Kotler • Keller Phillip Kevin Lane

Marketing Management • 14e

Se#ng  Product  Strategy  

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Discussion  Ques:ons  1.  What  are  the  characteris:cs  of  a  

product,  and  how  do  marketers  classify  products?  

2.  How  can  companies  differen:ate  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  Ques:ons  

5.  How  can  companies  combine  products  to  create  strong  co-­‐brands  or  ingredient  brands?  

6.  How  can  companies  use  packaging,  labeling,  warran:es,  and  guarantees  as  marke:ng  tools?  

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Marke:ng  Planning  

Needs  

Wants  

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Components  of  the  Market  Offering  

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Product  Characteris:cs/Classifica:ons  •  Experiences  •  Events  •  Proper:es  •  Organiza:ons  •  Informa:on  •  Ideas  

Places  

Persons  

Services  

Goods  

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Five  Product  Levels  

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Product  Levels  

Customer-­‐value  Hierarchy  

Poten:al  Product  (Future  augmenta:ons)  

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  Classifica:ons  

Nondurable  goods  

Services  

Durable  goods  

Durability  and  Tangibility  

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Product  Classifica:ons  Consumer-­‐Goods  

Convenience  goods  

Shopping  goods  

Specialty  goods  

Unsought  goods  

•  Staples  •  Impulse  goods  •  Emergency  goods  

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Product  Classifica:ons  Industrial-­‐Goods  

Raw  materials  

Materials  and  Parts  

Manufactured    materials   Capital  Items  

Installa:ons  

Equipment  Supplies  and  business  Services  

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Product  and  Services  Differen:a:on  

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Product  Differen:a:on  

Form  

Customiza:on  

Performance  

Reliability  

Features  

Durability  

Conformance  

Repairability  

Style  

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Services  Differen:a:on  

Ordering  Ease   Delivery  &  Returns  

Installa:on  

Training  

Maintenance  &  Repair    

Customer  Consul:ng  

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Design  

Func7onal  Benefits  

Aesthe7c  Benefits  

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Product  Systems  and  Mixes  

Product  System   Product  Mix  

Width  

Length  

Depth  

Consistency  

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Proctor  &  Gamble  Product  Mix  

Detergents   Toothpaste   Bar  Soap   Disposable  Diapers  

Paper  Products  

Ivory  Snow   Gleem   Ivory   Pampers   Charmin  

Dreg   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-­‐Item  Contribu:ons  

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Product  Map  

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Product  Line  Length  

Line  stretching  

Up-­‐market  stretch  

Down-­‐market  stretch  

Two-­‐way  stretch  

Line  moderniza7on,  featuring,  and  pruning  

Line  filling  

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Product  Mix  Pricing  

Product  line  pricing  

Op:onal-­‐feature  pricing  

Cap:ve-­‐product  pricing  

Two-­‐part  pricing  

By-­‐product  pricing   Product-­‐bundling  pricing  

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Co-­‐Branding  and  Ingredient  Branding  

Co-­‐Branding  •  Same-­‐company  •  Joint  venture  •  Mul:-­‐sponsor  •  Retail  co-­‐

branding  

Ingredient  Branding  

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Packaging  and  Labeling  

Packaging  Objec7ves    

1.  Brand  iden:fica:on  2.  Persuade  3.  Protec:on  4.  At-­‐home  storage  5.  Aid  consump:on  

Labeling  Objec7ves    

1.  Iden:fy  2.  Grade  3.  Describe  4.  Promote