Kotler Keller PhillipKevin Lane Marketing Management 14e
Setting Product Strategy Chapter 12
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 3 of 27 Discussion Questions 1.What are the characteristics of a product, and how do marketers classify products? 2.How can companies differentiate products? 3.Why is product design important and what factors affect a good design? 4.How can a company build and manage its product mix and product lines?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 4 of 27 Discussion Questions 5.How can companies combine products to create strong co-brands or ingredient brands? 6.How can companies use packaging, labeling, warranties, and guarantees as marketing tools?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 5 of 27 Marketing Planning Needs Wants
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 6 of 27 Figure 12.1 Components of the Market Offering
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 7 of 27 Product Characteristics/Classifications Experiences Events Properties Organizations Information Ideas Places Persons Services Goods
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 8 of 27 Figure 12.2 Five Product Levels
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 9 of 27 Product Levels Customer-value Hierarchy Potential Product (Future augmentations) Core Benefit (Rest and sleep) Basic Product (Bed, bathroom, towels) Expected Product (Clean bed, fresh towels) Augmented Product (Free Internet; free breakfast)
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 10 of 27 Product Classifications Nondurable goods Services Durable goods Durability and Tangibility
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 11 of 27 Product Classifications Consumer-Goods Convenience goods Shopping goods Specialty goods Unsought goods Staples Impulse goods Emergency goods
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 12 of 27 Product Classifications Industrial-Goods Raw materials Materials and Parts Manufactured materials Capital Items Installations Equipment Supplies and business Services
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 13 of 27 Product and Services Differentiation
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 14 of 27 Product Differentiation Form Customization Performance Reliability Features Durability Conformance Repairability Style
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 15 of 27 Services Differentiation Ordering Ease Delivery & Returns Installation Training Maintenance & Repair Customer Consulting
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 16 of 27 Design Functional Benefits Aesthetic Benefits
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 17 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 HallSlide 18 of 27 Product Hierarchy Need Family Product Family Product Class Product Line Product Type Item
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 19 of 27 Product Systems and Mixes Product System Consistency
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 20 of 27 Proctor & Gamble Product Mix DetergentsToothpasteBar Soap Disposable Diapers Paper Products Ivory SnowGleemIvoryPampersCharmin DreftCrestCamayLuvsPuffs TideZestBounty CheerSafeguard DashOil of Olay Bold Gain Era Product Mix Width Product Line Length
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 21 of 27 Product Line Analysis Sales and Profit Market Profile
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 22 of 27 Figure 12.3 Product-Item Contributions
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 23 of 27 Figure 12.4 Product Map
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 24 of 27 Product Line Length Line stretching Up-market stretch Down-market stretch Two-way stretch Line modernization, featuring, and pruning Line filling
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 25 of 27 Product Mix Pricing Product line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricingProduct-bundling pricing
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 26 of 27 Co-Branding and Ingredient Branding Co-Branding Same-company Joint venture Multi-sponsor Retail co-branding Ingredient Branding
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 27 of 27 Packaging and Labeling Packaging Objectives 1.Brand identification 2.Persuade 3.Protection 4.At-home storage 5.Aid consumption Labeling Objectives 1.Identify 2.Grade 3.Describe 4.Promote