Product and Pricing Strategy

Explain the rationale for the components of the product strategy, such as branding, features/attributes of the product/service, positioning, and service features.

Branding is very important because a customer’s impression of “quality” when purchasing products. For example, “When Hormel puts its brand name on prepackaged roast beef, it differentiates the products from the plastic-wrapped, unbranded products found in the supermarkets in terms of perceived quality and convenience,” (Winer 175). Many people may also choose Tylenol over the store brand medicine due to the name brand. The ingredients may be slightly different, however, consumers tends to purchase products are that well known. A study was done by students at Harvard College comparing purchases on generic brands to Bayer Aspirin, (Winer 75). The students discovered that consumers are more likely to buy Bayer Aspirin as the commercials on television states that Bayer may lower a recurring heart attack of up to 30% ("Bayer aspirin," 2010). With such promises made in Bayer’s branding, consumers are more likely to buy their products for reliability rather than the generic brand.

Features of the product or service are very important because the customer must have a need for a product or service. Consumers are more likely to purchase a product if they know it can benefit them or be used on an everyday bases. With the economy dwindling into a recession, customers want more for their buck. There are tons of advertisements on television, billboards, radio, newspaper, and Internet that offers specials for consumers to take advantage of. For example, comparing the Dyson and Hoover vacuum cleaners. Dyson can cost up to $500 while the Hoover can be as low as $100. Dyson advertises that the suction will never go out but the price of the equipment is also higher, ("Dyson,"). Hoover advertises that it picks up dirt and cleans carpet, ("Hoover," 2010) and it is much cheaper. Dyson markets its product as...