1. Part 4 - Products Chpt 10 - Product Mgmt Slide 1 Chapter 9 PRODUCT STRATEGY Chapter 10 PRODUCT MANAGEMENT Chapter 11 SERVICES

2. Part 4 - Products Chpt 10 - Product Mgmt Slide 2 Co-Branding Two companies join to create a new product carrying both their brands.

3. Part 4 - Products Chpt 10 - Product Mgmt Slide 3 Co-Branding Examples: McCains cake and KFC McDonalds & movie Mulan Pizza Hut & Pepsi Cereal box with other thing inside Pizza Pizza and Blockbuster video rental & Chocolate bar Cinelex Odeon and Blockbuster

4. Part 4 - Products Chpt 10 - Product Mgmt Slide 4 Terms A series of related products (TEXT)A series of related products (TEXT) a group of products that are physically similar in performance, use or features and intended for a similar marketa group of products that are physically similar in performance, use or features and intended for a similar market Product Line

5. Part 4 - Products Chpt 10 - Product Mgmt Slide 5 Terms The assortment of product lines and individual offerings available from a company. (Text) the combination of product lines offered by the manufacturer Product Mix

6. Part 4 - Products Chpt 10 - Product Mgmt Slide 6 Product Lines Brands shoes Nike, addidas, reebok, fila, new balance, british knight, brooks, converse, vans, asic, puma notebooks toshiba, nec, TI, compaq, IBM, DELL Apple, HP, Hitachi, Mitsubishi, Matsushita,

7. Part 4 - Products Chpt 10 - Product Mgmt Slide 7 Service Providers service providers have product lines and product mixes as well examples MastercardMastercard insuranceinsurance telephone servicestelephone services cable servicescable services ISPs - internet service providersISPs - internet service providers

8. Part 4 - Products Chpt 10 - Product Mgmt Slide 8 Larkhill Clothing Manufacturing Inc. Larkhill Group example of a company, and its product line

9. Part 4 - Products Chpt 10 - Product Mgmt Slide 9 the different product lines = the product mix of the whole company

10. Part 4 - Products Chpt 10 - Product Mgmt Slide 10 Product Differentiation The attempt to create the impression that one product is greatly superior when in fact it may have only minor features or slightly different components/colour/shape etc. examples ball point pens running shoes others..............

11. Part 4 - Products Chpt 10 - Product Mgmt Slide 11 The Canada Packers Product Mix MeatsGroceriesNonedible Fresh meatsPeanut butterBy-products BaconMincemeatSoap PepperoniCanned pumpkinHides WienersCheesePharmaceutical raw BolognaLard materials Canned hamShortening Poultry Kolbassa Garlic sausage Width of Assortment Depth of Assortment Page 204

12. Part 4 - Products Chpt 10 - Product Mgmt Slide 12 Cannibalization Situation involving one product taking sales from another offering in a product line (Text) Cannibalization occurs when sales of a new product cut into (reduce) the sales of a firm’s existing products. Page 204

13. Part 4 - Products Chpt 10 - Product Mgmt Slide 13 Line Extension The development of individual offerings that appeal to different market segments but are closely related to the existing product line (Text) Adding on additional offerings to get more customers. “Marketers have line-extended to death” - Mattimore Page 204

14. Part 4 - Products Chpt 10 - Product Mgmt Slide 14 1.Desire to grow - firms introduce new products to grow - also introduce new products to sell throughout the year - if some products are seasonal ie. Campbell soup - examples: Importance of Product Lines Page 204

15. Part 4 - Products Chpt 10 - Product Mgmt Slide 15 2.Optimal use of company resources - sometimes new products introduced so the company can use up more of its resources - therefore reduce cost per unit - eg. Fiberboard made from sawdust Importance of Product Lines Page 204 - 205

16. Part 4 - Products Chpt 10 - Product Mgmt Slide 16 3.Increasing company importance in the market - companies add product lines because of opportunity, and to strengthen overall position - eg. Buck Knives - no has Buck Flashlights Importance of Product Lines Page 206

17. Part 4 - Products Chpt 10 - Product Mgmt Slide 17 4.Exploiting product life cycle - some features added so the company used “Product Modification” to extend the life cycle - some advertising done to find explain new uses “Market Modification” - some new products made as well Importance of Product Lines Page 206

18. Part 4 - Products Chpt 10 - Product Mgmt Slide 18 Decay Curve of New-Product Ideas

19. Part 4 - Products Chpt 10 - Product Mgmt Slide 19 6 Things That Determine Success for New Products Market launch - relative strength good information available in product development process has the firm been good at new product launches in the past the characteristics of the target market the ability of the company to make the product specific characteristics of the new effort Page 208

20. Part 4 - Products Chpt 10 - Product Mgmt Slide 20 6 Characteristics of The Superior Product Page 208 Customer demand exists for a better product it has better/more FAB - features, advantages, benefits (does more things compared to others) lower cost - but same FAB better quality/durability than competitive products easier to use has specific characteristics that no other competitive product has

21. Part 4 - Products Chpt 10 - Product Mgmt Slide 21 Forms of Product Development Slide 10-5

22. Part 4 - Products Chpt 10 - Product Mgmt Slide 22 4 Product Development Strategies Product Improvement (Product Modification) - modify existing products Market Development (Market Modification) - find new markets for existing products Product Development - introduce new products Product Diversification develop new products for new markets Examples !!!!!!!!! Page 208-209

23. Part 4 - Products Chpt 10 - Product Mgmt Slide 23 1. Committee 2. Department 3. Product/ Brand Manager 4. Venture Team Structure for New-Product Development Page 210 4 Ways You Can Organize Getting it Done

24. Part 4 - Products Chpt 10 - Product Mgmt Slide 24 Seven Steps of the New-Product Development Process

25. Part 4 - Products Chpt 10 - Product Mgmt Slide 25 Idea - 38% of new product ideas come from looking at competitors - one of the best ways is to listen to employee new ideasIdea - 38% of new product ideas come from looking at competitors - one of the best ways is to listen to employee new ideas Screening - purpose is to “screen” out the bad ideas and focus on the good ideas that might work and Analysis - is making the cost estimates and sales forecasts to estimate profitabilityScreening - purpose is to “screen” out the bad ideas and focus on the good ideas that might work and Analysis - is making the cost estimates and sales forecasts to estimate profitability Development - concept testing for totally new products (ie. holographic maps) Testing - taking the prototypes to a sample group of consumers and watch their reactionsDevelopment - concept testing for totally new products (ie. holographic maps) Testing - taking the prototypes to a sample group of consumers and watch their reactions Commercialization - promoting the product and developing advertising and sales campaignsCommercialization - promoting the product and developing advertising and sales campaigns Page 212

26. Part 4 - Products Chpt 10 - Product Mgmt Slide 26 Packaging An Important Part of the Product convinces people to buy protects the contents when shipped and handled adds to the value describes features, advantages and benefits of using product contains Warranty Information cautions and warnings about contents and misuse UPC code and tax information (cigarettes)