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Advertising Chapter 4

Product and price planning in marketing involves strategic decisions about what to sell and how to price it effectively, ensuring consumer satisfaction and competitive advantage. Effective planning drives revenue and business success by aligning products with market needs and optimizing pricing strategies. Additionally, pricing decisions are influenced by market demand, cost structure, and economic conditions, and should adapt throughout the product lifecycle to maximize profitability.

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26 views11 pages

Advertising Chapter 4

Product and price planning in marketing involves strategic decisions about what to sell and how to price it effectively, ensuring consumer satisfaction and competitive advantage. Effective planning drives revenue and business success by aligning products with market needs and optimizing pricing strategies. Additionally, pricing decisions are influenced by market demand, cost structure, and economic conditions, and should adapt throughout the product lifecycle to maximize profitability.

Uploaded by

trizziamirandamiranda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 4

PRODUCT AND
PRICE
PLANNING

REPORTERS:

DIWA, ANGELO C.
CRUZ, SHEINNETE
WHAT IS PRODUCT
AND PRICE
PLANNING?

-Product and price planning in marketing


involves making strategic decisions about
what to sell and how much to charge.

-In essence, product planning focuses on


what to sell, while price planning focuses on
how to price it effectively.
IMPORTANCE OF
PRODUCT AND PRICE
PLANNING IN
MARKETING

-In order to ensure consumer happiness and loyalty,


product and pricing planning is crucial in marketing. It
helps to match products with customer wants.
Businesses can obtain a competitive advantage and
increase their market share by differentiating their
products from those of their rivals. While maximizing
profitability, effective pricing plans also take customer
behavior and market conditions into consideration.
IMPACT ON OVERALL
BUSINESS SUCCESS
-Product and pricing strategy drives revenue
and improves competitive positioning, which
have a substantial impact on overall business
success. Product definitions that are clear and
satisfy customers' needs encourage loyalty and
satisfaction, which encourages repeat
business. Pricing strategically reduces market
volatility risks and increases profitability.
Efficient planning also fosters innovation, which
enables companies to investigate new markets
and adjust to shifting customer tastes.
OBJECTIVES OF PRODUCT
PLANNING

Align with Business Goals Optimize Resource Allocation

Identify Market Needs Mitigate Risks

Define Product Vision Measure Success


IDEA GENERATION

STAGES OF CONCEPT DEVELOPMENT

PRODUCT
PLANNING MARKET TESTING

PRODUCT LAUNCH
IMPORTANCE OF
PRICE PLANNING
-For organizations, price planning is
essential since it has a direct impact on
consumer perception, market positioning,
and revenue creation. In the end, a well-
planned pricing strategy contributes to
financial sustainability by helping to
maximize profit margins while guaranteeing
that production and operating costs are
met. Additionally, effective price planning
allows companies to respond to market
demands and competitive pressures,
making informed adjustments that can
enhance customer loyalty and satisfaction.
PRICE PLANNING

COST-PLUS PRICING COMPETETIVE PRICING

PRICE SKIMMING PRICE PENETRATION

VALUE-BASED PRICING
MARKET DEMAND
FACTORS
INFLUENCING COST STRUCTURE
PRICING
DECISIONS COMPETITOR PRICING

ECONOMIC CONDITIONS
PRODUCT LIFECYCLE
AND PRICING
-Pricing and product lifecycle management work together to maximize revenue and
maintain market competitiveness. Companies may use penetration pricing at the
introduction phase to entice early customers or skimming to recover development
expenses. Competitive pricing methods are commonly used as a product enters
the growth stage in order to respond to new competitors and gain a greater market
share. When a company reaches the mature stage, it usually concentrates on
value-based pricing or price competition to protect its market position from
competitors. To keep customers, it frequently runs promotions or discounts.
Lastly, in order to reduce losses and get rid of inventory, businesses
may switch to cost-plus or discount pricing during the decline stage.
Through the strategic modification of pricing in line with the
product lifecycle, enterprises may efficiently adapt to changing
market conditions, maximize profits, and improve customer
satisfaction.
Thank You!
I hope you can get useful knowledge
from this presentation. Good luck !

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