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12 Setting Product Strategy
12 Setting Product Strategy
12
Setting Product Strategy
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
Product
12-3
Figure 12.2 Five Product Levels
Core benefit
Basic product
Expected product
Augmented product
Potential product
12-4
Product Classification Schemes
Durability
Tangibility
Use
12-5
Durability and Tangibility
Nondurable goods
Durable goods
Services
12-6
Consumer Goods Classification
Convenience
Shopping
Specialty
Unsought
12-7
Industrial Goods Classification
Materials and parts
Capital items
Supplies/business services
12-8
Product Differentiation
Product form Style
Features Design
Performance Ordering ease
Conformance Delivery
Durability Installation
Reliability Customer training
Reparability Customer consulting
Maintenance
12-9
The Product Hierarchy
Need family
Product family
Product class
Product line
Product type
Item
12-10
Product Systems and Mixes
Product system
Product mix
Product assortment
Depth
Length
Width
Consistency
12-11
Product Line Analysis
Core product
Staples
Specialties
Convenience items
12-12
Line Stretching
Down Market Stretch
Up-Market Stretch
Two-Way Stretch
12-13
Product-Mix Pricing
Product-line pricing
Optional-feature pricing
Captive-product pricing
Two-part pricing
By-product pricing
Product-bundling pricing
12-14
Packaging: The 5th P
12-15
Packaging has been influenced by:
Self-service
Consumer affluence
Company and brand image
Innovation opportunity
12-16
Functions of Labels
Identifies
Grades
Describes
Promotes
12-17