KOTCHA08.ppt 125KB Aug 12 2007 10:38:24 PM
8-1
8-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter
Chapter 88
Product and Services
Strategy
Copyright 1999 Prentice Hall
What
What is
is aa Product?
Product?
• Anything that can be offered to a market for
attention, acquisition, use or consumption.
• Satisfies a want or a need.
• Includes:
– Physical Products
– Services
– Persons
– Places
– Organizations
– Ideas
– Combinations of the above
Copyright 1999 Prentice Hall
8-2
8-2
Levels
Levels of
of Product
Product
8-3
8-3
Augmented
Augmented
Product
Product
Installation
Packaging
Brand
Name
Delivery
& Credit
Quality
Level
Core
Core
Benefit
Benefit
or
or
Service
Service
Features
AfterSale
Service
Design
Warranty
Core
Core
Product
Product
Actual
Actual
Product
Product
Copyright 1999 Prentice Hall
Product
Product Classifications
Classifications
Consumer
Consumer Products
Products
Convenience Products
Shopping Products
> Buy frequently & immediately
> Low priced
> Many purchase locations
> Includes:
• Staple goods
• Impulse goods
• Emergency goods
> Buy less frequently
> Gather product information
> Fewer purchase locations
> Compare for:
• Suitability & Quality
• Price & Style
Specialty Products
Unsought Products
> Special purchase efforts
> Unique characteristics
> Brand identification
> Few purchase locations
> New innovations
> Products consumers don’t
want to think about
> Require much advertising &
personal selling
Copyright 1999 Prentice Hall
8-4
8-4
Product
Product Classifications
Classifications
Industrial
Industrial Products
Products
8-5
8-5
Materials
Materials
and
and
Parts
Parts
Capital
Capital
Items
Items
Supplies
Supplies
and
and
Services
Services
Copyright 1999 Prentice Hall
Product
Product Classifications
Classifications
Other
Other Marketable
Marketable Entities
Entities
• Marketed to create, maintain, or change the
attitudes or behavior toward the following:
• Organizations - Profit (businesses) and
nonprofit (schools and
churches).
• Person - Political and sports figures,
entertainers, doctors and lawyers.
• Place - Business sites and tourism.
• Social - Reduce smoking, clean air,
conservation.
Copyright 1999 Prentice Hall
8-6
8-6
Individual
Individual Product
Product Decisions
Decisions
Product
Product Attributes
Attributes
Branding
Branding
Packaging
Packaging
Labeling
Labeling
Product
Product Support
Support Services
Services
Copyright 1999 Prentice Hall
8-7
8-7
Product
Product Attribute
Attribute
Decisions
Decisions
Quality
Quality
Design
Design
Copyright 1999 Prentice Hall
8-8
8-8
Features
Features
Brands
Brands
8-9
8-9
Consistency
Consistency
Quality
Quality &
& Value
Value
Attributes
Attributes
Advantages
of
Brand Names
Identification
Identification
Association
Association
Brand
Equity
Loyalty
Loyalty
Credibility
Credibility
Copyright 1999 Prentice Hall
Awareness
Awareness
Major
Major Brand
Brand Decisions
Decisions
Brand
Brand Name
Name Selection
Selection
Selection
Selection
Protection
Protection
Brand
Brand Sponsor
Sponsor
Manufacturer’s
Manufacturer’s Brand
Brand
Private
Private Brand
Brand
Licensed
Licensed Brand
Brand
Co-branding
Co-branding
Brand
Brand Strategy
Strategy
Line
Line Extensions
Extensions
Brand
Brand Extensions
Extensions
Multibrands
Multibrands
New
New Brands
Brands
Copyright 1999 Prentice Hall
8-10
8-10
Brand
Brand Strategy
Strategy
8-11
8-11
Brand Name
Product Category
Existing
New
Existing
Line
Extension
Brand
Extension
New
Multibrands
New
Brands
Copyright 1999 Prentice Hall
Brand
Brand Strategy
Strategy
• Line Extension
– Existing brand names extended to new forms,
sizes, and flavors of an existing product category.
• Brand Extension
– Existing brand names extended to new product
categories.
• Multibrands
– New brand names introduced in the same product
category.
• New Brands
– New brand names in new product categories.
Copyright 1999 Prentice Hall
8-12
8-12
Packaging
Packaging
Sales
Tasks
8-13
8-13
Competitive
Advantages
Packaging
Packaging
Product
Safety
Labeling
Labeling
Identifies
Promotes
Describes
Copyright 1999 Prentice Hall
Product
Product -- Support
Support Services
Services
8-14
8-14
Companies should design its support services to
profitably meet the needs of target customers.
How?
• Step 1. Survey customers to determine satisfaction
with current services and any desired new services.
• Step 2. Assess costs of providing desired services.
• Step 3. Develop a package of services to delight
customers and yield profits.
Copyright 1999 Prentice Hall
Product
Product Line
Line Decisions
Decisions
8-15
8-15
Product
Product Line
Line Length
Length
Number
Number of
of Items
Items in
in the
the Product
Product Line
Line
Stretching
Filling
Lengthen beyond
current range
Lengthen within
current range
Downward
Upward
Copyright 1999 Prentice Hall
Product
Product Mix
Mix Decisions
Decisions
8-16
8-16
Consistency
Width
Width -- number
number of
of
different
different product
product
lines
lines
Length
Length -- total
total
number
number of
of items
items
within
within the
the lines
lines
Depth
Depth -- number
number
of
of versions
versions of
of
each
each product
product
Copyright 1999 Prentice Hall
Product
Product Mix
Mix -all
all the
the product
product
lines
lines offered
offered
Characteristics
Characteristics of
of Services
Services
8-17
8-17
Intangibility
Intangibility
Can’t be seen, tasted, felt, heard,
or smelled before purchase.
Inseparability
Inseparability
Can’t be separated from service
providers.
Variability
Variability
Perishability
Perishability
Quality depends on who provides
them and when, where and how.
Can’t be stored for later sale or use.
Copyright 1999 Prentice Hall
The
The Service-Quality
Service-Quality Chain
Chain
8-18
8-18
Internal
Internal Service
Service Quality
Quality
Satisfied
Satisfiedand
and
Productive
ProductiveService
Service
Employees
Employees
Health
HealthService
Service
Profits
Profitsand
and Growth
Growth
Satisfied
Satisfied and
andLoyal
Loyal
Customers
Customers
Copyright 1999 Prentice Hall
Greater
GreaterService
Service
Value
Value
Marketing
Marketing Strategies
Strategies for
for Service
Service
Firms
Firms
• Managing Service Differentiation
– Develop offer, delivery and image with competitive
advantages.
• Managing Service Quality
– Empower employees
– Become “Customer obsessed”
– Develop high service quality standards
– Watch service performance closely
• Managing Service Productivity
– Train current or new employees
– Increase quantity by decreasing quality
– Utilize technology
Copyright 1999 Prentice Hall
8-19
8-19
8-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter
Chapter 88
Product and Services
Strategy
Copyright 1999 Prentice Hall
What
What is
is aa Product?
Product?
• Anything that can be offered to a market for
attention, acquisition, use or consumption.
• Satisfies a want or a need.
• Includes:
– Physical Products
– Services
– Persons
– Places
– Organizations
– Ideas
– Combinations of the above
Copyright 1999 Prentice Hall
8-2
8-2
Levels
Levels of
of Product
Product
8-3
8-3
Augmented
Augmented
Product
Product
Installation
Packaging
Brand
Name
Delivery
& Credit
Quality
Level
Core
Core
Benefit
Benefit
or
or
Service
Service
Features
AfterSale
Service
Design
Warranty
Core
Core
Product
Product
Actual
Actual
Product
Product
Copyright 1999 Prentice Hall
Product
Product Classifications
Classifications
Consumer
Consumer Products
Products
Convenience Products
Shopping Products
> Buy frequently & immediately
> Low priced
> Many purchase locations
> Includes:
• Staple goods
• Impulse goods
• Emergency goods
> Buy less frequently
> Gather product information
> Fewer purchase locations
> Compare for:
• Suitability & Quality
• Price & Style
Specialty Products
Unsought Products
> Special purchase efforts
> Unique characteristics
> Brand identification
> Few purchase locations
> New innovations
> Products consumers don’t
want to think about
> Require much advertising &
personal selling
Copyright 1999 Prentice Hall
8-4
8-4
Product
Product Classifications
Classifications
Industrial
Industrial Products
Products
8-5
8-5
Materials
Materials
and
and
Parts
Parts
Capital
Capital
Items
Items
Supplies
Supplies
and
and
Services
Services
Copyright 1999 Prentice Hall
Product
Product Classifications
Classifications
Other
Other Marketable
Marketable Entities
Entities
• Marketed to create, maintain, or change the
attitudes or behavior toward the following:
• Organizations - Profit (businesses) and
nonprofit (schools and
churches).
• Person - Political and sports figures,
entertainers, doctors and lawyers.
• Place - Business sites and tourism.
• Social - Reduce smoking, clean air,
conservation.
