CH. 12 - SETTING PRODUCT STRATEGY
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This document discusses key concepts for setting product strategy. It covers product characteristics and classification, differentiation, relationships between products and brands, and packaging, labeling, warranties and guarantees. The levels of a product from core benefit to potential product are explained. Product durability and tangibility as well as service differentiation tactics are also summarized.
CH. 12 - SETTING PRODUCT STRATEGY
- 1. SETTING PRODUCT STRATEGY CHAPTER 12 MARKETING MANAGEMENT 13 TH EDITION by Philip Kotler & Kevin Keller v49 MARKETING MANAGEMENT MBA in Health, Batch 8 Ateneo Graduate School of Business Anna Sofia Victoria S. Fajardo, M.D. May 15, 2010 http://riafajardo.blogspot.com
- 2. OVERVIEW PRODUCT CHARACTERISTICS & CLASSIFICATIONS DIFFERENTIATION PRODUCT & BRAND RELATIONSHIPS PACKAGING, LABELING, WARRANTIES & GUARANTEES
- 3. PRODUCT ANYTHING OFFERED TO MARKET TO SATISFY A WANT OR NEED Goods, services, experiences, events, persons, places, organizations, ideas MOST IMPORTANT ELEMENT OF MARKETING MIX
- 5. MARKET OFFERING PRICE PRODUCT SERVICES
- 6. 5 PRODUCT LEVELS CORE BENEFIT BASIC PRODUCT EXPECTED PRODUCT AUGMENTED PRODUCT POTENTIAL PRODUCT
- 7. 5 PRODUCT LEVELS NEW WAYS TO SATISFY CUSTOMERS POTENTIAL PRODUCT VEGGIES PREPARED WITH DIPS, FRUITS IN BASKETS AUGMENTED PRODUCT FRESH FRUITS & VEGGIES, JUICES, CANNED GOODS EXPECTED PRODUCT FRUITS & VEGETABLES BASIC PRODUCT HEALTHY FOOD CORE BENEFIT
- 8. PRODUCT CLASSIFICATION DURABILITY & TANGIBILITY NON-DURABLE GOODS Tangible, few uses Induce trial & build preference Ex. Beer, soap
- 9. PRODUCT CLASSIFICATION DURABLE GOODS Tangible, many uses Personal selling & service Ex. Refrigerators, clothing
- 10. PRODUCT CLASSIFICATION SERVICES Intangible, inseparable, variable Quality control, supplier credibility Ex. Legal advice, health services
- 12. PRODUCT DIFFERENTIATION FORM FEATURES CUSTOMIZATION PERFORMANCE QUALITY
- 13. PRODUCT DIFFERENTIATION CONFORMANCE QUALITY All products identical & meet specifications DURABILITY Product’s expected operating life RELIABILITY Product will not malfunction or fail within specified time period
- 14. PRODUCT DIFFERENTIATION REPAIRABILITY Ease of fixing a product DIY STYLE Product’s look and feel to the buyer
- 15. DESIGN WELL-DESIGNED PRODUCT Pleasant to look at Easy to open Install, repair & dispose of
- 16. SERVICES DIFFERENTIATION ORDERING EASE INSTALLATION DELIVERY
- 17. SERVICES DIFFERENTIATION CUSTOMER CONSULTING CUSTOMER TRAINING
- 18. SERVICES DIFFERENTIATION MAINTENANCE & REPAIR Ex. HP offers “e-support” RETURNS Unavoidable reality of doing business
- 19. PRODUCT & BRAND RELATIONSHIPS
- 20. PRODUCT HIERARCHY PRUDENTIAL RENEWABLE TERM LIFE INSURANCE ITEM TERM LIFE INSURANCE PRODUCT TYPE LIFE INSURANCE PRODUCT LINE FINANCIAL INSTRUMENTS PRODUCT CLASS SAVINGS & INCOME PRODUCT FAMILY SECURITY NEED FAMILY
- 21. PRODUCT SYSTEMS & MIXES PROCTOR & GAMBLE Charmin (1928) Bounty (1965) Pampers (1961) Luvs (1976) Ivory (1879) Camay (1926) Zest (1952) Safeguard (1963) Oil of Olay (1993) Gleem (1952) Crest (1955) Ivory Snow (1930) Tide (1946) PRODUCT LINE LENGTH PAPER PRODUCTS DISPOSABLE DIAPERS BAR SOAP TOOTHPASTE DETERGENTS PRODUCT- MIX WIDTH
- 22. PACKAGING, LABELING, WARRANTIES & GUARANTEES
- 23. PACKAGING All activities of designing and producing the container for a product. 3 LEVELS OF MATERIALS Primary Package Secondary Package Shipping Package
- 24. OBJECTIVES OF PACKAGING IDENTIFY THE BRAND CONVEY DESCRIPTIVE & PERSUASIVE INFORMATION FACILITATE PRODUCT TRANSPORTATION & PROTECTION ASSIST AT-HOME STORAGE AID PRODUCT CONSUMPTION
- 25. MARKETING TOOL SELF-SERVICE Ex. Shopper in supermarket CONSUMER AFFLUENCE Ex. Customer willing to pay more for better packaging
- 26. MARKETING TOOL COMPANY & BRAND IMAGE Ex. Garnier Fructis - bright green hair care packaging INNOVATION OPPORTUNITY Ex. Heinz EZ Squirt ketchup & upside-down bottle
- 27. LABELING IDENTIFIES PRODUCT DESCRIBE PRODUCT PROMOTE PRODUCT
- 28. WARRANTIES & GUARANTEES All sellers are legally responsible for buyer’s normal or reasonable expectations. WARRANTIES Formal statements of expected product performance by manufacturer. Products can be returned to manufacturer for repair, replacement, or refund.
- 29. WARRANTIES & GUARANTEES EXTENDED WARRANTIES Best Buy & Circuit City GENERAL & SPECIFIC GUARANTEES P&G - product returned if customer satisfaction not met CROSS - pens & pencils guaranteed for life
- 30. SUMMARY PRODUCT CHARACTERISTICS 5 PRODUCT LEVELS DURABILITY & TANGIBILITY PRODUCT DIFFERENTIATION SERVICE DIFFERENTIATION
- 31. SUMMARY PRODUCT HIERARCHY PRODUCT SYSTEMS & MIXES PACKAGING PACKAGING AS MARKETING TOOL WARRANTIES & GUARANTEES
- 33. SETTING PRODUCT STRATEGY CHAPTER 12 MARKETING MANAGEMENT 13 TH EDITION by Philip Kotler & Kevin Keller v49 MARKETING MANAGEMENT MBA in Health, Batch 8 Ateneo Graduate School of Business Anna Sofia Victoria S. Fajardo, M.D. May 15, 2010 http://riafajardo.blogspot.com
Editor's Notes
- #13: Size, shape, physical structure of product Supplement basic function Individualize market offerings Low, average, high, or superior
- #17: Ex. Baxter placed computer terminals in hospitals Ex. Levi’s uses Quick Response Systems (QRS) Buyers of heavy equipment
- #18: Ex. GE also trains users of X-ray equipments Ex. Customer service