Introductory to Product Management

8/4/2019 Introductory to Product Management

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INTRODUCTORY TO

PRODUCT

MANAGEMENT


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- Financial Properties

. Stocks : Certificate of ownership

. Franchise : Right to Use the Name/Intangible

6) Organization

7) People/Persons

- Labor

- Organ

- Talent

8) Events9) Experience

10) Information/Knowledge


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product classifications according to types of

customers:

1) Consumer Products

2) Industrial/Business/Organizational Products

Categories of Consumer Products:

1) Convenience products

- Impulse Goods & Services

- Staples

- Emergency Goods & Services

2) Shopping Products- Homogeneous products

- Heterogeneous products


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3) Specialty products

4) Unsought Products

Types of Business Products:

1) Installations

2) Accessory Equipments3) Component parts & Materials

- Raw materials

- Manufactured Materials & Parts

4) Supplies- Maintenance Items

- Repair Items

- Operating Supplies


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5) Business Services3 Levels of Product:

1) Core product

2) Actual Product

3) Augmented Product

Quality as a Product Strategy :-Total Quality Management(TQM):

- Continuous Effort to Improve Products & WorkProcesses

- the goal : Achieving Customer Satisfaction & World

Class Performance


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- Quality of Services:

- 5 Variables of Determining Service Quality:

1) Tangible or Physical Evidence

2) Reliability or Consistency of Performance &

Dependability3) Responsiveness or Readiness to Serve

4) Assurances or the Confidence Communicated by the

Service Provider5) Empathy


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3 Levels of Product & Service Decisions:

1) Individual Product Decisions

2) Product Line Decisions3) Product Mix Decisions

Individual Product Decisions:

Product

LabelingBranding Packaging

labeling

Product

Support

Services


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Product Line Decisions:

- Product Line:

Series of Related Products Offered by one Company

- Development of Product Lines:Includes:

-Desire to Grow

- Enhancing the Company`s position in the Market- Optimal Use of Company Resources

- Exploiting The Stages of Product Lifecycle


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Product Mix:

Set of All Product Lines & Individual Products that a

Particular seller offer for sale3 Important Dimensions of Product Mix:

1) Product Mix Width: Refers to the Number of Product Linesa Firm Offers

2) Product Mix Length: Refers to the Number of DifferentProducts a Firm Sells

3) Product Mix Depth: Refers to Variation in each Product aFirm Markets in its Mix

Product Mix Decisions:


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Product Lifecycle:

The Course of a Product`s Sales & Profits over its LifetimeBasic Stages of Successful Products Progress:1) Product Development

2) Introduction Stage

3) Growth Stage

4) Maturity Stage5) Decline StageBranding:

-Brand:- A name, Term, Sign, Symbol, Design or combination of these

- Identifies the products of a seller & Differentiates them from

those of competitors


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- Types of Brands:- Manufacturer`s Brands Versus Private Brands :

1) Manufacturer`s Brands2) Private Brand

3) Captive Brands:- Family & Individual Brands:

4) Family Brands

5) Individual BrandsCo-branding :Process of Using the Established Brand names of Two DifferentCompanies on the Same Products


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Brand Equity:

Added Value that a Respected, Well-known Brand Name gives to aProduct in the Marketplace

Brand Names & Brand Marks:

- Brand Name:

- Part of a brand, Consisting of Letters, Numbers or Words

- Can be Spoken & Identifies a Firm`s Offerings from those ofits Competitors

- Brand Mark:

A Symbol or Pictorial design that Distinguishes a Product


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Brand Name Selection:

Selection Process:

- Should be Easy to Pronounce, Recognize, Remember

- Should Suggest sth about the Product`s Benefits & Qualities

- Should be Distinctive

- Should be Extendable

- Should Translate Easily into Foreign Languages

- Should be Capable of Registration and Legal Protection

Trade Marks:

- A Brand for which the owner claims exclusive Legal Protection- Different fromTrade Namewhich Identifies a company


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Brand Development Strategies:

1) Line Extension

2) Brand extension

3) Multibrands4) New BrandsPackaging:

Activities of Designing & Producing the Container or Wrapper fora Product3 Major Objectives of Packaging:

1) Protection against Damage, spoilage & Pilferage2) Assistance in marketing the product

3) Cost Effectiveness


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Labeling:

-Label:

- Brand Name or Symbol

- Name & address of Manufacturer

- Price, Production & Expiry Date- Nutritional Values

- Recommended Uses, Side Effects & Precaution

New Product Development Strategies:

1) Acquisition:Buying a whole Company, a Patent or a license (to Produce Someone

else` Product)

2) New Product Development:

- Development of Original Products

- Product Improvements or Modifications- New Brands (Trough the Firm`s Own Research & Development

Efforts)


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Major Steps in New Product Development Process:

1) Idea Generation:

Systematic Search for New product Ideas

Sources of New Product Ideas:

- Internal Sources

- External Sources:

. Customers

. Suppliers & Distributors

. Competitors

2) Idea Screening:

Screening of New Product IdeasSpot Good Ideas & DropBad Ideas

3) Concept Development & Testing

- Product Concept

- Product Idea


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- product image

- Concept Testing4) Marketing Strategy Development:

Developing an Initial Marketing Strategy Based on the Product

Concept- Target market

- Planned target Positioning & Sales- Market Share & Profit Goals

5) Business Analysis

Review of the Sales, Costs, Profit & Risk Projections for a Newproduct6) Product Development:

