The chapter discusses product characteristics and classification schemes, how companies can differentiate their products, and the importance of product design. It addresses how marketers can develop their product mix and product lines, combine products through co-brands and ingredient brands, and leverage packaging, labeling, warranties, and guarantees. The chapter also examines questions around what constitutes a product, how products are classified, strategies for product differentiation, and the significance of product design.
Setting Product Strategy
What is a Product?
Components of the Market Offering
Durability and Tangibility
Use
Consumer Goods Classification
The Product Hierarchy (using life insurance example)
Product Systems and Mixes
Product Line Analysis
Packaging , labeling warranties
Packaging Objectives
Functions of Labels
Marketing (Product Strategy) - Discuss about levels of product, product classification, brand strategies, packaging and labeling of the consumer products.
This presentation is created as a part of a Marketing internship and is based on Chapter 11- 'Setting Product Strategy" from Kotler book of Marketing Management
Product, Services, and Brands - Building Customer Value - MarketingFaHaD .H. NooR
What Is a Product?
Product and Services Decisions
Branding Strategy: Building Strong Brands
Services Marketing
A Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want
Experiences represent what buying the product or service will do for the customer
Setting Product Strategy
What is a Product?
Components of the Market Offering
Durability and Tangibility
Use
Consumer Goods Classification
The Product Hierarchy (using life insurance example)
Product Systems and Mixes
Product Line Analysis
Packaging , labeling warranties
Packaging Objectives
Functions of Labels
Marketing (Product Strategy) - Discuss about levels of product, product classification, brand strategies, packaging and labeling of the consumer products.
This presentation is created as a part of a Marketing internship and is based on Chapter 11- 'Setting Product Strategy" from Kotler book of Marketing Management
Product, Services, and Brands - Building Customer Value - MarketingFaHaD .H. NooR
What Is a Product?
Product and Services Decisions
Branding Strategy: Building Strong Brands
Services Marketing
A Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want
Experiences represent what buying the product or service will do for the customer
Crafting the Brand Positioning
Developing & Establishing a Brand Positioning
Points-of-difference
Points-of-parity
Brand Mantras
Communicating Category Membership
Consumer Desirability Criteria for PODs
Deliverability Criteria for PODs
Differentiation Strategies
Positioning and Branding a Small Business
Analyzing Business Markets
What is Organizational Buying?
Top Business Marketing Challenges
Characteristics of Business Markets
Buying Situation
Participants in Business Buying ProcessThe Buying Center
Supplier SearchForms of Electronic Marketplaces
Methods for Researching Customer Value
Establishing Corporate Trust and Credibility
Factors Affecting Buyer-Supplier Relationships
What is Opportunism?
Chapter 2 Developing Marketing Strategies and PlansNishant Agrawal
Developing Marketing Strategies and Plans
Value Delivery Process
What is the Value Chain?
Core Business Processes
Core Competencies
What is Holistic Marketing?
Levels of a Marketing Plan
Corporate Headquarters Planning Activities
Crafting the Brand Positioning
Developing & Establishing a Brand Positioning
Points-of-difference
Points-of-parity
Brand Mantras
Communicating Category Membership
Consumer Desirability Criteria for PODs
Deliverability Criteria for PODs
Differentiation Strategies
Positioning and Branding a Small Business
Analyzing Business Markets
What is Organizational Buying?
Top Business Marketing Challenges
Characteristics of Business Markets
Buying Situation
Participants in Business Buying ProcessThe Buying Center
Supplier SearchForms of Electronic Marketplaces
Methods for Researching Customer Value
Establishing Corporate Trust and Credibility
Factors Affecting Buyer-Supplier Relationships
What is Opportunism?
Chapter 2 Developing Marketing Strategies and PlansNishant Agrawal
Developing Marketing Strategies and Plans
Value Delivery Process
What is the Value Chain?
Core Business Processes
Core Competencies
What is Holistic Marketing?
Levels of a Marketing Plan
Corporate Headquarters Planning Activities
Marketing mix is one of the major concepts in modern marketing. It is the combination of various elements which constitutes the company’s marketing system. It is set of controllable marketing variables that the firm blends to produce the response it wants in the target market. Though there are many basic marketing variables.
The slideshow discusses about the product, product classification, product mix, new product development process, product life cycle (PLC) etc and other related concepts
The following table shows data from a fictional cohort study of in.docxarnoldmeredith47041
The following table shows data from a fictional cohort study of industrial workers followed over 30 years to see if exposure to industrial organic solvent affects cognitive function adversely. Use the information below for the following question.
Organic Solvent Exposure
Number of Participants
Impaired Function
Yes
28654
818
No
71346
649
Total
100000
1467
Calculate and interpret the risk of impaired function in participants exposed to organic solvents and those who were not.
1
COM5111
Product Policy
Week 5 SemB 2019-20
2
Learning Objectives
1. What are the characteristics of products, and how do marketers classify product?
2. How can companies differentiate products?
3. Why is product design important, and what are the different approaches taken?
4. How can a company build and manage its product mix and product lines?
5. How can marketers best manage luxury brands?
6. What environmental issues must marketers consider in their product strategies?
7. How can companies combine products to create strong co-brands or ingredient
brands?
8. How can companies use packaging, labeling, warranties, and guarantees as
marketing tools?
