setting product strategy
DESCRIPTION
Marketing Management Chapter 12TRANSCRIPT
Chapter 12SETTING PRODUCT STRATEGY
Sunshine V. VillanuevaAteneo Graduate School of Business
ph.linkedin.com/in/sunshinevillanueva
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
A product satisfies a need or want.
Physical goods
Services Experiences
Events Properties Information
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
Marketers address 5 product levels
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
Products are classified based on…
A. Durability and tangibility
Products are classified based on…
B. Use
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
Products can be differentiated in…
…while services differ in…
• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance and repair• Returns (policy)
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
Design influences customer decisions
• Design is the totality of features that affect how a product looks, feels, and functions to a consumer.
• A well-designed product means…
To the company: To the customer:
- easy to manufacture- easy to distribute
- pleasant to look at- easy to open, install, etc.
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
Reviewing the product mix is a must!
• Product mix – is the set of all products and
items a seller offers for sale.– has several dimensions:
• Width• Length• Depth• Consistency
Company objectives influence product lines
• Upsell• Cross-sell• Create a product line that protects
against economic ups and downs
Product lines can be lengthened by:
• Line stretching– Down-market stretch– Up-market stretch– Two-way stretch
• Line filling
Good product mix pricing maximizes profit
• Product line pricing• Optional-feature pricing• Captive-product pricing• Two-part pricing• By-product pricing• Product-bundling pricing
This presentation will discuss the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
The fifth P: Packaging
• Packaging includes all the activities of designing and producing the container for a product
• It is increasingly used as a marketing tool, together with labeling
Warranties and guarantees offer further assurance to customers
• Warranties– Formal statements of expected product performance
by manufacturer
• Guarantees– Reduce the buyer’s perceived risk– Suggest that the product is of high quality
This presentation discussed the following:
1. Product characteristics2. Five product levels3. Product classifications4. Product/service differentiation5. Product design importance 6. Managing multiple products7. Other elements of product strategy
Conclusion
At the heart of a great brand is a great product. To achieve market leadership, firms must offer products and services that provide unsurpassed value.
Chapter 12SETTING PRODUCT STRATEGY
Sunshine V. VillanuevaAteneo Graduate School of Business
ph.linkedin.com/in/sunshinevillanueva