Transcript Kotler Keller 12

12
Setting Product Strategy
Marketing Management, 13th ed
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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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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Caterpillar: A Great Product
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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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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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Figure 12.2 Five Product Levels
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The Wedding Market
is a MetaMarket
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Product Classification Schemes
Durability
Tangibility
Use
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Durability and Tangibility
Nondurable
goods
Durable
goods
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Services
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Consumer Goods Classification
Convenience
Shopping
Specialty
Unsought
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Industrial Goods Classification
Materials and parts
Capital items
Supplies/
business services
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Product Differentiation
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Product form
Features
Customization
Performance
Conformance
Durability
Reliability
Repairability
Style
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Dunkin’ Donuts’ Differentiation
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Design Differentiation
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Service Differentiation
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Ordering ease
Delivery
Installation
Customer training
Customer
consulting
• Maintenance and
repair
• Returns
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Maintenance and Repair
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The Product Hierarchy
Item
Product type
Product line
Product class
Product family
Need family
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Product Systems and Mixes
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Product system
Product mix
Product assortment
Depth
Length
Width
Consistency
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Product Line Analysis
Core product
Staples
Specialties
Convenience
items
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Figure 12.3 Product Item
Contributions to a Product Line’s
Total Sales and Profits
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Figure 12.4 Product Map
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Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
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Line Filling
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Pruning
Pruning weak
brands can
strengthen the
remaining brands in
the line
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Product-Mix Pricing
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Product-line pricing
Optional-feature pricing
Captive-product pricing
Two-part pricing
By-product pricing
Product-bundling pricing
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Product Line Pricing
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Two-Part Pricing
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Co-branding
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Ingredient Branding
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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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Factors Contributing to the
Emphasis on Packaging
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
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Innovations in Packaging
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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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Functions of Labels
Identifies
Grades
Describes
Promotes
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Warranties and Guarantees
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Marketing Debate
 With products, is it form or function?
Take a position:
1. Product functionality is the key to brand
success.
or
2. Product design is the key to brand
success.
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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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