marketing management, chapter 12 setting product strategy prepared by: volkan Ülke prof. : teoman...
TRANSCRIPT
Marketing Management, chapter 12
Setting Product Strategy
Prepared by: Volkan ÜLKEProf. : Teoman DUMAN
What is a Product?
A product is 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.
Figure 12.1 Components of the Market Offering
Attractiveness of the market
offering
Value-based prices
Product features and quality
Services mix and quality
Figure 12.2 Five Product Levels
Product Classification Schemes
Durability
Use
Tangibility
Durability and Tangibility
Nondurable
goods
ServicesDurable
goods
Consumer Goods Classification
Convenience
Unsought
Shopping
Specialty
Industrial Goods Classification
• Materials and parts• Capital items• Supplies/business services
Product Differentiation
• Product form• Features• Customization• Performance• Conformance• Durability• Reliability• Repairability• Style
Service Differentiation
• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance and
repair• Returns
Maintenance and Repair
The Product Hierarchy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
12-13
Need family
Product family
Product class
Product line
Product type
Item
Product Systems and Mixes
• Product system• Product mix• Product assortment• Depth• Length• Width• Consistency
Product-Mix Width and Product-Line Length for Proctor& Gamble Products
PRODUCT-LINE LENGTH
Product-Mix Width
Detergents ToothpasteDisposable Bar Soap Diapers
Paper Tissue
Ivory Snow (1930)
Dreft (1933)
Tide (1946)
Cheer (1950)
Gleem (1952)
Crest (1955)
Ivory (1879)
Kirk’s (1885)
Lava (1893)
Camay (1926)
Pampers (1961)
Luvs (1976)
Charmin (1928)
Puffs (1960)
Banner (1982)
Summit (1992)
Product Line Analysis
• Core product• Staples• Specialties• Convenience items
Line Stretching
Down-Market StretchDown-Market Stretch
Up-Market StretchUp-Market Stretch
Two-Way StretchTwo-Way Stretch
Two-Way Product-Line Stretch: Marriott Hotels
QualityEconomy SuperiorStandard Good
Pri
ceP
rice
High
Aboveaverage
Average
Low Fairfield Inn(Vacationers)
Courtyard(Salespeople)
Marriott(Middle
managers)
MarriottMarquis
(Topexecutives)
Product Line Pricing
Product-Mix Pricing
• Product-line pricing• Optional-feature pricing• Captive-product pricing• Two-part pricing• By-product pricing• Product-bundling pricing
What is the Fifth P?
Packaging, sometimes called the fifth P, is all the activities of designing and
producing the container for a product.
Factors Contributing to the Emphasis on Packaging
Self-serviceSelf-service
Consumer affluenceConsumer affluence
Company/brand imageCompany/brand image
Innovation opportunityInnovation opportunity
Packaging Objectives
• Identify the brand• Convey descriptive and persuasive information• Facilitate product transportation and
protection• Assist at-home storage• Aid product consumption
Functions of Labels
Identifies
Grades
Describes
Promotes
Warranties and Guarantees