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Chapter 12 - Setting product strategy. In this chapter, we will address the following questions: What are the characteristics of a product, and how do marketers classify products? How can companies differentiate products? Why is product design important and what factors affect a good design? How can a company build and manage its product mix and product lines? | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Setting Product Strategy Chapter 12 Discussion Questions What are the characteristics of a product, and how do marketers classify products? How can companies differentiate products? Why is product design important and what factors affect a good design? How can a company build and manage its product mix and product lines? Discussion Questions 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? Marketing Planning Needs Wants Marketing planning begins by formulating an offering to meet the needs and wants of the target customers. Figure 12.1 Components of the Market Offering As shown in Figure 12.1 the customer will judge the offering’s: product features and quality, services mix and quality, and price. Product Characteristics/Classifications Experiences Events Properties . | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Setting Product Strategy Chapter 12 Discussion Questions What are the characteristics of a product, and how do marketers classify products? How can companies differentiate products? Why is product design important and what factors affect a good design? How can a company build and manage its product mix and product lines? Discussion Questions 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? Marketing Planning Needs Wants Marketing planning begins by formulating an offering to meet the needs and wants of the target customers. Figure 12.1 Components of the Market Offering As shown in Figure 12.1 the customer will judge the offering’s: product features and quality, services mix and quality, and price. Product Characteristics/Classifications Experiences Events Properties Organizations Information Ideas Places Persons Services Goods As discussed in chapter 1, a product is anything that can be marketed to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. Figure 12.2 Five Product Levels Figure 12.2 shows the five levels of a product. Each of these will be illustrated in more depth on the next slide. Product Levels Customer-value Hierarchy Potential Product (Future augmentations) Core Benefit (Rest and sleep) Basic Product (Bed, bathroom, towels) Expected Product (Clean bed, fresh towels) Augmented Product (Free Internet; free breakfast) Products are comprised of 5 levels. Each level adds more customer value. Here are the product levels using a hotel as an example. Core benefit: service or benefit the customer is really buying. Basic product: marketers turn core benefit into a basic product at this level. Expected product: attributes and conditions buyers expect
