12Setting Product
Strategy
1
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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)