1. Setting Product Strategy Marketing Management, 13 th ed 12

2. Copyright © 2009 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.

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-3 Figure 12.1 Components of the Market Offering Attractiveness of the market offering Value-based prices Product features and quality Services mix and quality

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-4 Figure 12.2 Five Product Levels

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

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-6 Durability and Tangibility Nondurable goods Services Durable goods

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

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-8 Product Differentiation Product form Features Customization Performance Conformance Durability Reliability Repairability Style

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-9 Service Differentiation Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair Returns

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-10 Design Differentiation

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-11 Maintenance and Repair

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-12 Product Systems and Mixes Product system Product mix Product assortment Depth Length Width Consistency

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-13 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)

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-14 Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-15 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)

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-16 Product Line Pricing

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-17 What is the Fifth P? Packaging, sometimes called the fifth P, is all the activities of designing and producing the container for a product.

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-18 Factors Contributing to the Emphasis on Packaging Self-service Consumer affluence Company/brand image Innovation opportunity

19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-19 Packaging Objectives Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption

20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-20 Functions of Labels Identifies Grades Describes Promotes

21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-21 Warranties and Guarantees