1. Setting Product Strategy12
Setting Product Strategy
Marketing Management, 13th ed

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?
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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?
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4. Caterpillar: A Great Product
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5. 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.
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6. Figure 12.1 Components of the Market Offering
Value-based prices
Attractiveness
of the market
offering
Product
features
and quality
Services
mix and
quality
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7. Figure 12.2 Five Product Levels
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8. The Wedding Market is a MetaMarket
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9. Product Classification Schemes
Durability
Tangibility
Use
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10. Durability and Tangibility
Nondurable
goods
Durable
goods
Services
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11. Consumer Goods Classification
Convenience
Shopping
Specialty
Unsought
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12. Industrial Goods Classification
Materials and parts
Capital items
Supplies/
business services
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13. Product Differentiation
Product form
Features
Customization
Performance
Conformance
Durability
Reliability
Repairability
Style
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14. Dunkin’ Donuts’ Differentiation
Click on the video icon to see a clip on product differentiation at Dunkin’ Donuts.
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15. Design Differentiation
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16. Service Differentiation
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance and repair
Returns
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17. Maintenance and Repair
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18. The Product Hierarchy Item Product type Product line Product class
Product family
Need family
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19. Product Systems and Mixes
Product mix
Product assortment
Depth
Length
Width
Consistency
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20. Product Line Analysis Core product Staples Specialties Convenience
items
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21. Figure 12.3 Product Item Contributions to a Product Line’s Total Sales and Profits
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22. Figure 12.4 Product Map
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23. Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch
Video icon links to Marriott video on Marriott’s downward stretch.
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24. Line Filling
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25. Pruning
Pruning weak brands can strengthen the remaining brands in the line
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26. 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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27. Product Line Pricing
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28. Two-Part Pricing
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29. Co-branding
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30. Ingredient Branding
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31. What is the Fifth P?
Packaging, sometimes called the fifth P, is all the activities of designing and producing the container for a product.
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32. Factors Contributing to the Emphasis on Packaging
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
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33. Innovations in Packaging
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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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35. Functions of Labels Identifies Grades Describes Promotes
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36. Warranties and Guarantees
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37. Marketing Debate With products, is it form or function?
Take a position:
Product functionality is the key to brand
success. or
2. Product design is the key to brand
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38. Marketing Discussion Consider the different means of
differentiating products and services.
Which ones have the most impact
on your choices?
Why?
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