Phillip Kevin Lane

Kotler • Keller
Marketing Management • 14e
 1 2
e r
pt
Ch
a 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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 .1
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e
i g u r Components of the Market
F
Offering

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 Product Characteristics/Classifications
Persons • Experiences
• Events
• Properties
• Organizations
• Information
• Ideas

Goods
Places
Services
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i g u r Five Product Levels
F

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Product Levels
Core Benefit
(Rest and sleep)

Basic Product
(Bed, bathroom, towels)

Expected Product Customer-value

(Clean bed, fresh towels)
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
• Staples
Consumer-Goods
• Impulse goods
• Emergency goods
Specialty goods

Convenience goods

Shopping goods Unsought goods

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 Product Classifications
Materials and Parts Industrial-Goods
Manufactured
materials
Capital Items
Raw materials
Installations

Supplies and Equipment

business Services

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Product and Services Differentiation

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Product Differentiation

Form Features

Customization Durability

Performance Conformance

Reliability Repairability

Style

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 Services Differentiation

Customer
Consulting
Delivery &
Ordering Ease
Returns

Training

Installation Maintenance & Repair

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Design

Functional
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 Consistency

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 Proctor & Gamble Product Mix
Product Mix Width

Disposable Paper
Detergents Toothpaste Bar Soap
Diapers Products
Ivory Snow Gleem Ivory Pampers Charmin
Dreft Crest Camay Luvs Puffs
Tide Zest Bounty
Product Cheer Safeguard
Line
Length Dash Oil of Olay
Bold
Gain
Era
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Product Line Analysis
Sales and Profit

Market Profile

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e
i g u r Product-Item Contributions
F

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i g u r Product Map
F

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Product Line Length
Up-market stretch Line modernization,
featuring, and pruning
Line stretching Two-way
stretch

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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Co-Branding and Ingredient Branding
Co-Branding
• Same-company
• Joint venture
• Multi-sponsor
• Retail co-
branding

Ingredient Branding

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Packaging and Labeling
Packaging Objectives
1. Brand identification
2. Persuade
3. Protection
4. At-home storage
5. Aid consumption

Labeling Objectives
1. Identify
2. Grade
3. Describe
4. Promote
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