Presentation on theme: "Setting Product Strategy Marketing Management, 13 th ed 12."— Presentation transcript:
Setting Product Strategy Marketing Management, 13 th ed 12
12-2 At the heart of a great brand is a great product
12-3 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.
Two broad classes consumer products business products Classes help in planning marketing mix needed Based on how the customer views the product how consumers think about and shop for products how business/organizational buyers think about products and how they'll be used Product Classes
Product Classes Help Plan Marketing Strategy Consumer ProductsBusiness Products
Goods and/or Services Are the Product (Exhibit 9-2)
Differences in Goods and Services Devoted to erasing stereotypes
Differences in Goods and Services Tangibility When produced relative to when consumed Balancing supply and demand Contact with customer by producer of product Where produced (storing and transporting ) Differences
12-10 Product Classification Schemes Durability Use Tangibility
12-11 Durability and Tangibility Nondurable goods Services Durable goods
Industrial Goods Classification MRO Supplies Supplies for Maintenance, Repair, and Operating MRO Supplies Supplies for Maintenance, Repair, and Operating Component Parts & Materials processed expense items that become part of a finished product Raw Materials unprocessed expense items that become a physical part of a physical good Raw Materials unprocessed expense items that become a physical part of a physical good Accessories short-lived capital items—tools & production equipment Installations important capital items Installations important capital items Professional Services specialized services to support a firm’s operations--consulting services Professional Services specialized services to support a firm’s operations--consulting services Business Product Classes Business Product Classes
12-19 Product Systems and Mixes Product system—group of diverse but related items (e.g., Palm One handheld and Smartphone product lines come with attachable— headsets, cameras, keyboards, etc.) Product mix or assortment— various product lines (e.g., GE’s consumer Appliance Division— refrigerators, stoves, washing machines, etc.) Depth—variants of each product (e.g., tide comes in two scents) Length—total number of items in the mix (e.g., PG—Detergents (Ivory, tide, etc); Toothpaste (Gleem, Crest); Bar soap (Camay, Zest, etc); Disposable Diapers (Pampers, Luvs) ; Paper Products (Charmin, Bounty) Width—number of different product lines (PG—Detergents, Toothpaste, Bar Soap, Disposable Diapers, Paper Products) Consistency—how closely related various product lines are in some way (e.g., consumer goods that go through the same distribution channel.
12-20 Product Line Analysis Convenience Items (peripheral items; e.g., carrying cases and accessories) Core product (basic products; e.g., laptop computers) Staples (items with lower sales volume but not promoted; e.g., CPU, bigger memories) Specialties (items with lower sales volume but highly promoted; e.g., digital moviemaking equipment)
12-21 Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch