Kotler12_basic.ppt 91KB Aug 31 2008 08:53:00 PM

MARKETING MANAGEMENT
12th edition
12
Setting Product Strategy

Kotler

Keller

Chapter Questions
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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?
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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
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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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12-8

Product Differentiation

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Product form
Features
Performance
Conformance
Durability
Reliability
Reparability

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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
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12-11

Product Line Analysis
Core product

 Staples
 Specialties
 Convenience items
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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
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Packaging: The 5th P

All the activities of designing and producing
the container for a product.

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Packaging has been influenced by:
Self-service
 Consumer affluence
 Company and brand image
 Innovation opportunity
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12-16

Functions of Labels
Identifies
 Grades
 Describes
 Promotes
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12-17