Product Development Chapter 30

Product planning Packaging Labeling Branding Warranties make decisions about the features and services of a product or idea that will help sell the product. Forecast new trends. Add new products, delete old products. Packaging Labeling Branding Warranties

Product Mix includes all the products a company makes or sells. Manufacturers will often diversify their Product mix so as to not rely on one particular product. Variations in product will be based on: the objectives of the company, the image of the company and the target market

Product Line a group of closely related products. Nike airmax, macbook, cheerios, gatorade, under armor, vitamin water, Louisville slugger, pantene, axe Product item: a specific model brand or size of a product within a product line. Macbook air, honey nut cheerios, g series gatorade, underarmor coldwear/heatwear

Product Width: different products. Product Depth: product differences.

PRODUCT MIX STRATEGIES Developing New Products Generate ideas – creatively think up new ideas fed by customers, competitors, employees. Teams and taskforces are convened. Screening ideas –evaluate Develop a business proposal Develop the product- prototype Test product Introduce product – advertise! Evaluate

PRODUCT MIX STRATEGIES (cont’d) Developing Existing Products Line extensions- Product Modifications

PRODUCT MIX STRATEGIES (cont’d) Deleting a product or Product line Obsolescence Loss of Appeal Changes in company Objectives Lack of Profit Conflict with other Products in the line Replacement with new products

Product Life Cycle Introduction Stage Growth Stage Maturity Decline

Product Positioning Price Features and benefits Relationship to competitors Relationship to other products in the line

Category Management Categorize product lines with the same target market. Treat the category as its own business unit.