COMM 100 Lecture Notes - Brand Equity, Brand Loyalty, Brand Awareness
Document Summary
Product line is a group of similar products or products intended for a similar market. Product mix is the combination of product lines offered by a manufacturer: too much diversification can cause loss of focus, maybe a subsidiary or affiliate can be used to improve the marketing of another product line. This is the attempt by the manufacturer to create a perceived difference in the minds of consumers of the superiority of one product over others. Packaging can make the product more attractive to both consumers and retailers. Services can be packaged such as an airline offering both transportation and accommodation for one inclusive price. The ultimate goal of all marketing activity is to increase sales and profits. Each product requires its own pricing strategy. Cost-based pricing: producers often set the price based on the profit margin desired. Demand-based pricing: estimate the selling price people are prepared to pay for a product and then subtract the desired profit margin.
