Lectures Marketing management: Chapter 12 - ThS. Nguyễn Tiến Dũng

 Lectures "Marketing management - Chapter 12: Product strategy" provides students with the knowledge: Product characteristics and classifications; product and service differentiation; product and brand relationship; packaging, labeling, warranties and guarantees. Invite you to refer to the disclosures.

CHAPTER 12

PRODUCT STRATEGY

Nguyen Tien Dung, MBA

Email: dung.nguyentien3@hust.edu.vn

Chapter Questions

1 What are the characteristics of products,

and how do marketers classify products?

2 How can companies differentiate

products?

3 Why is product design important and what

factors affect a good design?

4 How can a company build and manage its

product mix and product lines?

5 How can companies combine products to

create strong co-brands or ingredient

brands?

6 How can companies use packaging,

labeling, warranties, and guarantees as

Main Contents

1. Product Characteristics and Classifications

2. Product and Service Differentiation

3. Product and Brand Relationship

4. Packaging, Labeling, Warranties and

Guarantees

3

1 1 Product Characteristics and Classifications

What is a product?

offered to a market to

satisfy a want or need,

including physical goods,

Components of the

Market Offering

● Value based prices

● Product features and quality

● Services mix and quality

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Five Product Levels

A mobile phone:

● Core benefit: communication

● Basic product: screen, keyboard, adapters /

battery, speakers

● Expected product: entertainment, checking

mail

● Augmented product: after-sales services

● Potential product: 3D image, health-checking

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A business education

● Core benefit: degree, knowledge

● Basic: lectures, lecturers, facilities (auditoria)

● Expected: modern equipment, foreign

language usage, scholarship

● Augmented: foreign (original) textbook,

e-learning courses / /

● Potential: training courses with foreign

students, career support after graduation,

satellite – robot services ? // school-wide free wifi connection

Product Classification Schemes

● Durability

● Tangibility

● Use

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Durability and Tangibility

● Nondurable goods

● Durable goods

● Services

Consumer Goods Classification

Industrial Goods Classification

● Materials and parts

● Capital items

● Supplies/business services

2 Product and Service Differentiation

Example: Mercedes-Benz

● Design is the totality of features that affect how a

product looks, feels, and functions to a consumer.

● Design offers functional and aesthetic benefits and appeals to both our rational and emotional sides.

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Service Differentiation

CEMEX is one of the world's largest

building materials suppliers and

cement producers Founded in Mexico

in 1906 CEMEX has operations

extending throughout the world, with

production facilities spanning 50

countries in North America, the

Caribbean, South America, Europe,

Asia, and Africa.

Cemex guarantees cement delivery as

fast as placing a pizza order.

Maintenance and Repair Services: Best Buy

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3 Product and Brand Relationship

The Product Hierarchy

Need family Product family Product class Product line Product type

Item

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Product Systems and Mixes

Product Line Analysis

Line Stretching

● Down-market stretch

● Up-market stretch

● Two-way stretch

4 Packaging, Labeling,Warranties and Guarantees

● Packaging

● Labels

● Warranties and Guarantees

What is the Fifth P?

Packaging,

sometimes called the

5th P, is all the activities

of designing and

producing the

container for a product

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Factors Contributing to the

Packaging Objectives

● Identify the brand

● Convey descriptive and persuasive

information

● Facilitate product transportation and

protection

● Assist at-home storage

● Aid product consumption

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Warranties and Guarantees