MM 15E Friends University Chapter 15 & 16 Marketing Management Reflection Paper Hi there guys, really simple and easy one. I just need a reflection paper

MM 15E Friends University Chapter 15 & 16 Marketing Management Reflection Paper Hi there guys, really simple and easy one.

I just need a reflection paper (1 page only) APA Format 250-300 words, based on the readings that we will have each week (attached in PowerPoint are the chapters 15-16 that we must be reading), how it reflect on your (in this case mine) personal earning process—challenges, moments of discovery, life experiences, readings, and interactions.

If you have any concerns, In the Word document (attached) is what I need exactly.

Please don’t hesitate to ask if you guys have any questions.

Thank you guys. Reflection Paper
Each week you will writing a 250-350 word reflective statement on the eight weeks’ learning,
and how it has affected your thought process, development, and professional disposition.
This statement should be an opportunity for you to reflect on your personal learning
process—challenges, moments of discovery, life experiences, readings, and interactions.
The reflection will be based on the readings the text books. Your reflection will be based on
the assigned readings of the weeks. Reflections must meet the following criteria: – 250-350
word count – Describe your “take-away” from the assigned reading. This may relate to
personal insights gained, parallels to past management experiences, or parallels to
observations of past management you have experienced in other organizations. (8 Weekly
Reflection Papers @ 20 points each)
Chapter
16
Developing Pricing
Strategies and
Programs
Copyright © 2016 Pearson Education, Inc.
16-1
Learning Objectives
1.
How do consumers process and evaluate prices?
2.
How should a company set prices initially for
products or services?
3.
How should a company adapt prices to meet varying
circumstances and opportunities?
4.
When and how should a company initiate a price
change?
5.
How should a company respond to a competitor’s
price change?
Copyright © 2016 Pearson Education, Inc.
16-2
Understanding Pricing
• Pricing in a digital world
? Get instant vendor price comparisons
? Check prices at the point of purchase
? Name your price and have it met
? Get products free
? Monitor customer behavior & tailor offers
? Give customers access to special prices
? Negotiate prices online or even in person
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16-3
Understanding Pricing
• A changing pricing
environment
– Sharing economy
– Bartering
– Renting
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16-4
Understanding Pricing
• How companies price
– Small companies: boss
– Large companies: division/product line
managers
• How companies should price
– Understanding of consumer pricing
psychology
– a systematic approach to setting, adapting,
and changing prices
Copyright © 2016 Pearson Education, Inc.
16-5
Consumer Psychology and Pricing
Reference prices
Price-quality inferences
Price endings
Copyright © 2016 Pearson Education, Inc.
16-6
Reference Prices
Copyright © 2016 Pearson Education, Inc.
16-7
Setting the Price
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16-8
Step 1: Selecting the Pricing
Objective
Survival
Maximum
current profit
Maximum
market share
Other
objectives
Product-quality
leadership
Maximum
market
skimming
Copyright © 2016 Pearson Education, Inc.
16-9
Step 2:
Determining Demand
• Price sensitivity
• Estimating demand
curves
– Surveys, price
experiments, &
statistical analysis
• Price elasticity of
demand
Copyright © 2016 Pearson Education, Inc.
16-10
Figure 16.1
Inelastic And Elastic Demand
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16-11
Price Sensitivity
Copyright © 2016 Pearson Education, Inc.
16-12
Step 3: Estimating Costs
• Types of costs and levels of
production
– Fixed vs. variable costs
– Total costs
– Average cost
Copyright © 2016 Pearson Education, Inc.
16-13
Step 3: Estimating Costs
• Accumulated production
– Experience/learning curve
Copyright © 2016 Pearson Education, Inc.
16-14
Step 3: Estimating Costs
• Target costing
– Price less desired profit margin
Copyright © 2016 Pearson Education, Inc.
16-15
Step 4: Analyzing Competitors’
Prices
• Firm must take competitors’ costs, prices, &
reactions into account
– Value-priced competitors
Copyright © 2016 Pearson Education, Inc.
16-16
Step 5: Selecting a Pricing Method
• Figure 16.4: three major
considerations in price
– Costs = price floor
– Competitors’ prices =
orienting point
– Customers’ assessment of
unique features = price
ceiling
Copyright © 2016 Pearson Education, Inc.
