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Setting Product Strategy

Marketing Management, 13th ed 

12

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Chapter Questions

!hat are the characteristics o"products and ho# do $ar%eters classi"y

products&

Ho# can co$panies di""erentiateproducts&

Ho# can a co$pany build and $anage

its product $i' and product lines&

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Chapter Questions (cont.)

Ho# can co$panies co$bine products

to create strong co-brands or ingredient

brands&

Ho# can co$panies use pac%aging,

labeling, #arranties, and guarantees as

$ar%eting tools&

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What is a Product?

 * product is anything that can be

o""ered to a $ar%et to satis"y a #ant or

need, including physical goods,

ser+ices, e'periences, e+ents, persons,

places, properties, organiations,

in"or$ation, and ideas.

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Components of the

Market Offering

alue based prices

Product "eatures and /uality

er+ices $i' and /uality

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Fie Product !ee"s

Core bene"it

asic product

E'pected product

 *ug$ented product

Potential product

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Product C"assification Schemes

4urability

5angibility

6se

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#ura$i"ity and %angi$i"ity

8ondurable goods

4urable goods

er+ices

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Consumer &oods C"assification

Con+enience

hopping

pecialty 6nsought

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'ndustria" &oods C"assification

aterials and parts

Capital ite$s

upplies:business ser+ices

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Product #ifferentiation

Product "or$

;eatures

Custo$iation

Per"or$ance Con"or$ance

4urability

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Serice #ifferentiation

=rdering ease

4eli+ery

Installation

Custo$er training

Custo$er consulting

aintenance and repair 

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%he Product ierarchy

8eed "a$ily

Product "a$ily

Product class

Product line

Product type

Ite$

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Product Systems and Mies

Product syste$

Product $i'

Product assort$ent 4epth

>ength

!idth Consistency

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Product !ine *na"ysis

Core product

taples

pecialties Con+enience ite$s

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Product+Mi Pricing

Product-line pricing

=ptional-"eature pricing

Capti+e-product pricing 5#o-part pricing

y-product pricing

Product-bundling pricing

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What is the Fifth P?

Packaging, so$eti$es called the

th P, is all the acti+ities o" designing

and producing the container "or a

product.

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Factors Contri$uting to the

,mphasis on Packaging

el"-ser+ice

Consu$er a""luence

Co$pany:brand i$age Inno+ation opportunity

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Packaging O$-ecties

Identi"y the brand

Con+ey descripti+e and persuasi+e

in"or$ation

;acilitate product transportation and

protection

 *ssist at-ho$e storage  *id product consu$ption

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Functions of !a$e"s

Identi"ies

?rades

4escribes Pro$otes