Copyright 1999 Prentice Hall
8-6
8-6
Individual
Individual Product
Product Decisions
Decisions
Product
Product Attributes
Attributes
Branding
Branding
Packaging
Packaging
Labeling
Labeling
Product
Product Support
Support Services
Services
Copyright 1999 Prentice Hall
8-7
8-7
Product
Product Attribute
Attribute
Decisions
Decisions
Quality
Quality
Design
Design
Copyright 1999 Prentice Hall
8-8
8-8
Features
Features
Brands
Brands
8-9
8-9
Consistency
Consistency
Quality
Quality &
& Value
Value
Attributes
Attributes
Advantages
of
Brand Names
Identification
Identification
Association
Association
Brand
Equity
Loyalty
Loyalty
Credibility
Credibility
Copyright 1999 Prentice Hall
Awareness
Awareness
Major
Major Brand
Brand Decisions
Decisions
Brand
Brand Name
Name Selection
Selection
Selection
Selection
Protection
Protection
Brand
Brand Sponsor
Sponsor
Manufacturer’s
Manufacturer’s Brand
Brand
Private
Private Brand
Brand
Licensed
Licensed Brand
Brand
Co-branding
Co-branding
Brand
Brand Strategy
Strategy
Line
Line Extensions
Extensions
Brand
Brand Extensions
Extensions
Multibrands
Multibrands
New
New Brands
Brands
Copyright 1999 Prentice Hall
8-10
8-10
Brand
Brand Strategy
Strategy
8-11
8-11
Brand Name
Product Category
Existing
New
Existing
Line
Extension
Brand
Extension
New
Multibrands
New
Brands
Copyright 1999 Prentice Hall
Brand
Brand Strategy
Strategy
• Line Extension
– Existing brand names extended to new forms,
sizes, and flavors of an existing product category.
• Brand Extension
– Existing brand names extended to new product
categories.
• Multibrands
– New brand names introduced in the same product
category.
• New Brands
– New brand names in new product categories.
Copyright 1999 Prentice Hall
8-12
8-12
Packaging
Packaging
Sales
Tasks
8-13
8-13
Competitive
Advantages
Packaging
Packaging
Product
Safety
Labeling
Labeling
Identifies
Promotes
Describes
Copyright 1999 Prentice Hall
Product
Product -- Support
Support Services
Services
8-14
8-14
Companies should design its support services to
profitably meet the needs of target customers.
How?
• Step 1. Survey customers to determine satisfaction
with current services and any desired new services.
• Step 2. Assess costs of providing desired services.
• Step 3. Develop a package of services to delight
customers and yield profits.
Copyright 1999 Prentice Hall
Product
Product Line
Line Decisions
Decisions
8-15
8-15
Product
Product Line
Line Length
Length
Number
Number of
of Items
Items in
in the
the Product
Product Line
Line
Stretching
Filling
Lengthen beyond
current range
Lengthen within
current range
Downward
Upward
Copyright 1999 Prentice Hall
Product
Product Mix
Mix Decisions
Decisions
8-16
8-16
Consistency
Width
Width -- number
number of
of
different
different product
product
lines
lines
Length
Length -- total
total
number
number of
of items
items
within
within the
the lines
lines
Depth
Depth -- number
number
of
of versions
versions of
of
each
each product
product
Copyright 1999 Prentice Hall
Product
Product Mix
Mix -all
all the
the product
product
lines
lines offered
offered
Characteristics
Characteristics of
of Services
Services
8-17
8-17
Intangibility
Intangibility
Can’t be seen, tasted, felt, heard,
or smelled before purchase.
Inseparability
Inseparability
Can’t be separated from service
providers.
Variability
Variability
Perishability
Perishability
Quality depends on who provides
them and when, where and how.
Can’t be stored for later sale or use.
Copyright 1999 Prentice Hall
The
The Service-Quality
Service-Quality Chain
Chain
8-18
8-18
Internal
Internal Service
Service Quality
Quality
Satisfied
Satisfiedand
and
Productive
ProductiveService
Service
Employees
Employees
Health
HealthService
Service
Profits
Profitsand
and Growth
Growth
Satisfied
Satisfied and
andLoyal
Loyal
Customers
Customers
Copyright 1999 Prentice Hall
Greater
GreaterService
Service
Value
Value
Marketing
Marketing Strategies
Strategies for
for Service
Service
Firms
Firms
• Managing Service Differentiation
– Develop offer, delivery and image with competitive
advantages.
• Managing Service Quality
– Empower employees
– Become “Customer obsessed”
– Develop high service quality standards
– Watch service performance closely
• Managing Service Productivity
– Train current or new employees
– Increase quantity by decreasing quality
– Utilize technology
Copyright 1999 Prentice Hall
8-19
8-19