promotional Pricing a pricing strategy involving a temporary reduction in the selling price of a product/service in order to induce a trial or to encourage repeat purchase.
• Price Skimming where the product's selling price is way above its unit cost.
• Penetration Pricing where the new product is priced only marginally above its unit cost.