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Chapter 14 - Developing and Pricing Goods and Services
B. THE GROWING IMPORTANCE OF PACKAGING
1. The package is more important for promotion now
learning goal 4
tion thereof) that identifies the goods or services of
14-22
PPT 14-29
Bundling
(See complete PowerPoint slide notes on page 14.56.)
critical thinking
exercise 14-1
CHOOSING A BRAND NAME
This exercise gives students a chance to create unique brand
names for several consumer products. (See complete exercise on
page 14.76 of this manual.)
lecture link 14-6
THE MOST VALUABLE BRANDS
Interbrand, a research company, annually ranks the most val-
uable brands in the world. The top global brands for 2010 are
listed. (See the complete lecture link on page 14.71 of this man-
ual.)
PPT 14-30
Understanding Branding
(See complete PowerPoint slide notes on page 14.57.)
Chapter 14 - Developing and Pricing Goods and Services
and its design (example: McDonald’s golden arch-
es).
3. Most people CHOOSE A BRAND-NAME PROD-
UCT over a nonbranded one, even when they say
there’s no difference.
4. A brand name has benefits for both buyers and
2. DEALER (PRIVATE-LABEL) BRANDS are prod-
ucts that do not carry the manufacturer’s name,
3. Many manufacturers fear having their brand name
a. Names such as nylon, escalator, kerosene,
and zipper became so popular that they lost
their brand status and became generic.
Chapter 14 - Developing and Pricing Goods and Services
14-24
REACHING BEYOND
our borders
(Text page 388)
PPT 14-31
The Name Game
(See complete PowerPoint slide notes on page 14.57.)
PPT 14-32
What’s in a Name?
(See complete PowerPoint slide notes on page 14.57.)
lecture link 14-7
BABY PRODUCTS STAY
STRONG AS PRICES RISE
Though new parents are often strapped for cash, they still
buy brand-name baby products. (See the complete lecture link
on page 14.72 in this manual.)
PPT 14-33
Key Brand Categories
(See complete PowerPoint slide notes on page 14.58.)
lecture link 14-8
BRAND MANAGEMENT ICONS
The Michelin man is 75 years old, but he’s not the oldest
brand mascot. (See the complete lecture link on page 14.73 in
this manual.)
PPT 14-34
Key Brand Categories
(See complete PowerPoint slide notes on page 14.58.)
lecture link 14-9
THE MYSTIQUE OF COCA-COLA
The critical element in Coca-Cola’s success is the aura of
mystery around the product’s formula. (See the complete lec-
ture link on page 14.73 in this manual.)
14-25
4. GENERIC GOODS are nonbranded products that
usually sell at a sizable discount compared to na-
1. BRAND EQUITY is the value of the brand name
Chapter 14 - Developing and Pricing Goods and Services
PPT 14-35
Establishing Brand Equity and
Loyalty
(See complete PowerPoint slide notes on page 14.59.)
PPT 14-36
Most Valuable Brands
(See complete PowerPoint slide notes on page 14.59.)
14-27
PPT 14-37
Origins of Automobile Symbols
(See complete PowerPoint slide notes on page 14.59.)
critical thinking
exercise 14-2
MOST VALUABLE GLOBAL
BRANDS
Interbrand, a research company, annually ranks the most val-
uable brands in the world. This exercise asks students to re-
search the current year’s ranking. (See complete exercise on
page 14.78 of this manual.)
PPT 14-38
Building Brand Awareness
(See complete PowerPoint slide notes on page 14.59.)
Chapter 14 - Developing and Pricing Goods and Services
D. CREATING BRAND ASSOCIATIONS
1. The name, symbol, and slogan a company uses
helps gain brand recognition for that company’s
A. Chances that a NEW PRODUCT WILL FAIL are high,
as high as 80%.
1. A leading cause of new-product failure is not deliv-
ering what is promised.
14-29
PPT 14-39
Building Brand Associations
(See complete PowerPoint slide notes on page 14.60.)
progress
assessment
(Text page 390)
PPT 14-40
Progress Assessment
(See complete PowerPoint slide notes on page 14.60.)
Chapter 14 - Developing and Pricing Goods and Services
2. Other REASONS FOR FAILURE include getting
ready for market too late, poor positioning, not
enough differences from competitors, and poor
packaging.
B. THE NEW-PRODUCT DEVELOPMENT PROCESS:
2. The number one SOURCE OF IDEAS for industri-
worked on at any one time.
