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SETTING PRODUCT STRATEGY

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PRODUCT

Anything that can be offered to the market to satisfy a want or need

5 product levels that constitute customer value hierarchy CORE BENEFIT BASIC PRODUCT EXPECTED PRODUCT AUGMENTED PRODUCT POTENTIAL PRODUCT

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Product Classification

DURABILITY & TANGIBILITY(Non-durable, durable goods, services)

CONSUMER GOODS CLASSIFICATION(convenience, shopping, specialty, unsought goods)

INDUSTRIAL GOODS CLASSIFICATION

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Product Differentiation

FORM PERFORMANCE QUALITY CONFORMANCE QUALITY DURABILITY RELIABILITY REPAIRABILITY STYLE

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Service Differentiation

ORDERING EASE DELIVERY INSTALLATION CUSTOMER TRAINING MAINTENANCE & REPAIR

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PRODUCT HIERARCHY Need Family Product Family Product Class Product Line Product Type Item

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PRODUCT MIX

Product Width Product Depth Product Length Product Consistency

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How a company lengthens its product line

LINE STRETCHING Down-Market Stretch Up-Market Stretch Two-Way Stretch

LINE FILLING

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CO-BRANDING

Two or more well-known existing brands are combined into a joint product and marketed together in some ways

The brands separately have brand equity, awareness, and image

The brands should have logical fit as well

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Co-Branding: Pros & Cons

The co-branded product may be convincingly positioned

It can generate greater sales It can reduce the cost of

product introduction It can help companies to learn

how others approach their customers

The risks from becoming aligned with another brand in the minds of consumers

Lack of control

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Ingredient Branding

It is a special case of co-branding involving creating brand equity for components that are contained within other branded products

Consumers will not buy a host product that doesn’t contain the branded ingredients

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PACKAGING

All the activities of designing and producing the container for a product

Three levels of packaging Primary package Secondary package Shipping package

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PACKAGING ELEMENTS Size & shape Materials Colors Text & graphics

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Factors affecting the growing use of packaging as marketing tools

SELF-SERVICE CONSUMER AFFLUENCE COMPANY & BRAND IMAGE INNOVATION OPPORTUNITY