Phillip Kevin Lane Kotler Keller Marketing Management 14

Phillip Kevin Lane Kotler • Keller Marketing Management • 14 e

a h C e t p 2 1 r Setting Product Strategy

Discussion Questions 1. What are the characteristics of a product, and how do marketers classify products? 2. How can companies differentiate products? 3. Why is product design important and what factors affect a good design? 4. How can a company build and manage its product mix and product lines? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 27

Discussion Questions 5. How can companies combine products to create strong co-brands or ingredient brands? 6. How can companies use packaging, labeling, warranties, and guarantees as marketing tools? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 4 of 27

Marketing Planning Needs Wants Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 5 of 27

g i F e r u 1. 12 Components of the Market Offering Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6 of 27

Product Characteristics/Classifications Persons • • • Experiences Events Properties Organizations Information Ideas Goods Services Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Places Slide 7 of 27

g i F e r u 2. 12 Five Product Levels Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8 of 27

Product Levels Core Benefit (Rest and sleep) Basic Product (Bed, bathroom, towels) Expected Product (Clean bed, fresh towels) Customer-value Hierarchy Augmented Product (Free Internet; free breakfast) Potential Product (Future augmentations) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9 of 27

Product Classifications Durability and Tangibility Nondurable goods Durable goods Services Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 10 of 27

Product Classifications • Staples • Impulse goods • Emergency goods Consumer-Goods Specialty goods Convenience goods Shopping goods Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Unsought goods Slide 11 of 27

Product Classifications Materials and Parts Manufactured materials Raw materials Supplies and business Services Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Industrial-Goods Capital Items Installations Equipment Slide 12 of 27

Product and Services Differentiation Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 27

Product Differentiation Form Features Customization Durability Performance Conformance Reliability Repairability Style Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14 of 27

Services Differentiation Customer Consulting Delivery & Returns Ordering Ease Training Installation Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Maintenance & Repair Slide 15 of 27

Design Functional Benefits Aesthetic Benefits Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 27

Product and Brand Relationships Product Hierarchy Product Systems/Mixes Product Line Analysis Product Line Length Product Mix Pricing Co-Branding Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 17 of 27

Product Hierarchy Need Family Product Class Product Line Product Type Item Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 18 of 27

Product Systems and Mixes Width Product System Consistency Product Mix Length Depth Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19 of 27

Proctor & Gamble Product Mix Width Product Line Length Detergents Toothpaste Bar Soap Disposable Paper Diapers Products Ivory Snow Gleem Ivory Pampers Charmin Dreft Crest Camay Luvs Puffs Tide Zest Cheer Safeguard Dash Oil of Olay Bounty Bold Gain Era Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 20 of 27

Product Line Analysis Sales and Profit Market Profile Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 21 of 27

g i F e r u 3. 12 Product-Item Contributions Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 27

g i F e r u 4. 12 Product Map Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23 of 27

Product Line Length Up-market stretch Line stretching Line modernization, featuring, and pruning Two-way stretch Down-market stretch Line filling Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 27

Product Mix Pricing Product line pricing Captive-product pricing Optional-feature pricing Two-part pricing By-product pricing Product-bundling pricing Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 25 of 27

Co-Branding and Ingredient Branding Co-Branding • • Same-company Joint venture Multi-sponsor Retail co-branding Ingredient Branding Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 26 of 27

Packaging and Labeling Packaging Objectives 1. 2. 3. 4. 5. Brand identification Persuade Protection At-home storage Aid consumption Labeling Objectives 1. 2. 3. 4. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Identify Grade Describe Promote Slide 27 of 27