by j bañez. is anything that can be offered to a market to satisfy a want or need. goods and/or...
TRANSCRIPT
CHAPTER 11
SETTING PRODUCT STRATEGY
By J Bañez
is anything that can be offered to a market to satisfy a want or need.
goods and/or services
PRODUCT
PRODUCT LEVELSCORE
BENEFITBASIC PRODUCTEXPECTED PRODUCTAUGMENTED PRODUCTPOTENTIAL PRODUCT
PRODUCT CLASSIFICATIO
N SCHEMES
TANGIBILITY
DURABILITY
USE
NON-DURABLE GOODS
DURABLE GOODS SERVICES
PRODUCT CLASSIFICATION
INDUSTRIAL PRODUCTS
CONSUMER PRODUCTS Goods consumer buy for daily use, ordinarily bought by individual/ households for private consumption.
Goods that is consumed by industries and also by other firms.
They enter the production process
CONSUMER GOOD
CLASSIFICATION
CONVENIENCE
PRODUCTS
SHOPPING PRODUCTS
SPECIALTY PRODUCTS
UNSOUGHT PRODUCTS
CONVENIENCE SHOPPING
SPECIALTY UNSOUGHT
INDUSTRIAL GOOD
CLASSIFICATION
INSTALLATIONS
ACCESSORIES
COMPONENTS PARTS &
MATERIALS
RAW MATERIALS
MRO SUPPLIE
SPROFESSIONA
L SERVICES
INSTALLATIONSACCESSORIES RAW MATERIALS
COMPONENTS PARTS &
MATERIALS MRO SUPPLIES
PROFESSIONAL
PRODUCT FORM FEATURES CUSTOMIZATION PERFORMANCE CONFORMANCE DURABILITY RELIABILITY REPAIRABILITY STYLE
PRODUCT DIFFERENTIATION
ORDERING EASE DELIVERY INSTALLATION CUSTOMER TRAINING CUSTOMER CONSULTING MAINTENANCE & REPAIR RETURNS
SERVICE DIFFERENTIATION
Group of features & characteristics of a saleable good which determine its desirability and which can be controlled by a manufacturer to meet basic requirements.
PRODUCT QUALITY
PRODUCT VALUE An assessment of worth of a good or service
Group of diverse but related itemsPRODUCT SYSTEM
PRODUCT MIX Also called as PRODUCT PORTFOLIO /
PRODUCT ASSORTMENT Total variety of a product a firm sells
PRODUCT MIX WIDTH Number of different product lines in the
product mix
PRODUCT MIX LENGTH Number of items in the product mix
PRODUCT MIX DEPTH
Refers to how closely related the various product line are in end use, production requirements, distribution channels or some other way.
PRODUCT MIX CONSISTENCY
Number of variants offered in each product the line
Some of the product type in product line may be split again into groups
Shows how many subgroups of product line contains
PRODUCT LINE DEPTH
PRODUCT LINE Product mix split into groups A number of products grouped together
based on similar characteristics
PRODUCT LINE STRETCHING
Core product Staplers Specialties Convenience
PRODUCT LINE ANALYSIS
DOWNWARD STRETCH UPWARD STRETCH TWO-WAY STRETCH
PRODUCT MIX
PRODUCT LINE
PRODUCT WIDTH
PRODUCTLENGTH
is all the activities of designing & producing the container of a product
more than just your product’s pretty face
PACKAGING
FACTORS CONTRIBUTING TO THE
EMPHASIS ON PACKAGING
SELF-SERVICE
CONSUMER AFFLUENCE
COMPANY/ BRAND NAME
INNOVATION OPPORTUNIT
Y
PACKAGING
LABELING
OPENING
SIZEDURABILIT
Y
LABELING
OPENING
SIZE AND DURABILITY
LINE FILLING
Removal of the unprofitable products from product line
LINE PRUNING
Product strategy that involves increasing the number of products in an existing product line to take advantage to market place gaps and reduce competition
LINE STRETCHING
Use of an established product brand name for a new item in the same product category
NOTE: BRAND EXTENSION-New product in a totally
different category LINE EXTENSION-Company lengthens its
product line beyond its current range.
LINE EXTENSION
Increasing the number of products within an existing product range with similar products that have additional and/or different features
Technique that attempts to list the stages in the life span of consumer or business products.
PRODUCT LIFE CYLCE
Product Life Cycle Examples Video.flv
NEW PRODUCT◦Transformation of a market opportunity into a product available for sale
NEW PRODUCT DEVELOPEMENT
MAJOR STAGES
IDEA GENERATION IDEA SCREENING IDEA DEVELOPMENT AND TESTING MARKETING STRATEGIES BUSINESS ANALYSIS PRODUCT DEVELOPMENT TEST MARKETING COMMERCIALIZATION
GENERATION
DEVELOPMENT
& TESTING
TEST MARKETING & COMMERCIALIZATION
SCREENING
References:◦ Marketing Management Eleventh Edition, Philip Kotler◦ Marketing Management Eleventh Edition, Philip Kotler◦ Chapter 12 Setting Product Strategy, Kevin Lane Keller, Philip
Kotler◦ Etc. (Marketing Books and Reference)
THANK YOU & GOD BLESS Beloved, I wish above all things that
thou mayest prosper and be in health, even as thy soul prospereth.
3 John 2
And I am sure that God who began the good work within you will keep right
on helping you grow in his grace until his task within you is finally finished…
Philippians 1:6