Marketing Management
Setting product Strategy
BY
Javed Ahmed Shaikh
Session 11
What is a Product?
Many people think that product is tangible ,
but technically a product is 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.
Components of the
Market Offering
Value-based prices
Attractiveness
of the market
offering
Product
features
and quality
Services
mix and
quality
Five Product Levels
In case of a car, the 5 levels of a product are:
• The fundamental level is the Core benefit:
The service or benefit the customer really buying.
Transportation from one place to another.
• The second level is that marketer must turn the core benefit into a basic
product. :
– Brand of the car, looks and design of the car etc.
• Third level the marketer prepare expected Product :
– Decent mileage, proper engine, inflated tires etc.
• At the fourth level Augmented Product :
– After-sale services, insurance policy etc.
• Fifth level indicates, Potential Product which encompasses all possible
augmentation and transformation the product or offering might undergo in the
future here companies search for future products to satisfy the needs and
wants of customers. : May run more smoothly as it wears off a little.
Product Classification Schemes
Durability
Tangibility
Use
Durability and Tangibility
Nondurable
goods
Durable
goods
Services
Consumer Goods Classification
Convenience
Shopping
Specialty
Unsought
Product Differentiation
• Product form
• Features
• Customization
• Performance
• Conformance
• Durability
• Reliability
• Repairability
• Style
Service Differentiation
• Ordering ease
• Delivery
• Installation
• Customer training
• Customer consulting
• Maintenance and
repair
• Returns
Product Systems and Mixes
• Product mix
• Product assortment
• Width
• Length
• Depth
• Consistency
Product-Mix Width and Product-Line Length for
Proctor& Gamble Products
Product-Mix Width
Detergents
Toothpaste
Ivory
Snow
(1930)
Gleem (1952)
PRODUCTDreft
LINE
(1933)
LENGTH
Tide
(1946)
Cheer
(1950)
Disposable
Bar Soap
Diapers
Paper
Tissue
Ivory
(1879)
Pampers
(1961)
Charmin
(1928)
Kirk’s
(1885)
Luvs
(1976)
Puffs
(1960)
Crest (1955)
Lava
(1893)
Banner
(1982)
Camay
(1926)
Summit
(1992)
Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
In terms of luxury vehicles, BMW,
Mercedes, Lexus, Acura come in
upscale segment.
In automobile company, Lexus has developed
a new line of hybrid vehicles.
Two-Way Product-Line Stretch:
Marriott Hotels
Economy
Quality
Standard
Good
Marriott
Marquis
(Top
executives)
Price
High
Marriott
(Middle
managers)
Above
average
Average
Fairfield Inn
Low (Vacationers)
Superior
Courtyard
(Salespeople)
What is the Fifth P?
Packaging, sometimes called the fifth
P, is all the activities of designing and
producing the container for a product.
Factors Contributing to the
Emphasis on Packaging
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
Packaging Objectives
• Identify the brand
• Convey descriptive and persuasive
information
• Facilitate product transportation and
protection
• Assist at-home storage
• Aid product consumption
Warranties and Guarantees