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Setting Product Strategy Marketing Management, 13 th ed 12.

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Presentation on theme: "Setting Product Strategy Marketing Management, 13 th ed 12."— Presentation transcript:

1 Setting Product Strategy Marketing Management, 13 th ed 12

2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-2 Chapter Questions What are the characteristics of products and how do marketers classify products? How can companies differentiate products? How can a company build and manage its product mix and product lines?

3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-3 Chapter Questions (cont.) How can companies combine products to create strong co-brands or ingredient brands? How can companies use packaging, labeling, warranties, and guarantees as marketing tools?

4 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-4 Caterpillar: A Great Product

5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-5 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.

6 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-6 Figure 12.1 Components of the Market Offering Attractiveness of the market offering Value-based prices Product features and quality Services mix and quality

7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-7 Figure 12.2 Five Product Levels

8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-8 The Wedding Market is a MetaMarket

9 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-9 Product Classification Schemes Durability Use Tangibility

10 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Durability and Tangibility Nondurable goods Services Durable goods

11 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Consumer Goods Classification Convenience Unsought Shopping Specialty

12 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Industrial Goods Classification Materials and parts Supplies/ business services Capital items

13 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Product Differentiation Product form Features Customization Performance Conformance Durability Reliability Repairability Style

14 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Dunkin’ Donuts’ Differentiation

15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Design Differentiation

16 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Service Differentiation Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair Returns

17 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Maintenance and Repair

18 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall The Product Hierarchy Need family Product family Product class Product line Product type Item

19 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Product Systems and Mixes Product system Product mix Product assortment Depth Length Width Consistency

20 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Product Line Analysis Convenience items Core productStaples Specialties

21 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Figure 12.3 Product Item Contributions to a Product Line’s Total Sales and Profits

22 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Figure 12.4 Product Map

23 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch

24 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Line Filling

25 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Pruning Pruning weak brands can strengthen the remaining brands in the line

26 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Product-Mix Pricing Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

27 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Product Line Pricing

28 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Two-Part Pricing

29 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Co-branding

30 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Ingredient Branding

31 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall What is the Fifth P? Packaging, sometimes called the fifth P, is all the activities of designing and producing the container for a product.

32 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Factors Contributing to the Emphasis on Packaging Self-service Consumer affluence Company/brand image Innovation opportunity

33 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Innovations in Packaging

34 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Packaging Objectives Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption

35 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Functions of Labels Identifies Grades Describes Promotes

36 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Warranties and Guarantees

37 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Marketing Debate With products, is it form or function? Take a position: 1.Product functionality is the key to brand success. or 2. Product design is the key to brand success.

38 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Marketing Discussion Consider the different means of differentiating products and services. Which ones have the most impact on your choices? Why?


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