3
Components Of The Market Offering
Marketing planning begins with formulating an offering to meet target customers’ needs or wants
customer will judge the offering
on three basic elements
Slide 15 & 16 Slide 17
4
Product Characteristics
and Classifications
• 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
https://www.youtube.com/watch?v=xYjoBAUOjTk
5
Characteristics of Winning Products
A unique superior product—
a differentiated product that delivers unique benefits and a
compelling value proposition to the customer or user—
is the number one driver of new-product profitability
Source: Robert G. Cooper, Winning at New Products: Creating Value through Innovation (New York: Basic Books, 2011), p. 32.
How about your individual assignment?
6
Unique and superior products tend to have the followings in
common
1. are superior to competitors’ products in terms of meeting users’ needs
2. solve a problem the customer has with a competitive product
3. feature good value for the money and excellent price and performance
characteristics
4. provide excellent product quality, according to customers’ way of defining quality
5. offer features easily perceived as useful by the customer
6. offer benefits that are highly visible to the customer
Source: Robert G. Cooper, Winning at New Products: Creating Value through Innovation (New York: Basic Books, 2011), p. 33.
7
Product Levels: The Customer-Value Hierarchy
• The Five Product Levels
The service or benefit
the customer
is really buying
e.g. rest & sleep
The marketer must
turn the core benefit
into a basic product
e.g. bed, bathroom …
A set of attributes
and c.
The following table shows data from a fictional cohort study of in.docxrtodd194
The following table shows data from a fictional cohort study of industrial workers followed over 30 years to see if exposure to industrial organic solvent affects cognitive function adversely. Use the information below for the following question.
Organic Solvent Exposure
Number of Participants
Impaired Function
Yes
28654
818
No
71346
649
Total
100000
1467
Calculate and interpret the risk of impaired function in participants exposed to organic solvents and those who were not.
1
COM5111
Product Policy
Week 5 SemB 2019-20
2
Learning Objectives
1. What are the characteristics of products, and how do marketers classify product?
2. How can companies differentiate products?
3. Why is product design important, and what are the different approaches taken?
4. How can a company build and manage its product mix and product lines?
5. How can marketers best manage luxury brands?
6. What environmental issues must marketers consider in their product strategies?
7. How can companies combine products to create strong co-brands or ingredient
brands?
8. How can companies use packaging, labeling, warranties, and guarantees as
marketing tools?
3
Components Of The Market Offering
Marketing planning begins with formulating an offering to meet target customers’ needs or wants
customer will judge the offering
on three basic elements
Slide 15 & 16 Slide 17
4
Product Characteristics
and Classifications
• 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
https://www.youtube.com/watch?v=xYjoBAUOjTk
5
Characteristics of Winning Products
A unique superior product—
a differentiated product that delivers unique benefits and a
compelling value proposition to the customer or user—
is the number one driver of new-product profitability
Source: Robert G. Cooper, Winning at New Products: Creating Value through Innovation (New York: Basic Books, 2011), p. 32.
How about your individual assignment?
6
Unique and superior products tend to have the followings in
common
1. are superior to competitors’ products in terms of meeting users’ needs
2. solve a problem the customer has with a competitive product
3. feature good value for the money and excellent price and performance
characteristics
4. provide excellent product quality, according to customers’ way of defining quality
5. offer features easily perceived as useful by the customer
6. offer benefits that are highly visible to the customer
Source: Robert G. Cooper, Winning at New Products: Creating Value through Innovation (New York: Basic Books, 2011), p. 33.
7
Product Levels: The Customer-Value Hierarchy
• The Five Product Levels
The service or benefit
the customer
is really buying
e.g. rest & sleep
The marketer must
turn the core benefit
into a basic product
e.g. bed, bathroom …
A set of attributes
and c.
Elevate your trade show game with our comprehensive guide on creating an interactive booth that captures attention and drives engagement! In this presentation, Blue Atlas Marketing shares practical tips and creative strategies to transform your trade show presence. Learn how to use digital displays, interactive demos, and engaging activities to attract visitors and make lasting impressions. Whether you're a trade show veteran or a newcomer, these insights will help you stand out from the crowd and maximize your event success. Dive into our slides to discover how to turn your booth into a dynamic and interactive experience!
Come learn how YOU can Animate and Illuminate the World with Generative AI's Explosive Power. Come sit in the driver's seat and learn to harness this great technology.
What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...Demandbase
Delve into essential ABM ‘plays' that propel success while identifying and leaving behind tactics that no longer yield results. Led by ABM Experts, Jon Barcellos, Head of Solutions at Postal and Tom Keefe, Principal GTM Expert at Demandbase.
Everyone knows the power of stories, but when asked to come up with them, we struggle. Either we second guess ourselves as to the story's relevance, or we just come up blank and can't think of any. Unlocking Everyday Narratives: The Power of Storytelling in Marketing will teach you how to recognize stories in the moment and to recall forgotten moments that your audience needs to hear.
Key Takeaways:
Understand Why Personal Stories Connect Better
How To Remember Forgotten Stories
How To Use Customer Experiences As Stories For Your Brand
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
SEO as the Backbone of Digital MarketingFelipe Bazon
In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
In today's digital world, customers are just a click away. "Grow Your Business Online: Introduction to Digital Marketing" dives into the exciting world of digital marketing, equipping you with the tools and strategies to reach new audiences, expand your reach, and ultimately grow your business.
website = https://digitaldiscovery.institute/
address = C 210 A Industrial Area, Phase 8B, Sahibzada Ajit Singh Nagar, Punjab 140308
Checkout Abandonment - CRO School by Mailmodosaba771143
Fear of abandonment’ means a whole different thing in eCommerce.
