Ch 12 setting product strategy santos suarez

TOP 10 Learning Concepts

Ch:12 Setting Product Strategy

Jeanna Marie Santos-Suarez
May 2012

http://jeannasantossuarez.blogspot.com/

Pls. follow these guidelines

1. Use this powerpoint template.
2. Change bottom logo to your website.
3. Upload in your blog. Put link in Facebook.
4. Select a slide from Kotler handouts as basis for
question.
5. Follow this 2 component sequence for each of the
top 10 concepts: (Concept, Concept Examples which
may be 1 or more slides)
*** Concept example is a required component.

Reference : Philip Kotler’s, Marketing Management, 13th Edition

To strategize for a product :

 Know Components to an Attractive Market
Offering
 5 Product Levels that Add Customer Value
Understand Product Relationships by knowing :
 6 Product Hierarchies
 Product Systems and Mixes
 Product Line Analysis



 Product Mix Pricing
 What is the Fifth P?
 Why emphasize on packaging
 What are the Objectives of Packaging?
 4 Label Functions


Concept 1 :
Must Consider Three Components
when making Market Offerings
Value-based prices

Attractiveness
of the market
offering

Product Services
features mix and
and quality quality

Concept 1 :
An Offering is attractive if :
the product has features and quality
that the customer needs
Value-based prices

Attractiveness
of the market
offering

Product Services
features mix and
and quality quality

Concept 1:
An Offering is attractive if :
the product is combined with the
appropriate and quality service
Value-based prices

Attractiveness
of the market
offering

Product Services
features mix and
and quality quality

Concept 1:
An Offering is attractive if:
the product has is priced according
to the value it gives
Value-based prices

Attractiveness
of the market
offering

Product Services
features mix and
and quality quality

Concept 2:
There are 5 Product Levels that add
to Customer Value

C
u
Potential
Product
V
Augmented s
Expected
Product a
Product
t
l
Basic o
Product u
m
Core e
Benefit e
r

Concept 2:
1st Level:
Core Benefit – the need
being addressed
C
Potential u
Augmented Product V
Product s
Expected a
Product t
Basic l
Product o
u
Core m
Benefit e
e
Healthy Teeth r

Concept 2:
2nd Level:Basic Product – the
translation of the core benefit
C
Potential u
Augmented Product V
Product s
Expected a
Product t
Basic l
Product o
u
Core m
Benefit e
toothpaste e
Healthy Teeth r

Concept 2:
3rd Level:Expected Product –
delivers expected attributes
C
Potential u
Augmented Product V
Product s
Expected a
Product t
l
Basic o
Product
Fluoride
u
m
Core e
Benefit toothpaste e
Healthy Teeth r

Concept 2:
4th Level:Augmented Product –
delivers attributes beyond
expectations
C
Potential u
Augmented Product V
Product s
Expected a
Product t
Whiter teeth
l
Basic o
Product
Fluoride
u
m
Core e
Healthy Teeth r

Concept 2:
5th Level:
Potential Product –
encompasses all possible
augmentations
Whiter, 24 hr
protection, for
sensitive teeth etc.
C
Potential
u
Product
V
Augmented s
Product a
Expected t
Product l
Whiter teeth
Basic o
Product Fluoride
u
m
Core e
Healthy Teeth r

Concept 3:
Product Hierarchy – relationship
of a product to other products


Concept 3: (using the toothpaste example)
Need Family – the core need

To be Healthy


Concept 3:
Product Family – all product
classes that can satisfy the
core need

Nutrition, cleanliness

To be Healthy


Concept 3:
Product Class – group of
products that has the same
function

Products for Hygiene


To be Healthy


Concept 3:
Product Line – group of products
that perform a similar function,
customer groups, outlets, channels,
prices

ORAL Hygiene

Products for Hygiene


To be Healthy


Concept 3:
Product Type – group of items
sharing one of several possible
forms of the product

whitening Toothpaste

Toothpaste

Products for oral Hygiene


To be Healthy


Concept 3:
Item – a distinct unit
distinguishable by size, price,
appearance etc.
50 Ml Colgate 24-hr
Whitening Toothpaste

whitening Toothpaste

Toothpaste

Products for oral Hygiene


To be Healthy


Concept 4:
Product Systems and Mixes
 Product system
 Product mix
 Product assortment
 Depth
 Length
 Width
 Consistency


Concept 4:
Product System – group of
diverse but related items
 Product system Toothpaste, Shampoo,
soap
 Product mix
or Product assortment
 Depth
 Length
 Width
 Consistency


