CHAPTER 1

- **Slide 3: What is Marketing?**

- Marketing is the process by which companies engage customers, build

strong relationships, and create value in order to capture value in return.

- **Slide 4: Marketing & Business Administration**

- Marketing connects the company’s offerings (products/services) to

customers/consumers in exchange for payment.

- It works alongside other departments like operations, finance, IT, and

law to support business functions.

- **Slide 5: Understanding the Marketplace and Customer Needs**

- Customer needs: basic human necessities.

- Wants: needs directed toward specific objects shaped by society.

- Demands: wants backed by purchasing power.

- Market offerings include products, services, and experiences.

- Focus on customer value and satisfaction.

- **Slide 7: Needs, Wants, and Demands**

- Needs: basic human requirements (e.g., food, shelter).

- Wants: shaped by society, targeting specific products (e.g., wanting a

Ferrari).

- Demands: when wants are backed by the ability to purchase (e.g.,

affording a Kia).

- **Slide 8: Market Offerings**

- Market offerings include goods, services, events, experiences, persons,

places, properties, organizations, information, and ideas.

- **Slide 9: Customer Value and Satisfaction**

 - Satisfaction is determined by comparing a product’s performance with
expectations.

- High satisfaction results when performance exceeds expectations.

- **Slide 10: Exchanges and Relationships**

- Exchange involves obtaining something by offering something in return.

- Long-term customer relationships require consistently delivering

superior value.

- **Slide 11: Markets**

- A market consists of all actual and potential buyers of a product or

service.

- **Slide 12: Customer-Driven Marketing Strategy**

- Marketing management involves choosing target markets and building

profitable relationships.

- Two key questions: Who is the target market? How can we serve them
best (positioning)?

- **Slide 13: Marketing Strategy and the Marketing Mix**

- The marketing mix includes product, price, place, and promotion (4 Ps).

- **Slide 16-18: Segmenting, Targeting, Positioning**

- Segmenting divides the market by criteria such as age, income, or

behavior.

- Targeting involves selecting which segments to serve.

- Positioning involves creating a distinct image in the customer’s mind.

- **Slide 19: Positioning and Differentiation**

- Successful positioning requires differentiating the product from

competitors.
- **Slide 20: The 4 Ps of the Marketing Mix**

- Product, Price, Place, Promotion.

- **Slide 21: Marketing Management Orientations**

- Production, Product, Selling, Marketing, and Societal Marketing

Concepts.

- Societal marketing focuses on balancing company profits, consumer

wants, and societal welfare.

- **Slide 22: Selling, Marketing, and Societal Marketing Concepts

Compared**

- Focuses on different approaches to satisfying consumer needs and

business goals.

- **Slide 23: Right Relationships with Right Customers**

- Building strong, profitable relationships with key customers is essential

for long-term success.

CHAPTER 2

- **Slide 2: Overview and Goals**

- Company-wide strategic planning steps.

- Business portfolios and growth strategies.

- Role of marketing in strategic planning.

- Elements of the marketing strategy and mix.

- Marketing management functions, plan, and marketing ROI.

- **Slide 3: Steps in Strategic Planning**

- Strategic planning is aligning an organization’s goals and capabilities

with changing market opportunities.
- **Slide 4: Product vs. Market-Oriented Business Definitions**

- Mission statement defines an organization’s purpose and what it seeks

to accomplish.

- **Slide 6: Strategic Planning Overview**

- Key models: ANSOFF, BCG, GE/McKinsey, and Porter.

- **Slide 7-9: BCG Growth Share Matrix**

- Portfolio analysis based on market growth and market share.

- Four categories: Question Marks, Stars, Cash Cows, and Poor Dogs.

- **Question Marks**: High risk, low market share in a growing market.

- **Stars**: High market share in a growing market, but require

investment.

- **Cash Cows**: Generate high cash flow in a stable market.

- **Poor Dogs**: Low market share and growth; typically not profitable.

- **Slide 10: Resource Allocation for SBU (Strategic Business Unit)**

- Four strategies: Invest, Maintain, Harvest, or Sell Off.

- **Slide 12: GE-McKinsey Matrix**

- Business unit evaluation based on industry attractiveness and

competitive strength.

- **Slide 13: Ansoff Matrix**

- Identifies growth strategies: market penetration, market development,

product development, diversification.