Product concept into a Physical Product/Product Idea Turn into aWorkable product

7) Test Marketing:Product & Marketing Program are Tested in More Realistic Market

Settings

8) Commercialization:

Introducing a New product in the Market


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Product Lifecycle:The Course of a Product's Sales & Profits over its Lifetime

Basic Stages of Successful Products Progress:1)Product Development:

- Product Idea into Workable Product

- Sales = Zero

2) Introduction Stage:

- New Product Distributed & Made Available

- Slow Sales Growth

- Profit = Nonexistence

3) Growth Stage:

- Quickly Increasing Sale

- Rapid Market Acceptance

- Increasing Profits


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4) Maturity Stage:

- Sales Growth Slows or Level off

- Profit Level off or Decline

5) Decline Stage:

- Sales Decline

- Profit Drop

Branding:

-Brand:- A name, Term, Sign, Symbol, Design or combination of these

- Identifies the products of a seller & Differentiates them from those ofcompetitors

- Powerful Assets

Types of Brands:

M f ' B d V P i B d


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- Manufacturer's Brands Versus Private Brands :

1) Manufacturer's Brands (National Brands):

- Owned by a Manufacturer

2) Private Brands (Store Brands):- Owned by Wholesalers & Retailers

- For Sale in Only Specific Chain of Store

- Cheaper than National Brand

3) Captive Brands:

- Usually Created by retailers

- Or Are Abandoned National Brands that Fine New Life as CaptiveBrands

- Family & Individual Brands:

4) F il B d


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4) Family Brands:

- A Single Brand Name that Identifies Several Related Products

5) Individual Brands:

- Manufacturers Market Them- Uniquely Identifies The Items Itself

- Not Promoting it Under Company Name

- Cost More than Family Brand

Co-branding (Brand Partnership) :

Associates a Single Product or Service with more than one Brand Name

Forms:

-ingredient co-branding: components or parts that are containedwithin other products


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- same-company co-branding: a company promotes their own brandstogether

-Joint venture co-branding: two or more companies present a product

- multiple sponsor co-branding: two or more companies working together

Brand Equity:

Added Value a Well-known Brand Name gives to a Product in the Marketplace

Brand Names & Brand Marks:

- Brand Name:

- Part of a brand, Consisting of Letters, Numbers or Words

- Can be Spoken & Identifies a Firm`s Offerings from those of its Competitors

- Brand Mark:

A Symbol or Pictorial design that Distinguishes a Product


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Brand Name Selection:

Selection Process:- Easy to Pronounce, Recognize, Remember

- Suggest sth about the Product's Benefits & Qualities

- Distinctive

- Extendable

- Translate Easily into Foreign Languages

Trade Marks:- A Brand for which the owner claims exclusive Legal Protection

- Different fromTrade Namewhich Identifies a company

Brand Development Strategies:1) Line Extension

2) Brand extension

3) Multibrand

4) New Brands


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Packaging:Activities of Designing & Producing the Container or Wrapper for a Product

3 Major Objectives of Packaging:1) Protection against Damage, spoilage & Pilferage

2) Assistance in marketing the product. Immediate Consumer Recognition of a Brand

. Describe the Product & Attract Attention

3) Cost Effectiveness

Labeling:

-Label:

- Brand Name or Symbol

- Name & address of Manufacturer

- Price, Production & Expiry Date

- Nutritional Values

- Recommended Uses, Side Effects & Precaution


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New Product Development Strategies:

1) Acquisition:

. Buying a whole Company, a Patent or a license

. Produce Someone else` Product

2) New Product Development:

- Development of Original Products

- Product Improvements or Modifications

- New Brands (Trough the Firm's Own Research & Development Efforts)

Major Steps in New Product Development Process:

1) Idea Generation:

Systematic Search for New product Ideas

Sources of New Product Ideas:

- Internal Sources


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- External Sources:

. Customers` Questions & Complaints

. Distributors:

- Customers` Problems

- New Product Possibilities

. Suppliers:

- New Material & Technologies

. Competitors

2) Idea Screening:

Screening of New Product Ideas . Spot Good Ideas & Drop Bad Ideas


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3) Concept Development & Testing

- Product Concept:

. A Detailed Version of the New Product Idea Stated in Meaningful

Consumer Terms

- Product Idea:

. An Idea for a Possible Product that a Company can see itself Offering to

the Market

- product image:

. The way Consumers Perceive an Actual Potential Product

- Concept Testing:

. Testing New Product Concepts with a Group of Target Consumers toFind out if Concepts have Strong Consumer Appeal

4) Marketing Strategy Development:

Developing an Initial Marketing Strategy Based on the Product Concept

T k


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- Target market- Planned target Positioning & Sales- Market Share & Profit Goals

5) Business Analysis:

Review of the Sales, Costs, Profit & Risk Projections for a New product

6) Product Development:Product concept into a Physical Product/Product Idea Turn into a

Workable product

7) Test Marketing:Product & Marketing Program are Tested in More Realistic Market

Settings

8) Commercialization:Introducing a New product in the Market

Product Positioning:Process by which Marketers try to Create an Image or Identity in the minds of

their Target market for its Product , Brand or Organization


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THANK YOU

Prepared By:

Mahlouji, Farshad

Fereidouni, Parvin

Introductory to Product Management

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