1. 12-1 Chapter Questions How can products be classified? How can companies differentiate products? How can a company build and manage its product mix and product lines? How can companies use packaging, labeling, warranties, and guarantees as marketing tools?

2. 12-2 Products

3. 12-3 Products versus services

4. 12-4 Durability and Tangibility Durable goods Services Non-durable goods

5. 12-5

6. 12-6 Product Differentiation Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

7. 12-7 Design Differentiation

8. 12-8 Design Differentiation

9. 12-9 Maintenance and Repair

10. 12-10 Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch

11. 12-11 Line Filling

12. 12-12 Proctor & Gamble

13. 12-13 Packaging: The 5 th P? All the activities of designing and producing the container for a product.

14. 12-14 Packaging is influenced by… Self-service Consumer affluence Company/brand image Innovation opportunity

15. 12-15 Innovative Packaging

16. 12-16 Innovative Packaging?

17. 12-17 Innovative Packaging?

18. 12-18 Functions of Labels Identifies Grades Describes Promotes

19. 12-19 Identifies?

20. 12-20 Identifies?

21. 12-21 Grades?

22. 12-22 Warranties and Guarantees

23. 12-23 Example 2004 Hyundai Accent GT Hatchback © Robert C. Bowden Two things might tilt a frugal buyer toward the 2004 Hyundai Accent GT and away from similarly priced competitors: the longest warranty on any subcompact car, and standard side air bags. No competitor offers these and both are invaluable to buyers…. Bottom line: If you only have $10,000 to spend on a new car, the 2004 Hyundai Accent deserves serious consideration. If you can find better transportation value with four wheels and a roof, buy it.

24. 12-24 Marketing Discussion How could a competitor best differentiate itself from Toyota?