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Setting Product Strategy:

Setting Product Strategy

What is a Product?:

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.

Figure 12.1 Components of the Market Offering:

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

Figure 12.2 Five Product Levels:

Figure 12.2 Five Product Levels

Product Classification Schemes:

Product Classification Schemes Durability Use Tangibility

Durability and Tangibility:

Durability and Tangibility Nondurable goods Services Durable goods

Consumer Goods Classification:

Consumer Goods Classification Convenience Unsought Shopping Specialty

Product Differentiation:

Product Differentiation Product form Features Customization Performance Conformance Durability Reliability Repairability Style

Service Differentiation:

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

Design Differentiation:

Design Differentiation

Maintenance and Repair:

Maintenance and Repair

Product Systems and Mixes:

Product Systems and Mixes Product system Product mix Product assortment Depth Length Width Consistency

Product-Mix Width and Product-Line Length for Proctor& Gamble Products:

Product-Mix Width and Product-Line Length for Proctor& Gamble Products PRODUCT-LINE LENGTH Product-Mix Width Detergents Toothpaste Disposable Bar Soap Diapers Paper Tissue Ivory Snow (1930) Dreft (1933) Tide (1946) Cheer (1950) Gleem (1952) Crest (1955) Ivory (1879) Kirk’s (1885) Lava (1893) Camay (1926) Pampers (1961) Luvs (1976) Charmin (1928) Puffs (1960) Banner (1982) Summit (1992)

Line Stretching:

Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch

Two-Way Product-Line Stretch: Marriott Hotels:

Two-Way Product-Line Stretch: Marriott Hotels Quality Economy Superior Standard Good Price High Above average Average Low Fairfield Inn (Vacationers) Courtyard (Salespeople ) Marriott (Middle managers) Marriott Marquis (Top executives)

Product Line Pricing:

Product Line Pricing

What is the Fifth P?:

What is the Fifth P? Packaging , sometimes called the fifth P, is all the activities of designing and producing the container for a product.

Factors Contributing to the Emphasis on Packaging:

Factors Contributing to the Emphasis on Packaging Self-service Consumer affluence Company/brand image Innovation opportunity

Packaging Objectives:

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

Functions of Labels:

Functions of Labels Identifies Grades Describes Promotes

Warranties and Guarantees:

Warranties and Guarantees

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