1. MARKETING MANAGEMENT12th edition 12Setting Product Strategy KotlerKeller

2. Chapter Questions What are the characteristics of products and howcan they be classified? How can companies differentiate products? How can a company build and manage itsproduct mix and product lines? How can companies combine products to createstrong co-brands or ingredient brands? How can companies use packaging, labeling,warranties, and guarantees as marketing tools?12-2 3. At the heart of a great brand is agreat product 12-3 4. ProductAnything that can be offered to a market tosatisfy a want or need.12-4 5. Figure 12.1 Components of theMarket Offering12-5 6. Figure 12.2 Five Product Levels12-6 7. Product Classification Schemes DurabilityTangibility Use 12-7 8. Durability and Tangibility Nondurable goods DurableServicesgoods 12-8 9. Consumer Goods Classification ConvenienceShoppingSpecialty Unsought12-9 10. Industrial Goods ClassificationMaterials and partsSupplies/Capital itemsbusiness services 12-10 11. Product Differentiation Product form Style Features Design Performance Ordering ease Conformance Delivery Durability Installation Reliability Customer training Reparability Customer consulting Maintenance 12-11 12. Dunkin Donuts Differentiation12-12 13. Design Differentiation 12-13 14. Maintenance and Repair 12-14 15. The Product Hierarchy ItemProduct typeProduct line Product class Product familyNeed family12-15 16. Product Systems and Mixes Product system Product mix Product assortment Depth Length Width Consistency 12-16 17. Product Line AnalysisCore product Staples Convenience Specialtiesitems 12-17 18. Figure 12.3 Product-Item Contributions toa Product Lines Total Sales and Profits12-18 19. Figure 12.4 Product Map12-19 20. Line StretchingDown-Market Stretch Up-Market StretchTwo-Way Stretch12-20 21. Line Filling 12-21 22. Product-Mix Pricing Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing 12-22 23. Product Line Pricing 12-23 24. Two-Part Pricing 12-24 25. Co-branding12-25 26. Ingredient Branding12-26 27. Packaging: The 5 P thAll the activities of designing and producing the container for a product.12-27 28. Packaging has been influenced by Self-serviceConsumer affluence Company/brand imageInnovation opportunity12-28 29. Innovations in Packaging 12-29 30. Functions of LabelsIdentifiesGradesDescribesPromotes 12-30 31. Warranties and Guarantees12-31 32. Marketing Debate With products, is it form or function? Take a position: 4. Product functionality is the key to brand success. 2. Product design is the key to brand success.12-32 33. Marketing Discussion Consider the different meansof differentiating products and services. Which ones have the most impact on your choices?Why?12-33