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Marketing Management, 12/eA South Asian Perspective
12Setting Product Strategy
Kotler Koshy
Keller Jha
12-2
Chapter Questions What are the characteristics of products and how
can they be classified? How can companies differentiate products? How can a company build and manage its
product mix and product lines? 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?
12-3
Product
Anything that can be offered to a market to satisfy a want or need.
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Figure 12.2 Five Product Levels
Core benefit Basic product Expected product Augmented product Potential product
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Product Classification Schemes
Durability Tangibility Use
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Durability and Tangibility
Nondurable goods Durable goods Services
12-7
Consumer Goods Classification
Convenience Shopping Specialty Unsought
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Industrial Goods Classification
Materials and parts Capital items Supplies/business services
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Product Differentiation
Product form Features Performance Conformance Durability Reliability Reparability
Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance
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The Product Hierarchy
Need family Product family Product class Product line Product type Item
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Product Systems and Mixes
Product system Product mix Product assortment Depth Length Width Consistency
12-12
Product Line Analysis
Core product Staples Specialties Convenience items
12-13
Line Stretching
Down Market Stretch Up-Market Stretch Two-Way Stretch
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Product-Mix Pricing
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
12-15
Packaging: The 5th P
All the activities of designing and producingthe container for a product.
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Packaging has been influenced by:
Self-service Consumer affluence Company and brand image Innovation opportunity
12-17
Functions of Labels
Identifies Grades Describes Promotes