Because the loss is tangible. And felt right in your pocket.
But that also means there are real things you could fix.
One of the final stages of shopping abandonment occurs is the checkout page.
Which means it impacts your bottom line directly.
So here’s a rundown of:
→ Reasons shoppers abandon the checkout process
→ How other brands cope with these issues
→ Actionables to fix your checkout flow
Do it right, and you’ll feel the change in your revenue.
This is a part of our CRO School series - to help you fix the revenue leaks in your eCommerce store.
Sign up for CRO School and get these insights right in your inbox
(Visit the link to enroll ->https://www.mailmodo.com/cro-school/?utm_source=cro-school&utm_medium=slideshare )
#ecommerce
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The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
The Good the Bad and The Ugly of Marketing MeasurementNapierPR
We explore how B2B marketers can impress the board by measuring their PR and marketing campaigns successfully, and explore 5 metrics that will get you promoted, and 3 that will get your fired.
We cover:
-Meaningless marketing metrics
-The difference between attribution and incrementality
-The importance of the customer journey
-Why you should care about prospects that are in market
-Measuring the unmeasurable
Google Ads Vs Social Media Ads-A comparative analysisakashrawdot
Explore the differences, advantages, and strategies of using Google Ads vs Social Media Ads for online advertising. This presentation will provide insights into how each platform operates, their unique features, and how they can be leveraged to achieve marketing goals.
janani Digital Marketer|Digital Marketing consultant|Marketing Promotion|Coim...janudm24
Myself Janani Digital marketing consultant located in coimbatore I offer all kinds of digital marketing services for your business requirements such as SEO SMO SMM SMO CAMPAIGNS content writing web design for all your business needs with affordable cost
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List of Services offered in Digital Marketing |Techvolt Software :
Techvolt Software offers best Digital Marketing services for promoting your products and services through online platform on the below methods of Digital marketing
1. Search Engine Optimization (SEO)
2. Search Engine Marketing (SEM)
3. Social Media Optimization (SMO)
4. Social Media Marketing (SMM)
5. Campaigns
Importance | Need of Digital Marketing (Online Promotions) :
1. Quick Promotions through Online
2. Generation of More leads and Business Enquiries via Search Engine and Social Media Platform
3. Latest Technology development vs Business promotions
4. Creation of Social Branding
5. Promotion with less investment
Benefits Digital Marketing Services at Techvolt software :
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Techvolt Software offers Free website design for all customer and clients who is availing the digital marketing services for a minimum period of 6 months.
With Regards
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Coimbatore,Tamilnadu.
[Google March 2024 Update] How To Thrive: Content, Link Building & SEOSearch Engine Journal
March 2024 disrupted the SEO industry. Websites were deindexed, and manual penalties were delivered—all to produce more helpful, more trustworthy search results.
How did your website fare?
Watch us as we delve into the seismic shifts brought about by Google's March 2024 updates and explore strategies to not just survive, but thrive in this dynamic digital landscape.
You’ll learn:
- How to create content that is valuable to users (not just search engines) using E-E-A-T.
- How to build links that can boost rankings and withstand algorithm updates.
- Best practices for content creation and link building so you can thrive during algorithm updates.
With Vince Ramos, we'll examine the implications of the latest algorithm changes on content creation, link building, and SEO practices, and offer actionable insights from businesses like yours that have remained steadfast amidst the volatility.
Using real-life case studies, we’ll also show you the effectiveness of manual link building techniques and person-first content strategies.
Whether you're a seasoned SEO professional, a budding content creator, or anyone in between, this webinar will help you weather the changes in Google's algorithms and capitalize on them for sustained success.
Check out this webinar and unlock the secrets to thriving in the new Google era.
Dive deep into the cutting-edge strategies we're employing to revolutionize our web presence in the age of AI-driven search. As Gen Z reshapes the digital realm, discover how we can bridge the generational divide. Unlock the synergistic power of PPC, social media, and SEO, driving unparalleled revenues for our projects.
4. • Product is the first and most important element of the
marketing mix. Product strategy calls for making coordinated
decisions on product mixes, product lines, brands, and
packaging and labeling.
• In planning its market offering, the marketer needs to think
through the five levels of the product: the core benefit, the
basic product, the expected product, the augmented product,
and the potential product, which encompasses all the
augmentations and transformations the product might
ultimately undergo.
SUMMARY
5. • Products can be nondurable goods, durable goods, or services.
In the consumer-goods category are convenience goods
(staples, impulse goods, emergency goods), shopping goods
(homogeneous and heterogeneous), specialty goods, and
unsought goods.
• The industrial-goods category has three subcategories:
materials and parts (raw materials and manufactured
materials and parts), capital items (installations and
equipment), and supplies and business services (operating
supplies, maintenance and repair items, maintenance and
repair services, and business advisory services).
SUMMARY
6. • Brands can be differentiated on the basis of product form,
features, performance, conformance, durability, reliability,
repairability, style, customization, and design, as well as such
service dimensions as ordering ease, delivery, installation,
customer training, customer consulting, and maintenance and
repair.
• Design is the totality of features that affect how a product
looks, feels, and functions. A well-designed product offers
functional and aesthetic benefits to consumers and can be an
important source of differentiation.
• Luxury brands command price premiums and often have a
strong lifestyle component. They can require some special
considerations in how they are sold.
SUMMARY
7. • Products and their packaging must be designed to reduce
adverse environmental impact as much as possible.
