Setting product strategy

Disusun Oleh:
Alvito Ahmad Cannavaro Idham (1201203471)
Raihan Erlangga Putra (1201204331)
Rifan Azkia (1201204288)
Rizki Fajar Ahmad Gurnita (1201204247)
Rizki Ramadhan (1201204391)
 Product
Characteristics

Technically 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, &ideas.
 Product Levels: the
customer-value hierarchy
The marketer needs to address five product levels.
Each level adds more customer value, and together the five constitute a
customer-value hierarchy

1. The fundamental level is the core benefit: the service or benefit the customer is really
buying.
2. At the second level, the marketer must turn the core benefit into a basic product.
3. At the third level, the marketer prepares an expected product, a set of attributes
and conditions buyers normally expect when they purchase this product.
4. At the fourth level, the marketer prepares an augmented product that exceeds
customer expectations.
5. At the fifth level stands the potential product, which encompasses all the possible
augmentations andtransformations the product or offering might undergo in the
future.
 Product classifications
Durability & tangibility Consumer-Goods Classification Industrial-Goods Classification
Nondurable goods are tangible goods normally Convenience goods: frequently, immediately & with ­ aw materials in turn fall into two major groups: [1] Farm
R
consumed in one or a few uses, such as beer and minimal effort products (wheat, cotton, livestock, fruits, and vegetables)
shampoo. Shopping goods: are those the consumer & [2] Naturalproducts (fish, lumber, crude petroleum, iron
Durable goods are tangible goods that normally survive characteristically compares on such bases as suitability, ore).
many uses: refrigerators, machine tools, and clothing. quality,price, and style. Manufactured materials and parts fall into two
Services are intangible, inseparable, variable, and Specialty goods: have unique characteristics or brand categories: [1] component materials (iron, yarn, cement,
perishable products that normally require more quality identification for which enough buyers are willing to make wires) & [2] component parts (small motors, tires,
control, supplier credibility, and adaptability. a special purchasing effort. castings).
Unsought goods: are those the consumer does not know Installations consist of buildings (factories, offices) and
about or normally think of buying. heavy equipment (generators, drill presses, mainframe
computers, elevators).
Equipment includes portable factory equipment and
tools (hand tools, lift trucks) and office equipment
(desktop computers, desks).
Supplies are of two kinds: maintenance and repair items
(paint, nails, brooms), operating supplies (lubricants, coal,
writing paper, pencils). Together - MRO goods.
Business services include maintenance and repair
services (window cleaning, copier repair) and business
advisory services (legal, management consulting,
advertising).
 Design product
Design Leaders Power Of Design
As holistic marketers recognize the emotional power of In a visually oriented culture, transmitting brand meaning
design and the importance to consumers of look and feel & positioning through design is critical.
as well as function. Design is especially important with long-lasting durable
Some countries have developed strong reputations for goods such as automobiles.
their design skills & accomplishments, such as the world Design can shift consumer perceptions to make brand
famous furniture and home store, IKEA, that originated experiences more rewarding.
from Sweden and Taiwan for being on of the biggest Design should penetrate all aspects of the marketing
sources of semi conductors via companies like TSMC. program so all design aspects work together.
To the company, a well-designed product is easy to
manufacture and distribute.
To the customer, it is pleasant to look at and easy to
open, install, use, repair, and dispose of.
Some firms employ formal, structured processes: design
thinking is a very data-driven approach with three
phases: observation, ideation, and implementation.
 Luxury products

Characterizing Growing Luxury Marketing

Several
Luxury Brands Brands Luxury Brands
luxury
A luxury shopper must feel Extended their brands Luxurybrand marketers have brands
have
he or she is getting vertically across a range of to remember they are often
something truly special. The price points were usually the selling a dream, anchored in
common denominators of most immune to economic product quality, status, and become
luxury brands are quality and downturns. prestige. enduring
market
Horizontal extensions into new One trend for luxury brands is
uniqueness.
categories can also be tricky for to wrap personal experiences
A winning formula for many
luxury brands. around the products. successes
is craftsmanship, heritage,
Some luxury marketers have
authenticity, & history, Often
struggled to find the
critical to justifying a appropriate online selling &
sometimes extravagant price. communication strategies for
their brand.
 The Product Hierarchy
Need family—The core need that underlies the existence of a product family. Example: security.
Product family—All the product classes that can satisfy a core need with reasonable effectiveness. Example:
savings and income.
Product class—A group of products within the product family recognized as having a certain
functionalcoherence, also known as a product category. Example: financial instruments.
Product line—A group of products within a product class that are closely related because they perform a similar
function, are sold to the same customer groups, are marketed through the same outlets or channels, or
fall within given price ranges.
Product type—A group of items within a product line that share one of several possible forms of the
product.
Item (also called stock-keeping unit or product variant)—A distinct unit within a brand or product
linedistinguishable by size, price, appearance, or some other attribute.
Environmental issues
Environmental issues
Product Systems and Mixes

Product System Product Mix

A product system is a group of diverse A product mix (also called a product

but related items that function in a assortment) is the set of all products and
compatible manner. items a particular seller offers for sale. .
­For example, the extensive Apple
ecosystem pushes users to use the many
apple products for the best experience.
Product Mix has a Width, Length, Depth, &
Consistency
The width of a product mix refers to how many different product lines
the company carries.
The length of a product mix refers to the total number of items in the
mix.
The depth of a product mix refers to how many variants are offered of
each product in the line.
The consistency of the product mix describes how closely related the
various product lines are in end use, production requirements,
distribution channels, or some other way.
Product Mix Width & Product Line Length for P&G

Product Width

Product Depth
Thank's For
Watching
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