http://jeannasantossuarez.blogspot.com/

TOP 10 Learning Concepts

Ch:12 Setting Product Strategy

Jeanna Marie Santos-SuarezMay 2012

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Pls. follow these guidelines

1. Use this powerpoint template.2. Change bottom logo to your website.3. Upload in your blog. Put link in Facebook.4. Select a slide from Kotler handouts as basis

for question.5. Follow this 2 component sequence for each of

the top 10 concepts: (Concept, Concept Examples which may be 1 or more slides)

*** Concept example is a required component.

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

To strategize for a product :

Know Components to an Attractive Market Offering

5 Product Levels that Add Customer Value

Understand Product Relationships by knowing :

6 Product Hierarchies Product Systems and Mixes Product Line Analysis

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

To strategize for a product :

Product Mix Pricing What is the Fifth P? Why emphasize on packaging What are the Objectives of Packaging? 4 Label Functions

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Attractiveness of the market

offering

Value-based prices

Product features

and quality

Services mix and quality

Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 1 :

Must Consider Three Components when making Market Offerings

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 1 :

An Offering is attractive if :the product has features and quality that the customer needs

Attractiveness of the market

offering

Value-based prices

Product features

and quality

Services mix and quality

Reference : Philip Kotler’s, Marketing Management, 13th Edition

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 1:

An Offering is attractive if :the product is combined with the appropriate and quality service

Attractiveness of the market

offering

Value-based prices

Product features

and quality

Services mix and quality

Reference : Philip Kotler’s, Marketing Management, 13th Edition

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 1:

An Offering is attractive if:the product has is priced according to the value it gives

Attractiveness of the market

offering

Value-based prices

Product features

and quality

Services mix and quality

Reference : Philip Kotler’s, Marketing Management, 13th Edition

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 2:

There are 5 Product Levels that add to Customer Value

Reference : Philip Kotler’s, Marketing Management, 13th Edition

Core Benefit

Basic Product

Expected Product

Augmented Product

Potential Product

Custome

r Valu

e

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 2:

1st Level: Core Benefit – the need being addressed

Reference : Philip Kotler’s, Marketing Management, 13th Edition

Core Benefit

Basic Product

Expected Product

Augmented Product

Potential Product

Custome

r Valu

e

Healthy Teeth

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th EditionReference : Philip Kotler’s, Marketing Management, 13th Edition

Core Benefit

Basic Product

Expected Product

Augmented Product

Potential Product

Custome

r Valu

e

Healthy Teeth

toothpaste

Concept 2:

2nd Level: Basic Product – the translation of the core benefit

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th EditionReference : Philip Kotler’s, Marketing Management, 13th Edition

Core Benefit

Basic Product

Expected Product

Augmented Product

Potential Product

Custome

r Valu

e

Healthy Teeth

toothpaste

Fluoride

Concept 2:

3rd Level: Expected Product – delivers expected attributes

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th EditionReference : Philip Kotler’s, Marketing Management, 13th Edition

Core Benefit

Basic Product

Expected Product

Augmented Product

Potential Product

Custome

r Valu

e

Healthy Teeth

toothpaste

Fluoride

Whiter teeth

Concept 2:

4th Level: Augmented Product – delivers attributes beyond expectations

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th EditionReference : Philip Kotler’s, Marketing Management, 13th Edition

Core Benefit

Basic Product

Expected Product

Augmented Product

Potential Product

Custome

r Valu

e

Healthy Teeth

toothpaste

Fluoride

Whiter teeth

Whiter, 24 hr protection, for

sensitive teeth etc.

Concept 2:

5th Level: Potential Product – encompasses all possible augmentations

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 3:

Product Hierarchy – relationship of a product to other products

Item

Product Type

Product Line

Product Class

Product Family

Need Family

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 3: (using the toothpaste example)

Need Family – the core needItem

Product Type

Product Line

Product Class

Product Family

Need Family

To be Healthy

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 3:

Product Family – all product classes that can satisfy the core need I

tem

Product Type

Product Line

Product Class

Product Family

Need Family

To be Healthy

Nutrition, cleanliness

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 3:

Product Class – group of products that has the same functionI

tem

Product Type

Product Line

Product Class

Product Family

Need Family

To be Healthy

Nutrition, cleanliness

Products for Hygiene

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 3:Product Line – group of products that perform a similar function, customer groups, outlets, channels, prices

Item

Product Type

Product Line

Product Class

Product Family

Need Family

To be Healthy

Nutrition, cleanliness

Products for Hygiene

ORAL Hygiene

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 3:

Product Type – group of items sharing one of several possible forms of the productI

tem

Product Type

Product Line

Product Class

Product Family

Need Family

To be Healthy

Nutrition, cleanliness

Products for oral Hygiene

Toothpaste

whitening Toothpaste

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 3:

Item – a distinct unit distinguishable by size, price, appearance etc.I

tem

Product Type

Product Line

Product Class

Product Family

Need Family

To be Healthy

Nutrition, cleanliness

Products for oral Hygiene

Toothpaste

whitening Toothpaste

50 Ml Colgate 24-hr Whitening Toothpaste

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 4:

Product Systems and Mixes

Product system Product mix Product assortment Depth Length Width Consistency

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 4:

Product System – group of diverse but related items

Toothpaste, Shampoo, soap

Product system Product mix

or Product assortment Depth Length Width Consistency

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 4:

Product Mix – set of all products and items

Product system Product mix

or Product assortment Depth Length Width Consistency

Palmolive Shampoo, Colgate Toothpaste, Palmolive Cleanser, Colgate Toothbrush

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 4:

Depth of a Product Mix – how many variants

Product system Product mix

or Product assortment Depth Length Width Consistency

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 4:

Length of a Product Mix – total number of items

Product system Product mix

or Product assortment Depth Length Width Consistency

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 4:

Width of a Product Mix – how many different product lines

Product system Product mix

or Product assortment Depth Length Width Consistency

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 4:

Consistency of a Product Mix – how closely related the product lines are Product system Product mix

or Product assortment Depth Length Width Consistency

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 5:Product Line Analysis

Convenience Items

Core Product

StaplesSpecial

ties

Promotion

Sale

s

Volu

me

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 6:

Product-Mix Pricing

Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 6:

Product-Line Pricing – price steps in a product line

Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

30 Ml Php 30 50 Ml Php 40

100 Ml Php 80

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 6: Optional-Feature Pricing – offering optional products, features & services along with main product

Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 6: Captive-Product Pricing – pricing the main product low and prices ancillary product high

Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 6: Two-Part Pricing – pricing consisting of a fixed fee plus a variable usage fee

Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 6: By-Product Pricing – pricing by-products accdg to its value to customers

Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

“dugo” or Betamax is a by-product of pork

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 6: Product-Bundling Pricing – pricing products that are bundled (mixed/pure)

Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 7:

What is the Fifth P?

Packaging, sometimes called the fifth P, is all the activities of designing and producing the container for a product.

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 8:

Factors Contributing to the Emphasis on Packaging

Self-service

Consumer affluence

Company and Brand Image

Innovation Opportunity

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 8: Self-Service – so customers would know info about the product even without any person present

Self-service

Consumer affluence

Company and Brand Image

Innovation Opportunity

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 8: Consumer Affluence – customers are willing to pay for better packages

Self-service

Consumer affluence

Company and Brand Image

Innovation Opportunity

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 8:

Company and Brand Image – contribute to instant recognition

Self-service

Consumer affluence

Company and Brand Image

Innovation Opportunity

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 8:

Innovation Opportunity – innovative packaging help improve sales

Self-service

Consumer affluence

Company and Brand Image

Innovation Opportunity

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 9: Packaging Objectives

Identify the brand Convey descriptive and persuasive

information Facilitate product transportation

and protection Assist at-home storage Aid product consumption

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 10:

Functions of Labels

Identifies

Grades

Describes

Promotes

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 10: Identifies - Tool used to identify the product and differentiate it among other products

Identifies

Grades

Describes

Promotes

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 10:

Grades - Indicates the level Ex. Grade a, b, or c

Identifies

Grades

Describes

Promotes

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 10:

Describes how the product is used, what it contains etc.

Identifies

Grades

Describes

Promotes

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Concept 10: Promotes - Serves as an ad to promote through attractive graphics

Identifies

Grades

Describes

Promotes

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Summary: Top 10 Concepts of Setting Product Strategy

To strategize for a product :

Know Components to an Attractive Market Offering Value pricing + Service + Product Quality

5 Product Levels that Add Customer Value From Core Benefit to Potential Product

Understand Product Relationships by knowing :

6 Product Hierarchies Need Family to Item

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Product Systems and Mixes Know factors of product mixes

Product Line Analysis Sales Promotion and Sales Volume Matrix

Product Mix Pricing Prices depend on strategy

What is the Fifth P? Packaging!

Summary: Top 10 Concepts of Setting Product Strategy

To strategize for a product :

http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition

Why emphasize on packaging Self-service to Innovation Opportunity

What are the Objectives of Packaging? From Brand Identification to Aiding in

Product Consumption 4 Label Functions

Identifies, Grades, Describes and Promotes

Summary: Top 10 Concepts of Setting Product Strategy

To strategize for a product :

http://jeannasantossuarez.blogspot.com/

TOP 10 Learning Concepts

Ch:12 Setting Product Strategy

Jeanna Marie Santos-SuarezMay 2012

http://jeannasantossuarez.blogspot.com/

For the annotated and illustrated guide to this assignment, refer to…

http://www.slideshare.net/josephdeungria/translating-and-personalizing-kotler