• Most companies sell more than one product. A product mix
can be classified according to width, length, depth, and
consistency.
• These four dimensions are the tools for developing the
company’s marketing strategy and deciding which product
lines to grow, maintain, harvest, and divest. To analyze a
product line and decide how many resources to invest in it,
product line managers need to look at sales and profits and
market profile
SUMMARY
8. • A company can change the product component of its
marketing mix by lengthening its product via line stretching
(down-market, up-market, or both) or line filling, by
modernizing its products, by featuring certain products, and
by pruning its products to eliminate the least profitable.
• Brands are often sold or marketed jointly with other brands.
Ingredient brands and co-brands can add value, assuming they
have equity and are perceived as fitting appropriately.
• Physical products must be packaged and labeled. Well-
designed packages can create convenience value for
customers and promotional value for producers. Warranties
and guarantees can offer further assurance to consumers.
SUMMARY
11. WHAT IS A PRODUCT?
• A product is anything that can be
offered to a market to satisfy a
want or needs such as:
Physical Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas
12. WHAT IS A PRODUCT?
Five Product Levels
• There are five product levels
13. WHAT IS A PRODUCT?
Product Levels: The Customer-value Hierarchy
• The fundamental level is the core
benefit: the service or benefit
the customer is really buying.
Marketers must see themselves
as benefit providers
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
14. WHAT IS A PRODUCT?
Product Levels: The Customer-value Hierarchy
• At the second level, the marketer
must turn the core benefit into a
basic product
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
15. WHAT IS A PRODUCT?
Product Levels: The Customer-value Hierarchy
• At the third level, the marketer
prepares an expected product, a
set of attributes and conditions
buyers normally expect when
they purchase this product
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
16. WHAT IS A PRODUCT?
Product Levels: The Customer-value Hierarchy
• At the fourth level, the marketer
prepares an augmented product
that exceeds customer
expectations. In developed
countries, brand positioning and
competition take place at this
level
• Differentiation arises and
competition increasingly occurs
on the basis of product
augmentation.
• Each augmentation adds cost,
however, and augmented
benefits soon become expected
benefits and necessary points-of-
parity in the category
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
17. WHAT IS A PRODUCT?
Product Levels: The Customer-value Hierarchy
• At the fifth level stands the
potential product, which
encompasses all the possible
augmentations and
transformations the product or
offering might undergo in the
future
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
18. WHAT IS A PRODUCT?
Product ClassificationSchemes
• Marketers have traditionally
classified products on the basis
of characteristics:
• durability,
• tangibility, and
• use (consumer or industrial).
• Each product type has an
appropriate marketing-mix
strategy
Durability
Tangibility
Use (consumer
or industrial)
19. WHAT IS A PRODUCT?
Durability And Tangibility
• Non-durable goods are
tangible goods normally
consumed in one or a few
uses, like bread and soap.
• Because these goods are
consumed quickly and
purchased frequently, the
appropriate strategy is to
make them available in many
locations charge only a small
markup, and advertise heavily
to induce trial and build
preference
• Non durable goods
• Durable goods
• Services
20. WHAT IS A PRODUCT?
Durability And Tangibility
• Durable goods are tangible goods
that normally survive many uses:
refrigerators, machine tools and
clothing.
• Durable products normally
require more personal selling
and service, command a higher
margin and require more seller
guarantees.
• Non durable goods
• Durable goods
• Services
21. WHAT IS A PRODUCT?
DurabilityAndTangibility
• Services are intangible,
inseparable, variable, and
perishable products.
• As a result, they normally require
more quality control, supplier
credibility, and adaptability.
• Examples include haircuts and
repairs.
• Non durable goods
• Durable goods
• Services
22. WHAT IS A PRODUCT?
Consumer Goods Classification
• There are four types of
consumer goods.
Convenience
Shopping
Specialty
Unsought
23. WHAT IS A PRODUCT?
Consumer Goods Classification
• Goods are those the customer
usually purchases frequently,
immediately, and with a
minimum of effort,
• e.g. tobacco products, soaps, and
newspaper
Convenience
Shopping
Specialty
Unsought
24. WHAT IS A PRODUCT?
Consumer Goods Classification
• Goods that the customer, in the
process of selection and
purchase, characteristically
compares on such bases as
suitability, quality price, and
style.
• e.g. furniture and clothing.
Convenience
Shopping
Specialty
Unsought
25. WHAT IS A PRODUCT?
Consumer Goods Classification
• Unique characteristics or brand
identification for which a suf-
ficient number of buyers are
willing to make a special
purchasing effort, e.g. cars,
stereo components,
photographic equipment
Convenience
Shopping
Specialty
Unsought
26. WHAT IS A PRODUCT?
Consumer Goods Classification
• Goods are those the consumer
does not know about or does not
normally think buying, like smoke
detectors.
Convenience
Shopping
Specialty
Unsought
27. WHAT IS A PRODUCT?
IndustrialGoods Classification
• We can distinguish three groups
of industrial goods:
• materials and parts,
• capital items, and
• supplies and business
services.
• Materials and parts are goods
that enter the manufacturer's
product completely fall into two
classes: raw materials and
manufactured materials and
parts
Materials and
parts
Capital items
Supplies/business
services
28. WHAT IS A PRODUCT?
VideoTime–“Thethreewaysthatgooddesignmakesyou
happy”
“Design critic Don Norman turns his
incisive eye toward beauty, fun,
pleasure and emotion, as he looks
at design that makes people happy.
