Product and Service Management. Product Planning And Or Service Planning
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1 Product and Service Management Product Planning And Or Service Planning
2 Objectives STANDARD 11 You will understand the concept of product planning and how it relates to marketing. Objective 1: Understand product planning, mix, and development. Explain the nature and scope of the product/service management function. Explain the concept of the product mix. Plan a product mix. Define: Product, good, service Product/service management task are affected and influenced by many factors, both within a company and outside Objective 2: Understand sustaining product sales. Identify the impact of product life cycles on marketing decisions. Describe factors used by marketers to position products/businesses.
3 Why do businesses need to introduce new products? Have you ever thought about who s responsible for those products and what their job duties entail? What do you think is necessary to make a new product successful? How do businesses develop new product and position it for sale?
4 Products Planning Product planning: (or service planning) involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. ct%20planning%20and%20development.html
5 Product Planning Product: is anything a person receives in an exchange. It can be either a good or a service. Good: a tangible object that can be manufactured or produced for resale to create value Service: an intangible activity preformed in exchange for payment to create value
6 Product Planning Product Mix: includes all of the different products that a company makes or sells.
7 Product Planning Importance of Product or Service planning Sales and profits improve if offering the right products and the right time to the customer Market share increases and the ability to beat the competition New products can bring new customers <iframe width="420" height="315" src=" frameborder="0" allowfullscreen></iframe>
8 Product Planning Importance of Product Mix Appealing to the target market Helping to present a consistent company image Affecting profitability Helping deal with competition
9 Product Planning Product line: group of closely related products manufactured or sold by a business
10 Product Planning Product item: a specific model, or brand of a product in a product line.
11 Product Planning Product Width: refers to the number of different product lines a business manufactures or sells. Breadth: Carrying items in many different product categories. Offering several different types of service under one roof. Narrow or wide
12 Product Planning Product Depth Refers to the number of items offered within each product line. Shallow or deep. LAY'S Balsamic Sweet Onion Flavored Potato Chips LAY'S Barbecue Flavored Potato Chips LAY'S Cajun Herb & Spice Flavored Potato Chips LAY'S Cheddar & Sour Cream Flavored Potato Chips LAY'S Chile Limon Flavored Potato Chips LAY'S Chipotle Ranch Flavored Potato Chips LAY'S Classic BLT Flavored Potato Chips LAY'S Classic Potato Chips LAY'S Creamy Garden Ranch Flavored Potato Chips LAY'S Deli Style Original Potato Chips LAY'S Dill Pickle Flavored Potato Chips LAY'S FLAMIN' HOT Flavored Potato Chips LAY'S Garden Tomato & Basil Flavored Potato Chips LAY'S Honey Barbecue Flavored Potato Chips LAY'S Honey Mustard Flavored Potato Chips LAY'S Hot & Spicy Barbecue Flavored Potato Chips
13 Sales Research & Development Introduction Growth Maturity Decline Product Life Cycle Products move through the product life cycle and require different marketing strategies at each stage. These stages are the basis for product planning. Introduction Growth Maturity Decline Innovators Early Adapters Early Majority late Majority Laggards Time
14 Product Life Cycle Activity: Think of products that have been around most of your lives. For example, Coca-Cola, Barbie, etc. Describe the different ways in which the product was marketed at different times. What are the stages the products go through? Does each stage require different marketing strategies?
15 New Product Planning Steps The Key steps in product planning Generate Ideas Screen Ideas Develop the Business Proposal Test the Product Concept Develop the Product Commercialization Evaluate Customer Acceptance
16 New Product Planning Steps First Step Generate Ideas Brainstorm for new product ideas Ideas for new products can come from a variety of sources- Employees, customers, sales representatives, retailers, family members
17 New Product Planning Steps Screen ideas Identify any ideas that will potentially be unworkable
18 New Product Planning Steps Test the Product concept This means getting feedback from potential customers about the potential product Is the target market interested in this product? Is it the right time to introduce this product?
19 New Product Planning Steps Business Proposal Conduct a feasibility analysis Market size Potential sales Cost Profit potential Overall competitive environment Level of risk Production requirements Time needed to create Production efficiency
20 New Product Planning Develop the Product This is a lengthy step that could take months or even years to finish Prototype: during this step a working model of the product is tested, modified, and retested -
21 New Product Planning Commercialization Introducing the product to customers This is an expensive step
22 New Product Planning Evaluate Customer Acceptance Keep a close eye on- sales, profit, market share, and how well the product is meeting company goals.
