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Product/Service Management

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Presentation on theme: "Product/Service Management"— Presentation transcript:

1 Product/Service Management

2 The Product Development stage can take a long time and can be very expensive.
Did you know….. -It took over 3 years to develop Google’s search engine -It took over 4 years to develop the famous chicken sandwich at Chick-fil-a It took 10 years to develop Crest toothpaste It took 51 years to develop television

3 Product/Service Management
Product/Service Management is a marketing function that involves obtaining, developing, maintaining, and improving a product.

4 Product/Service Management
Factors affecting Product/Service Management: 1. Customer Needs and Wants 2. Company Goals and Strategies 3. Cost and Available Resources 4. Competition 5. The Product Itself 6. Government Regulations 7. Stages in Product Life Cycle 8. Business and Economic Trends

5 Product/Service Management
What are Benefits to Product/Service Management? -Offer products that consumers want and company’s profits increase -When developing the right products, a company can gain new customers -When products are well managed there is less of a chance for failure

6 Product/Service Management
What role does Product/Service Management play in Marketing? Affects positioning of product -what image do you want to create about the product in the minds of consumers? 2. Improves product success 3. Gives product an image -what impressions do you have of certain brands

7 Product/Service Management
Who is responsible for managing product/service management? -Several employees of a company, certain departments, 1 employee or just the boss. Normally depends on size of company. 3 Main Phases of Product/Service Management 1. Developing New Products 2. Monitoring Existing Products - Sales, Profit, Market Share 3. Eliminate Weak Products

8 Sources Marketing Essentials MBA-LAPS-PM-017-SP

9 Product/Service Management (PSM) Unit 3.01 “Gum for THEM”
Work in groups of 3-4 of the same gender to create a new pack of gum for the opposite gender. Create an in-depth 10 question survey to better determine what type of gum will best interest the opposite gender and give the survey to each opposite gender group. Based on the survey results create a pack of gum and make a mock up (sample packaging). Answer the following questions in complete sentences: What is the product name and what is the flavor? What type of packaging will you use? To which target market are you positioning the product? What is the gum’s brand image?

10 3.01-B Product Life Cycles

11 Product Life Cycle

12 Write down your response to the following two questions
What is a product that has been around for as long as you can remember? 2. How has the product changed over the years? Share your response with a partner

13 Product Life Cycle Product Life Cycle represents the stages that a product goes through during its life. There are 4 Stages in the Product Life Cycle: 1. Introduction 2. Growth 3. Maturity 4. Decline

14 Product Life Cycle What are the goals of the Introduction Stage?
To increase product awareness (informative advertising) Get the customer’s attention thru promotion During Growth Stage: Customers are aware of product, sales increase Product are sold at more locations Companies focus on customer satisfaction Competition starts from other companies which drives down prices Persuasive advertising begins

15 Product Life Cycle What happens during Maturity Stage?
The product’s sales level off. Typically this is the product’s longest stage. Heavy promotion is required to maintain market share. Niche products develop Discussion: Choose a mature product Discuss how the company is managing: 1. Competition 2. Advertising 3. Distribution – How many locations? 4. Other Strategies they have put in place

16 Product Life Cycle During the Decline Stage: A long-run drop in sales.
A company must decide to alter the product (new uses for the product), discount the product (reduce prices until inventory is sold off), or discontinue the product.

17 Technology in Product/Service Management

18 Technology in Product/Service Management
Applications of Technology in Marketing: 1. Point-of-Sale Systems 2. Interactive Touch Screen Computer 3. Interactive TV 4. Customer Relationship Management 5. Enterprise Resource Planning Systems 6. Internet 7. Mass customization examples of each on following slides

19 Technology in Product/Service Management
Point of Sale Scanners at cash registers, touch screens, hand-held devices at checkout Interactive Touch Screen Computers Example: Kiosks Interactive TV Where TV is like a computer- order movies, click on Ragu for recipes, order food

20 Technology in Product/Service Management
CRM- Customer Relationship Management A customer can track an order. The CRM or business can track customer satisfaction ERP- Enterprise Resource Planning Software that allows all parts of the company’s management to be integrated using an internal company INTRANET Internet Wi-Fi Search Engines E-commerce

21 Technology in Product/Service Management
Interactive TV helps marketers to develop a database of their uses This database analysis helps see the customer’s reaction to products They are testing Interactive TV for promotion

22 Technology in Product/Service Management
Mass customization is a technologically advanced method that allows businesses to produce products that are specialized for a very few customers. (It is the customization and personalization of products and services for individual customers at a mass production price. The concept was first conceived by Stan Davis in Future Perfect. It was then further developed by Joseph Pine in his book Mass Customization - The New Frontier in Business Competition.)

23 Ethical Considerations in Product Packaging

24 Ethical Considerations in Product Packaging
Why do you think companies package and label their products? Answer: Build brand awareness Help promote product and communicate benefits Protect the product and increase shelf life Concerns for Product Packaging? Product Safety- Plastic vs. Glass Tamper-resistant packaging Airtight containers for foods Wasteful packaging Non-aerosol spray cans and pumps

25 Product labeling must inform customers about a product’s contents and give directions for use.
1. Must have name of manufacturer 2. Quantity of contents 3. Nutritional info 4. Organic and Recycled or Environmentally Friendly claims must meet certain standards 5. Health claims are standardized on all products; light, fat free, etc. 6. Warnings on products like alcohol and cigarettes 7. How to care for clothes

26 Ethical Considerations in Product Packaging
What happens when a company fails to inform customers about product risks? Company can get sued Harm to customers What is Planned Obsolescence? Making products that are known to not last long, or make changes to the product requiring a need to replace the product Example: Cell phones are always coming out with newer functions and it makes consumers want to purchase the new and improved cell phone

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