Windell de vera ch. 12

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Windell de vera ch. 12

  1. 1. TOP 10 LEARNING CONCEPTS Ch. 12: Setting Product Strategy Windell de Vera May 11, 2012 windelldevera.blogspot.com www.
  2. 2. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 1. Know the Five Product Levels 2. Distinguish the Product Classification Schemes 3. Compare the Consumer and Industrial Goods Classification 4. Understand Product Differentiation 5. Learn Service Differentiation www.windelldevera.blogspot.com
  3. 3. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 6. Consider Product Hierarchy 7. Deal with the Product Systems and Mixes 8. Use the Product Line Analysis 9. Master the Product-Mix Pricing 10. Emphasize Packaging windelldevera.blogspot.com www.
  4. 4. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 1. Know the Five Product Levels 2. Distinguish the Product Classification Schemes 3. Compare the Consumer and Industrial Goods Classification 4. Understand Product Differentiation 5. Learn Service Differentiation www.windelldevera.blogspot.com
  5. 5. Concept 1:Know the Five Product Levels Core benefit Basic product Expected product Augmented product Potential product Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  6. 6. Concept 1:Core benefit: It is the fundamentallevel. It is the benefit the customer isreally buying. Core benefit e.g. A customer Basic product buys a cell Expected phone in order product to communicate. Augmented product Potential product Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  7. 7. Concept 1:The marketer has to turn the corebenefit into the basic product. Core benefit e.g. A marketer Basic product sells a cell phone Expected can be used to product communicate Augmented with others. product Potential product Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  8. 8. Concept 1:Expected product is a set of attributesand conditions buyers normally expectwhen they purchase this product. Core benefit e.g. A customer Basic product buys a cell Expected phone that can product be used for call Augmented and text. product Potential product Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  9. 9. Concept 1:Augmented product is a product thatexceeds customer expectations. Core benefit e.g. The cell Basic product phone also Expected features product camera, radio Augmented and internet. product Potential product Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  10. 10. Concept 1:Potential product encompasses all thepossible augmentations andtransformations the product or offeringmight undergo in the future. Core benefit e.g. A Basic product holographic cell Expected phone that product features the Augmented images in 3D product Potential and runs at 4G. product Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  11. 11. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 1. Know the Five Product Levels 2. Distinguish the Product Classification Schemes 3. Compare the Consumer and Industrial Goods Classification 4. Understand Product Differentiation 5. Learn Service Differentiation www.windelldevera.blogspot.com
  12. 12. Concept 2:Distinguish the Product ClassificationSchemes Durability Tangibility Use Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  13. 13. Concept 2: Non-durable goods are tangible normally consumed in one or a few uses. The appropriateDurability strategy is to make it available inTangibility many locations, charg e a small markup andUse advertise heavily to induce trial. Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  14. 14. Concept 2: Durable goods are tangible goods that survive many uses. These normallyDurability require more personal selling andTangibility service, comma nd a higher margin, and require moreUse seller guarantees. Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  15. 15. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 1. Know the Five Product Levels 2. Distinguish the Product Classification Schemes 3. Compare the Consumer and Industrial Goods Classification 4. Understand Product Differentiation 5. Learn Service Differentiation www.windelldevera.blogspot.com
  16. 16. Concept 3:Compare the Consumer and IndustrialGoods Classification Consumer Goods Industrial Goods Classification Classification Materials and Convenience Parts Shopping Capital Items Supplies/business Specialty services Unsought Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  17. 17. Concept 3:Consumer Goods Classification areclassified according to consumershopping habits. Consumer Goods Classification Convenience Shopping Specialty Unsought Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  18. 18. Concept 3: Convenience goods are usually purchased frequently, immediately, and with little effort.Consumer Goods Classification Convenience Shopping Specialty Unsought Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  19. 19. Concept 3: Shopping goods are goods that the customer, in the process of selection and purchase, compares on the basis of suitability, quality, price and style.Consumer Goods Classification Convenience Shopping Specialty Unsought Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  20. 20. Concept 3: Specialty goods are goods with unique characteristics or brand identification for which consumers spend exceptional buying effort.Consumer Goods Classification Convenience Shopping Specialty Unsought Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  21. 21. Concept 3: Unsought goods are those products or services that consumers are not readily aware of or do not normally consider buying..Consumer Goods Classification Convenience Shopping Specialty Unsought Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  22. 22. Concept 3:Industrial goods are those productsused in the production of other goods. Industrial Goods Classification Materials and Parts Capital Items Supplies/business services Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  23. 23. Concept 3:Raw material products include farmproducts and natural products,manufactured materials and partsinclude component materials andcomponent parts.Industrial Goods Classification Materials and Parts Capital Items Supplies/business services Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  24. 24. Concept 3:Capital items: installations andequipments.Industrial Goods Classification Materials and Parts Capital Items Supplies/business services Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  25. 25. Concept 3:Supplies include maintenance andrepair items and operating supplies.Business services include maintenanceand repair services and businessadvisor services.Industrial Goods Classification Materials and Parts Capital Items Supplies/business services Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  26. 26. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 1. Know the Five Product Levels 2. Distinguish the Product Classification Schemes 3. Compare the Consumer and Industrial Goods Classification 4. Understand Product Differentiation 5. Learn the Service Differentiation www.windelldevera.blogspot.com
