Chapter 12 Setting Product Strategy By KotlerPresentation Transcript
Chapter 12 : SETTING PRODUCT STRATEGY Prof. Joseph de Ungria AGSB – Marketing Management by : Cynthia Maandal 03-06-10
What is a Product? A product- 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.
Figure 12.1 Components of the Market Offering Value-based prices Attractiveness of the market offering Product features and quality Services mix and quality
Figure 12.2 Five Product Levels
Product Classification Schemes Durability Tangibility Use
Durability and Tangibility Nondurable goods Services Durable goods
Product Differentiation Product form Features Customization Performance Conformance Durability Reliability Repairability Style
Product Line Pricing Valid until March 31, 2010 (24-hour response) Weekday (Monday to Thursday) Room Types Rates per Room per Night Superior Room (Single/Double) without Breakfast US$ 117 nett Superior Room (Triple) without Breakfast US$ 150 nett Superior Room (Single) with Breakfast US$ 125 nett Superior Room (Double) with Breakfast US$ 128 nett Superior Room (Triple) with Breakfast US$ 196 nett Weekend (Friday to Sunday) Room Types Rates per Room per Night Inclusions:• Room accommodation• Taxes• Service charge
What is the Packaging ? -sometimes called the fifth P, is all the activities of designing and producing the container for a product.
Factors Contributing to the Emphasis on Packaging Self-service Consumer affluence Company/brand image Innovation opportunity
Packaging Objectives Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption
Functions of Labels Identifies Grades Describes Promotes
Warranties and Guarantees - are formal statements of expected product performance by the manufacturer