1. MARKETING MANAGEMENT 12th edition
Setting Product Strategy
Kotler Keller

2. Chapter Questions
What are the characteristics of products and how can they be classified?
How can companies differentiate products?
How can a company build and manage its product mix and product lines?
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?

3. At the heart of a great brand is a great product

4. Anything that can be offered to a market to
Product
Anything that can be offered to a market to
satisfy a want or need.

5. Figure 12.1 Components of the Market Offering

6. Figure 12.2 Five Product Levels

7. Product Classification Schemes
Durability
Tangibility
Use

8. Durability and Tangibility
Nondurable
goods
Durable
goods
Services

9. Consumer Goods Classification
Convenience
Shopping
Specialty
Unsought

10. Industrial Goods Classification
Materials and parts
Capital items
Supplies/
business services

11. Product Differentiation
Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
Product form
Features
Performance
Conformance
Durability
Reliability
Reparability

12. Dunkin’ Donuts’ Differentiation
Click on the video icon to see a clip on product differentiation at Dunkin’ Donuts.

13. Design Differentiation

14. Maintenance and Repair

15. The Product Hierarchy Item Product type Product line Product class
Product family
Need family

16. Product Systems and Mixes
Product mix
Product assortment
Depth
Length
Width
Consistency

17. Product Line Analysis Core product Staples Specialties Convenience
items

18. Figure 12.3 Product-Item Contributions to a Product Line’s Total Sales and Profits

19. Figure 12.4 Product Map

20. Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch

21. Line Filling

22. Product-Mix Pricing Product-line pricing Optional-feature pricing
Captive-product pricing
Two-part pricing
By-product pricing
Product-bundling pricing

23. Product Line Pricing

24. Two-Part Pricing

25. Co-branding

26. Ingredient Branding

27. Packaging: The 5th P All the activities of designing and producing
the container for a product.

28. Packaging has been influenced by…
Self-service
Consumer affluence
Company/brand image
Innovation opportunity

29. Innovations in Packaging

30. Functions of Labels
Identifies
Grades
Describes
Promotes

31. Warranties and Guarantees

32. Marketing Debate With products, is it form or function?
Take a position:
Product functionality is the key to brand
success.
2. Product design is the key to brand

33. Marketing Discussion Consider the different means
of differentiating products and
services. Which ones have the
most impact on your choices?
Why?