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Setting product strategy

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Setting product strategy

  1. 1. MARKETING MANAGEMENT 12th edition 12 Setting Product Strategy Kotler Keller
  2. 2. Chapter Questions• What are the characteristics of products and how can they be classified?• How can companies differentiate products?• How can a company build and manage its product mix and product lines?• 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? 12-2
  3. 3. At the heart of a great brand is agreat product 12-3
  4. 4. Product Anything that can be offered to a market to satisfy a want or need. 12-4
  5. 5. Figure 12.1 Components of theMarket Offering 12-5
  6. 6. Figure 12.2 Five Product Levels 12-6
  7. 7. Product Classification Schemes Durability Tangibility Use 12-7
  8. 8. Durability and Tangibility Nondurable goods Durable Services goods 12-8
  9. 9. Consumer Goods Classification Convenience Shopping Specialty Unsought 12-9
  10. 10. Industrial Goods Classification Materials and parts Supplies/ Capital items business services 12-10
  11. 11. Product Differentiation• Product form • Style• Features • Design• Performance • Ordering ease• Conformance • Delivery• Durability • Installation• Reliability • Customer training• Reparability • Customer consulting • Maintenance 12-11
  12. 12. Dunkin’ Donuts’ Differentiation 12-12
  13. 13. Design Differentiation 12-13
  14. 14. Maintenance and Repair 12-14
  15. 15. The Product Hierarchy Item Product type Product line Product class Product family Need family 12-15
  16. 16. Product Systems and Mixes • Product system • Product mix • Product assortment • Depth • Length • Width • Consistency 12-16
  17. 17. Product Line Analysis Core product Staples Convenience Specialties items 12-17
  18. 18. Figure 12.3 Product-Item Contributions toa Product Line’s Total Sales and Profits 12-18
  19. 19. Figure 12.4 Product Map 12-19
  20. 20. Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch 12-20
  21. 21. Line Filling 12-21
  22. 22. Product-Mix Pricing• Product-line pricing• Optional-feature pricing• Captive-product pricing• Two-part pricing• By-product pricing• Product-bundling pricing 12-22
  23. 23. Product Line Pricing 12-23
  24. 24. Two-Part Pricing 12-24
  25. 25. Co-branding 12-25
  26. 26. Ingredient Branding 12-26
  27. 27. Packaging: The 5 P th All the activities of designing and producing the container for a product. 12-27
  28. 28. Packaging has been influenced by… Self-service Consumer affluence Company/brand image Innovation opportunity 12-28
  29. 29. Innovations in Packaging 12-29
  30. 30. Functions of Labels Identifies Grades Describes Promotes 12-30
  31. 31. Warranties and Guarantees 12-31
  32. 32. Marketing Debate  With products, is it form or function? Take a position: 4. Product functionality is the key to brand success. 2. Product design is the key to brand success. 12-32
  33. 33. Marketing Discussion  Consider the different means of differentiating products and services. Which ones have the most impact on your choices? Why? 12-33

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