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Chapter 12 - Setting product strategy. In this chapter, we will address the following questions: What are the characteristics of a product, and how do marketers classify products? How can companies differentiate products? Why is product design important and what factors affect a good design? How can a company build and manage its product mix and product lines?
Phillip Kevin Lane Kotler • Keller Marketing Management • 14e Ch r e t p a Setting Product Strategy Discussion Questions What are the characteristics of a product, and how marketers classify products? How can companies differentiate products? Why is product design important and what factors affect a good design? How can a company build and manage its product mix and product lines? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 27 Discussion Questions How can companies combine products to create strong co-brands or ingredient brands? How can companies use packaging, labeling, warranties, and guarantees as marketing tools? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 27 Marketing Planning Needs Wants Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 27 e r u g Fi 2.1 Components of the Market Offering Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 27 Product Characteristics/Classifications • • • • • • Persons Experiences Events Properties Organizations Information Ideas Goods Services Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Places Slide of 27 e r u g Fi 2.2 Five Product Levels Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 27 Product Levels Core Benefit (Rest and sleep) Basic Product (Bed, bathroom, towels) Expected Product (Clean bed, fresh towels) Customer-value Hierarchy Augmented Product (Free Internet; free breakfast) Potential Product (Future augmentations) Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 27 Product Classifications Durability and Tangibility Nondurable goods Durable goods Services Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 10 of 27 Product and Services Differentiation Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 13 of 27 Product Differentiation Form Features Customizatio n Durability Performance Conformanc e Repairability Reliability Style Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 14 of 27 Services Differentiation Customer Consulting Delivery & Returns Ordering Ease Training Installation Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Maintenance & Repair Slide 15 of 27 Design Function al Benefits Aesthetic Benefits Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 16 of 27 Product and Brand Relationships Product Hierarchy Product Systems/Mixes Product Line Analysis Product Line Length Product Mix Pricing Co-Branding Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 17 of 27 Product Hierarchy Need Family Product Family Product Class Product Line Product Type Item Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 18 of 27 Product Systems and Mixes Product System Consisten cy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 19 of 27 Proctor & Gamble Product Mix Product Mix Width Bar Soap Disposabl Paper e Diapers Products Ivory Snow Gleem Dreft Crest Ivory Camay Pampers Luvs Tide Zest Cheer Safeguar d Dash Oil of Olay Detergents Produc t Line Length Toothpast e Charmin Puffs Bounty Bold Gain Era Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 20 of 27 Product Line Analysis Sales and Profit Market Profile Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 21 of 27 e r u g Fi 2.3 Product-Item Contributions Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 22 of 27 e r u g Fi 2.4 Product Map Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 23 of 27 Product Line Length Up-market stretch Line stretching Twoway stretch Line modernization, featuring, and pruning Down-market stretch Line filling Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 24 of 27 Product Mix Pricing Product line pricing Captive-product pricing Optional-feature pricing Two-part pricing By-product pricing Product-bundling pricing Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 25 of 27 Co-Branding and Ingredient Branding Co•Branding Same-company • Joint venture ã Multi-sponsor ã Retail cobranding Ingredient Branding Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 26 of 27 Packaging and Labeling Packaging Objectives Brand identification Persuade Protection At-home storage Aid consumption Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Labeling Objectives Identify Grade Describe Promote Slide 27 of 27 ... Captive-product pricing Optional-feature pricing Two-part pricing By-product pricing Product-bundling pricing Copyright © 2 012 Pearson Education, Inc Publishing as Prentice Hall Slide 25 of 27 Co-Branding... Copyright © 2 012 Pearson Education, Inc Publishing as Prentice Hall Industrial-Goods Capital Items Installations Equipment Slide 12 of 27 Product and Services Differentiation Copyright © 2 012 Pearson... warranties, and guarantees as marketing tools? Copyright © 2 012 Pearson Education, Inc Publishing as Prentice Hall Slide of 27 Marketing Planning Needs Wants Copyright © 2 012 Pearson Education, Inc