8-1

8-1

PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Session
Session 55
Product and Services
Strategy

 Copyright 1999 Prentice Hall

What
What is
is aa Product?
Product?
8-2
8-2

•• Anything
Anything that
that can
can be
be offered
offered to
to aa market
market
for
for attention,
attention, acquisition,
acquisition, use
use or
or
consumption.
consumption.
•• Satisfies
Satisfies aa want
want or
or aa need.
need.
•• Includes:
Includes:
––Physical
Physical Products
Products
––Services
Services
––Persons
Persons
––Places
Places
––Organizations
Organizations
––Ideas
Ideas
––Combinations
Combinations of
of the
the above
above
 Copyright 1999 Prentice Hall
  Copyright 1999 Prentice Hall
Core
Core Actual
Actual
Product
Product Product
Product
Warranty
Quality
Design Service
Level
Service
After-
Delivery
or
or
Sale
& Credit
Benefit
Benefit
Service Core
Core
Brand
Features Name
Packaging
Installation
Augmented
Augmented
8-3 Product
Product
Product
8-3
of Product
Levels of
Levels
Product
Product Classifications
Classifications
8-4
8-4

Consumer
Consumer Products
Products
Convenience Products Shopping Products
> Buy frequently & immediately > Buy less frequently
> Low priced > Gather product
> Many purchase locations information
> Includes: > Fewer purchase locations
• Staple goods > Compare for:
• Impulse goods • Suitability & Quality
• Emergency goods • Price & Style

Specialty Products Unsought Products

> Special purchase efforts > New innovations
> Unique characteristics > Products consumers don’t
> Brand identification want to think about
> Few purchase locations > Require much advertising &
personal selling

 Copyright 1999 Prentice Hall

Product
Product Classifications
Classifications
8-5
8-5

Other
Other Marketable
Marketable Entities
Entities
•• Marketed
Marketed toto create,
create, maintain,
maintain, or
or change
change the
the
attitudes
attitudes or
or behavior
behavior toward
toward the
the following:
following:

•• Organizations
Organizations -- Profit
Profit (businesses)
(businesses) and
and
nonprofit
nonprofit (schools
(schools and
and
churches).
churches).
•• Person
Person -- Political
Political and
and sports
sports figures,
figures,
entertainers,
entertainers, doctors
doctors and
and lawyers.
lawyers.
•• Place
Place -- Business
Business sites
sites and
and tourism.
tourism.
•• Social
Social -- Reduce
Reduce smoking,
smoking, clean
clean air,
air,
conservation.
conservation.
 Copyright 1999 Prentice Hall
  Copyright 1999 Prentice Hall
Product
Product Support
Support Services
Services
Labeling
Labeling
Packaging
Packaging
Branding
Branding
Product
Product Attributes
Attributes
8-6
Decisions
8-6
Product Decisions
Individual Product
Individual
Product
Product Attribute
Attribute
8-7
8-7

Decisions
Decisions

Quality
Quality Features
Features

Design
Design

 Copyright 1999 Prentice Hall

 8-8
8-8

 Copyright 1999 Prentice Hall

 8-9
8-9

Product
Product Life
Life Cycle
Cycle

Sales and
Sales
Profits (Rs.)

Profits

Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments (Rs.)

Sales and Profits Over the Product’s Life From Inception to Demise
 Copyright 1999 Prentice Hall
99
 8-10
8-10
yy

dd
New-Product
New-Product Development
Development Process
Process ee
vv
ee
ll
oo
pp
mm
ee
nn
tt
5.
5. BB
uu
ss
ii
nn
ee
9-7
ss
 Copyright 1999 Prentice Hall ss
  Copyright 1999 Prentice Hall
Awareness
Awareness Credibility
Credibility
Equity
Loyalty
Loyalty Brand Association
Association
Brand Names
of
Identification
Identification
Advantages Attributes
Attributes
Quality
Quality &
& Value
Value Consistency
Consistency
8-11
Brands
8-11
Brands
  Copyright 1999 Prentice Hall
Line
Line Extensions
Extensions
Brand
Brand Extensions
Extensions
Multibrands
Multibrands
New
Brand Brands
Brands
New Strategy
Brand Strategy
Manufacturer’s
Manufacturer’s Brand
Brand
Private
Private Brand
Brand
Licensed
Licensed Brand
Brand
Co-branding
Co-branding
Brand
Brand Sponsor
Sponsor
Selection
Selection
Brand Name
Protection
Brand Protection
Name Selection
Selection
8-12
Decisions
8-12
Brand Decisions
Major Brand
Major
 Brand
Brand Strategy
Strategy
8-13
8-13

Product Category
Existing New
Brand Name

Extension Extension
Existing Line Brand

Brands
Multibrands
New New

 Copyright 1999 Prentice Hall

Brand
Brand Strategy
Strategy
8-14
8-14

•• Line
Line Extension
Extension
––Existing
Existing brand
brand names
names extended
extended toto new
new
forms,
forms, sizes,
sizes, and
and flavors
flavors of
of an
an existing
existing
product
product category.
category.
•• Brand
Brand Extension
Extension
––Existing
Existing brand
brand names
names extended
extended to
to new
new
product
product categories.
categories.
•• Multibrands
Multibrands
––New
New brand
brand names
names introduced
introduced in
in the
the same
same
product
product category.
category.
•• New
New Brands
Brands
––New
New brand
brand names
names in
in new
new product
product categories.
categories.
 Copyright 1999 Prentice Hall
Packaging
Packaging
8-15
8-15

Competitive
Sales Advantages Product
Tasks Packaging
Packaging Safety

Labeling
Labeling
Identifies Promotes
Describes

 Copyright 1999 Prentice Hall

Product
Product Line
Line Decisions
Decisions
8-16
8-16

Product
Product Line
Line Length
Length
Number
Number of
of Items
Items in
in the
the Product
Product Line
Line

Stretching Filling
Lengthen beyond Lengthen within
current range current range

Downward

Upward

 Copyright 1999 Prentice Hall

  Copyright 1999 Prentice Hall
Depth
Depth -- number
number
of
of versions
versions of
of
each
each product
product
Product
Product MixMix -- Length
Length -- total
total
all
all the
the product
product number
number of of items
items
lines
lines offered
offered within
within the
the lines
lines
Consistency

Width
Width -- number
number of
of
different
different product
product
lines
lines
8-17
Decisions
8-17
Mix Decisions
Product Mix
Product
 8-18
8-18

 Copyright 1999 Prentice Hall