Setting Product Strategy
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Setting Product Strategy
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Setting Product Strategy
- 1. Kotler • Keller Phillip Kevin Lane Marketing Management • 14e
- 3. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 27 Figure 12.2 Five Product Levels
- 4. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 4 of 27 Product Levels Customer-value Hierarchy Potential Product (Future augmentations) Core Benefit (Rest and sleep) Basic Product (Bed, bathroom, towels) Expected Product (Clean bed, fresh towels) Augmented Product (Free Internet; free breakfast)
- 5. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 5 of 27 Product Classifications Nondurable goods Services Durable goods Durability and Tangibility
- 6. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6 of 27 Product Classifications Consumer-Goods Convenience goods Shopping goods Specialty goods Unsought goods • Staples • Impulse goods • Emergency goods
- 7. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 7 of 27 Product Differentiation Form Customization Performance Reliability Features Durability Conformance Repairability Style
- 8. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8 of 27 Product Systems and Mixes Product System Consistency
Editor's Notes
- Figure 12.2 shows the five levels of a product. Each of these will be illustrated in more depth on the next slide.
- Products are comprised of 5 levels. Each level adds more customer value. Here are the product levels using a hotel as an example. Core benefit: service or benefit the customer is really buying. Basic product: marketers turn core benefit into a basic product at this level. Expected product: attributes and conditions buyers expect when they purchase this product. Competition takes place at this level in developing countries. Augmented product: : attributes and conditions exceed customer expectations. Competition takes place at this level in developed countries.. Potential product: various augmentations that could be incorporated in the future. Here is where companies search for new ways to satisfy customers and distinguish their offering.
- Durability, tangibility, and use (consumer or industrial).
- Consumers purchase convenience goods frequently, immediately, and with minimal effort. Consumers compare shopping goods based on suitability, quality, price, and style. Consumer make special purchasing effort to buy specialty goods due to their unique characteristics or brand identification. Consumer does not normally know or buy unsought goods. As such these goods require advertising and personal-selling support.
- Products can be differentiated in many ways including: Form, features, customization, performance quality, conformance quality, durability, reliability, repairability, and style.
- A product system is a group of diverse but related items that function in a compatible manner. A product mix is the set of all products and items a particular seller offers for sale. A company’s product mix has a certain width, length, depth, and consistency. These concepts are illustrated in Table 12.2 for selected Procter & Gamble consumer products.