- **Slide 14: Porter’s Competitive Strategies**

- Strategies for achieving competitive advantage: cost leadership,

differentiation, and focus.
- **Slide 18: Marketing Strategy and the Marketing Mix**

- Aligning the marketing strategy with business goals and the 4 Ps.

- **Slide 19: Segmentation, Targeting, Positioning, and Differentiation**

- Market segmentation divides markets into distinct groups.

- Market targeting selects which segments to serve.

- Positioning differentiates the product in the customer's mind.

- **Slide 20: The 4 Ps of Marketing Mix**

- Product, Price, Place, Promotion.

- **Slide 21: Marketing Management: Analysis, Planning, Implementation,

Control**

- Marketing management involves SWOT, PESTLE analysis, and

competitor analysis.

- **Slide 22: SWOT Analysis**

- Strengths, Weaknesses, Opportunities, Threats framework.

- **Slide 24: Marketing Plan Contents**

- Detailed plan of marketing strategy, objectives, and tactics.

- **Slide 25: Financial Perspective**

- Measuring marketing ROI through consumer equity and marketing

outcomes.

CHAPTER 3
- **Slide 2: Overview and Goals**

- Environmental forces affecting the company.

- Impact of demographic and economic changes on marketing.

- Major trends in natural and technological environments.

- Changes in political and cultural environments.

- Companies' responses to environmental changes.

- **Slide 3: Analysis Approaches**

- 5C Analysis: Context, Competitors, Customers, Company, Collaborators.

- SWOT, PESTLE analyses.

- Micro- and macro-environment evaluation.

- **Slide 4: The Microenvironment**

- Close actors affecting the company’s ability to create value and

relationships with customers, such as suppliers, intermediaries,
competitors, and customers.

- **Slide 5: The Macroenvironment**

- Broader forces that influence the microenvironment, often analyzed

using PESTLE (Political, Economic, Social, Technological, Legal,
Environmental).

- **Slide 7: Demographic Environment**

- Global population growth.

- Changes in population age mix.

- Growth of ethnic and other niche markets.

- Evolution of educational groups and household patterns.

- **Slide 8: Target Groups by Generations**

- Breakdown of age groups: Silent Generation, Baby Boomers,

Generation X, Millennials (Generation Y), Generation Z, Generation Alpha.
 - Digital immigrants vs. digital natives.

- **Slide 9: Example – Generation Z Media Consumption**

- Insights into how Generation Z interacts with media.

- **Slide 10: Geographic Shifts in Population**

- Trends like migration, increasing diversity, and urbanization affecting

markets.

- **Slide 11: Economic Environment**

- Factors like GDP, income distribution, savings, debt, and credit that
shape the economic landscape for businesses.

- **Slide 12: Natural Environment and Sustainability**

- Importance of minimizing negative environmental impacts (emissions,

pollution, energy consumption).

- Role of sustainability in production, packaging, and supply chain

management.

- **Slide 14: Environmental Responsibility – More Than Ethics**

- Ethical rationale (Corporate Social Responsibility - CSR).

- Business advantages like cost savings, new business models,

competitive edge, and preparation for future regulatory changes.

- **Slide 15: Sustainable and Responsible Business – Triple Bottom Line**

- Focus on economic prosperity, environmental stewardship, and social

responsibility.

- **Slide 16: Technological Environment**

- Impact of technology: Internet, ERP systems, e-commerce, and digital

marketing.
 - Accelerating innovation and R&D trends.

- Growing regulation of technological change.

- **Slide 17: Political-Legal Environment**

- Impact of geopolitical and political developments (e.g., migration,

nationalism, Brexit).

- Increased business legislation and growth of special interest groups.

- **Slide 18: Sociocultural Environment**

- Key cultural drivers: views on people, society, organizations, nature,

and the universe.

- Core cultural values and subcultures influencing consumer behavior.

CHAPTER 4

- **Slide 2: Overview and Goals**

- Importance of gaining market and customer insights.

- Role of the marketing information system.

- Steps in the marketing research process.

- Using and analyzing marketing information.

- Issues in marketing research.

- **Slide 3: The Marketing Information System**

- A system that helps assess information needs, develop information, and

aid decision-makers in using this information to create customer insights.

- **Slide 4-5: The Marketing Research Process**

- Steps in the process: Defining the problem, developing the research

plan, collecting data, analyzing data, and presenting findings.
- **Slide 7: Step 1 – Define the Research Problem & Objectives**

- Clearly define the problem and research objectives (exploratory,

descriptive, causal).

