MGMT 1 Chapter Notes - Chapter 14: Profit Margin, Brand Management, Target Costing
Document Summary
Chapter 14: developing and pricing goods and services. Consumers calculate: look at benefits & subtact cost (price) to see whether benefits > cost. Ongoing need: adapting products to new competition & new markets. Offerings may differ in various locations, according to wants of local community. Product development: key activity in any modern business, anywhere in world. Increase in outsourcing & alliance building innovation efforts that often require using multiple organizations separated by cultural, geographic, legal boundaries. Distributed product development : describe handing off various parts of your innovation process, often to companies in other countries. Total product offer : everything consumers evaluate when deciding whether to buy something. Basic product: (cid:392)core product(cid:393); total product: (cid:392)augmented product(cid:393) Marketer must think like consumer & evaluate total product offer as collection of impressions created by all factors. Can use low prices to create attractive total product offer. Ex: outlet stores: brand name goods for less.
