Chapter 14 – Developing and Pricing Goods and Services
14–41
critical thinking
exercise 14-4
BREAK-EVEN ANALYSIS
This exercise guides the students through the analysis re-
quired to determine a restaurant’s break-even point. (See com-
plete exercise on page 14.81 of this manual.)
PPT 14-52
Pricing Alternatives
(See complete PowerPoint slide notes on page 14.65.)
PPT 14-53
Pricing Strategies of Retailers
(See complete PowerPoint slide notes on page 14.65.)
Chapter 14 – Developing and Pricing Goods and Services
14–42
Chapter 14 – Developing and Pricing Goods and Services
14–43
critical thinking
exercise 14-5
COMPARISON SHOPPING
ONLINE
This Internet exercise directs students to
www.BizRate.com, a website that lets consumers compare
both product price and vendor reputation, to comparison shop
for a digital camera. (See complete exercise on page 14.84 of
this manual.)
Chapter 14 – Developing and Pricing Goods and Services
14–44
progress
assessment
(Text page 399)
PPT 14-54
Progress Assessment
(See complete PowerPoint slide notes on page 14.66.)
14–45
PowerPoint slide notes
PPT 14-1
Chapter Title
PPT 14-2
Learning Goals
14–47
PPT 14-6
Developing Value
PPT 14-7
Products Consumers Won’t Give Up
1. This slide profiles some of the goods and ser-
vices people do not eliminate during a recession.
2. Ask the students, Why are the items listed on the
slide considered “untouchables”?
3. To further the discussion ask the students, What
items do you consider to be “untouchable” and
why?
PPT 14-8
Products “Expendable” by Spending Cuts
1. This slide shows the flipside of the previous slide
and lists items that people are most likely to
eliminate.
2. Ask the students to get into groups and discuss:
Why are these items “expendable,” but the items
on the previous slide are “untouchable”?
Chapter 14 – Developing and Pricing Goods and Services
14–48
PPT 14-9
Distributed Product Development
PPT 14–10
Developing a Total Product
The total product offering includes tangible as well as
intangible benefits.
PPT 14–11
Product Innovation during the Great
Depression
1. The late 1920s and 1930s are associated with the
Great Depression, but the period was also one of
great product innovation.
2. The items on the slide were invented during the
Great Depression.
3. Have students look at the items and ask, Why do
you think these items were developed during a
time when most Americans had very little dis-
cretionary income?
4. Have students work with a partner or small
group to come up with specific reasons they
think these products developed.
Chapter 14 – Developing and Pricing Goods and Services
PPT 14–12
Anything You Can Do . . .
1. This slide shows that companies that innovated
and create new products don’t always remain the
market leaders.
2. Point out that while Apple didn’t introduce cell
phones, video recorders, or game players, it has
become the market leader by listening to con-
sumers and improving these products to meet
consumers’ wants and needs.
PPT 14–13
Potential Components of a Total Product
Offer
A product can be divided into the physical and the to-
tal product. Marketing managers must take the physical
and add value to create the total product offer.
PPT 14–14
Quality and Sustainability
14–50
PPT 14–15
Understanding Product Lines
PPT 14–16
The Product Mix
To give students a visual of the products offered by
Procter & Gamble, use its website at www.pg.com and
click on the products tab.
PPT 14–17
Differentiating Products
Chapter 14 – Developing and Pricing Goods and Services
PPT 14–18
Classifying Consumer Goods
and Services
Location, brand awareness, and image are important in
marketing these goods and services.
PPT 14–19
Classifying Shopping Goods and
Services
Brand name, price, and quality differences are im-
portant in marketing these goods and services.
14–52
PPT 14–20
Classifying Specialty Goods and
Services
PPT 14–21
Specialty Goods Aren’t Just for Humans
1. People are doting on their pets more than ever.
These links show just a few things you could buy
for your best friend.
