Comprehensive Guide to Product Features, Branding, and Pricing Strategies

Product Features

Tangible and intangible qualities that a company builds into its products.

Value Package

A product is marketed as a bundle of value-adding attributes and features, including a reasonable cost.

Convenience Goods

Regularly purchased, consumed rapidly and regularly.

Shopping Goods

Infrequently purchased.

Specialty Goods

Rarely purchased physical goods or services.

Product Mix

The entire group of products a company makes available for sale.

Product Lines

Groups of products that are closely related, function in a similar manner, sold to the same customer group, and used in similar ways.

The Seven-Step Development Process

A process that includes product ideas from consumers or R&D departments, screening by managers, concept testing, business analysis, prototype development, product testing, and commercialization.

Product Life Cycle (PLC)

Series of stages in a product's commercial life.

Stages in the PLC

Introduction, Growth, Maturity, Decline.

Branding

Using symbols to communicate the qualities of a product made by a particular company.

Brand Awareness

Extent to which a brand name comes to mind when considering a particular product category.

Product Placement

Promotional tactic for brand exposure in movies, video games, etc.

National Brands

Brand-name product produced and widely distributed by the manufacturing company.

Private Brand

Brand-name products that a wholesaler or retailer has created to sell.

Packaging

Physical container in which a product is sold, advertised, or protected.

Pricing

Process of determining what a company will receive in exchange for its products.

Pricing Objectives

The goals that sellers hope to achieve in pricing products for sale.

Profit-maximizing

Maximize overall revenue.

Increase market share

Maximize number of units sold.

Price Skimming

Setting an initially high price to cover new product costs and generate a profit.

Penetration Pricing

Setting an initially low price to establish a new product in the market.

Bundling Strategy

Selling several products together at a reduced price, rather than individually.

Psychological Pricing

Consumers do not always respond rationally to stated prices.

Odd-Even Pricing

Customers prefer odd prices (would purchase for $99.99 and not at $100.00).

Discount

Price reduction offered as an incentive to purchase.

Cost-Oriented Pricing

Setting a selling price considering profitability and the need to cover production costs.

Markup

Amount added to an item's cost to be profitable when setting price.