PRODUCT MANAGEMENT Marketing Management Session 6 and 7 October 10 and 17

SESSION OUTLINE (Oct.10) Brief review Theoretical concepts Managerial concepts Video: « Marketing a Product Range »

REVIEW Planning the marketing strategy involves: –Situation analysis and setting objectives –Market segmentation –Selecting target market(s) –Defining a positioning strategy –Developing the marketing mix

MARKETING MIX Controllable variables: –Product –Price –Promotion –Place

MARKETING MIX Promotion Place Price Product

MARKETING MIX Promotion Place Price Product Engineering Accounting/ Finance Sales Operations

THEORETICAL CONCEPTS Definition of a product Product classifications (see Exhibit 9-4 and 9-5, pp. 304 and 309) Product life cycle

DEFINITION OF A PRODUCT Central product Tangible product Augmented product

CLASSIFICATION OF CONSUMER GOODS See Exhibit 9-4, page 304

CLASSIFICATION OF BUSINESS PRODUCTS See Exhibit 9-5, page 309

INTANGIBLE GOODS Simultaneous consumption and production Wide variations in demand over short periods of time Many different types of services: –continuous services (electricity, telephone) –produced by a person (banking) –produced to a person (doctor, hairdresser)

MANAGERIAL DECISIONS Elements of the product: –physical attributes –brand name and logo –packaging and colours –format –labelling –guarantees, after-sales service

MANAGERIAL DECISIONS Managing an existing product line Developing and introducing new products Organizing the marketing department

NEXT SESSION Product life cycle New product introductions Case discussion: Cineplex Odeon Review for mid-term exam