  27. 27. Concept 4:Understand Product Differentiation Product Form FeaturesCustomization Performance Conformance Durability Reliability Repairability Style Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  28. 28. Concept 4: Form: The size, shape, or physical structure of a product.Product Form FeaturesCustomizationPerformanceConformance Durability ReliabilityRepairability Style Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  29. 29. Concept 4: Features: Most products can be offered with varying features that supplement its basic function.Product Form FeaturesCustomizationPerformanceConformance Durability ReliabilityRepairability Style Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  30. 30. Concept 4: Customization: It refers to the tailoring of the campaign according to the needs of an individual or groups of individuals.Product Form FeaturesCustomizationPerformanceConformance Durability ReliabilityRepairability Style Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  31. 31. Concept 4: Performance: It is the level at which product’s primary characteristics operates.Product Form FeaturesCustomizationPerformanceConformance Durability ReliabilityRepairability Style Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  32. 32. Concept 4: Conformance: It is the degree to which all the produced units are identical and meet the promised specifications.Product Form FeaturesCustomizationPerformanceConformance Durability ReliabilityRepairability Style Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  33. 33. Concept 4: Durability: A measure of the product’s expected operating life under natural conditions, is a valued attribute for certain products.Product Form FeaturesCustomizationPerformanceConformance Durability ReliabilityRepairability Style Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  34. 34. Concept 4: Reliability: A measure of the probability that a product will not malfunction or fail within a specified time period.Product Form FeaturesCustomizationPerformanceConformance Durability ReliabilityRepairability Style Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  35. 35. Concept 4: Repairability: It is a measure of the ease of fixing a product when it malfunctions or fails.Product Form FeaturesCustomizationPerformanceConformance Durability ReliabilityRepairability Style Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  36. 36. Concept 4: Style: It described the product’s look and feel to the buyer.Product Form FeaturesCustomizationPerformanceConformance Durability ReliabilityRepairability Style Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  37. 37. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 1. Know the Five Product Levels 2. Distinguish the Product Classification Schemes 3. Compare the Consumer and Industrial Goods Classification 4. Understand Product Differentiation 5. Learn Service Differentiation www.windelldevera.blogspot.com
  38. 38. Concept 5:Learn Service Differentiation Ordering ease Returns Delivery Maintenance Installation and repair Customer Customer consulting training Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  39. 39. Concept 5: Ordering ease: It refers to how easy it is for the customer to place an order with company. Ordering ease Returns DeliveryMaintenance Installation and repair Customer Customer consulting training Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  40. 40. Concept 5: Delivery: It refers to how well the product or service is delivered to the customer. Ordering ease Returns DeliveryMaintenance Installation and repair Customer Customer consulting training Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  41. 41. Concept 5: Installation: It refers to the work done to make a product operation in its planned location. Ordering ease Returns DeliveryMaintenance Installation and repair Customer Customer consulting training Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  42. 42. Concept 5: Customer training: It refers to training the customer’s employees to use the vendor’s equipment properly and efficiently. Ordering ease Returns DeliveryMaintenance Installation and repair Customer Customer consulting training Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  43. 43. Concept 5: Customer consulting: It refers to data, information systems, and advice services that the seller offers to buyers. Ordering ease Returns DeliveryMaintenance Installation and repair Customer Customer consulting training Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  44. 44. Concept 5: Maintenance and repair: It describes the service program for helping the customers keep purchased products in good working order. Ordering ease Returns DeliveryMaintenance Installation and repair Customer Customer consulting training Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  45. 45. Concept 5: Returns: Sold merchandise returned by customers for refund. Ordering ease Returns DeliveryMaintenance Installation and repair Customer Customer consulting training Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  46. 46. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 6. Consider Product Hierarchy 7. Deal with the Product Systems and Mixes 8. Use the Product Line Analysis 9. Master the Product-Mix Pricing 10. Emphasize Packaging windelldevera.blogspot.com www.
