setting product strategy
DESCRIPTION
Marketing Management Chapter 12TRANSCRIPT
![Page 1: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/1.jpg)
Chapter 12SETTING PRODUCT STRATEGY
Sunshine V. VillanuevaAteneo Graduate School of Business
ph.linkedin.com/in/sunshinevillanueva
![Page 2: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/2.jpg)
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
![Page 3: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/3.jpg)
A product satisfies a need or want.
Physical goods
Services Experiences
Events Properties Information
![Page 4: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/4.jpg)
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
![Page 5: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/5.jpg)
Marketers address 5 product levels
![Page 6: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/6.jpg)
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
![Page 7: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/7.jpg)
Products are classified based on…
A. Durability and tangibility
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Products are classified based on…
B. Use
![Page 9: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/9.jpg)
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
![Page 10: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/10.jpg)
Products can be differentiated in…
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…while services differ in…
• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance and repair• Returns (policy)
![Page 12: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/12.jpg)
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
![Page 13: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/13.jpg)
Design influences customer decisions
• Design is the totality of features that affect how a product looks, feels, and functions to a consumer.
• A well-designed product means…
To the company: To the customer:
- easy to manufacture- easy to distribute
- pleasant to look at- easy to open, install, etc.
![Page 14: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/14.jpg)
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
![Page 15: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/15.jpg)
Reviewing the product mix is a must!
• Product mix – is the set of all products and
items a seller offers for sale.– has several dimensions:
• Width• Length• Depth• Consistency
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Company objectives influence product lines
• Upsell• Cross-sell• Create a product line that protects
against economic ups and downs
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Product lines can be lengthened by:
• Line stretching– Down-market stretch– Up-market stretch– Two-way stretch
• Line filling
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Good product mix pricing maximizes profit
• Product line pricing• Optional-feature pricing• Captive-product pricing• Two-part pricing• By-product pricing• Product-bundling pricing
![Page 19: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/19.jpg)
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
![Page 20: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/20.jpg)
The fifth P: Packaging
• Packaging includes all the activities of designing and producing the container for a product
• It is increasingly used as a marketing tool, together with labeling
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Warranties and guarantees offer further assurance to customers
• Warranties– Formal statements of expected product performance
by manufacturer
• Guarantees– Reduce the buyer’s perceived risk– Suggest that the product is of high quality
![Page 22: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/22.jpg)
This presentation discussed the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
![Page 23: Setting Product Strategy](https://reader034.vdocuments.us/reader034/viewer/2022052621/55848c30d8b42a9f028b5275/html5/thumbnails/23.jpg)
Conclusion
At the heart of a great brand is a great product. To achieve market leadership, firms must offer products and services that provide unsurpassed value.
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Chapter 12SETTING PRODUCT STRATEGY
Sunshine V. VillanuevaAteneo Graduate School of Business
ph.linkedin.com/in/sunshinevillanueva