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Kotler KellerPhillip Kevin Lane
Marketing Management 14e
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Setting Product Strategy
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Discussion Questions
1. What are the characteristics of a
product, and how do marketers classify
products?
2. How can companies differentiateproducts?
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 productsto 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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Components of the Market
Offering
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Product Characteristics/Classifications
Experiences
Events
Properties
Organizations
Information
Ideas
Places
Persons
Services
Goods
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Five Product Levels
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Product Levels
Customer-value
Hierarchy
Potential Product
(Future augmentations)
Core Benefit(Rest and sleep)
Basic Product
(Bed, bathroom, towels)
Expected Product
(Clean bed, fresh towels)
Augmented Product(Free Internet; free breakfast)
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Product Classifications
Nondurable goods
Services
Durable goods
Durability and Tangibility
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Product Classifications
Consumer-Goods
Convenience goods
Shopping goods
Specialty goods
Unsought goods
Staples
Impulse goods
Emergency goods
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Product Classifications
Industrial-Goods
Raw materials
Materials and Parts
Manufactured
materialsCapital Items
Installations
EquipmentSupplies andbusiness Services
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Product and Services Differentiation
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Product Differentiation
Form
Customization
Performance
Reliability
Features
Durability
Conformance
Repairability
Style
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Services Differentiation
Ordering Ease
Delivery &
Returns
Installation
Training
Maintenance & Repair
Customer
Consulting
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Design
Functional
Benefits
AestheticBenefits
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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 SystemProduct
Mix
Width
Length
Depth
Consistency
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Proctor & Gamble Product Mix
Detergents Toothpaste Bar SoapDisposable
Diapers
Paper
Products
Ivory Snow Gleem Ivory Pampers Charmin
Dreft Crest Camay Luvs Puffs
Tide Zest Bounty
Cheer Safeguard
Dash Oil of Olay
Bold
Gain
Era
Product Mix Width
Product
Line
Length
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Product Line Analysis
Sales and Profit
Market Profile
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Product-Item Contributions
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Product Map
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Product Line Length
Line stretching
Up-market stretch
Down-market stretch
Two-way
stretch
Line modernization,featuring, and pruning
Line filling
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Product Mix Pricing
Product line pricing
Optional-feature pricing
Captive-product 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 storage5. Aid consumption
Labeling Objectives
1. Identify
2. Grade
3. Describe
4. Promote