12 Setting Product Strategy 1. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 12-2 What is a Product? A product is anything that.

12Setting Product

Strategy

1

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 12-2

What is a Product?

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.

Figure 12.1 Components of the Market Offering

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Figure 12.2 Five Product Levels

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Consumer Goods Classification

Convenience

Unsought

Shopping

Specialty

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Product-Mix Width and Product-Line Length for Proctor& Gamble Products

PRODUCT-LINE LENGTH

Product-Mix Width

Detergents ToothpasteDisposable Bar Soap Diapers

Paper Tissue

Ivory Snow (1930)

Dreft (1933)

Tide (1946)

Cheer (1950)

Gleem (1952)

Crest (1955)

Ivory (1879)

Kirk’s (1885)

Lava (1893)

Camay (1926)

Pampers (1961)

Luvs (1976)

Charmin (1928)

Puffs (1960)

Banner (1982)

Summit (1992)

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Product Differentiation

Product form Features Customization Performance Conformance Durability Reliability Repairability Style

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Service Differentiation

Ordering ease Delivery Installation Customer training Customer

consulting Maintenance and

repair Returns

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Design Differentiation

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Line Stretching

Down-Market Stretch

Up-Market Stretch

Two-Way Stretch

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Two-Way Product-Line Stretch: Marriott Hotels

QualityEconomy SuperiorStandard Good

Pri

ceP

rice

High

Aboveaverage

Average

Low Fairfield Inn(Vacationers)

Courtyard(Salespeople)

Marriott(Middle

managers)

MarriottMarquis

(Topexecutives)