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12

Setting Product Strategy

Marketing Management, 13th ed


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.
Figure 12.1 Components of the
Market Offering
Value-based prices

Attractiveness
of the market
offering

Product Services
features mix and
and quality quality
Figure 12.2 Five Product Levels
Product Classification Schemes

Durability

Tangibility

Use
Durability and Tangibility

Nondurable
goods

Durable
Services
goods
Consumer Goods Classification

Convenience Shopping

Specialty Unsought
Product Differentiation
• Product form
• Features
• Customization
• Performance
• Conformance
• Durability
• Reliability
• Repairability
• Style
Service Differentiation

• Ordering ease
• Delivery
• Installation
• Customer training
• Customer consulting
• Maintenance and
repair
• Returns
Design Differentiation
Maintenance and Repair
Product Systems and Mixes

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

Down-Market
Down-Market Stretch
Stretch

Up-Market
Up-Market Stretch
Stretch

Two-Way
Two-Way Stretch
Stretch
Two-Way Product-Line Stretch:
Marriott Hotels

Quality
Economy Standard Good Superior
Marriott
High Marquis
(Top
executives)
Price

Above Marriott
average (Middle
managers)

Average Courtyard
(Salespeople)

Fairfield Inn
Low (Vacationers)
Product Line Pricing
What is the Fifth P?

Packaging, sometimes called the


fifth P, is all the activities of
designing and producing the
container for a product.
Factors Contributing to the
Emphasis on Packaging

Self-service

Consumer affluence

Company/brand image

Innovation opportunity
Packaging Objectives

• Identify the brand


• Convey descriptive and persuasive
information
• Facilitate product transportation and
protection
• Assist at-home storage
• Aid product consumption
Functions of Labels

Identifies

Grades

Describes

Promotes
Warranties and Guarantees