Chapter

13
Setting
Product Strategy

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 Product Characteristics
and Classifications
• Product
– Anything that can be
offered to a market to
satisfy a want or need,
including physical goods,
services, experiences,
events, persons, places,
properties, organizations,
information, and ideas

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 Figure 13.1
Components Of The Market Offering

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 Product Levels: The Customer-Value
Hierarchy
• Figure 13.2: Five Product Levels

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 DURABILITY AND
TANGIBILITY
• Nondurable goods
– shampoo.
– purchased frequently, the appropriate strategy is to
make them available in many
– locations,
– advertise heavily to induce trial and build
preference.

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 DURABILITY AND
TANGIBILITY
2. Durable goods
– normally survive many uses: refrigerators,
machine tools, and clothing.
– personal selling and service, command a higher
margin, and require more seller
– guarantees.

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 DURABILITY AND
TANGIBILITY
3. Services
– supplier credibility, and adaptability.
– Examples include haircuts, legal advice, and
appliance repairs.
– intangible, inseparable, variable, and perishable
products that normally require more quality
control

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Consumer-Goods Classification

Convenience

Shopping

Specialty

Unsought

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Consumer-Goods Classification

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 Product Differentiation
• Form
•
• Reliability
Features
• Performance quality • Repairability
• Conformance quality • Style
• Durability • Customization

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 Services Differentiation

 Ordering ease
 Delivery
 Installation
 Customer training
 Customer consulting
 Maintenance and repair
 Returns

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 Design
• Design
– The totality of
features that affect
the way a product
looks, feels, and
functions to a
consumer

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 Product Systems
and Mixes
• Product system
• Product
mix/assortment
– Width
– Length
– Depth
– Consistency

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 PRODUCT-MIX WIDTH AND PRODUCT-LINE LENGTH FOR
PROCTOR& GAMBLE PRODUCTS

Product-Mix Width
Disposable Paper
Detergents Toothpaste Bar Soap Diapers Tissue
Ivory Gleem (1952) Ivory Pampers Charmin
Snow (1879) (1961) (1928)
(1930) Crest (1955)
Kirk’s Luvs Puffs
PRODUCT-
Dreft (1885) (1976) (1960)
LINE
(1933)
LENGTH
Lava Banner
Tide (1893) (1982)
(1946)
Camay Summit
Cheer (1926) (1992)
(1950)

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 Product line length
• Line stretching
– Down-market stretch
– Up-market stretch
– Two-way stretch
• Line filling
• Line modernization
• Line featuring
• Line pruning
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 TWO-WAY PRODUCT-LINE
STRETCH: MARRIOTT HOTELS
Quality
Economy Standard Good Superior
Marriott
High Marquis
(Top
executives)
Price

Above Marriott
average (Middle
managers)

Average Courtyard
(Salespeople)

Fairfield Inn
Low (Vacationers)
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