Product/Service Product/Service ManagementManagement

Objectives 4.03 and 4.04Objectives 4.03 and 4.04

Product managementProduct management

Means…Means…– ObtainingObtaining– DevelopingDeveloping– MaintainingMaintaining– Improving Improving

……products in response to products in response to market market opportunities.opportunities.

Helps businessesHelps businesses stay competitive. stay competitive.

Product Vs ServiceProduct Vs Service

Product is tangible.Product is tangible. Service is intangible.Service is intangible. Pure Service does not include Pure Service does not include

tangible product.tangible product.

Test MarketingTest Marketing

Introduce a product in limited areas Introduce a product in limited areas for limited time.for limited time.

Determining Product MixDetermining Product Mix

Unique imageUnique image Size of target marketSize of target market Maintain consistencyMaintain consistency – not too – not too

many different productsmany different products

Expanding the Product MixExpanding the Product Mix

Expand by Expand by buying another buying another company.company.

Focus on few products rather than a Focus on few products rather than a wide selection.wide selection.

Appeal toAppeal to more markets with wide more markets with wide variety of options.variety of options.

Line Extension = related itemsLine Extension = related items Brand extension = Ex: Coke Brand extension = Ex: Coke

adding caffeine-free diet Cokeadding caffeine-free diet Coke