Question

DESCRIPTION 1. What is the difference between a product and a brand? Let's make this clear with examples. 2. When you look at the major stages of the "New Product Development" process, what strikes you the most? What did you learn from it? Discuss. 3. What are the internal and external factors that you must consider while setting up a price? Discuss with examples.

Answer 1

Answer 1:- A product: a collection of tangible and intangible attributes. For instance cell phone

The former include physical features, design attributes, and packaging. The chrome on a Harley-Davidson motorcycle is a physical attribute, as are cup holders in a minivan. Intangible product attributes include such things as reputation, mystique, or a distinguished heritage.

A brand : a symbol about which consumers have beliefs or perceptions. For instance Apple iPhone

A more complete definition would describe a brand as a complex bundle of images, promises, and experiences in the customer's mind that represent a promise by a particular company about a particular product. In other words, brand represents the relationship that marketing has established with a customer.

Answer 2:- An organized new-product development process is key for a firm to succeed when creating a new product. Step one begins by coming up with and brainstorming the idea.

My idea for of a new product could be anything which is valuable to the customers. . Step two involves conducting a screening of my idea (a S.W.O.T. analysis) to determine its strengths and weaknesses, how it fits in with my company’s objectives and current market trends, considering any safety issues or potential liabilities, and most importantly creating a ROI estimate. Step three involves evaluating my idea, hypothesizing and testing concepts to get reactions and feedback from customers, as well as obtaining an estimate of potential costs, sales and profits. Step four is development such as the development of a service prototype in order to test my marketing mix and receiving feedback of the prototype from customers. This allows the prototype to be revised to meet the customers’ needs and concerns. If my product is successful in testing, it can reach step five, commercialization. This is where a product can begin to rollout during the introduction stage of the product life cycle, and is slowly introduced to the market to generate interest and make the product launch successfully

Answer 3:- Other internal factors that influence pricing decisions include the company’s overall marketing strategy, objectives, and marketing mix, as well as organizational considerations. Price is only one element of the company’s broader marketing strategy. If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Some companies position their products on price and then tailor other marketing mix decisions to the prices they want to charge. Other companies deemphasize price and use other marketing mix tools to create nonprice positions. Other external pricing considerations include the nature of the market and demand and environmental factors such as the economy, reseller needs, and government actions. The seller’s pricing freedom varies with different types of markets. Ultimately, the customer decides whether the company has set the right price. The customer weighs price against the perceived values of using the product: If the price exceeds the sum of the values, consumers will not buy. So the company must understand concepts such as demand curves (the price-demand relationship) and price elasticity (consumer sensitivity to prices). Economic conditions can also have a major impact on pricing decisions. The Great Recession caused consumers to rethink the price-value equation. Marketers have responded by increasing their emphasis on value-for-the-money pricing strategies. Even in tough economic times, however, consumers do not buy based on prices alone. Thus, no matter what price they charge—low or high—companies need to offer superior value for the money

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