1. Marketing Management, chapter 12 Setting Product Strategy Prepared by: Volkan ÜLKE Prof. : Teoman DUMAN

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 Attractiveness of the market offering Value-based prices Product features and quality Services mix and quality

4. Figure 12.2 Five Product Levels

5. Product Classification Schemes Durability Use Tangibility

6. Durability and Tangibility Nondurable goods Services Durable goods

7. Consumer Goods Classification Convenience Unsought Shopping Specialty

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

9. Product Differentiation Product form Features Customization Performance Conformance Durability Reliability Repairability Style

10. Service Differentiation Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair Returns

11. Design Differentiation

12. Maintenance and Repair

13. The Product Hierarchy Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-13 Need family Product family Product class Product line Product type Item

14. Product Systems and Mixes Product system Product mix Product assortment Depth Length Width Consistency

15. 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)

16. Product Line Analysis Core product Staples Specialties Convenience items

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

18. 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)

19. Product Line Pricing

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

21. What is the Fifth P? Packaging, sometimes called the fifth P, is all the activities of designing and producing the container for a product.

22. Factors Contributing to the Emphasis on Packaging Self-service Consumer affluence Company/brand image Innovation opportunity

23. Packaging Objectives Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption

24. Functions of Labels Identifies Grades Describes Promotes

25. Warranties and Guarantees