ch 12 setting product strategy santos suarez
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http://jeannasantossuarez.blogspot.com/
TOP 10 Learning Concepts
Ch:12 Setting Product Strategy
Jeanna Marie Santos-SuarezMay 2012
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Pls. follow these guidelines
1. Use this powerpoint template.2. Change bottom logo to your website.3. Upload in your blog. Put link in Facebook.4. Select a slide from Kotler handouts as basis
for question.5. Follow this 2 component sequence for each of
the top 10 concepts: (Concept, Concept Examples which may be 1 or more slides)
*** Concept example is a required component.
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
To strategize for a product :
Know Components to an Attractive Market Offering
5 Product Levels that Add Customer Value
Understand Product Relationships by knowing :
6 Product Hierarchies Product Systems and Mixes Product Line Analysis
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
To strategize for a product :
Product Mix Pricing What is the Fifth P? Why emphasize on packaging What are the Objectives of Packaging? 4 Label Functions
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Attractiveness of the market
offering
Value-based prices
Product features
and quality
Services mix and quality
Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 1 :
Must Consider Three Components when making Market Offerings
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 1 :
An Offering is attractive if :the product has features and quality that the customer needs
Attractiveness of the market
offering
Value-based prices
Product features
and quality
Services mix and quality
Reference : Philip Kotler’s, Marketing Management, 13th Edition
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 1:
An Offering is attractive if :the product is combined with the appropriate and quality service
Attractiveness of the market
offering
Value-based prices
Product features
and quality
Services mix and quality
Reference : Philip Kotler’s, Marketing Management, 13th Edition
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 1:
An Offering is attractive if:the product has is priced according to the value it gives
Attractiveness of the market
offering
Value-based prices
Product features
and quality
Services mix and quality
Reference : Philip Kotler’s, Marketing Management, 13th Edition
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 2:
There are 5 Product Levels that add to Customer Value
Reference : Philip Kotler’s, Marketing Management, 13th Edition
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
Custome
r Valu
e
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 2:
1st Level: Core Benefit – the need being addressed
Reference : Philip Kotler’s, Marketing Management, 13th Edition
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
Custome
r Valu
e
Healthy Teeth
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th EditionReference : Philip Kotler’s, Marketing Management, 13th Edition
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
Custome
r Valu
e
Healthy Teeth
toothpaste
Concept 2:
2nd Level: Basic Product – the translation of the core benefit
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th EditionReference : Philip Kotler’s, Marketing Management, 13th Edition
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
Custome
r Valu
e
Healthy Teeth
toothpaste
Fluoride
Concept 2:
3rd Level: Expected Product – delivers expected attributes
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th EditionReference : Philip Kotler’s, Marketing Management, 13th Edition
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
Custome
r Valu
e
Healthy Teeth
toothpaste
Fluoride
Whiter teeth
Concept 2:
4th Level: Augmented Product – delivers attributes beyond expectations
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th EditionReference : Philip Kotler’s, Marketing Management, 13th Edition
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
Custome
r Valu
e
Healthy Teeth
toothpaste
Fluoride
Whiter teeth
Whiter, 24 hr protection, for
sensitive teeth etc.
Concept 2:
5th Level: Potential Product – encompasses all possible augmentations
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 3:
Product Hierarchy – relationship of a product to other products
Item
Product Type
Product Line
Product Class
Product Family
Need Family
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 3: (using the toothpaste example)
Need Family – the core needItem
Product Type
Product Line
Product Class
Product Family
Need Family
To be Healthy
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 3:
Product Family – all product classes that can satisfy the core need I
tem
Product Type
Product Line
Product Class
Product Family
Need Family
To be Healthy
Nutrition, cleanliness
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 3:
Product Class – group of products that has the same functionI
tem
Product Type
Product Line
Product Class
Product Family
Need Family
To be Healthy
Nutrition, cleanliness
Products for Hygiene
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 3:Product Line – group of products that perform a similar function, customer groups, outlets, channels, prices
Item
Product Type
Product Line
Product Class
Product Family
Need Family
To be Healthy
Nutrition, cleanliness
Products for Hygiene
ORAL Hygiene
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 3:
Product Type – group of items sharing one of several possible forms of the productI
tem
Product Type
Product Line
Product Class
Product Family
Need Family
To be Healthy
Nutrition, cleanliness
Products for oral Hygiene
Toothpaste
whitening Toothpaste
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 3:
Item – a distinct unit distinguishable by size, price, appearance etc.I
tem
Product Type
Product Line
Product Class
Product Family
Need Family
To be Healthy
Nutrition, cleanliness
Products for oral Hygiene
Toothpaste
whitening Toothpaste
50 Ml Colgate 24-hr Whitening Toothpaste
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 4:
Product Systems and Mixes
Product system Product mix Product assortment Depth Length Width Consistency
