Markateng Management Setting Product Strategy Chapter12 buerano
Setting Product Strategy - Johannessimatupang’s Weblog · 23/12/2014 1 Setting Product Strategy...
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23/12/2014 1 Setting Product Strategy Marketing Management, 13 th ed 12 Copyright ｩ 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-2 Chapter Questions • What are the characteristics of products and how do marketers classify products? • How can companies differentiate products? • How can a company build and manage its product mix and product lines? Copyright ｩ 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-3 Chapter Questions (cont.) • 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?
Transcript of Setting Product Strategy - Johannessimatupang’s Weblog · 23/12/2014 1 Setting Product Strategy...
23/12/2014
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Setting Product Strategy
Marketing Management, 13th ed
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-2
Chapter Questions• What are the characteristics of products
and how do marketers classifyproducts?
• How can companies differentiateproducts?
• How can a company build and manageits product mix and product lines?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-3
Chapter Questions (cont.)
• How can companies combine productsto create strong co-brands or ingredientbrands?
• How can companies use packaging,labeling, warranties, and guarantees asmarketing tools?
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-4
Caterpillar: A Great Product
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-5
What is a Product?
A product is anything that can beoffered to a market to satisfy a want or
need, including physical goods,services, experiences, events, persons,
places, properties, organizations,information, and ideas.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-6
Figure 12.1 Components of theMarket Offering
Attractivenessof the market
offering
Value-based prices
Productfeaturesand quality
Servicesmix andquality
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-7
Figure 12.2 Five Product Levels
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-8
The Wedding Marketis a MetaMarket
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Product Classification Schemes
Durability
Use
Tangibility
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-10
Durability and Tangibility
Nondurablegoods
ServicesDurablegoods
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Consumer Goods Classification
Convenience
Unsought
Shopping
Specialty
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Industrial Goods Classification
Materials and parts
Supplies/business services
Capital items
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-13
Product Differentiation
• Product form• Features• Customization• Performance• Conformance• Durability• Reliability• Repairability• Style
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Dunkin’ Donuts’ Differentiation
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Design Differentiation
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Service Differentiation
• Ordering ease• Delivery• Installation• Customer training• Customer
consulting• Maintenance and
repair• Returns
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Maintenance and Repair
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The Product Hierarchy
Need family
Product family
Product class
Product line
Product type
Item
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-19
Product Systems and Mixes
• Product system• Product mix• Product assortment• Depth• Length• Width• Consistency
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-20
Product Line Analysis
Convenienceitems
Core product Staples
Specialties
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-21
Figure 12.3 Product ItemContributions to a Product Line’s
Total Sales and Profits
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-22
Figure 12.4 Product Map
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-23
Line Stretching
Down-Market StretchDown-Market Stretch
Up-Market StretchUp-Market Stretch
Two-Way StretchTwo-Way Stretch
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Line Filling
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-25
Pruning
Pruning weakbrands canstrengthen theremaining brands inthe line
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Product-Mix Pricing
• Product-line pricing• Optional-feature pricing• Captive-product pricing• Two-part pricing• By-product pricing• Product-bundling pricing
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Product Line Pricing
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-28
Two-Part Pricing
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Co-branding
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Ingredient Branding
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-31
What is the Fifth P?
Packaging, sometimes called thefifth P, is all the activities ofdesigning and producing the
container for a product.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-32
Factors Contributing to theEmphasis on Packaging
Self-serviceSelf-service
Consumer affluenceConsumer affluence
Company/brand imageCompany/brand image
Innovation opportunityInnovation opportunity
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Innovations in Packaging
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-34
Packaging Objectives
• Identify the brand• Convey descriptive and persuasive
information• Facilitate product transportation and
protection• Assist at-home storage• Aid product consumption
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Functions of Labels
Identifies
Grades
Describes
Promotes
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Warranties and Guarantees
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-37
Marketing Debate
With products, is it form or function?
Take a position:1. Product functionality is the key to brandsuccess.
or
2. Product design is the key to brandsuccess.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-38
Marketing Discussion
Consider the different means ofdifferentiating products and services.
Which ones have the most impacton your choices?
Why?
