introductory to product management
TRANSCRIPT
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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