16-17
Step 5: Selecting a Pricing Method
• Markup pricing
– Add a standard markup to the product’s cost
Copyright © 2016 Pearson Education, Inc.
16-18
Step 5: Selecting a Pricing Method
• Target-return pricing
– Price that yields its target rate of return on
investment
Copyright © 2016 Pearson Education, Inc.
16-19
Figure 16.5
Break-Even for Target-Return Price
Copyright © 2016 Pearson Education, Inc.
16-20
Step 5: Selecting a Pricing Method
• Perceived-value pricing
– Based on buyer’s image of product, channel
deliverables, warranty quality, customer
support, and softer attributes (e.g., reputation)
Copyright © 2016 Pearson Education, Inc.
16-21
Step 5: Selecting a Pricing Method
• Value pricing
• EDLP
– High-low pricing
• Going-rate pricing
Copyright © 2016 Pearson Education, Inc.
16-22
Step 5: Selecting a Pricing Method
• Auction-type pricing
English (ascending)
Dutch (descending)
Sealed-bid
Copyright © 2016 Pearson Education, Inc.
16-23
Step 6: Selecting the Final Price
• Additional factors to select final price:
? Impact of other marketing activities
? Company pricing policies
? Gain-and-risk-sharing pricing
? Impact of price on other parties
Copyright © 2016 Pearson Education, Inc.
16-24
Adapting the Price
• Geographical pricing
– Barter
– Compensation deal
– Buyback
arrangement
– Offset
Copyright © 2016 Pearson Education, Inc.
16-25
Adapting the Price
• Price discounts and allowances
Copyright © 2016 Pearson Education, Inc.
16-26
Adapting the Price
• Promotional pricing:
• Loss-leader pricing
• Special event pricing
• Special customer
pricing
• Cash rebates
• Low-interest financing
• Longer payment terms
• Warranties/service
contracts
• Psychological
discounting
Copyright © 2016 Pearson Education, Inc.
16-27
Adapting the Price
• Price discrimination
Customersegment
pricing
Product-form
pricing
Image
pricing
Time pricing
Location
pricing
Channel
pricing
Copyright © 2016 Pearson Education, Inc.
16-28
Adapting the Price
• Price discrimination
– Yield pricing
Copyright © 2016 Pearson Education, Inc.
16-29
Initiating and Responding to Price
Changes
• Initiating price cuts
– Excess plant capacity
– Domination of market
• Price-cutting traps
– Price concessions
– Low-quality
– Fragile market share
– Shallow pockets
– Price war
Copyright © 2016 Pearson Education, Inc.
16-30
Initiating and Responding to Price
Changes
• Initiating price increases
? Delayed quotation pricing
? Escalator clauses
? Unbundling
? Reduction of discounts
Copyright © 2016 Pearson Education, Inc.
16-31
Initiating Price Increases
Copyright © 2016 Pearson Education, Inc.
16-32
Initiating and Responding to Price
Changes
• Anticipating competitive
responses
• Responding to
competitors’ price
changes
Copyright © 2016 Pearson Education, Inc.
16-33
Copyright © 2016 Pearson Education, Inc.
16-34
Chapter
15
Introducing New
Market Offerings
Copyright © 2016 Pearson Education, Inc.
15-1
Learning Objectives
1.
How can new products be categorized?
2.
What challenges does a company face in developing
new products and services?
3.
What organizational structures and processes do
managers use to oversee new-product
development?
4.
What are the main stages in developing new
products and services?
5.
What is the best way to manage the generation of
new ideas?
Copyright © 2016 Pearson Education, Inc.
15-2
Learning Objectives
6.
What is the best way to manage concept and
strategy development?
7.
What is the best way to manage the
commercialization of new products?
8.
What factors affect the rate of diffusion and
consumer adoption of newly launched products and
services?
Copyright © 2016 Pearson Education, Inc.
15-3
New-Product Options
• Buy other companies
• Buy patents from other
companies
• Buy a license or franchise
from another company
• New-to-the-world items
• Improvine existing products
Copyright © 2016 Pearson Education, Inc.
15-4
Challenges in New-Product
Development
• The innovation
imperative
– Continuous innovation
is a necessity
• New-product success
– Incremental innovation
vs. disruptive
technologies
Copyright © 2016 Pearson Education, Inc.
15-5
New-Product Failure
• Fragmented
markets
• Social, economic,
and government
constraints
• Development costs
• Capital shortages
• Shorter
development time
• Poor launch timing
• Shorter PLCs
• Lack of
organizational
support
Copyright © 2016 Pearson Education, Inc.
15-6
Organizational Arrangements
• Budgeting for New-Product Development
Copyright © 2016 Pearson Education, Inc.
15-7
Organizing New-Product
Development
• New-product development concepts
Newproduct
department
Stage-gate
systems
Venture
teams
Skunkworks
Crowdsourcing
Communities
of practice
