Lecture Marketing management: Chapter 12 - Phillip Kotler, Kevin Lane Keller

Phillip

Kevin Lane

Kotler • Keller
Marketing Management • 14e


Ch

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Setting Product
Strategy


Discussion Questions
1. What are the characteristics of a
product, and how do marketers
classify products?
2. How can companies differentiate
products?
3. Why is product design important and
what factors affect a good design?
4. How can a company build and

manage its product mix and product
lines?

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Discussion Questions
5. How can companies combine
products to create strong co-brands
or ingredient brands?
6. How can companies use packaging,
labeling, warranties, and guarantees
as marketing tools?

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Marketing Planning

Needs

Wants

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Components of the
Market Offering

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Product Characteristics/Classifications
ã
ã
ã
ã
ã
ã

Persons

Experiences
Events
Properties

Organizations
Information
Ideas

Goods
Services
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Places
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Five Product Levels

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Product Levels
Core Benefit
(Rest and sleep)

Basic Product
(Bed, bathroom, towels)

Expected Product
(Clean bed, fresh towels)

Customer-value
Hierarchy

Augmented Product
(Free Internet; free breakfast)

Potential Product
(Future augmentations)
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Product Classifications
Durability and
Tangibility
Nondurable
goods

Durable
goods
Services
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Product Classifications
ã
ã
ã

Staples
Impulse goods
Emergency goods

Consumer-Goods
Specialty goods

Convenience
goods

Shopping goods
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Unsought
goods

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Product Classifications
Materials and Parts

Raw materials

Manufacture
d
materials

Supplies and
business
Services
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Industrial-Goods
Capital Items
Installations

Equipment

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Product and Services
Differentiation

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Product Differentiation
Form

Features

Customizatio
n

Durability

Performance

Conformanc
e
Repairability

Reliability
Style
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Services Differentiation
Customer
Consulting
Delivery &
Returns

Ordering
Ease

Training

Installation
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Maintenance & Repair
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Design
Function
al
Benefits

Aesthetic
Benefits

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Product and Brand
Relationships
Product Hierarchy
Product
Systems/Mixes
Product Line Analysis
Product Line Length
Product Mix Pricing

Co-Branding
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Product Hierarchy
Need Family
Product Family
Product Class
Product Line
Product Type
Item
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Product Systems and Mixes

Product
System

Consisten
cy

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Proctor & Gamble Product Mix
Product Mix Width

Bar Soap

Disposabl Paper
e Diapers Products

Ivory Snow Gleem
Dreft
Crest

Ivory
Camay

Pampers
Luvs

Tide

Zest

Cheer

Safeguar
d

Dash

Oil of
Olay

Detergents

Produc
t Line
Length

Toothpast
e

Charmin
Puffs
Bounty

Bold
Gain
Era

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Product Line Analysis
Sales and Profit

Market Profile

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Product-Item
Contributions

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Product Map

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Product Line Length
Up-market
stretch

Line
stretching

Twoway
stretch

Line modernization,
featuring, and
pruning

Down-market
stretch

Line
filling

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Product Mix Pricing

Product line pricing

Captive-product pricing

Optional-feature pricing

Two-part pricing

By-product pricing

Product-bundling
pricing

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