1. Public Policy Issues In Product Management
PRESENTED BY:-
ANUJ GUPTA
PALLAVI ABROL

2. 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

3. 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.

4. Contd…. 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.

5. PUBLIC POLICY ISSUES Relationship between firm and citizenry.
The course of action or inaction taken by the
government with regard to a particular issue.
Relationship between firm and citizenry.

6. Public Pressure: A Cycle of Concerns
i. Stirring
Defused by
those
attacked
State of idleness
ii. Trial Support
iii. Political Arena
iv. Regulatory Adjustment

7. Public Pressure: A Cycle of Concerns
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.

8. Contd…. 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.

9. 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.

10. The “Battle”: New Products Manager
Individuals cause leaders, trial lawyers, injured customers
Regulators at all levels
Legislators in states/provinces
Federal legislators
Critics within the firm
New products manager
Service to
Customers
And
Public

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

12. 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.

13. 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 .

14. Design defects rubbing & sparking over a fuel tank due
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

15. Contd…. Defects in manufacture Example: Improper assembly of an item
Inadequate instructions for use or warnings against particular uses
After use Dangers

16. Forms and Sources of Product Liability
Negligence:-
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

17. 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

18. 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.

19. 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.

20. 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.

21. 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

22. 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

23. Relating System To Environment
Strategic planning
Concept generation
Pre Technical screening
Technical development
Marketing development
launch

24. 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.

25. Morality It is careful positioning of the product in line with the
benefits and prosperity of society.
Example:

26. Monopoly It is obtaining market dominance and pressurizing the
customer for purchase or removal of alternatives from
the market.
Example:

27. 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.

28. 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 ?

29. 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.

30. Contd…. Product Testing Understanding Customer Usage
Matching the product in terms of usage pattern
Marketing
Labeling And Adequate Warning
Cautious Distribution Channel

31. Contd… Market Testing Market Tests combining product and promotion
Distributor’s Understanding
Right Target Customer
Example: GSK, Women’s Horlicks
Education
Company Personnel
Consumers

32. Finding Solutions External Affairs Accepting Legislature
Public Affair Programs
Consumer Participation

33. Conclusion “Prevention Is Better Than Cure”
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”