- Example: Investigating why sales are declining or studying the impact

of price changes on demand.

- **Slide 8: Types of Research**

- **Exploratory**: Clarifies ambiguous situations, discovers ideas.

- **Descriptive**: Describes characteristics, addresses the "what,"

"when," "where."

- **Causal**: Investigates relationships, addresses the "why."

- **Slide 9: Step 2 – Primary and Secondary Data**

- **Secondary data**: Already exists, collected for another purpose.

- **Primary data**: Gathered for a specific purpose. Collect primary data

only when secondary data is insufficient.

- **Slides 10-13: Step 2 – Develop the Research Plan**

- Research can be **qualitative** (exploratory, unstructured) or

**quantitative** (structured, measurable).

- Research approaches: Observational, focus groups, surveys, behavioral,

and experimental research.

- **Slides 16-17: Sampling Plans**

- **Probability sampling**: Random selection (simple, systematic,

stratified sampling).

- **Non-probability sampling**: Convenience, judgment, quota, and

snowball sampling.

- **Slides 21-22: Step 2 – Contact Methods**

- **Mail surveys**: Low cost, broad reach, but slow.

- **Telephone surveys**: Cheap, quick, but brief.

 - **Personal interviews**: In-depth, but expensive.

- **Online surveys**: Fast, inexpensive, but subject to self-selection bias.

- **Slide 23: Step 3 to Step 6**

- Data collection: costly and prone to errors (non-response bias, response

bias).

- Data analysis: involves tabulating data, testing hypotheses.

- Present findings: reports and recommendations for decision-making.

- **Slide 25: Analyzing and Using Marketing Information**

- **Customer Relationship Management (CRM)**: Managing detailed

customer information to enhance loyalty.

- **Big data**: Large-scale data collection, analyzed using marketing

analytics.

- **Slide 26: Other Marketing Information Considerations**

- Marketing research for SMEs and non-profits.

- International marketing research.

- Ethical considerations in marketing research.

CHAPTER 5

- **Slide 2: Overview**

- Definition of consumer market and buyer behavior models.

- Four major factors influencing consumer buying behavior.

- Types of buying decision behavior.

- Stages in the buyer decision process.

- Adoption and diffusion process for new products.

- **Slide 3: The Model of Buyer Behavior**

 - Stimulus-Response (S-R) model: the “black box” of buyer behavior.

- Stimulus-Organism-Response (S-O-R) model: how internal and external

stimuli affect decisions.

- **Slide 5: Cultural Factors**

- Culture influences wants and behavior.

- Subcultures: smaller groups within a culture (e.g., nationalities,

religions, etc.).

- Social classes: societal divisions based on similar values, interests, and

behaviors.

- **Slide 6: Social Factors**

- Reference groups (direct or indirect influence on attitudes/behaviors).

- Family is the most important consumer buying influence.

- Role and status within groups impact consumer behavior.

- **Slide 7: Reference Groups**

- Membership groups (primary and secondary).

- Aspirational groups (people aspire to join).

- Dissociative groups (groups people reject).

- Opinion leaders provide informal advice about products.

- **Slide 8: Family**

- Family of orientation (parents and siblings) influences values.

- Family of procreation (spouse and children) impacts everyday buying

decisions.

- **Slide 9: Personal Factors**

- Influenced by age, life cycle, occupation, economic circumstances,

personality, lifestyle, and values.
- **Slide 10: Key Psychological Processes**

- Motivation, perception, learning, emotions, and memory play a role in

consumer decision-making.

- **Slide 12: Perception**

- Selective perception (attention, distortion, retention).

- Subliminal perception: unconscious influence on consumer behavior.

- **Slide 13: Learning**

- Behavior changes based on experience, influenced by cues and

responses.

- Generalization and discrimination affect brand loyalty and choice.

- **Slide 14: Beliefs and Attitudes**

- Beliefs: descriptive thoughts about something.

- Attitudes: evaluations, feelings, and tendencies toward objects or ideas

(affective, cognitive, behavioral components).

- **Slide 16: Types of Buying Behavior**

- Complex buying behavior, dissonance-reducing buying behavior,

habitual buying behavior, variety-seeking buying behavior.

- **Slide 18: Need Recognition**

- The buyer recognizes a need triggered by internal (hunger, thirst) or

external (advertisements) stimuli.