2. Ask the students, Would you ever purchase any
of these for your pet? Do you have a pet product
idea?
Chapter 14 – Developing and Pricing Goods and Services
PPT 14–22
Classifying Unsought Goods and
Services
Unsought goods and services often rely on personal
selling or specialty advertising—like the Yellow Pages.
PPT 14–23
Identifying Consumer Goods
Classifications
• Beautyrest mattress—shopping good
• Honda Accord—shopping good
• McDonald’s Big Mac—convenience good
• Rolls-Royce automobiles—specialty good
• Oreo Cookies—convenience good
• Harvard University degree—specialty good
PPT 14–26
Progress Assessment
1. Some value enhancers that may be included in
the total product offering include brand name,
warranty, service, store surroundings, and speed
of delivery.
2. Product line refers to the group of products that
are physically similar or intended for a similar
market. These products may face similar compe-
tition. For example, you can purchase a Diet
Coke, Diet Coke with Splenda, and so on. The
product mix is the total of the product lines of-
fered by a particular company. The text uses the
example of Procter & Gamble.
3. The four classes of consumer goods and services
include:
• Convenience goods and services—candy,
gum and milk
• Shopping goods and services—clothes,
shoe, and appliances
• Specialty goods and services—fur coats,
imported chocolates, and business consult-
vice, insurance, and emergency drain clean-
ing
4. Installation goods consist of major capital
Chapter 14 – Developing and Pricing Goods and Services
14–56
PPT 14–27
Uses of Packaging
PPT 14–28
Some Key Functions of Packaging
PPT 14–29
Bundling
Chapter 14 – Developing and Pricing Goods and Services
14–57
PPT 14–30
Understanding Branding
Recognized trademarks include the Nike Swoosh, the
Pillsbury Doughboy, and Apple’s Apple.
PPT 14–31
The Name Game
PPT 14–32
What’s in a Name?
1. Product names are not decided on lightly.
2. Many companies seek professional advice re-
garding corporate identity.
Chapter 14 – Developing and Pricing Goods and Services
PPT 14–33
Key Brand Categories
Manufacturers’ brand examples include Ford, Mi-
crosoft, and Xerox. A dealer brand example is Kenmore,
from Sears.
PPT 14–34
Key Brand Categories
PPT 14–35
Establishing Brand Equity and Loyalty
Coca-Cola and Ziploc have strong brand equity.
14–59
PPT 14–36
Most Valuable Brands
1. This slide lists the 10 most valuable brands ac-
cording to Forbes.
2. As you can see, six of the most valuable brands
are tech companies.
PPT 14–37
Origins of Automobile Symbols
1. This slide presents the origins of car symbols.
2. Ask the students, How important is the name
and symbol of a product? What aspects should
be considered in the naming process? (Most stu-
dents should suggest that the name of your prod-
uct is very important, because it represents your
company, tells the customers what the product
is, and should mean something.)
3. Given that there are so many models of cars in
so many different countries, naming cars be-
comes a very complex process. Should only one
name be used in all countries or different names
for the same model in different countries?
PPT 14–38
Building Brand Awareness
Chapter 14 – Developing and Pricing Goods and Services
14–60
PPT 14–39
Building Brand Associations
PPT 14–40
Progress Assessment
1. The functions packaging performs include (1) at-
tract the buyer’s attention; (2) protect the goods
inside; (3) be easy to open; (4) describe and give
information; (5) explain the benefits of the good
inside; (6) provide information on warranties,
warnings and other consumer matters; and (7)
give some indication of price, value, and uses.
2. Brand names consist of a word, letter, or group
of words or letters that set it apart from other
goods and services. A trademark is a brand that
has exclusive legal protection for both its brand
name and design.
3. A manufacturers’ brand represents manufactur-
ers that distribute their products nationally such
as Xerox or Dell. A dealer brand is often re-
4. Brand equity is the value of the brand name and
associated symbols. The elements of brand equi-