Setting product strategy

1. 12
Setting Product Strategy
Marketing Management, 13th ed

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. 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. Caterpillar: A Great Product

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. Figure 12.1 Components of the
Market Offering
Value-based prices
Attractiveness
of the market
offering
Product
features
and quality
Services
mix and
quality

7. Figure 12.2 Five Product Levels

8. The Wedding Market
is a MetaMarket

9. Product Classification Schemes
Durability
Tangibility
Use

10. Consumer Goods Classification
Convenience
Shopping
Unsought
Specialty

11. Industrial Goods Classification
Materials and parts
Supplies/
business services
Capital items

12. Product Differentiation
• Product form
• Features
• Customization
• Performance
• Conformance
• Durability
• Reliability
• Repairability
• Style

13. Design Differentiation

14. Service Differentiation
• Ordering ease
• Delivery
• Installation
• Customer training
• Customer
consulting
• Maintenance and
repair
• Returns

15. The Product Hierarchy
Item
Product type
Product line
Product class
Product family
Need family

16. Product Systems and Mixes
• Product system
• Product mix
• Product assortment
• Depth
• Length
• Width
• Consistency

17. Product Line Analysis
Core product Staples
Convenience
items
Specialties

18. Line Stretching
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UUpp--MMaarrkkeett SSttrreettcchh
TTwwoo--WWaayy SSttrreettcchh

19. Line Filling

20. Co-branding

21. Ingredient Branding

22. Factors Contributing to the
Emphasis on Packaging
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CCoonnssuummeerr aafffflluueennccee
CCoommppaannyy//bbrraanndd iimmaaggee
IInnnnoovvaattiioonn ooppppoorrttuunniittyy

23. Innovations in Packaging

24. Packaging Objectives
• Identify the brand
• Convey descriptive and persuasive
information
• Facilitate product transportation and
protection
• Assist at-home storage
• Aid product consumption

25. Functions of Labels
Identifies
Grades
Describes
Promotes

26. Warranties and Guarantees

27. Marketing Discussion
 Consider the different means of
differentiating products and services.
 Which ones have the most impact
on your choices?
 Why?