Concept 4:
Product Mix – set of all
products and items
 Product system Palmolive
Shampoo, Colgate
 Product mix Toothpaste, Palmolive
Cleanser, Colgate

or Product assortment Toothbrush

 Depth
 Length
 Width
 Consistency


Concept 4:
Depth of a Product Mix – how
many variants
 Product system
 Product mix
 Depth
 Length
 Width
 Consistency


Concept 4:
Length of a Product Mix –
total number of items
 Product system
 Product mix
 Depth
 Length
 Width
 Consistency


Concept 4:
Width of a Product Mix – how
many different product lines
 Product system
 Product mix
 Depth
 Length
 Width
 Consistency


Concept 4:
Consistency of a Product Mix –
how closely related the product
lines are
 Product system
 Product mix
 Depth
 Length
 Width
 Consistency


Concept 5:
Product Line Analysis
Sales Volume
Convenience
Core Product
Items

Staples Specialties

Promotion

Concept 6:
Product-Mix Pricing

 Product-line pricing
 Optional-feature pricing
 Captive-product pricing
 Two-part pricing
 By-product pricing
 Product-bundling pricing


Concept 6:
Product-Line Pricing – price
steps in a product line

 Two-part pricing 30 Ml  Php 30
50 Ml  Php 40
 By-product pricing 100 Ml  Php 80



Concept 6:
Optional-Feature Pricing – offering
optional products, features &
services along with main product


Concept 6:
Captive-Product Pricing – pricing
the main product low and prices
ancillary product high


Concept 6:
Two-Part Pricing – pricing
consisting of a fixed fee plus a
variable usage fee


Concept 6:
By-Product Pricing – pricing by-
products accdg to its value to
customers
 Two-part pricing “dugo” or Betamax is a
 By-product pricing by-product of pork



Concept 6:
Product-Bundling Pricing – pricing
products that are bundled
(mixed/pure)


Concept 7:
What is the Fifth P?

 Packaging, sometimes called the fifth P, is
all the activities of designing and producing
the container for a product.


Concept 8:
Factors Contributing to the
Emphasis on Packaging

Self-service

Consumer affluence

Company and Brand Image

Innovation Opportunity


Concept 8:
Self-Service – so customers would
know info about the product even
without any person present

Self-service

Consumer affluence




Concept 8:
Consumer Affluence –
customers are willing to pay for
better packages

Self-service

Consumer affluence




Concept 8:
Company and Brand Image –
contribute to instant
recognition

Self-service

Consumer affluence




Concept 8:
Innovation Opportunity –
innovative packaging help
improve sales
Self-service

Consumer affluence




Concept 9:
Packaging Objectives

 Identify the brand
 Convey descriptive and persuasive
information
 Facilitate product transportation and
protection
 Assist at-home storage
 Aid product consumption


Concept 10:
Functions of Labels

Identifies

Grades

Describes

Promotes


Concept 10:
Identifies - Tool used to identify the
product and differentiate it among
other products

Identifies

Grades

Describes

Promotes


Concept 10:
Grades - Indicates the level
Ex. Grade a, b, or c

Identifies

Grades

Describes

Promotes


Concept 10:
Describes how the product is
used, what it contains etc.

Identifies

Grades

Describes

Promotes


Concept 10:
Promotes - Serves as an ad to
promote through attractive
graphics
Identifies

Grades

Describes

Promotes


Summary: Top 10 Concepts of Setting Product Strategy


 Know Components to an Attractive Market
Offering
 Value pricing + Service + Product Quality
 5 Product Levels that Add Customer Value
 From Core Benefit to Potential Product
Understand Product Relationships by knowing :
 6 Product Hierarchies
 Need Family to Item




 Product Systems and Mixes
 Know factors of product mixes
 Product Line Analysis
 Sales Promotion and Sales Volume Matrix
 Product Mix Pricing
 Prices depend on strategy
 What is the Fifth P?
 Packaging!




 Why emphasize on packaging
 Self-service to Innovation Opportunity
 What are the Objectives of Packaging?
 From Brand Identification to Aiding in Product
Consumption
 4 Label Functions
 Identifies, Grades, Describes and Promotes


For the annotated and
illustrated guide to this
assignment, refer to…

http://www.slideshare.net/josephdeungria
/translating-and-personalizing-kotler


Ch 12 setting product strategy santos suarez

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (20)

Similar to Ch 12 setting product strategy santos suarez

Similar to Ch 12 setting product strategy santos suarez (20)

Recently uploaded

Recently uploaded (20)

Ch 12 setting product strategy santos suarez