setting product strategy

shaping the market offerings -- chapter 12-- summary



Product is the first and most important element of the marketing mix.Product strategy calls for making coordinated decisions on product mixes, product lines, brands, and packaging and labeling.



And planting its market offering, the marketer needs to think through the five levels of the product:

• the core benefit
• the basic product
• the expected product
• the augmented product
• the potential product

Products can be classified in several ways. In terms of durability and reliability, products can be non-durable goods, durable goods, or services. In the consumer goods category, products are convenience goods, shopping goods, specialty goods, or unsought goods. In the industrial goods category, products fall into one of three categories: materials and parts, capital items, or supplies and business services.



Brands can be differentiated on the basis of a number of different product or service dimensions;

• product form
• features
• performance
• conformance
• durability
• reliability
• repair ability
• style and design
• service dimensions
• delivery
• installation
• customer training
• customer consulting
• maintenance and repair

Most companies sell more than one product. In product mix can be classified according to wait, length, death, and consistency. These four dimensions are the tools for developing the company's marketing strategy and deciding which product lines to grow, maintain, harvest, and divest. To analyze a product line and decide how many resources should be invested in that line, product line managers need to look at sales and profits and market profile.



A company can change the product component of its marketing mix by lengthening its product via line stretching or line filling, by modernizing its products, by featuring certain products, and by pruning its products to eliminate the least profitable.



Brands are often sold or marketed jointly with other brands. Ingredient brands and co-brands can add value assuming they have equity and are perceived as fitting appropriately.



Physical products have to be packaged and labeled. Well-designed packages can create convenience value for customers and promotional value for producers. In effect, they can act as "five second commercials" for the product. Warranties and guarantees can offer further assurance to the consumer.