- **Slide 19: Information Search**

- Sources: personal, commercial, public, and experiential.

- **Slide 20: Evaluation of Alternatives**

 - Consumers compare alternatives based on attributes and evaluate their
options.

- **Slide 21: Intervening Factors**

- Attitudes of others and personal motivations can impact the decision

process.

- **Slide 22: Postpurchase Behavior**

- Postpurchase satisfaction or dissatisfaction based on expectations vs.

experience.

- Cognitive dissonance: discomfort from regretting a purchase decision.

- **Slide 24: Buyer Decision Process for New Products**

- Five stages: awareness, interest, evaluation, trial, adoption.

- **Slide 25: Adopter Categories**

- Innovators, early adopters, early majority, late majority, and laggards

(based on time of product adoption).

- **Slide 26: Product Characteristics for Adoption**

- Relative advantage, compatibility, complexity, divisibility, and

communicability influence new product adoption.

CHAPTER 7

- **Slide 2: Overview**

- Major steps: Segmenting, Targeting, Positioning.

- Bases for segmenting markets.

- Identifying attractive segments and targeting strategies.

 - Differentiating and positioning products for competitive advantage.

- **Slide 5: Segmenting-Targeting-Positioning (STP)**

- Segmenting: Dividing the market into distinct groups.

- Targeting: Selecting segments to serve.

- Positioning: Differentiating the product in the minds of target

customers.

- **Slide 6: Segmenting**

- Dividing a market into segments based on factors like age, gender,

lifestyle, geography, etc.

- **Slide 9: Major Segmentation Variables**

- **Geographic**: Nations, regions, urban/rural areas.

- **Demographic**: Age, gender, income, education.

- **Psychographic**: Lifestyle, personality, values.

- **Behavioral**: Usage rate, loyalty, benefits sought.

- **Slide 10: Demographic Segmentation**

- Segmenting based on life stages, gender, income, occupation,

generation, ethnicity, etc.

- **Slide 11: Psychographic Segmentation**

- Segmenting based on psychological traits, lifestyle, or values.

- **Slide 12: Behavioral Segmentation**

- Segmenting based on knowledge of, attitude toward, use of, or

response to a product.

- **Slide 13: User and Usage-Related Variables**

 - Behavior variables: occasions, benefits sought, user status, loyalty,
usage rate, buyer readiness, and attitudes.

- **Slide 17: Effective Segmentation Criteria**

- Segments must be: Measurable, Substantial, Accessible, Differentiable,

and Actionable.

- **Slide 18: Market Targeting**

- Evaluate segment size, growth, structural attractiveness, and alignment

with company resources.

- **Slide 19: Porter’s Five Forces on Segment Attractiveness**

- Segments are less attractive if there’s high competition, supplier/buyer

bargaining power, threat of new entrants, and substitute products.

- **Slide 20: Market Targeting Strategies**

- Undifferentiated marketing (whole market).

- Differentiated marketing (several segments, separate offers).

- Concentrated marketing (large share of one or few segments).

- Micromarketing (tailoring products to individuals or local customer

segments).

- **Slide 21: Positioning Maps**

- Visual representation of how a product is positioned in the minds of

consumers compared to competitors.

- **Slide 22: Identifying Competitive Advantages**

- Differentiation through product, services, channels, people, or image.

- Offering more benefits or a lower price than competitors.

- **Slide 23: Choosing the Right Competitive Advantage**

 - Focus on promoting key differences that are important, distinctive,
superior, communicable, pre-emptive, affordable, and profitable.

- **Slide 24: Value Proposition**

- Overall positioning strategy that provides value to the target customer

(e.g., more for less, same for less).

- **Slide 25: Writing a Positioning Statement**

- Example structure: "For [target market], our brand is the best at

[unique selling proposition]."

- Addresses target market, competition, and how the brand is better.

CHAPTER 8

- **Slide 2: Overview**

- Defining products and services, their classifications.

- Product and service decisions (individual, line, mix).

- Characteristics of services.

- Branding strategy and brand management.

- **Slide 4-5: Product Classifications**

- **Durability & Tangibility:**

- **Nondurable goods**: Tangible, consumed quickly (e.g., shampoo).

- **Durable goods**: Tangible, used multiple times (e.g., refrigerators).

- **Services**: Intangible, inseparable, variable, perishable (e.g.,

haircuts).

- **Types by Use:**

- Consumer goods (convenience, shopping, specialty, unsought).