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 4:
Product System – group of diverse but related items
Toothpaste, Shampoo, soap
Product system Product mix
or Product assortment Depth Length Width Consistency
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 4:
Product Mix – set of all products and items
Product system Product mix
or Product assortment Depth Length Width Consistency
Palmolive Shampoo, Colgate Toothpaste, Palmolive Cleanser, Colgate Toothbrush
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 4:
Depth of a Product Mix – how many variants
Product system Product mix
or Product assortment Depth Length Width Consistency
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 4:
Length of a Product Mix – total number of items
Product system Product mix
or Product assortment Depth Length Width Consistency
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 4:
Width of a Product Mix – how many different product lines
Product system Product mix
or Product assortment Depth Length Width Consistency
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 4:
Consistency of a Product Mix – how closely related the product lines are Product system Product mix
or Product assortment Depth Length Width Consistency
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 5:Product Line Analysis
Convenience Items
Core Product
StaplesSpecial
ties
Promotion
Sale
s
Volu
me
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 6:
Product-Mix Pricing
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 6:
Product-Line Pricing – price steps in a product line
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
30 Ml Php 30 50 Ml Php 40
100 Ml Php 80
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 6: Optional-Feature Pricing – offering optional products, features & services along with main product
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 6: Captive-Product Pricing – pricing the main product low and prices ancillary product high
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 6: Two-Part Pricing – pricing consisting of a fixed fee plus a variable usage fee
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 6: By-Product Pricing – pricing by-products accdg to its value to customers
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
“dugo” or Betamax is a by-product of pork
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 6: Product-Bundling Pricing – pricing products that are bundled (mixed/pure)
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 7:
What is the Fifth P?
Packaging, sometimes called the fifth P, is all the activities of designing and producing the container for a product.
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 8:
Factors Contributing to the Emphasis on Packaging
Self-service
Consumer affluence
Company and Brand Image
Innovation Opportunity
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 8: Self-Service – so customers would know info about the product even without any person present
Self-service
Consumer affluence
Company and Brand Image
Innovation Opportunity
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 8: Consumer Affluence – customers are willing to pay for better packages
Self-service
Consumer affluence
Company and Brand Image
Innovation Opportunity
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 8:
Company and Brand Image – contribute to instant recognition
Self-service
Consumer affluence
Company and Brand Image
Innovation Opportunity
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 8:
Innovation Opportunity – innovative packaging help improve sales
Self-service
Consumer affluence
Company and Brand Image
Innovation Opportunity
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 9: Packaging Objectives
Identify the brand Convey descriptive and persuasive
information Facilitate product transportation
and protection Assist at-home storage Aid product consumption
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 10:
Functions of Labels
Identifies
Grades
Describes
Promotes
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 10: Identifies - Tool used to identify the product and differentiate it among other products
Identifies
Grades
Describes
Promotes
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 10:
Grades - Indicates the level Ex. Grade a, b, or c
Identifies
Grades
Describes
Promotes
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 10:
Describes how the product is used, what it contains etc.
Identifies
Grades
Describes
Promotes
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Concept 10: Promotes - Serves as an ad to promote through attractive graphics
Identifies
Grades
Describes
Promotes
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Summary: Top 10 Concepts of Setting Product Strategy
To strategize for a product :
Know Components to an Attractive Market Offering Value pricing + Service + Product Quality
5 Product Levels that Add Customer Value From Core Benefit to Potential Product
Understand Product Relationships by knowing :
6 Product Hierarchies Need Family to Item
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Product Systems and Mixes Know factors of product mixes
Product Line Analysis Sales Promotion and Sales Volume Matrix
Product Mix Pricing Prices depend on strategy
What is the Fifth P? Packaging!
Summary: Top 10 Concepts of Setting Product Strategy
To strategize for a product :
http://jeannasantossuarez.blogspot.com/Reference : Philip Kotler’s, Marketing Management, 13th Edition
Why emphasize on packaging Self-service to Innovation Opportunity
What are the Objectives of Packaging? From Brand Identification to Aiding in
Product Consumption 4 Label Functions
Identifies, Grades, Describes and Promotes
Summary: Top 10 Concepts of Setting Product Strategy
To strategize for a product :
http://jeannasantossuarez.blogspot.com/
TOP 10 Learning Concepts
Ch:12 Setting Product Strategy
Jeanna Marie Santos-SuarezMay 2012
http://jeannasantossuarez.blogspot.com/
For the annotated and illustrated guide to this assignment, refer to…
http://www.slideshare.net/josephdeungria/translating-and-personalizing-kotler