Product Planning Ch. 30 ME

Product Planning, Mix and Development Section 30.1

 Product – is anything a person receives in an exchange  Product Planning – involves making decisions about what features should be used in selling a business’s products, services or ideas. Product Planning

 Product Mix – includes all the different products that a company makes or sells  The types and number of products to be carried must be based on the objectives, the image, and the market of the business Product Mix

 Product Line – is a group of closely related products manufactured or sold by a business  Product Item - is a specific model, brand, or size of a product within a product line Product Items & Lines

 Product Width – refers to the number of different product lines a business manufactures or sells  Product Depth – refers to the number of items offered within each product line Product Widths & Product Depth

 Product Mix Strategy – is a plan for determining which products a business will make or stock 1.Developing new products 2.Developing existing products 3.Deleting a product or product line Product Mix Strategies

 Seven Step Process of New Product Development 1.Generating ideas 2.Screening ideas 3.Developing a business proposal 4.Developing the product 5.Testing the product with consumers 6.Introducing the product (commercialization) 7.Evaluating customer acceptance Developing New Products

 Line Extensions – is intended to be a different product that appeals to somewhat different needs of consumers  Product Modification – is an alteration in a company’s existing product Developing Existing Products

 Reasons for deleting a product or product lines: 1.Obsolescence 2.Loss of appeal 3.Changes in company objectives 4.Replacement with new products 5.Lack of profit 6.Conflict with other products in the line Deleting a Product or Product Line

Sustaining Product Sales 1.Section 30.2

 Product Life Cycle – represents the stages that a product goes through during its life The Product Life Cycle

 Introduction – focuses on efforts of promotion and production  Growth – success as shown by increasing sales and profit  Maturity – sales level off or slow down  Decline  Sell or license the product  Recommit to the product line  Discount the product  Regionalize the product  Modernize or alter the product offering Managing the Product

 Product Planning – is the image that a product projects  Goal – is to set the product apart from the competition  Types of Positioning:  Price and Quantity  Features and Benefits  Relation to the Competition  Relation to Other Products in Line Product Positioning

 Category Management – is a process that involves managing product categories as individual business units  Category Manager – is responsible for all brands for one generic product category  Manufacturers can customize a product mix with a category according to customer preference on a store-by-store basis  Planogram – is a computer-developed diagram that shows retailers how and where products within a category should be displayed on a shelf at individual stores Category Management