Chapter 12 Setting the Product and Branding Strategy
Chapter 12 Setting the Product and Branding Strategy
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Copyright © 2003 Prentice-Hall, Inc.
Kotler on Marketing
The best way to hold customers is to constantly figure out how to give them more for less.
14-2
Copyright © 2003 Prentice-Hall, Inc.
Chapter Objectives
In this chapter, the following topics will be covered:
Product Characteristics and Classifications Product Differentiation Services Differentiation Product & Brand Relationships Packaging, Labeling, Warranties and Guarantees
14-3
Copyright © 2003 Prentice-Hall, Inc.
Product Characteristics and Classifications
- Many people think a product is a tangible offering, but, it can be more than that. - Simply, a product is the solution of the customers’ problems. - Broadly, a product is anything that can be offered to a market to satisfy a want or need. Entities of Products: - Physical goods - Services
- Experiences - Persons - Properties - Information - Events - Places - Organizations - Ideas
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Copyright © 2003 Prentice-Hall, Inc.
Product Characteristics and Classifications
Figure : Components of the Market Offering 14-5
Copyright © 2003 Prentice-Hall, Inc.
Product Characteristics and Classifications
Figure: Five Product Levels
Copyright © 2003 Prentice-Hall, Inc.
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Product Characteristics and Classifications Product levels: Customer Value Hierarchy: - In planning its market offering, the marketer needs to address five product levels. Each level adds more customer value, and the five constitute a customer value hierarchy.
Core benefit: the service or benefit the customer is really buying. Ex: for a hotel, rest & sleep Basic product: the marketer must turn the core benefit into a basic product. Ex: a bed, bathroom, towels, desk, dresser and closet. Expected product: a set of attributes and conditions buyers normally expect when they purchase the product. Ex: a clean bed, fresh towels, working lamps.
14-7
Copyright © 2003 Prentice-Hall, Inc.
14-1
Copyright © 2003 Prentice-Hall, Inc.
Kotler on Marketing
The best way to hold customers is to constantly figure out how to give them more for less.
14-2
Copyright © 2003 Prentice-Hall, Inc.
Chapter Objectives
In this chapter, the following topics will be covered:
Product Characteristics and Classifications Product Differentiation Services Differentiation Product & Brand Relationships Packaging, Labeling, Warranties and Guarantees
14-3
Copyright © 2003 Prentice-Hall, Inc.
Product Characteristics and Classifications
- Many people think a product is a tangible offering, but, it can be more than that. - Simply, a product is the solution of the customers’ problems. - Broadly, a product is anything that can be offered to a market to satisfy a want or need. Entities of Products: - Physical goods - Services
- Experiences - Persons - Properties - Information - Events - Places - Organizations - Ideas
14-4
Copyright © 2003 Prentice-Hall, Inc.
Product Characteristics and Classifications
Figure : Components of the Market Offering 14-5
Copyright © 2003 Prentice-Hall, Inc.
Product Characteristics and Classifications
Figure: Five Product Levels
Copyright © 2003 Prentice-Hall, Inc.
14-6
Product Characteristics and Classifications Product levels: Customer Value Hierarchy: - In planning its market offering, the marketer needs to address five product levels. Each level adds more customer value, and the five constitute a customer value hierarchy.
Core benefit: the service or benefit the customer is really buying. Ex: for a hotel, rest & sleep Basic product: the marketer must turn the core benefit into a basic product. Ex: a bed, bathroom, towels, desk, dresser and closet. Expected product: a set of attributes and conditions buyers normally expect when they purchase the product. Ex: a clean bed, fresh towels, working lamps.
14-7
Copyright © 2003 Prentice-Hall, Inc.