Kotler12_media.ppt 3952KB Aug 31 2008 10:36:30 PM
MARKETING MANAGEMENT
12th edition
12
Setting Product
Strategy
Kotler
Keller
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?
12-2
At the heart of a great brand is a
great product
12-3
Product
Anything that can be offered to a market to
satisfy a want or need.
12-4
Figure 12.1 Components of the
Market Offering
12-5
Figure 12.2 Five Product Levels
12-6
Product Classification Schemes
Durability
Tangibility
Use
12-7
Durability and Tangibility
Nondurable
goods
Durable
goods
Services
12-8
Consumer Goods Classification
Convenience
Shopping
Specialty
Unsought
12-9
Industrial Goods Classification
Materials and parts
Capital items
Supplies/
business services
12-10
Product Differentiation
•
•
•
•
•
•
•
Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
•
•
•
•
•
•
•
•
Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
12-11
Dunkin’ Donuts’ Differentiation
12-12
Design Differentiation
12-13
Maintenance and Repair
12-14
The Product Hierarchy
Item
Product type
Product line
Product class
Product family
Need family
12-15
Product Systems and Mixes
•
•
•
•
•
•
•
Product system
Product mix
Product assortment
Depth
Length
Width
Consistency
12-16
Product Line Analysis
Core product
Staples
Specialties
Convenience
items
12-17
Figure 12.3 Product-Item Contributions to
a Product Line’s Total Sales and Profits
12-18
Figure 12.4 Product Map
12-19
Line Stretching
Down-Market
Down-Market Stretch
Stretch
Up-Market
Up-Market Stretch
Stretch
Two-Way
Two-Way Stretch
Stretch
12-20
Line Filling
12-21
Product-Mix Pricing
•
•
•
•
•
•
Product-line pricing
Optional-feature pricing
Captive-product pricing
Two-part pricing
By-product pricing
Product-bundling pricing
12-22
Product Line Pricing
12-23
Two-Part Pricing
12-24
Co-branding
12-25
Ingredient Branding
12-26
Packaging: The 5 P
th
All the activities of designing and producing
the container for a product.
12-27
Packaging has been influenced by…
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
12-28
Innovations in Packaging
12-29
Functions of Labels
Identifies
Grades
Describes
Promotes
12-30
Warranties and Guarantees
12-31
Marketing Debate
With products, is it form or function?
Take a position:
1. Product functionality is the key to brand
success.
2. Product design is the key to brand
success.
12-32
Marketing Discussion
Consider the different means
of differentiating products and
services. Which ones have the
most impact on your choices?
Why?
12-33
12th edition
12
Setting Product
Strategy
Kotler
Keller
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?
12-2
At the heart of a great brand is a
great product
12-3
Product
Anything that can be offered to a market to
satisfy a want or need.
12-4
Figure 12.1 Components of the
Market Offering
12-5
Figure 12.2 Five Product Levels
12-6
Product Classification Schemes
Durability
Tangibility
Use
12-7
Durability and Tangibility
Nondurable
goods
Durable
goods
Services
12-8
Consumer Goods Classification
Convenience
Shopping
Specialty
Unsought
12-9
Industrial Goods Classification
Materials and parts
Capital items
Supplies/
business services
12-10
Product Differentiation
•
•
•
•
•
•
•
Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
•
•
•
•
•
•
•
•
Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
12-11
Dunkin’ Donuts’ Differentiation
12-12
Design Differentiation
12-13
Maintenance and Repair
12-14
The Product Hierarchy
Item
Product type
Product line
Product class
Product family
Need family
12-15
Product Systems and Mixes
•
•
•
•
•
•
•
Product system
Product mix
Product assortment
Depth
Length
Width
Consistency
12-16
Product Line Analysis
Core product
Staples
Specialties
Convenience
items
12-17
Figure 12.3 Product-Item Contributions to
a Product Line’s Total Sales and Profits
12-18
Figure 12.4 Product Map
12-19
Line Stretching
Down-Market
Down-Market Stretch
Stretch
Up-Market
Up-Market Stretch
Stretch
Two-Way
Two-Way Stretch
Stretch
12-20
Line Filling
12-21
Product-Mix Pricing
•
•
•
•
•
•
Product-line pricing
Optional-feature pricing
Captive-product pricing
Two-part pricing
By-product pricing
Product-bundling pricing
12-22
Product Line Pricing
12-23
Two-Part Pricing
12-24
Co-branding
12-25
Ingredient Branding
12-26
Packaging: The 5 P
th
All the activities of designing and producing
the container for a product.
12-27
Packaging has been influenced by…
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
12-28
Innovations in Packaging
12-29
Functions of Labels
Identifies
Grades
Describes
Promotes
12-30
Warranties and Guarantees
12-31
Marketing Debate
With products, is it form or function?
Take a position:
1. Product functionality is the key to brand
success.
2. Product design is the key to brand
success.
12-32
Marketing Discussion
Consider the different means
of differentiating products and
services. Which ones have the
most impact on your choices?
Why?
12-33