Rery Indra Kusuma

Wiluyo Karyanto

The Steps in Research and Development

Idea

Develop-

ment

Screening

New

Ideas

Business

Analysis

Product

Develop-

ment

Test

Marketing

Commercial-

ization

Classifications of Consumer Products

Convenience Products bought frequently without a products lengthy search and bought for immediate consumption.

Shopping Products purchased after buyer has products compared competitive products.

Specialty Products that the buyer searches for products and makes a special effort to obtain.

The Life Cycle of a Product

Introduction Growth Decline Maturity

Sales

Volume

Profit

Time

0

Sales $

Pricing Strategies

New-product strategies Price skimming Penetration pricing

Psychological pricing strategies Odd/Even Prestige pricing

Price Discounting Quantity discounts Seasonal discounts Promotional discounts

Implement

Pricing

Strategies

Marketing Channels for Consumer

Products

Producer

Agents

(Middlemen)

Wholesalers

(Middlemen)

Retailers

(Middlemen)

Consumers

Producer Producer Producer

Wholesalers

(Middlemen)

Retailers

(Middlemen)

Retailers

(Middlemen)

Consumers Consumers Consumers

Types of Market Coverage

Intensive Makes a product available in as many outlets as possible.

Selective Uses only a small proportion of all distribution available outlets to expose products.

Exclusive Exists when a manufacturer gives a distribution middleman the sole right to sell a product in a defined geographic territory.

Physical Distribution Activities

Customers Producers

Inventory

Planning

and Control Transportation Warehousing

Materials

Handling

The Promotion Mix

Publicity

Personal

Selling

Sales

Promotion Advertising

Advertising Media

Newspapers

Magazines

Direct mail

Outdoor advertising

Television

Radio

Cyberads

Print media

Electronic media

Advertising Basic Features

Verbal or Visual Message

Identified Sponsor

Delivery via 1 or more mediums

Payment by Sponsor to Media Carrying Message

Major Tools of Sales Promotion

Point-of-purchase displays

Premiums

Sampling and demonstrations

Coupons

Consumer contests and sweepstakes

Refunds

Trade shows

Push and Pull Strategies

Producer

Producer

Wholesalers

Wholesalers

Retailers

Retailers

Consumers

Consumers

Pushing Strategy

Pulling Strategy

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