He names the three emotional cues
that a well-designed product must
hit to succeed”.
Donald Arthur Norman is the
director of The Design Lab at
University of California, San
Diego. He is widely regarded for
his expertise in the fields of
design, usability engineering, and
cognitive science.
https://www.youtube.com/watch
?v=RlQEoJaLQRA
30. PRODUCT DIFFERENTIATION
• Products must be differentiated
• Differentiated products can create significant competitive advantages
Differentiated
products
Competitive
advantages
31. PRODUCT DIFFERENTIATION
• Means for product
differentiation include
• form,
• features,
• performance quality,
• conformance quality,
• durability,
• reliability,
• reparability,
• style and
• customization
• Design has become an
increasingly important
differentiator
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
32. PRODUCT DIFFERENTIATION
• The size, shape, or physical
structure of a product
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
33. PRODUCT DIFFERENTIATION
• A company can identify and
select appropriate new features
by surveying recent buyers and
then calculating customer value
versus company cost for each
potential feature and should
avoid feature fatigue
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
34. PRODUCT DIFFERENTIATION
• Performance level is the level at
which the product’s primary
characteristics operate: low,
average, high, or superior
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
35. PRODUCT DIFFERENTIATION
• The degree to which all produced
units are identical and meet
promised specifications
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
36. PRODUCT DIFFERENTIATION
• A measure of the product’s
expected operating life under
natural or stressful conditions, is a
valued attribute for vehicles,
kitchen appliances, and other
durable goods
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
37. PRODUCT DIFFERENTIATION
• A measure of the probability that
a product will not malfunction or
fail within a specified time period,
and high reliability can garner a
price premium.
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
38. PRODUCT DIFFERENTIATION
• Ease of fixing a product when it
malfunctions or fails
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
39. PRODUCT DIFFERENTIATION
• The product’s look and feel to
the buyer and creates
distinctiveness that is hard to
copy
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
40. PRODUCT DIFFERENTIATION
• Customized products and
marketing allow firms to be
highly relevant and
differentiating by finding out
exactly what a person wants—
and doesn’t want—and
delivering on that
Form
Features
Performance Quality
Conformance Quality
Durability
Reliability
Reparability
Style
Customization
41. SERVICE DIFFERENTIATION
• Means for service differentiation
include
• Ordering ease
• Delivery
• Installation
• Customer training
• Customer Consulting
• Maintenance and repair
• Returns
Ordering ease
Delivery
Installation
Customer training
Customer Consulting
Maintenance and repair
Returns
42. SERVICE DIFFERENTIATION
• Describes how easy it is for the
customer to place an order with
the company
Ordering ease
Delivery
Installation
Customer training
Customer Consulting
Maintenance and repair
Returns
43. SERVICE DIFFERENTIATION
• Refers to how well the product or
service is brought to the
customer, including speed,
accuracy, and care throughout
the process.
Ordering ease
Delivery
Installation
Customer training
Customer Consulting
Maintenance and repair
Returns
44. SERVICE DIFFERENTIATION
• Refers to the work done to make
a product operational in its
planned location.
Ordering ease
Delivery
Installation
Customer training
Customer Consulting
Maintenance and repair
Returns
45. SERVICE DIFFERENTIATION
• Helps the customer’s employees
use the vendor’s equipment
properly and efficiently
Ordering ease
Delivery
Installation
Customer training
Customer Consulting
Maintenance and repair
Returns
46. SERVICE DIFFERENTIATION
• Includes data, information
systems, and advice services the
seller offers to buyers
Ordering ease
Delivery
Installation
Customer training
Customer Consulting
Maintenance and repair
Returns
47. SERVICE DIFFERENTIATION
• Programs help customers keep
purchased products in good
working order; critical in
business-to-business settings
Ordering ease
Delivery
Installation
Customer training
Customer Consulting
Maintenance and repair
Returns
48. SERVICE DIFFERENTIATION
• Inconvenient, embarrassing; bad
for providers when returned
merchandise, not in re-sellable
condition, lacks proper proof of
purchase, or is returned to the
wrong store
Ordering ease
Delivery
Installation
Customer training
Customer Consulting
Maintenance and repair
Returns
49. 1. What were some of the key steps that made Caterpillar the
industry leader in earth-moving machinery? Explain how
Caterpillar’s products differ from competitors’.
2. Discuss Caterpillar’s future. What should it do next with its
product line? Where is the future growth for this company?
PRODUCT DIFFERENTIATION
Caterpillar - Questions
50. • What were some of the key steps that made Caterpillar the industry leader
in earth-moving machinery? Explain how Caterpillar’s products differ from
competitors’
• In terms of the concept of “product,” Caterpillar has re-invented its
product—from the physical product, to its services provided, to its research
and development, to its “local” emphasis with its equipment, CAT today has
a different line up of products than the CAT of old. Examples include: 56%
of its business is in capital equipment and the remaining percentage in
services. CAT is focused on high-tech machinery i.e.,: hybrid, and has divided
its product strategy into three segments to meet the needs of its customers.
• Discuss Caterpillar’s future. What should it do next with its product line?
Where is the future growth for this company?
• Student’s answers will vary but good students will cite material from this
chapter regarding the customer-value hierarchy—core benefit, basic
product, expected product, augmented product, and potential product to
defend their positions on where Caterpillar’s future lies.
PRODUCT DIFFERENTIATION
Caterpillar - Answers
52. DESIGN
What Is Design?
