9-27 - Product Strategy considers: What goods/services to...

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Product Strategy considers: What goods/services to offer. For example, one might think a Mexican restaurant targeting adults should not offer chicken fingers, but many times they do in order to appeal to the adults’ children. Customer service Package design (should be eye catching) Brand names Warranties (takes away risk from consumers; makes the product or service seem more legitimate. Product life cycle Positioning Pricing Strategy: Deals with the methods of setting profitable and justifiable prices. The goal is to reach the equilibrium price (the price to where supply and demand are equal) Distribution Strategy: Planning that ensures that consumers find their products in the proper quantities at the right times and places. Modes of transportation (usually goods are transported via trucks or railroads in the U.S.) Warehousing Inventory Control Order Processing Promotional Strategy: Blending together the various elements of promotion to communicate most effectively with the target market. Informing, persuading, and influencing a consumer’s purchase decision. Companies and Competition Reducing prices. For example, Pizza Hut now offers two medium pizzas for $10 on Mondays so other pizza companies have to offer similar promotions. Increasing advertising Introducing a new product or an improved product. For example, Crest came out with whitening toothpaste to keep up with competition. Buying out the competition (Bill Gates is famous for doing this) Trying to inspire brand loyalty Brand Perception and Image: “An image of a product, person, brand, or place is formed when people develop beliefs, ideas, perceptions, or impressions about a product, person, or place.” Brand image refers to the set of perceptions that consumers have formed about a brand. For example, a consumer may perceive a Mercedes to be nicer than a Chevrolet because
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9-27 - Product Strategy considers: What goods/services to...

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