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Dr. Justin Paul
University of Puerto Rico
Rio Piedras Campus
Marketing Management
Setting Product StrategyChapter 12
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Discussion Questions1. What are the characteristics of a
product, and how do marketers classify products?
2. How can companies differentiate products?
3. Why is product design important and what factors affect a good design?
4. How can a company build and manage its product mix and product lines?
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Discussion Questions
5. How can companies combine products to create strong co-brands or ingredient brands?
6. How can companies use packaging, labeling, warranties, and guarantees as marketing tools?
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Marketing Planning
Needs
Wants
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Figure
12.1 Components of the Market
Offering
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Product Characteristics/Classifications• Experiences• Events• Properties• Organizations• Information• Ideas
Places
Persons
Services
Goods
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Figure
12.2 Five Product Levels
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Product Levels
Customer-value Hierarchy
Potential Product(Future augmentations)
Core Benefit(Rest and sleep)
Basic Product(Bed, bathroom, towels)
Expected Product(Clean bed, fresh towels)
Augmented Product(Free Internet; free breakfast)
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Product Classifications
Nondurable goods
Services
Durable goods
Durability and Tangibility
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Product ClassificationsConsumer-Goods
Convenience goods
Shopping goods
Specialty goods
Unsought goods
• Staples• Impulse goods• Emergency goods
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Product ClassificationsIndustrial-Goods
Raw materials
Materials and Parts
Manufactured materials Capital Items
Installations
EquipmentSupplies and business Services
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Product and Services Differentiation
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Product Differentiation
Form
Customization
Performance
Reliability
Features
Durability
Conformance
Repairability
Style
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Services Differentiation
Ordering Ease Delivery & Returns
Installation
Training
Maintenance & Repair
Customer Consulting
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Design
FunctionalBenefits
AestheticBenefits
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Product and Brand Relationships
Product Hierarchy
Product Systems/Mixes
Product Line Analysis
Product Line Length
Product Mix Pricing
Co-Branding
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Product Hierarchy
Need Family
Product Family
Product Class
Product Line
Product Type
Item
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Product Systems and Mixes
Product System Consistency
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Proctor & Gamble Product Mix
Detergents Toothpaste Bar Soap Disposable Diapers
Paper Products
Ivory Snow Gleem Ivory Pampers Charmin
Dreft Crest Camay Luvs Puffs
Tide Zest Bounty
Cheer Safeguard
Dash Oil of Olay
Bold
Gain
Era
Product Mix Width
Product Line
Length
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Product Line Analysis
Sales and Profit
Market Profile
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Product Mix Pricing
Product line pricing
Optional-feature pricing
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Co-Branding and Ingredient Branding
Co-Branding• Same-company• Joint venture• Multi-sponsor• Retail co-
branding• Ex. Cosco-Amex
card, Citi-AA Card.
Ingredient Branding
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Packaging and Labeling
Packaging Objectives1. Brand identification2. Persuade3. Protection4. At-home storage5. Aid consumption
Labeling Objectives1. Identify2. Grade3. Describe4. Promote