• The totality of features that affect
the way the product looks, feels,
and functions, offers a potent
way to differentiate and position
a company’s products and
services.
53. DESIGN
Design Insights
• The emotional power of design
and the importance to
consumers of look and feel as
well as function, so design is
exerting a stronger influence in
categories where it once played a
small role
Design
Leaders
Power of
Design
Approaches
to Design
54. DESIGN
Design Insights
• In a visually oriented culture,
transmitting brand meaning and
positioning through design is
critical
Design
Leaders
Power of
Design
Approaches
to Design
55. DESIGN
Design Insights
• A well-designed product is easy
to manufacture and distribute.
To the customer, it is pleasant to
look at and easy to open, install,
use, repair, and dispose of. The
designer must take all these goals
into account
Design
Leaders
Power of
Design
Approaches
to Design
56. DESIGN
VideoTime–“Thefirstsecretofgreatdesign”
“As human beings, we get used to
"the way things are" really fast. But
for designers, the way things are is
an opportunity”
• Tony Fadell is an American
engineer, inventor, designer,
entrepreneur, and angel investor.
He served as the Senior Vice
President of the iPod division at
Apple Inc., from March 2006 to
November 2008 and is known as
"one of the fathers of the iPod“
for his work on the first
generations of Apple's music
player.
• https://www.youtube.com/watch
?v=9uOMectkCCs
58. • Design is often an important aspect of luxury products,
though these products also face some unique issues
because the brand and its image are often key
competitive advantages that create enormous value and
wealth.
LUXURY PRODUCTS
59. LUXURY PRODUCTS
Characterizing LuxuryBrands
• Higher priced; often about social
status and who a customer was
or perhaps wanted to be
• Become more about style and
substance, combining personal
pleasure and self-expression
60. LUXURY PRODUCTS
Characterizing LuxuryBrands
• Common denominators of luxury
brands are quality and
uniqueness
• Winning formula for many is
craftsmanship, heritage,
authenticity, and sometimes
extravagant price
61. LUXURY PRODUCTS
Characterizing LuxuryBrands
• Luxury brands that successfully
extended their brands vertically
across a range of price points are
usually the most immune to
economic downturns.
• Ralph Lauren, successfully
marketed an aspirational luxury
brand across a wide range of
products. Besides clothing and
fragrances, Lauren boutiques sell
linens, candles, beds, couches,
dishware, photo albums, and
jewelry.
62. LUXURY PRODUCTS
Growing Luxury Brands
• Luxury brands that successfully
extended their brands vertically
across a range of price points are
usually the most immune to
economic downturns.
• Ralph Lauren, successfully
marketed an aspirational luxury
brand across a wide range of
products.
• Besides clothing and fragrances,
Lauren boutiques sell linens,
candles, beds, couches,
dishware, photo albums, and
jewelry.
63. Clear differentiation must exists between these
brands, minimizing the potential for consumer
confusion and brand cannibalization
Each also must live up to the core promise of
the parent brand, reducing chances of hurting
the parent’s image
Horizontal extensions into new categories can
also be tricky for luxury brands.
Much of the growth in luxury brands in recent
years has been geographical.
LUXURY PRODUCTS
Growing Luxury Brands
64. LUXURY PRODUCTS
Growing Luxury Brands
• Globalization, new technologies,
financial crises, shifting consumer
cultures, and other forces require
luxury brand marketers to be
skillful and adept at their brand
stewardship to succeed.
Factors
Affecting
Luxury Brand
Marketers
Globalization
New
Technologies
Financial
Crises
Shifting
Consumer
Cultures
Other Forces
65. LUXURY PRODUCTS
Marketing Luxury Brands
• Luxury brand marketers
have been issued the
following guidelines:-
Maintain a premium image for
luxury brands; control the
image
Create many intangible brand
associations and an aspirational
image
Align all marketing program to
ensure high-quality products
and services and pleasurable
and consumption experiences
66. LUXURY PRODUCTS
Marketing Luxury Brands
• Luxury brand marketers
have been issued the
following guidelines:-
Logos, symbols, packaging,
signage - can be important
drivers of brand equity for
luxury products
Secondary associations from
linked personalities, events,
countries, and other entities
can boost luxury-brand equity
as well
Luxury brands must carefully
control distribution via a
selective channel strategy.
67. LUXURY PRODUCTS
Marketing Luxury Brands
• Luxury brand marketers
have been issued the
following guidelines:-
Luxury brands must employ a
premium pricing strategy, with
strong quality cues and few
discounts and markdowns
Brand architecture for luxury
brands must be managed
carefully
Competition for luxury brands
must be defined broadly
because it often comes from
other categories
68. • Trend for luxury brands is to wrap personal experiences around
the products
• Some luxury marketers have struggled to find the appropriate
online selling and communication strategies for their brand
• Success depends on getting the right balance of classic and
contemporary imagery and continuity and change in
marketing programs and activities
LUXURY PRODUCTS
Marketing Luxury Brands
69. LUXURY PRODUCT
VideoTime–“GlobalTrendsInLuxuryHospitality”
“Jerry shares from his vast
collection of stories from a stellar
career. His takeaways? Service is
nobility, service leads to success,
and service deserves recognition”.
• Gerard Jerry Inzerillo has been
Chief Executive Officer of EMTG
LLC since May 12, 2014. Mr.