- Industrial goods (materials, parts, capital items, supplies).

- **Slide 6: Consumer Goods Classifications**

 - **Convenience goods**: Frequently bought, minimal effort.

- **Shopping goods**: Compared on quality, price, style.

- **Specialty goods**: Unique, buyers make special effort.

- **Unsought goods**: Consumers do not think of buying regularly.

- **Slide 8: Industrial Goods Classifications**

- **Materials and parts**: Enter the manufacturer’s product.

- **Capital items**: Long-lasting goods that help in production.

- **Supplies and services**: Short-term goods for maintenance and

repair.

- **Slide 10: Individual Product Decisions**

- **Product quality** (performance and conformance).

- **Product features** and style/design.

- **Branding**, **packaging**, and **labels** for differentiation.

- **Slide 11: Product Line Decisions**

- **Product line**: Group of related products.

- **Line stretching**: Adding products beyond current range (down-

market, up-market, or two-way).

- **Line filling**: Adding more items within current range.

- **Slide 12: Product Mix Decisions**

- **Width**: Number of product lines.

- **Depth**: Variants of each product.

- **Length**: Total number of products in the mix.

- **Consistency**: How closely related the product lines are.

- **Slide 13: Service Mix Categories**

- Pure tangible goods.

 - Tangible goods with accompanying services.

- Hybrid products/services.

- Major service with minor goods/services.

- Pure services.

- **Slide 14: Four Service Characteristics**

- Intangibility, Inseparability, Variability, and Perishability.

- **Slide 16: Branding Strategy**

- **Brand equity**: The differential impact of a brand name on customer

response.

- **Positive brand equity**: Customers prefer branded over generic

products.

- **Negative brand equity**: Customers prefer generic over branded

products.

- **Brand value**: The total financial value of a brand.

- **Slide 17: Major Brand Strategy Decisions**

- Brands should be easy to pronounce, distinctive, extendable, and

legally protected.

- Brands create emotional bonds and should align with product features.

- **Slide 18: National vs. Private Brands**

- National brands are manufactured by companies and sold under their

own brand.

- Private brands are sold under a retailer's brand.

- **Slide 19: Brand Development Strategies**

- Line extensions, brand extensions, multibrands, and new brands.

CHAPTER 9

- **Slide 2: Overview**

- How companies find and develop new product ideas.

- Steps in the new product development process.

- Stages of the product life cycle and corresponding marketing strategies.

- Socially responsible and international product decisions.

- **Slide 3: New Product Development**

- Development of original products, product improvements,

modifications, and new brands through the company’s efforts.

- **Slide 4: Stages in New Product Development**

- **Idea generation**: Internal (R&D) and external (competitors, service

providers) sources; crowdsourcing.

- **Idea screening**: Spot good ideas, drop poor ones early.

- **Concept development and testing**: Creating a detailed version of

the product idea in consumer terms and testing it with target consumers.

- **Slide 7: Marketing Strategy**

- **Step 1**: Define target market size, structure, behavior, and set
sales, market share, and profit goals.

- **Step 2**: Set product price, distribution, and marketing budget.

- **Step 3**: Long-run sales and profit goals with a clear marketing mix.

- **Slide 8: Further Stages**

- **Business analysis**: Evaluate sales, costs, and profit projections.

- **Product development**: Convert product concept into a physical

product.
 - **Test marketing**: Test product and marketing programs in realistic
settings.

- **Commercialization**: Full product launch into the market.

- **Slide 9: Product Life Cycle Stages**

- Introduction, growth, maturity, and decline phases, with profits and

sales peaking and declining over time.

- **Slide 10: Styles, Fashions, and Fads**

- **Style**: A basic mode of expression.

- **Fashion**: Popular style at a particular time.

- **Fad**: Temporary surge in popularity.

- **Slide 12: Introduction Stage Marketing Strategies**

- Pioneering brands capture market share early but face the risk of
imitators surpassing them.

- **Slide 13: Growth Stage Strategies**

- Improve product quality, add features and models, expand market

segments, increase distribution, lower prices, and focus on customer
loyalty.

- **Slide 14: Maturity Stage Strategies**

- **Market modification**: Expand market through increasing number of

users or usage rate.

- **Product modification**: Improve product quality, features, or style.

- **Marketing program modification**: Adjust price, distribution, and

communication strategies.

- **Slide 15: Decline Stage Strategies**

- **Eliminate weak products**: Reduce costs by eliminating unprofitable

products.
 - **Harvesting**: Gradually reduce costs to maintain profitability while
sales decline.

- **Divesting**: Sell off declining products to other firms.

CHAPTER 10

- **Slide 2: Overview**

- Understanding the meaning of pricing.

- Three major pricing strategies.

- Factors that influence pricing decisions.

- **Slide 4: The Strategic Role of Pricing**

- Pricing plays a role in:

- Product positioning.

- Communication policy.

- Competition and financial performance.

- **Slide 5: Roles of Prices**

- Prices signal quality expectations and positioning.

- Instrument of competition (e.g., price wars, differentiation).

- Improve financial performance by securing margins.

- Consistency with the marketing mix.

- **Slide 6: Three Major Pricing Strategies**

- **Customer value-based pricing**: Price is based on the perceived

value by the customer.

- **Cost-based pricing**: Price is set based on production, distribution,

and selling costs plus a fair return.

- **Competition-based pricing**: Price is set based on competitors' prices

and strategies.
- **Slide 7: Cost-Based Pricing**

- Types of costs:

- **Fixed costs** (overhead).

- **Variable costs** (vary with production).

- **Total costs** (fixed + variable).

- Calculate break-even pricing and profit margins based on cost

structure.

- **Slide 12: Value-Based Pricing**

- **Good-value pricing**: Offering the right combination of quality and

service at a fair price (e.g., everyday low pricing).

- **Value-added pricing**: Adding features/services to differentiate the

product and charging a premium.

- **Slide 13: Other Pricing Considerations**

- Internal factors: overall marketing strategy, organizational objectives.

- External factors: market demand, price elasticity, economic conditions.

- **Slide 14: Ethical Issues in Pricing**

- Practices like price discrimination, dumping, price fixing, price gouging,

and ignoring social costs can create ethical concerns.

CHAPTER 11

- **Slide 2: Overview**

- New product pricing strategies.

- Product mix pricing strategies.

- Price adjustment strategies.

 - Price changes and legal considerations.

- **Slide 3: New Product Pricing Strategies**

- **Market-skimming pricing**: Setting high prices to maximize profits

from segments willing to pay more, fewer but profitable sales.

- **Market-penetration pricing**: Setting low prices to attract many

buyers and gain market share.

- **Slide 4: Market-Skimming Pricing**

- Skimming helps capture maximum revenue from the market segment

willing to pay a high price.

- **Slide 7: Price Adjustments**

- Discounts and allowances: seasonal, trade, quantity, and cash

discounts.

- Price discrimination: Different prices for different customers or

locations.

- Dynamic pricing: Adjusting prices based on demand (e.g., airlines,

hotels).

- **Slide 8: Consumer Psychology and Pricing**

- **Price thresholds**: Prices too low may signal poor quality; prices too
high may deter customers.

- **Reference prices**: Customers compare current prices with past

experience.

- **Price endings**: Prices ending in .99 suggest a bargain (e.g., $299 vs.
$300).

- **Slide 9: Promotional Pricing**

- Includes loss-leader pricing, special event pricing, cash rebates, low-

interest financing, and psychological discounting.
- **Slide 11-12: Dynamic Pricing**

- Prices set based on real-time demand.

- **Yield pricing**: Used for perishable goods like airline seats or hotel
rooms, where prices are adjusted to maximize revenue.

- **Slide 13-14: Auctions**

- **One-sided auctions**: Buyers bid on a seller’s product (e.g., eBay).

- **Two-sided auctions**: Both sellers and buyers submit bids, matching

occurs (e.g., stock exchanges).

- Open and covert bidding, ascending and descending bids (e.g., English
and Dutch auctions).

- **Slide 16: Price Changes**

- **Price cuts**: May be due to excess capacity or to dominate the

market.

- **Price increases**: Due to cost inflation or high demand.

- **Slide 17: Price Cuts**

- Risks include:

- **Price war trap**: Competitors lower their prices further, starting a

price war.

- **Low-quality trap**: Consumers may perceive lower quality.

- **Fragile market share trap**: Customers switch to any lower-priced

competitors.

- **Slide 18: Price Increases**

- Methods include:

- **Delayed quotation pricing**: Price set after the product is delivered.

- **Escalator clauses**: Prices adjusted for inflation.

- **Unbundling**: Separating and pricing different elements of a

product.