1. 10 THE PRODUCT EXPERIENCE: PRODUCT STRATEGY Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin

2. LEARNING OBJECTIVES Understand the essential role of the product experience in marketing Define the characteristics of a product Recognize how product strategies evolve from one product to many products Understand the life of a product and how product strategies change over time 10-2

3. Product Characteristics Define the Product Essential Benefit Core Product Enhanced Product 10-3

4. Four Products and Their Essential Benefits 10-4

5. Defining the Product at Southwest Airlines EXHIBIT 10.2 Enhanced Product Experiences exceed minimum expectations Frequent flyer programs Reserved seating Core Product On time Safe Experience matches expectations Essential Benefit Moving from Point A to Point B 10-5

6. Product Classifications Tangibility – physical aspects of the product experience Durability – product usage 10-6

7. Product Classifications Consumer Goods 10-7

8. Product Classifications Business Goods 10-8

9. Product Discrimination: Create a Point of Differentiation 10-9

10. Product Plan: Moving from One Product to Many Products Product Line Product Mix 10-10

11. Product Decisions Affect other Marketing Mix Elements Pricing Marketing Communications 10-11

12. THE LIFE OF THE PRODUCT: BUILDING THE PRODUCT EXPERIENCE Product Life Cycle Product Life Cycle Sales Revenue and Profitability Product Life Cycle Timeline Product Life Cycle Caveats 10-12

13. The Product Life Cycle EXHIBIT 10.12 Reprinted from Roger Kerin, Steven Hartley and William Rudelius, Marketing 9E, 2009. 10-13

14. Product Life Cycle Introduction Phase 10-14

15. Product Life Cycle Growth Phase 10-15

16. Product Life Cycle Maturity Phase Phase defined by the sales growth of the product category Relative Market Expansion Market Stability Market Deterioration 10-16

17. Product Life Cycle Maturity Phase 10-17

18. Product Life Cycle Decline Phase 10-18

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