Inzerillo has been Chief Executive
and President of IMG Artists LLC
since April 2012
• https://www.youtube.com/watch
?v=hDIaq6B0ITY
71. • Many firms are considering ways to reduce the negative
environmental consequences of conducting business, and
some are changing the manufacture of their products or the
ingredients that go into them.
ENVIRONMENTAL ISSUES
73. Item
Product type
Product line
Product class
Product family
Need family
PRODUCT AND BRAND RELATIONSHIPS
The Product Hierarchy
Each product can be related to other products to ensure that a firm is offering
and marketing the optimal set of products
74. PRODUCT AND BRAND RELATIONSHIPS
The Product Hierarchy
• Also called stock-keeping unit or
product variant.
• A distinct unit within a brand or
product line distinguishable by
size, price, appearance, or some
other attribute.
Item
Product type
Product line
Product class
Product family
Need family
75. PRODUCT AND BRAND RELATIONSHIPS
The Product Hierarchy
• A group of items within a product
line that share one of several
possible forms of the product
Item
Product type
Product line
Product class
Product family
Need family
76. PRODUCT AND BRAND RELATIONSHIPS
The Product Hierarchy
• A group of products within a
product class that are closely
related because they perform a
similar function, are sold to the
same customer groups, are
marketed through the same
outlets or channels, or fall within
given price ranges.
• A product line may consist of
different brands, a single family
brand, or an individual brand that
has been line extended
Item
Product type
Product line
Product class
Product family
Need family
77. PRODUCT AND BRAND RELATIONSHIPS
The Product Hierarchy
• A group of products within the
product family recognized as
having a certain functional
coherence, also known as a
product category.
Item
Product type
Product line
Product class
Product family
Need family
78. PRODUCT AND BRAND RELATIONSHIPS
The Product Hierarchy
• All the product classes that can
satisfy a core need with
reasonable effectiveness
Item
Product type
Product line
Product class
Product family
Need family
79. PRODUCT AND BRAND RELATIONSHIPS
The Product Hierarchy
• The core need that underlies the
existence of a product family.
Item
Product type
Product line
Product class
Product family
Need family
80. • Product system is a group of diverse but related items that function
in a compatible manner. For example, the extensive iPod product
system includes headphones and headsets, cables and docks,
armbands, cases, power and car accessories, and speakers.
PRODUCT AND BRAND RELATIONSHIPS
ProductSystemsAndMixes
81. PRODUCT AND BRAND RELATIONSHIPS
ProductSystemsAndMixes
• Product mix (aka product
assortment) is the set of all
products and items a
particular seller offers for sale
82. PRODUCT AND BRAND RELATIONSHIPS
ProductSystemsAndMixes
These four product mix expand
its business in four ways.
• It can add new product lines,
thus widening its product mix.
• It can lengthen each product
line.
• It can add more product
variants to each product and
deepen its product mix.
• It can pursue more product
line consistency.
83. • In offering a product line, companies normally develop a basic
platform and modules that can be added to meet different
customer requirements and lower production costs,
• e.g. Car manufacturers build cars around a basic platform.
Homebuilders show a model home to which buyers can add
additional features.
PRODUCT AND BRAND RELATIONSHIPS
ProductLineAnalysis
84. PRODUCT AND BRAND RELATIONSHIPS
ProductLineAnalysis
• Product line managers
• need to know the sales and
profits of each item in their
line to determine which items
to build, maintain, harvest, or
divest and
• need to understand each
product line’s market profile
and image.
Sales and
Profit
Market
Profile and
Image
85. PRODUCT AND BRAND RELATIONSHIPS
ProductLineAnalysis
• Every company’s product
portfolio contains products with
different margins. Companies
should recognize that different
items will allow for different
margins and respond differently
to changes in level of advertising.
Sales and
Profit
Market
Profile and
Image
86. PRODUCT AND BRAND RELATIONSHIPS
ProductLineAnalysis
The product line manager must
review how the line is positioned
against competitors’ lines.
• A product map shows which
competitors’ items are
competing against company X’s
items.
• The map also reveals possible
locations for new items.
• Another benefit of product
mapping is that it identifies
market segments.
Sales and
Profit
Market
Profile and
Image
87. One objective is to create a product
line to induce up-selling
A different objective is to create a
product line that facilitates cross-
selling
Companies seeking high market
share and market growth will
generally carry longer product lines
PRODUCT AND BRAND RELATIONSHIPS
ProductLineLength
88. Those emphasizing high profitability
will carry shorter lines consisting of
carefully chosen items.
Product lines tend to lengthen over
time.
A company lengthens its product
line in two ways: line stretching and
line filling
PRODUCT AND BRAND RELATIONSHIPS
ProductLineLength
89. PRODUCT AND BRAND RELATIONSHIPS
LineStretching
Line Stretching occurs when a company
lengthens its product line beyond its
current range, whether down-market,
up-market, or both ways. Down-Market
Stretch: A company positioned in the
middle market may want to introduce a
lower-priced line for any of three
reasons:
• The company may notice strong
growth opportunities.
• The company may wish to tie up
lower-end competitors who might
otherwise try to move up-market.
• The company may find the middle
market stagnating or declining
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
Line Filling
90. PRODUCT AND BRAND RELATIONSHIPS
LineStretching
Up-Market Stretch: enter the high
end of the market to achieve more
growth, realize higher margins, or
simply position themselves as full-
line manufacturers.
• Some companies use their own
names
• Some companies create new
names
• Some brands have used
modifiers to signal a quality
improvement
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
Line Filling
91. PRODUCT AND BRAND RELATIONSHIPS
LineStretching
Two-Way Stretch: companies
serving the middle market
might stretch their line in both
directions.
