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