  47. 47. Concept 6:Consider Product Hierarchy Item Product Type Product line Product class Product family Need family Reference: Philip Kotler, Marketing Management, 13th edition windelldevera.blogspot.com www.
  48. 48. Concept 6:Need family – the basic need underlying theexistence of a product family. Item Product Type Product line Product class Product family Need family Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  49. 49. Concept 6:Product family – all the product classes thatcan satisfy a basic need effectively. Item Product Type Product line Product class Product family Need family Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  50. 50. Concept 6:Product class – a group of products within aproduct family. Item Product Type Product line Product class Product family Need family Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  51. 51. Concept 6:Product line – a group of products within aproduct class. Item Product Type Product line Product class Product family Need family Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  52. 52. Concept 6:Product type – a group of items within aproduct line that function in a similar manner. Item Product Type Product line Product class Product family Need family Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  53. 53. Concept 6:Item – a unit within a product line which isdistinguished by size, price, orsome other characteristic of element. Item Product Type Product line Product class Product family Need family Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  54. 54. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 6. Consider Product Hierarchy 7. Deal with the Product Systems and Mixes 8. Use the Product Line Analysis 9. Master the Product-Mix Pricing 10. Emphasize Packaging windelldevera.blogspot.com www.
  55. 55. Concept 7: Deal with the Product Systems and MixesProduct Product Product mix Depth Length Width Consistencysystem assortment Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  56. 56. Concept 7: A product system is a group of diverse but related items that function in a compatible manner.Product Product Product mix Depth Length Width Consistencysystem assortment Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  57. 57. Concept 7: A product mix is the sell of all products and items a particular seller offers for sale.Product Product Product mix Depth Length Width Consistencysystem assortment Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  58. 58. Concept 7: A company’s product assortment has a certain width, length, depth, and consistency.Product Product Product mix Depth Length Width Consistencysystem assortment Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  59. 59. Concept 7: The depth of a product mix refers to how many variants are offered of each product in the line.Product Product Product mix Depth Length Width Consistencysystem assortment Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  60. 60. Concept 7: The length of a product mix refers to the total number of items in the mix.Product Product Product mix Depth Length Width Consistencysystem assortment Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  61. 61. Concept 7: The width of a product mix refers to how many different product lines the company carries.Product Product Product mix Depth Length Width Consistencysystem assortment Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  62. 62. Concept 7: The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.Product Product Product mix Depth Length Width Consistencysystem assortment Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  63. 63. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 6. Consider Product Hierarchy 7. Deal with the Product Systems and Mixes 8. Use the Product Line Analysis 9. Master the Product-Mix Pricing 10. Emphasize Packaging windelldevera.blogspot.com www.
