succeeding in product management
DESCRIPTION
TRANSCRIPT
WHAT IS A PRODUCT ?
A product is anything that can offered to market for attention, acquisition ,use, consumption that might satisfy a want or need.
PRODUCTS
GOODS SEVICES
Tangible products
Intangible products
FEATURES OF PRODUCT
Features of product
Associated attributes
Intangible attributes
tangibility
Exchange value
Customer satisfaction
LEVELS OF PRODUCT
Potential product
Augmented product
Expected product
Generic product
Core benefit
Unexpected features
Luxury features
Expected features
Basic features
Basic product
CLASSIFYING PRODUCTS
Durable products
Consumer products,
Business products
DURABLE PRODUCTS
Durable
Non-durable
Services
CONSUMER PRODUCTS
ConvenienceProducts
ShoppingProducts
SpecialtyProducts
Unsought
Products
CONVENIENCE GOODS
Staples -
Emergency goods –
Impulse purchases –
Convenience goods – consumers use minimal effort for frequently purchased low cost items
SHOPPING PRODUCTSShopping goods - consumers make a considerable effort to evaluate … Consumers make product comparison(s), They seek information before purchase, they are not impulsive
Moderate substitutions are made
Product’s last a considerable time
Monetary & social costs may be high
TV’S AS A SHOPPING PRODUCT (2007 ---- 1950’S)Attribute-based Price-based
PICTURE SIZE
WARRANTYREMOTE CONTROL
LOW PRICEPlasma –LCD screen
observation
Homogeneous products select on price Heterogeneous products select on benefits
BUSINESS PRODUCTS
Materials and parts
Raw materials and parts
Manufactured materials and parts
Capitals items
1.installation
2.equiptment
Suppliers and business services
1.maitainance and repair items
2.operating suppliers
RAW MATERIALS
Farm products
Natural products
MANUFACTURED MATERIALS AND PARTS
CAPITALS ITEMS
1.installation 2.equiptment
SUPPLIERS AND BUSINESS SERVICES
1.mainteinance and repair items
2.operating suppliers
PRODUCT MANAGEMENT SUCCESS
THREE KEYS TO PRODUCT MANAGEMENT SUCCESS
As product managers you have a significant responsibility for the success of your company. It’s easy to get bogged down in the countless tasks that are thrown your way every day. With all the meetings, floods of email, and requirements to manage, the thought of spending time on areas of strategic focus can seem overwhelming. However, with planning and a little effort you can make the difference. Start by focusing on three simple, yet powerful, keys to success:
1. Know your market:
Get a clear understanding of the market where your products compete, and work diligently to stay out in front of new trends and technologies. Make customer calls and customer visits often. Work with the sales team; understand how they sell your products. Know what works. Know the weaknesses of the products (and take action to correct them). Understand why people pay (or don’t pay) for your products. Be the voice of the customer to your company.
THREE KEYS TO PRODUCT MANAGEMENT SUCCESS
2. Provide clear direction:
One of your key directives as a product manager is to provide clear direction to the engineering/development teams. Spend the time to write understandable and timely requirements and prioritize them effectively. Provide solid product design (with the help of good designers). Give clear direction and project confidence and your full support to the work the engineering is doing. Earn their trust. Inspire them to do great things. “Have their backs” with the rest of the company (i.e. be their outspoken supporter).
THREE KEYS TO PRODUCT MANAGEMENT SUCCESS
3. Launch successfully:
Work with the sales team to make sure they understand the new product and hit the ground running when it releases. After a successful launch, monitor the product’s uptake and financials and make sure it continues to succeed. This, of course, loops back to knowing your market and making sure your product meets the needs of the people in your market.
THREE KEYS TO PRODUCT MANAGEMENT SUCCESS
PRODUCT LIFE CYCLE STRATEGIES
THE PRODUCT LIFE CYCLE STRATEGIES:
PLC Stages
• Product development
• Introduction
• Growth
• Maturity
• Decline 23
PRODUCT LIFE CYCLE
Time
ProductDevelop-
ment
Introduction
Profits
Sales
Growth Maturity Decline
Losses/Investments ($)
Sales andProfits ($)
PRODUCT LIFE CYCLE APPLICATIONS
Product class has the longest life cycle (e.g., gas-powered cars)
Product form tends to have the standard PLC shape (e.g., dial telephone)
Brand can change quickly because of changing competitive attacks and responses (e.g., Tide, Cheer)
Style is a basic and distinctive mode of expression (e.g., formal clothing, Danish modern furniture)
Fashion is a popular style in a given field (e.g., business casual)
Fad is a fashion that enters quickly, is adopted quickly, and declines fast (e.g., pet rocks)
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PRACTICAL PROBLEMS OF PLC
• Hard to identify which stage of the PLC the product is in.
• Hard to pinpoint when the product moves to the next stage.
• Hard to identify factors that affect product’s movement through stages.
• Hard to forecast sales level, length of each stage, and shape of PLC.
• Strategy is both a cause and result of the PLC.
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PRODUCT LIFE-CYCLE STRATEGIES
The Product Life Cycle (PLC) has Five Stages
• Product Development, Introduction, Growth, Maturity, Decline
• Not all products follow this cycle: • Fads• Styles• Fashions
PRODUCT LIFE-CYCLE STRATEGIES
The product life cycle concept can be applied to a:
• Product class (soft drinks)• Product form (diet colas)• Brand (Diet Dr. Pepper)
• Using the PLC to forecast brand performance or to develop marketing strategies is problematic
PRODUCT LIFE-CYCLE STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Begins when the company develops a new-product idea
Sales are zero
Investment costs are high
Profits are negative
PLC Stages
PRODUCT LIFE-CYCLE STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Low sales
High cost per customer acquired
Negative profits
Innovators are targeted
Little competition
PLC Stages
MARKETING STRATEGIES: INTRODUCTION STAGE
Product – Offer a basic product
Price – Use cost-plus basis to set
Distribution – Build selective distribution
Advertising – Build awareness among early adopters and dealers/resellers
Sales Promotion – Heavy expenditures to create trial
PRODUCT LIFE-CYCLE STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Rapidly rising sales
Average cost per customer
Rising profits
Early adopters are targeted
Growing competition
PLC Stages
MARKETING STRATEGIES: GROWTH STAGE
Product – Offer product extensions, service, warrantyPrice – Penetration pricingDistribution – Build intensive distributionAdvertising – Build awareness and interest in the mass marketSales Promotion – Reduce expenditures to take advantage of consumer demand
PRODUCT LIFE-CYCLE STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Sales peak
Low cost per customer
High profits
Middle majority are targeted
Competition begins to decline
PLC Stages
MARKETING STRATEGIES: MATURITY STAGE
Product – Diversify brand and modelsPrice – Set to match or beat competitionDistribution – Build more intensive distributionAdvertising – Stress brand differences and benefitsSales Promotion – Increase to encourage brand switching
PRODUCT LIFE-CYCLE STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Declining sales
Low cost per customer
Declining profits
Laggards are targeted
Declining competition
PLC Stages