23 Activity Develop a new product. (See activity sheets) Activity: Focus group Work in groups/pairs to generate ideas for a new product. Present your ideas to a focus group of several students. The focus group should discuss what they liked and disliked about the products and any improvements they might suggest. Could finalize by writing a one page report.
24 Product Planning Developing existing products Line extensions Product modifications
25 Product Planning Deleting a product or product line Obsolescence Loss of appeal Changes in company objectives Lack of profit Conflict with other products in the products in the line Replacement with new products
26 Activity Activity Ask students to partner with someone and make a list of products they still use today that are 10 years old or older. Then create another list of products they think will be obsolete in the next ten years and the reason why. Have pairs share their answers.
27 Product Positioning Positioning: a strategy in which a business creates a certain image or impression of a product in the minds of consumers.
28 Product Positioning Perception map reviles the product positioning in customers mind Customers indicate their perception of a product by where they place the dot. In this instance customer perception of Twix is low priced, lower quality snack item Where as Belgium Chocolates are perceived as high quality and high price
29 Product Positioning Positioning Strategies Positioning by price and quality Positioning by features and benefits Positioning in relation to the competition Positioning in relation to other products in a line Question: What is the primary goal of product positioning?
30 Product Branding Objective 3: Understand packaging, labeling, and branding elements and strategies. Explain the nature of branding. Explain branding strategies. Objective 4: Understand packaging and labeling. Explain the functions of packaging. Explain labeling laws.
31 Branding What is a product brand? It is a name, term, symbol, or design, that identifies a product and distinguishes it from competitors products
32 Branding Brand Name a word, group of words, letters, or numbers that represent a product or service. Also called product brand.
33 Branding Trade Name Identifies and promotes a company or a division of a particular corporation. The trade name is the legal name that a company uses when it does business.
34 Branding Brand mark: visually recognizable and does not need to be pronounced. Example: U.S. Postal Service s eagle or Apple Computer s apple.
35 Branding Trade character: one with human form or characteristics.
36 Branding Trademark: a word, name, symbol, device, or combination of these elements that is given legal protection by the Federal government
37 Branding Importance of Brands in Product Planning To build product recognition and customer loyalty To ensure quality and consistency To capitalize on brand exposure 75% of all companies introduce a new product each year
38 Branding Types of Brands National Brands: also called producer brands, they are owned by national manufacturers
39 Branding Private distributor brands Also called private brands, store brands, dealer brands or private labels. Manufacture does not appear on the product. Manufacture Brand Generic Brands Products that do not carry a company identity Private brand
40 Branding Strategies Brand Extension Using an existing brand name on a new product Brand Licensing Allowing other companies to use their brand name Co-Branding Combining one or brands. Kellogg s Pop-Tarts with Smucker s fruit filling
41 Branding What makes a good brand name? The name should describe the product s uses. Easy to read, pronounce, and remember Create appealing images Should be distinctive Should be adaptable Legally available Appropriate for packaging and advertising
42 Branding Brand Insistence - the goal of Branding Definition: to be emphatic in demanding a specific brand. How to Create Brand Insistence The brand stands for something that is important to them The brand connects with them on multiple levels across several senses The brand is unique (or at least appears to be) The brand is admirable The brand interacts with them and does not disappoint them The brand makes them feel good
43 Packaging and Labeling Packaging: the physical container or wrapping for a product.
44 Packaging Functions of Packaging Promote and sell the product Defining Product Identity Providing information Expressing customer needs-various sizes, etc. Ensuring safe use Protecting the product
45 Packaging Packaging Types Aseptic Packaging: technology that keeps food fresh without refrigeration, such as canning or bottling Environmental Packaging: friendly to the environment Cause Packaging: used to promote social and political causes
46 Labeling Label: is an information tag, wrapper, seal, or imprinted message that is attached to the product. Main function is to give information Descriptive label: information about the product s use, construction, care, performance, and other features Grade Label: States quality of the product. Grade AA, A, B
47 Labeling Laws Labels must meet local and national law requirements. Federal mandates required: Name, address of manufacture or distributor and quantity of contents and other items as required
48 Labeling Laws Fair Packaging and Labeling Act (FLPA) of 1966 Requires mandatory labeling requirements Federal Nutrition Labeling and Education Act 1990 protects consumers from deceptive labeling. Labels must give nutritional information on how a food fits into an overall daily diet. Federal Food and Drug Administration (FDA) Regulates the labeling and safety of food, drugs, and cosmetics sold in the U.S. Federal Trade Commission (FTC) Monitors advertising that is false or misleading.
49 Product Planning Activity Ask students to think of a new product that currently does not exist. Fun and crazy ideas are OK for this activity. Then have students using their idea to create a line extension of the product.
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