  64. 64. Concept 8:Use the Product Line Analysis Core product Staples Specialties Convenience items Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  65. 65. Concept 8:Core product is the basic product. Core product Staples Specialties Convenience items Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  66. 66. Concept 8: Staples are items with lower sales volume but not promoted. Core product Staples Specialties Convenience items Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  67. 67. Concept 8: Specialties are items with lower sales volume but highly promoted. Core product Staples Specialties Convenience items Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  68. 68. Concept 8: Convenience items are peripheral items. Core product Staples Specialties Convenience items Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  69. 69. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 6. Consider Product Hierarchy 7. Deal with the Product Systems and Mixes 8. Use the Product Line Analysis 9. Master the Product-Mix Pricing 10. Emphasize Packaging windelldevera.blogspot.com www.
  70. 70. Concept 9:Master the Product-Mix Pricing Product – line pricing Product- Optional- bundling feature pricing pricing Captive- By-product product pricing pricing Two-part pricing Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  71. 71. Concept 9: Product–line pricing is setting price steps between product line items. Product – line pricing Product- Optional- bundling feature pricing pricing Captive-By-product product pricing pricing Two-part pricing Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  72. 72. Concept 9: Optional-feature pricing is pricing optional or accessory products sold with the main product. Product – line pricing Product- Optional- bundling feature pricing pricing Captive-By-product product pricing pricing Two-part pricing Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  73. 73. Concept 9: Captive-product pricing is pricing products that must be used with the main product. Product – line pricing Product- Optional- bundling feature pricing pricing Captive-By-product product pricing pricing Two-part pricing Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  74. 74. Concept 9: Two-part pricing is a strategy in which price is broken into a fixed fee plus a variable usage rate. Product – line pricing Product- Optional- bundling feature pricing pricing Captive-By-product product pricing pricing Two-part pricing Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  75. 75. Concept 9: By-product pricing is pricing low-value by-products to get rid of them. Product – line pricing Product- Optional- bundling feature pricing pricing Captive-By-product product pricing pricing Two-part pricing Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  76. 76. Concept 9: Product-bundle pricing is pricing bundles of products sold together. Product – line pricing Product- Optional- bundling feature pricing pricing Captive-By-product product pricing pricing Two-part pricing Reference: Philip Kotler, Marketing Management, 13th edition www. windelldevera.blogspot.com
  77. 77. Outline: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 6. Consider Product Hierarchy 7. Deal with the Product Systems and Mixes 8. Use the Product Line Analysis 9. Master the Product-Mix Pricing 10. Emphasize Packaging windelldevera.blogspot.com www.
  78. 78. Concept 10: Emphasize Packaging Consumer Company/brand InnovationSelf-service affluence image opportunity Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  79. 79. Concept 10: Self-Service – customers would know about the product even without any person present. Consumer Company/brand InnovationSelf-service affluence image opportunity Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  80. 80. Concept 10: Consumer affluence – customers are willing to pay for better packages. Consumer Company/brand InnovationSelf-service affluence image opportunity Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  81. 81. Concept 10: Company/brand image – contributes to instant recognition. Consumer Company/brand InnovationSelf-service affluence image opportunity Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  82. 82. Concept 10: Innovation opportunity – innovative packaging helps improve sales. Consumer Company/brand InnovationSelf-service affluence image opportunity Reference: Philip Kotler, Marketing Management, 13th edition www.windelldevera.blogspot.com
  83. 83. Summary: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 1. Know the Five Product Levels 2. Distinguish the Product Classification Schemes 3. Compare the Consumer and Industrial Goods Classification 4. Understand Product Differentiation 5. Learn Service Differentiation windelldevera.blogspot.com www.
  84. 84. Summary: Top 10 Concepts of Product StrategyTo Market the Products Effectively: 6. Consider Product Hierarchy 7. Deal with the Product Systems and Mixes 8. Use the Product Line Analysis 9. Master the Product-Mix Pricing 10. Emphasize Packaging windelldevera.blogspot.com www.
  85. 85. TOP 10 LEARNING CONCEPTS Ch. 12: Setting Product Strategy Windell de Vera May 11, 2012 windelldevera.blogspot.com www.

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