1. 12 Setting Product Strategy 1

2. 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.

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

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

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

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

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

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

9. 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)

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-10 Product Differentiation  Product form  Features  Customization  Performance  Conformance  Durability  Reliability  Repairability  Style

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-11 Service Differentiation  Ordering ease  Delivery  Installation  Customer training  Customer consulting  Maintenance and repair  Returns

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

13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-13 Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-14 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)

15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-15 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.

16. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-16 Factors Contributing to the Emphasis on Packaging  Self-service  Consumer affluence  Company/brand image  Innovation opportunity

17. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-17 Packaging Objectives  Identify the brand  Convey descriptive and persuasive information  Facilitate product transportation and protection  Assist at-home storage  Aid product consumption

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-18 Functions of Labels Identifies Grades Describes Promotes