Part 4 - Products Chpt 10 - Product Mgmt Slide 1 Chapter 9 PRODUCT STRATEGY Chapter 10 PRODUCT...
-
Upload
esmond-golden -
Category
Documents
-
view
222 -
download
0
Transcript of Part 4 - Products Chpt 10 - Product Mgmt Slide 1 Chapter 9 PRODUCT STRATEGY Chapter 10 PRODUCT...
Part 4 - Products
Chpt 10 - Product MgmtSlide 1
Chapter 9
PRODUCT STRATEGY
Chapter 10
PRODUCT MANAGEMENT
Chapter 11
SERVICES
Part 4 - Products
Chpt 10 - Product MgmtSlide 2
Co-Branding
Two companies join to create a new product carrying both their brands.
Part 4 - Products
Chpt 10 - Product MgmtSlide 3
Co-Branding
Examples:
McCains cake and KFC
McDonalds & movie Mulan
Pizza Hut & Pepsi
Cereal box with other thing inside
Pizza Pizza and Blockbuster video rental & Chocolate bar
Cinelex Odeon and Blockbuster
Part 4 - Products
Chpt 10 - Product MgmtSlide 4
Terms
• A series of related products (TEXT)A series of related products (TEXT)
• a group of products that are physically a group of products that are physically similar in performance, use or features similar in performance, use or features and intended for a similar marketand intended for a similar market
Product Line
Part 4 - Products
Chpt 10 - Product MgmtSlide 5
Terms
• The assortment of product lines and individual offerings available from a company. (Text)
• the combination of product lines offered by the manufacturer
Product Mix
Part 4 - Products
Chpt 10 - Product MgmtSlide 6
Product Lines Brands
• shoes Nike, addidas, reebok, fila, new balance, british knight, brooks, converse, vans, asic, puma
• notebooks toshiba, nec, TI, compaq,
IBM, DELL• Apple, HP, Hitachi, Mitsubishi,
Matsushita,
Part 4 - Products
Chpt 10 - Product MgmtSlide 7
Service Providers
service providers have product lines and product service providers have product lines and product mixes as wellmixes as well
examplesexamples• MastercardMastercard• insuranceinsurance• telephone servicestelephone services• cable servicescable services• ISPs - internet service providersISPs - internet service providers
Part 4 - Products
Chpt 10 - Product MgmtSlide 8
• Larkhill Clothing Manufacturing Inc.
Larkhill Larkhill GroupGroup
example of a company, and its product line
Part 4 - Products
Chpt 10 - Product MgmtSlide 9
Tap p an ts
Ted d ies
R ob es
G ow n s
C am iso les
Azure-Dee Lingerie
R ob es
G ow n s
C am iso les
Prom ises Lingerie
th on g s
b ra /p an ty se ts
G -s trin g s
Night Fever
L a r k h i l l C l o t h i n g M a n u f a c t u r i n g I n c .
the different product lines = the product mix of the whole companythe different product lines = the product mix of the whole company
Part 4 - Products
Chpt 10 - Product MgmtSlide 10
Product Differentiation
• The attempt to create the impression that one product is greatly superior when in fact it may have only minor features or slightly different components/colour/shape etc.
examples• ball point pens• running shoes• others..............
Part 4 - Products
Chpt 10 - Product MgmtSlide 11
The Canada Packers Product Mix
Meats Groceries Nonedible
Fresh meats Peanut butter By-productsBacon Mincemeat SoapPepperoni Canned pumpkinHidesWieners Cheese Pharmaceutical rawBologna Lard materialsCanned ham ShorteningPoultryKolbassaGarlic sausage
Width of Assortment
Depth of Assortment
Page 204
Part 4 - Products
Chpt 10 - Product MgmtSlide 12
Cannibalization
• Situation involving one product taking sales from another offering in a product line (Text)
• Cannibalization occurs when sales of a new product cut into (reduce) the sales of a firm’s existing products.
Page 204
Part 4 - Products
Chpt 10 - Product MgmtSlide 13
Line Extension
• The development of individual offerings that appeal to different market segments but are closely related to the existing product line (Text)
• Adding on additional offerings to get more customers.
