Karolina Janiszewska
PRODUCT & PRICE
WSJO HND in Bussiness
Marketing Plan
Product decisions
• Line stretching – additional items need to be
added to tap potentially profitable extra business
• Line rationalization – items to be removed, to
reduce costs and improve profitability
• New product development
• Product modification and innovation
• Withdraw product from the market
WSJO HND in Bussiness
Marketing Plan
New product development (1)
1. Scanning – finding the gap on the market
(usage gap, distribution gap, product gap,
competitive gap)
2. Idea generation
3. Strategic screen – checking if the new product
idea mach the overall corporate and marketing
strategy, financial analysis
4. Concept test – quantitative and qualitative
research of new product concepts
WSJO HND in Bussiness
Marketing Plan
New product development (2)
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Product development
Product test
Test market
Product launch – take into consideration sales
seasonality, choose the best date
WSJO HND in Bussiness
Marketing Plan
Price decisions (1)
• Price strategy choice for different product in
company's portfolio
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Premium prices
Skimming prices
Penetration prices
Economy prices
• Price plan for B2B clients and B2C – changes
during the year depending on PLC and
seasonality
WSJO HND in Bussiness
Marketing Plan
Price decisions (2)
• Price discrimination
customer-segment pricing
zone (location) pricing
image pricing
time pricing
product-form pricing
quantity pricing (quantity discount)
frequency pricing (frequency - cumulated discount)
time and payment method pricing (cash discount)
WSJO HND in Bussiness
Marketing Plan
Price decisions (3)
• Monitoring of competitors prices
• Actualization of price list – how often and when
• Price increases – inflation, costs of sources
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Put the prices up when every one does
Not too much at any one time
Not too often
Move something down when you move something up
Look after your key accounts
Provide sound and true explanation
WSJO HND in Bussiness
Marketing Plan