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MARKETING MANAGEMENT 12 th edition

MARKETING MANAGEMENT 12 th edition. 12 Setting Product Strategy. Kotler Keller. 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?

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MARKETING MANAGEMENT 12 th edition

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  1. MARKETING MANAGEMENT12th edition 12 Setting Product Strategy Kotler Keller

  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? • How can companies use packaging, labeling, warranties, and guarantees as marketing tools?

  3. At the heart of a great brand is a great product

  4. Product Anything that can be offered to a market to satisfy a want or need.

  5. Figure 12.1 Components of the Market Offering

  6. Figure 12.2 Five Product Levels

  7. Product Classification Schemes Durability Tangibility Use

  8. Durability and Tangibility Nondurable goods Durable goods Services

  9. Consumer Goods Classification Convenience Shopping Specialty Unsought

  10. Industrial Goods Classification Materials and parts Capital items Supplies/ business services

  11. Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance Product Differentiation

  12. Dunkin’ Donuts’ Differentiation

  13. Design Differentiation

  14. Maintenance and Repair

  15. The Product Hierarchy Item Product type Product line Product class Product family Need family

  16. Product Systems and Mixes • Product system • Product mix • Product assortment • Depth • Length • Width • Consistency

  17. Product Line Analysis Core product Staples Specialties Convenience items

  18. Figure 12.3 Product-Item Contributions to a Product Line’s Total Sales and Profits

  19. Figure 12.4 Product Map

  20. Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch

  21. Line Filling

  22. Product-Mix Pricing • Product-line pricing • Optional-feature pricing • Captive-product pricing • Two-part pricing • By-product pricing • Product-bundling pricing

  23. Product Line Pricing

  24. Two-Part Pricing

  25. Co-branding

  26. Ingredient Branding

  27. Packaging: The 5th P All the activities of designing and producing the container for a product.

  28. Packaging has been influenced by… Self-service Consumer affluence Company/brand image Innovation opportunity

  29. Innovations in Packaging

  30. Functions of Labels Identifies Grades Describes Promotes

  31. Warranties and Guarantees

  32. Marketing Debate • With products, is it form or function? Take a position: • Product functionality is the key to brand success. 2. Product design is the key to brand success.

  33. Marketing Discussion • Consider the different means of differentiating products and services. Which ones have the most impact on your choices? Why?

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