TAILIEUCHUNG - Marketing management Chapter 12

CHAPTER 12 SETTING PRODUCT STRATEGY. At the heart of a great brand is a great product. Product is a key element in the market offering. Market leaders generally offer products and services of superior quality. | PART SHAPING THE MARKET OFFERINGS IN THIS CHAPTER WE WILL ADDRESS THE FOLLOWING QUESTIONS 1 What are the characteristics of products and how can they be classified 2. How can companies differentiate products 3- How can a company build and manage its product mix and product lines 4 How can companies combine products to create strong cobrands or ingredient brands 5. How can companies use packaging labeling warranties and guarantees as marketing tools 8TEI CHAPTER 12 SETTING PRODUCT STRATEGY At the heart of a great brand is a great product. Product is a key element in the market offering. Market leaders generally offer products and services of superior quality. erfiaps no other high-end product combines the skilled crafts-t manship market dominance and longevity of Steinway pianos. -------- One-hundred-fiftyyears old the family-run company retains many of the same manufacturing processes from its humble origins in New York City. Although mass-produced pianos take roughly 20 days to build - building a Steinway takes nine months to a year. A Steinway piano requires parts most of them handcrafted and relies on 120 technical patents and innovations. Despite the fact that it can produce only a few thousand pianos a year and has only 2 percent of all keyboard unit safes in the United States Steinway commands 25 percent of the sales dollars and 35 percent of the profits. Not surprisingly Steinway owns the market in concert haffs where it has a market share over 95 percent and with composers and musicians. A Steinway concert grand the great product at flic heart ol a great brand. 371 PART S SHAPING THE MARKET OFFERINGS Marketing planning begins with formulating an offering to meet target customers needs or wants. The customer will judge the offering by three basic elements product features and quality services mix and quality and price see Figure . In this chapter we examine product rn Chapter 13 services and in Chapter 14 prices. All three elements must be meshed

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