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Chapter-13 Setting

Product Strategy

Topic
List
Product
Characteristics

Group-Wild
Stone

Differentiation and
Design

Luxury Products
and Environment

Product and Brand


Relationships
Packaging,warranti
es

Classification of products :
Product refers to anything that can be offered to a marketer for
attention,
acquisition, use or consumption that might satisfy a want or need. A
product is a set of tangible and intangible attributes, which may include
packaging, colour, price, quality, brand and sellers services and
Product Classifications and Types:
reputations.
1. Consumer product:Product bought by final consumer for
personal consumption.
1. Convenience Product : Customer usually buys frequently,
immediately, & with a minimum of comparisons and buying effort.
e.g. tooth paste
2. Shopping Product: Customer purchase after the process of
selection
e.g. clothing
3. Speciality Product: Consumer product with unique
characteristics or brand
identification
4. Unsought product : Consumer either does not know about or do
not want
to think normally before buying.
2. Industrial Product : Product bought by individuals and
organization for further processing or for use in conducting a
business.
1. Materials and parts

DIFFERENTIATION

WHY ?

To create brand,a well-differentiated product creates


significant competitive advantages.

PRODUCT
DIFFERENTIATION

SERVICES
DIFFERENTIATION

FORM - size,shape,color etc.

ORDERING EASE

FEATURES

DELIVERY

PERFORMANCE QUALITY

INSTALLATION

CONFORMANCE QUALITY

CUSTOMER TRAINING

DURABILITY

MAINTENANCE AND REPAIR

RELIABILITY

RETURNS

STYLE
CUSTOMIZATION

Design
Totality of features that affect the way a product looks, feels
and functions to a consumer

Design
Leaders

Power of
Design

Approaches to
Design

Companies like Kohler kitchen


and Vikings are coming up
with attractive and efficient
products.

In a crowded
marketplace, aesthetics is
often the only way to
make a product stand
out.

To the company, a well designed


product is easy to manufacture
and distribute.

Countries have developed


strong reputation for their
design skills. Eg: Italy in
apparel and furniture.

Designs can shift


consumer perceptions to
make brand experiences
more rewarding.

To the customer, it is pleasant to


look at and easy to open, install,
use, repair and dispose of.

Design thinking: Observation, ideation and implementation.

Luxury Brand Marketing


Brands that project themselves as a social status symbol are
luxury brands
They tend to break the general marketing laws like
positioning cause luxury is not comparative; by not
responding to rising demand and many others.
They make it difficult for clients to buy. A classic example is
the diamond : although they are abundant, marketers have
made sure that it remains elusive.
Such brands generally use marketing techniques like making
its customers believe that they belong to an elite circle and
tend to be more than just a logo and give them special
benefits mostly in the form of personal experiences. E.g.
Rolls Royceachieves this by inviting a select few of their
customers to manufacturing facilities to see and experience
the companys storied production process in person

Green Marketing
Green marketing takes into account the importance of an
action by the company in the nature preserve.
By doing green marketing campaignthe company
automatically becomes unique that could be the main
attraction for consumers since A majority of polls indicate
that consumers favor green products, and are willing to pay
more for them
Some popular examples of Green Marketing are :
Starbucksbranding itself as a promoter of sustainable
coffee-growing practices, paying a premium price to
encourage farmers to adopt more environmentally-friendly
practices
Timberlandrates each of the shoes it sells based upon its
environmental impact. Additionally, it redesigned its stores to
use 30 percent less energy than before.

