P RODUCT P LANNING AND D EVELOPMENT Marketing Co-Op

P RODUCT P LANNING Making decisions about features that are needed to sell a business’s products, services or ideas Product Features Packaging Labeling Branding Services Warranties

P RODUCT P LANNING Allows a business to  Coordinate existing products and features  Add new products  Delete products that are no longer attracting customers

P RODUCT M IX KRAFT Company:  Kraft  Kool-Aid  Nabisco  Maxwell House  Oscar Mayer  Post Cereal products All the different products that a company makes or sells

P RODUCT M IX ANOTHER EXAMPLE SC Johnson

P RODUCT M IX ANOTHER EXAMPLE Procter and Gamble

P RODUCT M IX To determine a company’s product mix, a business needs to identify:  Its target market  Its competitors  The image it wants to project  The product mix must be periodically reviewed to determine if products need to be expanded, modified, decreased, or eliminated

P RODUCT L INES Product line – a group of closely related products sold by a business

P RODUCT I TEMS Product item – a specific model, brand, or size of a product within a product line

P RODUCT W IDTH AND D EPTH product mix The width and depth of a company’s product offerings defines the product mix

P RODUCT W IDTH The number of different product lines sold by one manufacturer

Product Depth The number of product items within each specific product line  From one brand name

G ILLETTE P RODUCT M IX W IDTH VS. D EPTH Oral Care Blades & Razors Personal Care BatteriesAppliances Width Depth

P RODUCT M IX S TRATEGIES Develop completely new products for existing lines Drop existing product to allow room for new products Expand or modify existing product lines

D EVELOPING N EW P RODUCTS 7 Key Steps to New Product Development 1. Generate idea – focus groups, idea sessions 2. Screening ideas – evaluated for potential conflicts and profitability 3. Developing a business proposal – production requirements are considered 4. Developing the product – takes on a physical shape, develop marketing strategy

D EVELOPING N EW P RODUCTS 7 Key Steps to New Product Development 5. Testing the product with consumers – test on small groups 6. Introducing the product (commercialization) – must introduce product to public ASAP 7. Evaluating customer acceptance – study sales information

D EVELOPING E XISTING P RODUCTS Companies constantly evaluate their product mix to see if they can further expand their product lines or modify existing products Helps to reach new markets and increase overall sales Can be very expensive  Increased inventory  More promotion  Additional storage and distribution

L INE E XTENSIONS Introducing new product items, or services to meet customer needs

P RODUCT M ODIFICATIONS An alteration in a company’s existing products

D ELETING A P RODUCT There are several reasons why a company may decide to eliminate a product item or line Obsolescence Loss of Appeal Change in company objective Replacement with new products Lack of profit Conflict with other products in the line

A SSIGNMENT Get the Orange Textbooks Complete the questions from Chapter 30.1 Questions 1-3 on page 641 Questions 2,3,5,6 on page 649 Question 17 on page 650 (Don’t use computers, just think of at least 5 you already know and create the chart)