kotler_mm_14e_12_ippt.ppt

1. 12
Setting Product Strategy
1

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-2
What is a Product?
A product is anything that can be offered to
a market to satisfy a want or need, including
physical goods, services, experiences,
events, persons, places, properties,
organizations, information, and ideas.

3. Figure 12.1 Components of the
Market Offering
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4. Figure 12.2 Five Product Levels
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Product Classification Schemes
Durability
Use
Tangibility

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Durability and Tangibility
Nondurable goods
Durable goods
Services

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Consumer Goods Classification
Convenience
Unsought
Shopping
Specialty

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Industrial Goods Classification
 Materials and parts
 Capital items
 Supplies/business services

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Product-Mix Width and Product-Line Length for Proctor&
Gamble Products
PRODUCT-
LINE
LENGTH
Product-Mix Width
Detergents Toothpaste
Disposable
Bar Soap Diapers
Paper
Tissue
Ivory
Snow
(1930)
Dreft
(1933)
Tide
(1946)
Cheer
(1950)
Gleem (1952)
Crest (1955)
Ivory
(1879)
Kirk’s
(1885)
Lava
(1893)
Camay
(1926)
Pampers
(1961)
Luvs
(1976)
Charmin
(1928)
Puffs
(1960)
Banner
(1982)
Summit
(1992)

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-10
Product Differentiation
 Product form
 Features
 Customization
 Performance
 Conformance
 Durability
 Reliability
 Repairability
 Style

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Service Differentiation
 Ordering ease
 Delivery
 Installation
 Customer training
 Customer
consulting
 Maintenance and
repair
 Returns

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Design Differentiation

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Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch

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Two-Way Product-Line Stretch:
Marriott Hotels
Quality
Economy Superior
Standard Good
Price
High
Above
average
Average
Low Fairfield Inn
(Vacationers)
Courtyard
(Salespeople)
Marriott
(Middle
managers)
Marriott
Marquis
(Top
executives)

15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-15
What is the Fifth P?
Packaging, sometimes called the 5th P,
is all the activities of designing and
producing the container for a product.

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Factors Contributing to the
Emphasis on Packaging
 Self-service
 Consumer affluence
 Company/brand image
 Innovation opportunity

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

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Functions of Labels
Identifies
Grades
Describes
Promotes