Product and Brand Relationships


Classification of Product Hierarchy

Need Family
Core need of a
product family

Product family
Product classes
satisfying core needs
effectively

Product Class

Functional inheritance
to a group of products
within product family

Product Line

Closely related group of


products under product
classes having same
functional strategies.
Product Type
Types of products sharing same
product line with several possible
forms
Item
Distinct Stock keeping unit under a
product line with differentiable
attributes

Product Systems
and
Mixes
Product
Width

1.Depicts different product lines


2.Has same marketing mix for this
assort,
3.Modular approach to have same
assort to satisfy different customer
requirements and lower production
costs.
Product Length
1.Total items in the mix of each
product line.
2.Objectivity in increasing the market
share than profitability.
3.Different sets of choices in same
product line.
Product Depth
1.Different variance of each product.
2.Variance in forms of product from size
to packaging of the product.
3.Objectivity towards more user specific
than buyer specific
Product Consistency
1.Objectivity towards reducing the
production costs.
2.Product lines sharing same value
chain activitites are consistent and

Product and Brand Relationships


Product Line Length Analysis
Line Stretching

DownStret
ching

Range of the product


line to be positioned
below than existing
line
1.Threat from lowprice competitorsReason
2.Use parent brand
name on all offerings
3.Lower priced
offerings on a

Line Filling

Line Modernization
,featuring and
Pruning

UpStretchin
g

Range of the product


line to be positioned
above than existing
line
1.Achieve more
growth and MarginReason
2.Use different
brand name to
stretch upwards.
3.Modifiers for signal

1.Filling the existing


product line with
more items.
2.Helps in excess
capacity utilization.
3.An edge for the
first mover
advantage.
4.Over filling could
lead to
cannibalization

1.Modernizing the
product lines.
2.Helps the growth
in product
development in
emerging markets.
3.Improvements
planning and timing
plays a crucial role
featuring

Product Mix-Pricing
Product Line
Pricing price steps to
Incremental

Optional-Feature
Pricing
the options in order to
Pricing

develop different product lines in


a class.For ex watches-Strap
watches,Steel watches and
premium watches

offer the value of the option


along with main product. Ex:Free
door to door service of dominoes
will encourage more pizzas to be
ordered

Product
The Captive
captive product
pricing
allowsPricing
us to be captivated after
the purchase of the main
product whereby the additional
pricing on conditions are
applicable with captivated
product.
Ex:Printer and Printer catridges

The whole pricing mechanism is


dependent on part of fixed
usage and variable usage.Low
fixed prices invites customers
and high variables invites higher
margins.
Ex:Fixed and variables call rates
on number of minutes

Concept of Co-Branding

Two-Part Pricing

Two-Part Pricing

The pricing on by-product will


ease the burden on the
consumer to pay for the main
product.
For Ex:Oil refineries use crude
oil to prepare bottles and sell
them for business or consumer
use.

Product-Bundling
Product bundling involves
Pricing
bundling of mixed

bundling of mixed
products/services as tied in
sales which gives the whole is
less than sum of individual
prices in their category.Ex:Offer
of two trousers in 2000 with
individual trousers priced at
1050

Co-Branding helps in making a dual brand out of

joint product or marketing


Company Co-Branding using the brand names of a own company in association with each other.
Joint Venture Branding Maruti Suzuki Vittara was the example in which two different corporate
entities brands the value of a car positioned by virtue of Suzukis expertise and Marutis trust.
Ingredient Branding- Brand equity is created for the constitutents of the materials within other
branded products.

PACKAGING
The objectives of packaging are:
Identify the brand
Convey descriptive and persuasive information
Facilitate product transportation and protection
Assist at-home storage
Aid product consumption

Tests for Packaging


1.
2.
3.
4.

Engineering Test
Visual Test
Dealer Test
Consumer Test

Labelling

Functions of a label:
Identifies the product or brand.
Grade the product.
Describe the product.
Promote the product

Warranties and Guarantees


Guarantees are formal statements of expected product
performance by the manufacturers
Products under warranty can be returned to the
manufacturer or designated repair center.
Warranties are legally enforceable whether expressed or
implied

Warranties are a formal assurance (typically in writing)


that certain conditions will be fulfilled, especially that a
product will be repaired or replaced if not of a specified
quality.

Guarantees are either general or specific.


Guarantees reduces the buyers perceived risk

Thank You

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