Copyright © 2016 Pearson Education, Inc.
15-8
Figure 15.1
New-Product Development Process
Copyright © 2016 Pearson Education, Inc.
15-9
Generating Ideas
• Interacting with
employees
• Interacting with
outsiders
• Studying competitors
• Adopting creativity
techniques
Copyright © 2016 Pearson Education, Inc.
15-10
Ways to Find New-Product Ideas
• Informal customer
sessions
• Time off for technical
people to putter
• Customer brainstorming
• Survey your customers
• “Fly on the wall”
research
• Iterative rounds with
customers
• Keyword search to scan
trade publications
• Treat trade shows as
intelligence missions
• Have employees visit
supplier labs
• Set up an idea vault
Copyright © 2016 Pearson Education, Inc.
15-11
Ways to draw new ideas from
customers
? Observe customers using product
? Ask customers about product problems
? Ask customers about dream products
? Use customer advisory board
? Use Web sites
? Form brand community of enthusiasts
? Challenge customers to improve product
Copyright © 2016 Pearson Education, Inc.
15-12
ADOPTING CREATIVITY
TECHNIQUES
Attribute
listing
Forced
relationships
Morphological
analysis
Mind
mapping
New contexts
Reverseassumption
analysis
Copyright © 2016 Pearson Education, Inc.
15-13
Figure 15.2
Forces Fighting New Ideas
Copyright © 2016 Pearson Education, Inc.
15-14
Using Idea Screening
Copyright © 2016 Pearson Education, Inc.
15-15
Using Idea Screening
• The company can monitor and revise its estimate of
the product’s overall probability of success, using the
following formula:
Copyright © 2016 Pearson Education, Inc.
15-16
Concept to Strategy
• Concept development
– Figure 15.3(a): productpositioning map
– Figure 15.3(b): brandpositioning map
Copyright © 2016 Pearson Education, Inc.
15-17
Concept to Strategy
• Concept testing responses
Communicability &
believability
Perceived value
Need level
Purchase intention
Gap level
User targets, purchase
occasions & frequency
Copyright © 2016 Pearson Education, Inc.
15-18
Concept to Strategy
• Conjoint analysis
– Deriving the utility
values that
consumers attach
to varying levels of
a product’s
attributes
Copyright © 2016 Pearson Education, Inc.
15-19
Figure 15.5
Utility Functions in Conjoint Analysis
Copyright © 2016 Pearson Education, Inc.
15-20
Concept to Strategy
• Marketing strategy development following a
successful concept test
1. Target market’s size, structure, & behavior;
the planned brand positioning; the sales,
market share & profit goals in first few years
2. Planned price, distribution strategy, and
marketing budget for the first year
3. Long-run sales & profit goals and marketingmix strategy over time
Copyright © 2016 Pearson Education, Inc.
15-21
Concept to Strategy
• Business analysis
– Estimating total sales
– Figure 15.6: Product LifeCycle Sales for Three Types
of Products
Copyright © 2016 Pearson Education, Inc.
15-22
Concept to Strategy
• Estimating costs and profits
Copyright © 2016 Pearson Education, Inc.
15-23
Development to
Commercialization
• Product development
– Physical prototypes
– Customer tests: alpha &
beta testing
Copyright © 2016 Pearson Education, Inc.
15-24
Development to
Commercialization
• Market testing
– Consumer-goods market
testing
– Business-goods market
testing
Copyright © 2016 Pearson Education, Inc.
15-25
Methods of Consumer-Goods
Market Testing
Sales-wave research
Simulated test marketing
Controlled test marketing
Test markets
Copyright © 2016 Pearson Education, Inc.
15-26
Development to
Commercialization
• Commercialization: When (Timing)
First entry
Parallel entry
Late entry
Copyright © 2016 Pearson Education, Inc.
15-27
Development to
Commercialization
• Commercialization
– Where (Geographic
Strategy)
– To Whom (TargetMarket Prospects)
– How (Introductory
Market Strategy)
Copyright © 2016 Pearson Education, Inc.
15-28
The Consumer-Adoption Process
• Adoption
– An individual’s decision to become a regular
user of a product
Copyright © 2016 Pearson Education, Inc.
15-29
Stages in the
Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
Copyright © 2016 Pearson Education, Inc.
15-30
Factors Influencing the Adoption
Process
• Readiness to try new products and personal
influence
Copyright © 2016 Pearson Education, Inc.
15-31
Factors Influencing the Adoption
Process
• Characteristics of the innovation
? Relative advantage
? Compatibility
? Complexity
? Divisibility
? Communicability
Copyright © 2016 Pearson Education, Inc.
15-32
Factors Influencing the Adoption
Process
• Organizations’ readiness to adopt innovations
Copyright © 2016 Pearson Education, Inc.
15-33
Copyright © 2016 Pearson Education, Inc.
15-34

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