“Marketers have line-extended to death” - Mattimore
Page 204
Part 4 - Products
Chpt 10 - Product MgmtSlide 14
1.Desire to grow
- firms introduce new products to grow
- also introduce new products to sell throughout the year - if some products are seasonal ie. Campbell soup
- examples:
Importance of Product Lines
Page 204
Part 4 - Products
Chpt 10 - Product MgmtSlide 15
2.Optimal use of company resources
- sometimes new products introduced so the company can use up more of its resources - therefore reduce cost per unit
- eg. Fiberboard made from sawdust
Importance of Product Lines
Page 204 - 205
Part 4 - Products
Chpt 10 - Product MgmtSlide 16
3. Increasing company importance in the market
- companies add product lines because of opportunity, and to strengthen overall position- eg. Buck Knives - no has Buck Flashlights
Importance of Product Lines
Page 206
Part 4 - Products
Chpt 10 - Product MgmtSlide 17
4.Exploiting product life cycle
- some features added so the company used “Product Modification” to extend the life cycle
- some advertising done to find explain new uses “Market Modification”
- some new products made as well
Importance of Product Lines
Page 206
Part 4 - Products
Chpt 10 - Product MgmtSlide 18
Decay Curve of New-Product Ideas
Part 4 - Products
Chpt 10 - Product MgmtSlide 19
6 Things That Determine Success for New Products
• Market launch - relative strength• good information available in product
development process• has the firm been good at new product launches
in the past• the characteristics of the target market• the ability of the company to make the product• specific characteristics of the new effort
Page 208
Part 4 - Products
Chpt 10 - Product MgmtSlide 20
6 Characteristics of The Superior Product
Page 208
•Customer demand exists for a better product
•it has better/more FAB - features, advantages, benefits (does more things compared to others)
•lower cost - but same FAB
•better quality/durability than competitive products
•easier to use
•has specific characteristics that no other competitive product has
Part 4 - Products
Chpt 10 - Product MgmtSlide 21
Forms of Product Development
Slide 10-5
Part 4 - Products
Chpt 10 - Product MgmtSlide 22
4 Product Development Strategies
• Product Improvement (Product Modification)
- modify existing products
• Market Development (Market Modification)
- find new markets for existing products
• Product Development- introduce new products
• Product Diversificationdevelop new products for new markets
Examples !!!!!!!!!Page 208-209
Part 4 - Products
Chpt 10 - Product MgmtSlide 23
1. Committee
2. Department
3. Product/ Brand Manager
4. Venture Team
Structure for New-Product Development
Page 210
4 Ways You Can Organize Getting it Done
Part 4 - Products
Chpt 10 - Product MgmtSlide 24
Seven Steps of the New-Product Development Process
Part 4 - Products
Chpt 10 - Product MgmtSlide 25
• Idea -Idea - 38% of new product ideas come from looking at 38% of new product ideas come from looking at competitorscompetitors- one of the best ways is to listen to employee new ideas- one of the best ways is to listen to employee new ideas
• Screening Screening - purpose is to “screen” out the bad ideas and - purpose is to “screen” out the bad ideas and focus on the good ideas that might workfocus on the good ideas that might work and and AnalysisAnalysis - is making the cost estimates and sales - is making the cost estimates and sales forecasts to estimate profitabilityforecasts to estimate profitability
• DevelopmentDevelopment - concept testing for totally new products (ie. - concept testing for totally new products (ie. holographic maps)holographic maps) Testing Testing - taking the prototypes to a sample group of - taking the prototypes to a sample group of consumers and watch their reactionsconsumers and watch their reactions
• CommercializationCommercialization - promoting the product and developing - promoting the product and developing advertising and sales campaignsadvertising and sales campaigns
Page 212
Part 4 - Products
Chpt 10 - Product MgmtSlide 26
Packaging• An Important Part of the Product
• convinces people to buy• protects the contents when shipped and handled• adds to the value• describes features, advantages and benefits of using
product• contains Warranty Information• cautions and warnings about contents and misuse• UPC code and tax information (cigarettes)