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
Line Filling
92. PRODUCT AND BRAND RELATIONSHIPS
LineStretching
• Line Filling: lengthening the
product line by adding more
items within the present
range; overdone if it results in
cannibalization and confusion
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
Line Filling
93. PRODUCT AND BRAND RELATIONSHIPS
ProductMixPricing
• The firm searches for a set of
prices that maximizes profits
on the total mix.
Product Line Pricing
Optional-Feature Pricing
Captive-Product Pricing
Two-Part Pricing (fixed fee
plus a variable usage fee)
By-Product Pricing
Product-Bundling Pricing
94. PRODUCT AND BRAND RELATIONSHIPS
Co-brandingAndIngredientBranding
• Co-Branding: also called dual
branding or brand bundling -
two or more well-known
brands are combined into a
joint product or marketed
together in some fashion.
Same-
company
co-branding
Joint-
venture co-
branding
95. Product can be convincingly positioned by
virtue of the multiple brands.
Co-branding can generate greater sales from
the existing market and open opportunities
for new consumers and channels.
It can also reduce the cost of product
introduction because it combines two well-
known images and speeds adoption
Co-branding may be a valuable means to
learn about consumers and how other
companies approach them
PRODUCT AND BRAND RELATIONSHIPS
Co-brandingAdvantages
96. Risks and lack of control in becoming aligned with another
brand in consumers’ minds
Consumer expectations of co-brands are likely to be high, so
unsatisfactory performance could have negative
repercussions for both brands
If the other brand enters a number of co-branding
arrangements, overexposure may dilute the transfer of any
association. It may also result in a lack of focus on existing
brands.
Consumers may feel less sure of what they know about the
brand
PRODUCT AND BRAND RELATIONSHIPS
Co-branding Disadvantages
97. • For host products whose brands are not that strong, ingredient brands can provide
differentiation and important signals of quality
• An interesting take on ingredient branding is self-branded ingredients that
companies advertise and even trademark
• Ingredient brands try to create enough awareness and preference for their product
so consumers will not buy a host product that doesn’t contain it. Many
manufacturers make components or materials that enter final branded products but
lose their individual identity
PRODUCT AND BRAND RELATIONSHIPS
IngredientBranding
98. Consumers must believe the ingredient
matters to the performance and success
of the end product. Ideally, this intrinsic
value is easily seen or experienced
Consumers must be convinced that not
all ingredient brands are the same and
that the ingredient is superior
A distinctive symbol or logo must signal
that the host product contains the
ingredient. Symbol or logo “seal” and is
simple and versatile, credibly
communicating quality and confidence
“Pull” and “push” program must help
consumers understand the advantages
of the branded ingredient. Channel
members must offer support such as
consumer advertising and promotions.
What Are The Requirements For Successful
Ingredient Branding?
99. PRODUCT AND BRAND RELATIONSHIPS
VideoTime–“Theartofinnovation”
"Rethink. Redefine. Recreate." His talk is
titled "The Art of Innovation.“
Guy Takeo Kawasaki is an American
marketing specialist, author, and
Silicon Valley venture capitalist. He
was one of the Apple employees
originally responsible for marketing
their Macintosh computer line in
1984. He popularized the word
evangelist in marketing the
Macintosh and the concepts of
evangelism marketing and technology
evangelism.
https://www.youtube.com/watch?v=
Mtjatz9r-Vc
101. PACKAGING
WhatIsTheFifthP?
• Packaging, sometimes called
the 5th P, is all the activities of
designing and producing the
container for a product.
• Packaging is important
because it is the buyer’s first
encounter with the product
Draws the consumer in and
encourages product choice
Acts as a “five-second
commercial” for the product
Affects consumers’ later product
experiences when they open it
and use what’s inside
Packaging may be an important
part of a brand’s equity
102. Self-service (more choices; less explanation)
Consumer affluence (increases willingness to pay for the convenience,
appearance, dependability, and prestige of better packages).
Company and brand image (recognition of the company or brand)
Innovation opportunity (make products more convenient and easier to use)
PACKAGING
FactorsContributingToTheEmphasisOnPackaging
103. • Identify the brand
• Convey descriptive and persuasive information
• Facilitate product transportation and protection
• Assist at-home storage
• Aid product consumption
PACKAGING
PackagingObjectives
104. It identifies the product or brand
The label might describe the product: who made
it, where and when, what it contains, how it is to
be used, and how to use it safely
The label might promote the product through
attractive graphics
In 1914, the Federal Trade Commission Act held
that false, misleading, or deceptive labels or
packages constitute unfair competition
PACKAGING
FunctionsOfLabels
105. PACKAGING
WarrantiesAndGuarantees
• Warranties are formal
statements of
expected product
performance by the
manufacturer. Products under
warranty can
be returned to
the
manufacturer
or designated
repair center
for repair,
replacement,
or refund.
Whether
expressed or
implied,
warranties are
legally
enforceable
Extended
warranties and
service
contracts can
be extremely
lucrative for
manufacturers
and retailers
106. PACKAGING
WarrantiesAndGuarantees
• Many sellers offer
either general or
specific guarantees
Guarantees reduce the
buyer’s perceived risk
They suggest that the product
is of high quality and the
company and its service
performance are dependable
They can be especially helpful
when the company or product
is not well known or when the
product’s quality is superior to
that of competitors.