CHAPTER 12

Developing and Pricing

Products
What Is a Product?
 Ideas, Goods (Barang), or Services (Jasa)
 Konsumen membeli produk karena mereka suka
dengan apa yg produk tersebut dapat berikan bagi
mereka, baik secara emosional maupun fisik.
 Dalam sebuah produk harus terdapat fitur-fitur yang
tepat dan menawarkan benefit untuk bisa sukses di
pasaran

Feature 
Suatu kualitas, baik yang terlihat
maupun tidak, yang ditanamkan
produsen di suatu produk
Classifying Goods & Services
CONSUMER PRODUCTS
Convenience Good/Service 
Produk yang berharga murah, dibeli dan dikonsumsi secara
cepat dan rutin (contoh: koran, shampoo, minuman kemasan)

Shopping Good/Service 
Produk yang berharga agak mahal, tidak sering dibeli, dan
butuh pertimbangan sebelum membelinya (contoh:
handphone, laptop)

Specialty Good/Service 
Produk yang tergolong ‘spesial’, mahal, dan jarang dibeli
(contoh: gaun dan kue pengantin)
Classifying Goods & Services
INDUSTRIAL PRODUCTS

Expense Item 
Produk yang dibeli dan dikonsumsi secara rutin dan
sering untuk keperluan sehari-hari (contoh: alat tulis
kantor)

Capital Item 
Barang yang relatif mahal, bersifat tetap dan long-
lasting, frekuensi pembelian jarang (contoh: gedung,
kendaraan, komputer)
The Product Mix

Product Mix 
Kumpulan jenis-jenis produk yang dijual oleh suatu perusahaan

Contoh: Yamaha selain menjual sepeda motor, juga menjual

dan memproduksi berbagai alat musik)

Product Line 
Kumpulan dari produk yang mirip/sejenis yang ditujukan bagi
para konsumen yang akan juga akan menggunakannya dalam
kegunaan yang mirip (contoh: Toyota mempunyai lini produk
seperti Camry, Innova, Avanza, Rush, dll)
Developing New Products
 The New Product Development Process
Adalah proses yang panjang, kompleks, dan mahal
 Product Mortality Rates
9 dari 10 produk baru akan gagal di pasaran

Strategi yang dilakukan dalam memperkenalkan

produk baru untuk merespon perubahan pasar
dan konsumen secara cepat
The Seven-Step
Development Process
 Commercialization

 Testing & Test Marketing

 Prototype Development

 Business Analysis

 Concept Testing
 Screening

 Product Ideas
The Product Life Cycle (PLC)

Stage in the product life cycle:

Introduction
Growth
Maturity
Decline
Life Cycle Stages

#-9
Life Cycle Stages

# - 10
Adjusting Marketing Strategy During the
Life Cycle
 Foreign Markets Offer Three Approaches to Longer
Life Cycles

Product Extension
Existing product is marketed globally, instead of just
domestically
Product Adaptation 
Product modified to have greater appeal in foreign markets
Reintroduction 
Process of reviving for new markets products that are obsolete
in older ones
 Identifying Products
Branding: process of using symbols to communicate the
qualities of a product made by a particular producer

Types of Brand Names

National Brand: brand-name product produced by, widely

distributed by, and carrying the name of a manufacturer

Licensed Brand: brand-name product for whose name the

seller has purchased the right from an organization or
individual

Private Brand (or Private Label)brand-name): product that a

wholesaler or retailer has commissioned from a manufacturer
Packaging Products

Packaging 
Physical container
in which a product
is sold, advertised,
or protected
Packaging Products
Labeling
 Can help market the product

•• Nonaerosol
Nonaerosol
 Address issues of consumer
•• Bio-Degradable
Bio-Degradable
safety
•• Recyclable
Recyclable Contents
ContentsUnder
UnderPressure
Pressure
•• Ozone
OzoneFriendly
Friendly Do
DoNot
NotPuncture
Puncture
•• Fat
FatFree
Free
•• Salt Flammable
Flammable
SaltFree
Free
Do
DoNot
NotUse
UseNear
NearOpen
OpenFlame
Flame
•• Sugar
SugarFree
Free
•• 30%
30%More
MoreFree!
Free!
Determining Prices
Pricing 
Process of determining what a company will
receive in exchange for its products

Pricing Objectives 
Goals that producers hope to attain in pricing
products for sale

Market Share 
As a percentage, total of market sales for a
specific company or product
Price-Setting Tools
Cost-Oriented Pricing
Markup: Amount added to an item’s cost to sell it at
a profit

Breakeven Analysis: Cost-Volume-Profit Relationships

 Variable Cost: Cost that changes with the quantity of a
product produced or sold
 Fixed Cost: Cost unaffected by the quantity of a product
produced
 Breakeven Analysis: Assessment of the quantity of a
product that must be sold before the seller makes a
profit
 Markup
Markup is usually stated as a percentage of selling price.

Markup
Markup Percentage 
Sales Price

$7
Markup Percentage   46.7%
$15

# - 17
 Breakeven Point
Quantity of a product that must be sold before the seller
covers variable and fixed costs and makes a profit

Total fixed costs

Breakeven point (in units) 
Price  Variable cost

$100,000
  14,286 CDs
$15  $8

# - 18
Breakeven Analysis

# - 19
Pricing Strategies & Tactics
Existing Products
 Pricing above prevailing market prices for similar
products
 Pricing below market prices
 Pricing at or near market prices (market pricing)
Price Leader
Dominant firm that establishes product prices that other
companies follow

Price Fixing
Occurs when producers illegally agree on prices among
themselves
Pricing Strategies & Tactics
New Products
Price Skimming 
Setting an initial high price to cover new product costs
and generate a profit
Dynamic Pricing for E-business
Sellers can alter prices privately, on a one‑to‑one,
customer-to customer basis
Penetration Pricing 
Setting an initial low price to establish a new product in
the market
Price Lining
Offering all items in certain categories at a limited number
of prices
Pricing Strategies & Tactics
New Products
Psychological Pricing 
Pricing tactic that takes advantage of the fact that
consumers do not always respond rationally to stated
prices

Odd-even Pricing 
Psychological pricing tactic based on the premise that
customers prefer prices not stated in even dollar amounts

Discount 
Price reduction offered as an incentive to purchase
International Pricing

Why is pricing products for sale in

other countries so complicated?