2. CRITERIA NEEDED FOR SCREENING include fit
with present products, profit potential, and mar-
14-31
PPT 14-41
The New-Product Development
Process
TEXT FIGURE 14.3
The New-Product Development
Process
(Text page 391)
(See complete PowerPoint slide notes on page 14.61.)
lecture link 14-10
TOP 10 NEW PRODUCTS IN
HISTORY
Research and development executives identify the top 10 new
products of all time. (See the complete lecture link on page
14.48 of this manual.)
PPT 14-42
Bringing New Products to the
Market
(See complete PowerPoint slide notes on page 14.61.)
Chapter 14 - Developing and Pricing Goods and Services
E. PRODUCT ANALYSIS is done after screening.
1. PRODUCT ANALYSIS is making cost estimates
and sales forecasts to get a feeling for profitability
F. PRODUCT DEVELOPMENT AND TESTING
2. The marketing effort must include COMMER-
Chapter 14 - Developing and Pricing Goods and Services
14-33
PPT 14-43
Bringing New Products to the
Market
(See complete PowerPoint slide notes on page 14.61.)
SPOTLIGHT ON
small
business
(Text page 392)
PPT 14-44
Don’t Come to
Me; I’ll Come to
You
(See complete PowerPoint slide notes on page 14.62.)
Chapter 14 - Developing and Pricing Goods and Services
learning goal 6
VI. THE PRODUCT LIFE CYCLE
A. The PRODUCT LIFE CYCLE is a theoretical model
of what happens to sales and profits for a product
C. USING THE PRODUCT LIFE CYCLE
A. PRICE is a critical ingredient in consumer evalua-
14-35
PPT 14-45
The Four Stages of a Product Life
Cycle
(See complete PowerPoint slide notes on page 14.62.)
PPT 14-46
Sales and Profits during the Prod-
uct Life Cycle
TEXT FIGURE 14.4
Sales and Profits during the Prod-
uct Life Cycle
(Text page 393)
(See complete PowerPoint slide notes on page 14.62.)
lecture link 14-11
EXTENDING THE LIFE CYCLE
ON A ROLLER COASTER
Amusement parks have found a way to extend the vacation
season—Halloween events complete with haunted houses and
scary costumes. (See the complete lecture link on page 14.74
of this manual.)
TEXT FIGURE 14.5
Sample Strategies Followed during
the Product Life Cycle
(Text page 394)
This text figure shows that different stages in the product
life cycle call for different marketing strategies.
PPT 14-47
Profits beyond the Grave
(See complete PowerPoint slide notes on page 14.63.)
lecture link 14-12
EXTENDING SWEETHEARTS
One of the oldest candy companies in the United States is
introducing new lines of heart-shaped candies geared to Me-
morial Day and the movie Twilight. (See the complete lecture
link on page 14.75 of this manual.)
TEXT FIGURE 14.6
How Sales, Profits, and
Competition Vary over the Product
Life Cycle
(Text page 395)
This text figure shows in table form what happens to sales
volume, profits, and competition during the product life cycle
Chapter 14 - Developing and Pricing Goods and Services
tions of the product and a difficult one for marketers
to control.
B. PRICING OBJECTIVES
1. The firm may have several objectives in mind
3. Popular PRICING STRATEGIES include:
5. Pricing objectives are influenced by other market-
Chapter 14 - Developing and Pricing Goods and Services
14-37
progress
assessment
(Text page 390)
PPT 14-48
Progress Assessment
(See complete PowerPoint slide notes on page 14.63.)
PPT 14-49
Pricing Objectives
(See complete PowerPoint slide notes on page 14.64.)
PPT 14-50
Pricing Strategies
(See complete PowerPoint slide notes on page 14.64.)
Chapter 14 - Developing and Pricing Goods and Services
C. COST-BASED PRICING
1. Producers often use COST as a primary basis for
margin.
Chapter 14 - Developing and Pricing Goods and Services
14-39
lecture link 14-13
RISING FOOD PRICES
The prices consumers have been used to during the reces-
sion are about to rise. Customers had better be ready! (See the
complete lecture link on page 14.75 of this manual.)
critical thinking
exercise 14-3
SILKY SKIN SOLUTION
This exercise asks students to develop a marketing program
for Silky Skin Solution, a technologically advanced wrinkle
cream. (See complete exercise on page 14.79 of this manual.)
PPT 14-51
Using Break-Even Analysis
(See complete PowerPoint slide notes on page 14.64.)
Chapter 14 - Developing and Pricing Goods and Services
Total fixed costs (FC) .
Price of 1 unit (P) ̶ Variable costs (VC) of 1 unit
