Public Policy

Issues In Product

ManagementPRESENTED

BY:- ANUJ GUPTA PALLAVI ABROL

CONTENTS What is a Product ? Public Policy Issue Public Pressure: A Cycle Of Concerns Business Attitudes toward Product Issues The “Battle”: New Products Manager Public Policy : Problem Areas Underlying Issues Finding Solutions Conclusion

What is a Product?

It is defined as a "thing produced by labor or effort“ or the

"result of an act or a process”.

In marketing, a product is anything that can be offered to a

market that might satisfy a want or need.

In retailing, products are called merchandise.

In manufacturing, products are purchased as raw

materials and sold as finished goods.

In project management, products are the formal

definition of the project deliverables that make up or

contribute to delivering the objectives of the project.

Contd….

PUBLIC POLICY ISSUES

PUBLIC POLICY:-

The course of action or inaction taken by the

government with regard to a particular issue.

Relationship between firm and citizenry.

Public Pressure: A Cycle of Concerns

State of idleness

Defusedby

thoseattacked

i. Stirring

ii. Trial Support

iii. Political Arena

iv. Regulatory Adjustment

Public Pressure: A Cycle of Concerns1. Stirring: Individuals begin to sound off long

before enough people have been injured or

irritated to cause a general reaction.

2. Trial Support: As the stirring over an issue increase, a

champion may decide to take it on as a cause.

3. The Political Arena: Issue acquired a political base.

4. Regulatory Adjustment: New regulatory legislation is

rarely precise and this imprecision leads to a period of

jockeying by the adversaries over its interpretation.

Contd….

Business Attitudes toward Product Issues Business firms deal with public policy issues on

a much broader base than just new products.

Reached a structure of beliefs on interface between

business and society Our concerns ‘at the margin’, that is dealing in

areas of temporary uncertainty and change. New product causing unexpected concern on

Public Policy is result of careless management.

The “Battle”: New Products Manager

Service to Customers

And Public

Public Policy : Problem Areas Product Liability Environmental Needs Worthy Products Morality Monopoly Personal Ethics

Product liability

Person buys a product and gets injured - If guilty, the accused party is liable

for the cost and the pain of the injury,plus

damages as well.

Product liability applied both to goods as well as

services.

Typology Of Injury Sources

Inherent risks: Example: A chair that is designed

with only three legs might be

considered defectively designed because it tips

over too easily .

Design defects Dangerous Condition: Example: An airplane could explode due

to wires rubbing & sparking over a fuel

tank due to a bad design. Safety Device: Example: Lack of mechanisms to limit

excessive heat or other foreseeable dangers.

Inadequate Materials

Contd….

Defects in manufacture Example: Improper

assembly of an item Inadequate instructions for use or

warnings against particular uses After use Dangers

Forms and Sources of Product Liability

A Manufacturer is liable for its failure to exercise due care to any person who sustained an injury caused by manufacturer’s negligence with regard to- design of product selection of materials assembly and testing of products placement of adequate warning on the product

Negligence:-

Warranty A promise Forms:- Express warranty: Example:- An automobile repair shop may

guarantee its repair for a period of 90 days. Implied warranty: - Warranty of merchantability - Warranty of fitness for a particular

purpose

Strict Liability A manufacturer or seller of goods will be

strictly liable, regardless of the exercise of reasonable care, for any personal injury to consumers caused by the goods it manufactures, sells or as long as: 

the product is defective when the defendant sells it.

the defendant is normally engaged in the business of selling or otherwise distributing the product in question.

Contd….

the product is unreasonably dangerous to the user or consumer because of its defective condition.   

  the product must not have been

substantially changed between the time it was sold or otherwise distributed by the defendant and the time the injury occurred.

Misrepresentation

A manufacturer may also be liable for any misrepresentations made to a consumer or user of its product if the misrepresentation causes the consumer or user to suffer some injury.

 Example: A pharmaceutical company may say a drug is

not habit forming, it turns out it is, and people

have been harmed.

Environmental Needs

New products environment hazards:- If its raw materials are scarce or hard to

get If its design or manufacture causes

pollution or excess usage If its use cause pollution If any disposal problem cannot be

handled by recycling

Managerial Dilemma Problems of reconciling trade offs

• Between costs and efficiency in the firm • Between price and environmental

benefits to society.

Social costs and social benefits are difficult to be

measured. Example:- P&G, Ariel Ultra Detergent

Relating System To Environment

Strategic planning

Concept generation

Pre Technical screening

Technical development Marketing developmentTechnical development Marketing development

launchlaunch

Worthy Products It is producing the products that have

worth of their money for a particular segment.

Example: AIDS medicine because of less

potential of customers.

Morality

It is careful positioning of the product in line with the

benefits and prosperity of society.

Example:

Monopoly

It is obtaining market dominance and pressurizing the

customer for purchase or removal of alternatives from

the market.

Example:

Personal Ethics Taking Decisions at Individual Level rather

than at Manager Level. May or may not be based on Business

management. Example:-

Copying and declaring Innovation. Hiding Information from Distributors And

Dealers. Misleading Names and Labels. Lying to Customer for sale purpose.

Underlying Issues!!!! Reasonable Goal For Action

Risk Free Existence (Not Possible). Zero Defect Quality Control.

Trade Off Problem Example :- DDT Insecticide.

Cost Perspective No system can make products perfectly No consumer group will use product with full wisdom Who Should Pay ?

Finding Solutions Strategy And Policy

Involvement of Top management. Example: TATA Nano Project in WB

Control Systems Tough Standards Rigorous Auditing Good Record Keeping Training Of New Product Employee Example: NOKIA, BL-5C Battery

replacements.

Contd….

Product Testing Understanding Customer Usage Matching the product in terms of

usage pattern Marketing

Labeling And Adequate Warning Cautious Distribution Channel

Contd…

Market Testing Market Tests combining product and

promotion Distributor’s Understanding Right Target Customer Example: GSK, Women’s Horlicks

Education Company Personnel Consumers

Finding Solutions

External Affairs Accepting Legislature Public Affair Programs Consumer Participation

Conclusion

Public Policy Issues are complex and are always

present. Every Public policy Issue don’t have an

answer. Only solution which will be always fruitful is –

“Prevention Is Better Than Cure”