Kotler Product

8/13/2019 Kotler Product

1/30

2003 Prentice Hall, Inc. To accompanyA Framework for Marketing Management, 2ndEdition Slide 0 in Chapter 11

Chapter 11

Sett ing Product and

B rand StrategyPowerPoint by Karen E. James

Louisiana State University - Shreveport


2/30


Objectives

Identify the various characteristics ofproducts.

Learn how companies build and manageproduct lines and mixes.

Understand how companies make better

brand decisions.

Comprehend how packaging andlabeling can be used as marketing tools.


3/30


What is a Product?

Goods

Services

Experiences

Events

Persons

Places

Properties

Organizations

Information

Ideas


4/30


The Product and Product Mix

Potential customers judge product

offerings according to three

elements:

Product features and qual ity

Services m ix and qual i tyValue-based prices


5/30



The customer value hierarchy:

Core benefi t

Basic product

Expected product

Augmented product

Potent ial produ ct


6/30

2003 Prentice Hall, Inc. Potential product

Augmented product

Expected

Product

Basic Product.

To accompanyA Framework for Marketing Management, 2ndEdition Slide 5 in Chapter 11

Core

Benefit

Five levels of a product.


7/30



Product

Classifications

Durabi l ity and

tangibi l i ty

Consumer goods

Industr ial goods

Nondurable

Tangible

Rapid ly consum ed

Example: Milk

Durable

Tangible

Lasts a long t ime

Example: Oven

Services

Intangible

Example: Tax p reparat ion


8/30



Product

Classifications

Durabi l ity and

tangibi l i ty

Consumer goods

Industr ial goods

Classified by

shopping habits:

Convenience

goods

Shopp ing goods

Special ty goods

Unsought goods


9/30

2003 Prentice Hall, Inc.

Convenience goods and staples:

Convenience goods are products that consumerspurchase frequently with minimum effort, such assoft drinks ,snacks ,tobacco and chocolates. Sincethese are frequently purchased with little effort they

must be readily available throughout the marketarea. Thus convenience goods are serviced only bythe primary trade areas.In India the trade area for

convenience stores is found to be 1-3 kms.


10/30


Convenience goods-staples.

Staples are that type of convenience goods that are purchasedregularly on a routine basis.eg: fmcg,rice,coffee,tea,sugar etc.

Since these items require little prepurchase planning and is

available in many markets the customers are mainly from theprimary trade areas and a little bit from the secondary areas

as well .In India the convenience and staples are mainlyprovided by the discount stores and kiranas and the trade areais found to be between 1 to 5 km,though not necessarilyconcentric.


11/30


Shopping goods:

Shopping goods are mainly life style products that appealto a certain group of customers. Women's and men'sapparels,acessories, jewellery,smaller electronic goods etcfall in this category. Because customers are willing to

spend time searching for this item, the stores that carrythem have relatively large trade areas. These goods aremainly available at specialty stores and the trade areas inIndia are found to be between 1-20 km.


12/30


Speciality Goods:

Speciality goods are items with unique characteristics anddemand substantial prepurchase planning. Major householdappliances,furniture,cars,purchasing a residence etc are someexamples.These items require the most extensive of purchaseplanning before a decision can be taken.Thus stores offeringthese items,mainly speciality stores ,have the

Largest trade areas .In India the extent has been found to be aslarge as 45 km and it is around 60 km in the U.S. and Europe.


13/30



Product

Classifications

Durabi l ity and

tangibi l i ty

Consumer goods

Industr ial goods

Materials and parts

Farm produ cts

Natural p roduc ts

Component mater ials Component par ts

Capital items

Instal lat ions

Equipment

Supplies and businessservices

Maintenance and repair

Advisory serv ices


14/30


Product Hierarchy

Need family.. Health and hygiene

Product Family..Personal care products. Product Class..Facial care ,hair care ,skin care

Product LineShampoos,creams,soaps,cosmetics

Product type..with conditioner,anti-dandruf, normal ,dry,

damaged hair recovery.

Brand..Sunsilk,Dove,Ponds

Item: Sunsilk,Dry-hair shampoo, 200 gms pack(SKU).

To accompanyA Framework for Marketing Management, 2ndEdition Slide 13 in Chapter 11


15/30



Product mix dimensions:

Width:number of product l inesLength:total number of i tems in m ix

Depth:number of produc t var iants

Consistency:degree to whichproduc t l ines are related


16/30


Product-Line Decisions

Product-Line Analysis

Product-Line Length

Product-Line Modernization,

Featuring, and Pruning


17/30


Brand Decisions

The AMA definition of a brand:

A name, term, sign, symbol, ordesign , or a combinat ion o f these,

intended to ident i fy the goods or

serv ices of one sel ler o r g roup of

sel lers and to d if ferent iate them

from the competition.


18/30


Brand Decisions

Brands can convey six levels of

meaning:

Att r ibutes

Benef i ts

Values

Culture

Personal i ty

User


19/30


Brand Decisions

Brand identity decisions include:

Name

Logo

Colors

Tagline

Symbol Consumerexperiences create brand

bonding, brand advertising does not.


20/30


Brand Decisions

Marketers should attempt to create or

facilitate awareness, acceptabi l i ty,

preference, and loyaltyamongconsumers.

Valuable and powerful brands enjoy

high levels of brand loyalty.


21/30


Brand Decisions

Aaker identified five levels of

customer attitudes toward brands:

Wil l change brands, especial ly for pr ice.

No b rand loyal ty .

Satisf ied -- has no reason to change.

Sat isf ied -- sw itching wou ld incur cos ts.

Values brand , sees it as a friend .

Devo ted to the brand .


22/30


Brand Decisions

Brand equ i tyrefers to the positive

differential effect that a brand name

has on customers.

Brand equity:

is related to many facto rs.

al low s for reduced market ing costs .

is a major con tr ibu tor to custom er equi ty .


23/30


Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy

Brand repos i t ion ing

Advantages ofbranding:

Facil i t ates orderprocessing

Trademark protect ion

Aids in segmentat ion

Enhances co rporate

image

Branded goods are

desired by retai lers

and dist r ibutors


24/30


Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy


Options include:

Manufacturer

(nat ional) brand Distr ibutor

(reseller, sto re,

house, pr ivate)

brand Licens ing the

brand name


25/30


Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy


Strong brand names:

Suggest benefi ts

Suggest produ ctqual i t ies

Are easy to say,

recognize, and

remember

Are dist inct ive

Should not carry poor

meanings in other

languages


26/30


Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy


Varies by type of brand

Funct ional brands

Image brands

Exper ient ia l brands

Line extensions

Brand extensions

Multibrands

New brands

Co-branding


27/30


Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy


A brand repo rt cardcan be used to audita brands strengths

and weaknesses.

Changes inpreferences or the

presence of a newcompetitor mayindicate a need forbrand repositioning.


28/30


Packaging and Labeling

Packaging includes:

The pr im ary package

The secondary package

The sh ipping package

Many factors have influenced theincreased use of packaging as amarketing tool.


29/30



Developing an effective package:

Determ ine the packaging concept

Determ ine key package elements

Test ing:

Engineering tests

Visual tests

Dealer tests

Consumer tests


30/30



Labeling functions:

Ident i f ies the product or b rand

May ident i fy produc t grade

May descr ibe the produc t

May promote the product

Legal restrictions impactpackaging for many products.

Kotler Product

Documents

Transcript of Kotler Product