MARKETING MANAGEMENT
12th edition
12
Setting Product
Strategy
12-2
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?
12-3
12-4
Product
12-5
12-6
12-7
Product Classification Schemes
Durability
Use
12-8
Durability and Tangibility
Nondurable
goods
Services
Durable
12-9
Consumer Goods Classification
Convenience
Unsought
Shopping
12-10
Industrial Goods Classification
Materials and parts
Supplies/
12-11
Product Differentiation
• Product form • Features
• Performance • Conformance • Durability
• Reliability • Reparability
• Style • Design
• Ordering ease • Delivery
• Installation
• Customer training
12-12
12-13
12-14
12-15
The Product Hierarchy
Need family Product family
Product class Product line Product type
12-16
Product Systems and Mixes
• Product system • Product mix
• Product assortment • Depth
• Length • Width
12-17
Product Line Analysis
Convenience
items
Core product
Staples
12-18
12-19
12-20
Line Stretching
Down-Market Stretch Down-Market Stretch
Up-Market Stretch Up-Market Stretch
12-21
12-22
Product-Mix Pricing
• Product-line pricing
• Optional-feature pricing
• Captive-product pricing
• Two-part pricing
• By-product pricing
12-23
12-24
12-25
12-26
12-27
Packaging: The 5
thP
12-28
Packaging has been influenced by…
Self-service
Self-service
Consumer affluence
Consumer affluence
Company/brand image
Company/brand image
12-29
12-30
Functions of Labels
Identifies
Grades
Describes
12-31
12-32
Marketing Debate
With products, is it form or function?
Take a position:
1. Product functionality is the key to brand success.
12-33
