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12SettingProductStrategy,1,ChapterQuestions,Whatarethecharacteristicsofproductsandhowdomarketersclassifyproducts?Howcancompaniesdifferentiateproducts?Whyisproductdesignimportantandwhatfactorsaffectagooddesign?,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-2,ChapterQuestions,Howcanacompanybuildandmanageitsproductmixandproductlines?Howcancompaniescombineproductstocreatestrongco-brandsoringredientbrands?Howcancompaniesusepackaging,labeling,warranties,andguaranteesasmarketingtools?,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-3,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-4,WhatisaProduct?,Aproductisanythingthatcanbeofferedtoamarkettosatisfyawantorneed,includingphysicalgoods,services,experiences,events,persons,places,properties,organizations,information,andideas.,Figure12.1ComponentsoftheMarketOffering,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-5,Figure12.2FiveProductLevels,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-6,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-7,ProductClassificationSchemes,Durability,Tangibility,Use,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-8,DurabilityandTangibility,Nondurablegoods,Durablegoods,Services,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-9,ConsumerGoodsClassification,Convenience,Shopping,Specialty,Unsought,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-10,IndustrialGoodsClassification,MaterialsandpartsCapitalitemsSupplies/businessservices,ProductDifferentiation,ProductformFeaturesCustomizationPerformanceConformance,DurabilityReliabilityRepairabilityStyle,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-11,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-12,ServiceDifferentiation,OrderingeaseDeliveryInstallationCustomertrainingCustomerconsultingMaintenanceandrepairReturns,Design,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-13,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-14,TheProductHierarchy,ProductSystemsandMixes,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-15,Figure12.3Product-ItemContributionstoaProductLinesTotalSalesandProfits,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-16,Figure12.4ProductMapforaPaper-ProductLine,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-17,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-18,LineStretching,Down-MarketStretch,Up-MarketStretch,Two-WayStretch,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-19,Product-MixPricing,Product-linepricingOptional-featurepricingCaptive-productpricingTwo-partpricingBy-productpricingProduct-bundlingpricing,IngredientBranding,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-20,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-21,WhatistheFifthP?,Packaging,sometimescalledthe5thP,isalltheactivitiesofdesigningandproducingthecontainerforaproduct.,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-22,FactorsContributingtotheEmphasisonPackaging,Self-serviceConsumeraffluenceCompany/brandimageInnovationopportunity,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-23,PackagingObjectives,IdentifythebrandConveydescriptiveandpersuasiveinformationFacilitateproducttransportationandprotectionAssistat-homestorageAidproductconsumption,FunctionsofLabels,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall12-24,ForReview,Whatarethecharacteristicsofproductsandhowdomarketersclassifyproducts?Howcancompaniesdifferentiateproducts?Whyisproductdesignimportantandwhatfactorsaffectagooddesign?,Copyright2011PearsonEducation,Inc.PublishingasPrenticeHall2-25,AlsoForReview,Howcanacompanybuildandmanageitsproductmixandproductlines?Howcancompaniesc

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