12 Setting Product Strategy 1

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-2 What is a Product? A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Figure 12.1 Components of the Market Offering Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-3

Figure 12.2 Five Product Levels Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-4

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-5 Product Classification Schemes Durability Use Tangibility

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-6 Durability and Tangibility Nondurable goods Durable goods Services

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-7 Consumer Goods Classification Convenience Unsought Shopping Specialty

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-8 Industrial Goods Classification  Materials and parts  Capital items  Supplies/business services

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-9 Product-Mix Width and Product-Line Length for Proctor& Gamble Products PRODUCT- LINE LENGTH Product-Mix Width DetergentsToothpaste Disposable Bar SoapDiapers Paper Tissue Ivory Snow (1930) Dreft (1933) Tide (1946) Cheer (1950) Gleem (1952) Crest (1955) Ivory (1879) Kirk’s (1885) Lava (1893) Camay (1926) Pampers (1961) Luvs (1976) Charmin (1928) Puffs (1960) Banner (1982) Summit (1992)

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Product Differentiation  Product form  Features  Customization  Performance  Conformance  Durability  Reliability  Repairability  Style

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Service Differentiation  Ordering ease  Delivery  Installation  Customer training  Customer consulting  Maintenance and repair  Returns

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Design Differentiation

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Two-Way Product-Line Stretch: Marriott Hotels Quality Economy Superior StandardGood Price High Above average Average Low Fairfield Inn (Vacationers) Courtyard (Salespeople) Marriott (Middle managers) Marriott Marquis (Top executives)

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall What is the Fifth P? Packaging, sometimes called the 5 th P, is all the activities of designing and producing the container for a product.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Factors Contributing to the Emphasis on Packaging  Self-service  Consumer affluence  Company/brand image  Innovation opportunity

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Packaging Objectives  Identify the brand  Convey descriptive and persuasive information  Facilitate product transportation and protection  Assist at-home storage  Aid product consumption

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Functions of Labels Identifies Grades Describes Promotes