3.01 Acquire a foundational knowledge of product/service management to understand its nature and scope.

Intro What is one product you bought recently and why? 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

Product/Service Management Product/Service Management is a marketing function that involves obtaining, developing, ____________, and ___________ a product.

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.Product Itself 6.Government Regulation 7.Stages in Life Cycle 8.Business and Economic Trends

Product/Service Management What are Benefits to Product/Service Management? -Offer products 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

Product/Service Management What role does Product/Service Management play in Marketing? 1.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?

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. __________ New Products 2. Monitoring Existing Products - Sales, Profit, Market Share 3. Eliminate Weak Products

Activity 1 Now let’s see if you got it… With the people at your table Think of a product that needs to be improved & redesign the package You cannot use Ipod/Ipad/Coke/Pepsi Create a new ideas for the product; DRAW a sample picture & write down some of its new features/benefits- be ready to present to class. You have minutes!

Critical Thinking???? What is a product that has been around for as long as you can remember? How has it changed over the years?

Product Life Cycle Product Life Cycle represents the stages that a product goes through during its life. Company needs to know what cycle they’re in order to adapt its marketing strategies to the product. There are 4 Stages of Life Cycle: 1. Introduction 2. Growth 3. Maturity 4. Decline

WARM UP: 3.01a Review 1.Which activity is addressed in the product/service management function? a)Setting discounts to clear products from inventory b)Determining where products will be offered for sale c)Focusing promotional activities on a new-product release d)Eliminating products that are slow sellers 2.Why does a company need to know what stage of the product life cycle its products are in? a)To prevent imitators from entering the market b)To find new uses for the product c)To adapt its marketing strategies d)To predict the length of the life cycle 3.Get your clocks out

What Product Life Cycle? – Hand written letter – Check books – Refrigerator – E-conferencing – Internet – Personal Computers Decline Maturity Introduction Growth Maturity Get w/ your 5 o’clock What stage do you think the following products are in & why? Talk w/ your partner - Introduction - Growth - Maturity - Decline

Product Life Cycle What are the goals of the Introduction Stage? – To increase product awareness – Get the customer’s attention through promotion – Lots of special promotion During Growth Stage: – Customers are aware of product, sales increase –Companies focus on customer satisfaction –Competition starts from other companies

Product Life Cycle What happens during Maturity Stage? – The product’s sales level off. More money is spent on competition during this stage. What’s an example of a mature product? During the Decline Stage : –Sales start to decline. A company must decide to alter the product, discount, or discontinue product.

Which Product Life Cycle? Sales increase as consumers are aware of the product’s existence. – Growth Sales have fallen to a very low level and the product is becoming unprofitable – Decline Intense competition in the marketplace – Maturity The product should be withdrawn from the market – Decline

Which Product Life Cycle? Competition increases for company/product – Growth The product is launched into the market and sales are slow at the beginning – Introduction The product is established in the market, sales are high – Maturity Products are still making a loss as sales are not yet high enough to cover expenses – Introduction

Activity 2: Cycle It Get with your 1 o’clock appointment Think of a product that has been around as long as you can remember? You can not choose Ipods/ipads (anything in that family), coke, or pepsi Write down the 4 stages of the life cycle. Write down how it changed over the years for each of the 4 stages. If you believe it has not yet reached the stage, what do you think the company has done to keep it from hitting that phase; how have they improved? Everyone should have their own paper for notebook check You have 5 – 7 minutes

Technology in Product/Service Management Applications of Technology in Marketing: 1. Point-of-Sale Systems 2. Interactive Touch Screen Computer – Scanners at cash registers, touch screens, –hand-held devices at checkout – Example: Kiosks

Technology in Product/Service Management Continued 3. Interactive TV 4. Customer Relationship Management – Where TV is like a computer- order movies, click on Ragu for recipes, order food – A customer can track an order. The CRM or business can track customer satisfaction/visitors on websites

Technology in Product/Service Management Continued 5. Enterprise Resource Planning Systems – Software that allows all parts of the company’s management to be integrated

Technology in Product/Service Management Continued 6. Internet – Wi-Fi – Search Engines – – E-commerce

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 Mass customization: technologically advanced method that allows businesses to produce products that are specialized for a very few customers

Activity 3- Design some Technology! In the assigned groups select a store & design a touch screen computer interface for an in store kiosk. Write down: 1) What are you using it for; what is kiosk answering? 2) What data/ information should be collected? Consider the following when completing your kiosk: – How could the company use the information? – What information does the company need to save about the transactions? – What information does the company need to save about the customers? Draw a picture and write info on back (color) Turn in one paper to bin w/ all of the info requested.

Example of interactive computer/kiosk

Ethical Considerations in Product Packaging Business Ethics in Product/Service Management

Ethical Considerations in Product Packaging Why do you think companies package and label their products? Answer: Create a good impression Help sell product Communicate benefits Concerns for Product Packaging? Product Safety- Glass now plastic Tamper-resistant packages Airtight containers for foods Wasteful packaging Switching for spray cans and pumps

Ethical Considerations in Product Packaging Product labeling must inform customers about a product’s contents and give directions for use. 1. Must have name of manufactures 2. Quantity of contents 3. Nutritional Information 4. Health claims are the same on all products; light, fat free, etc. 5. Warnings on products like alcohol and cigarettes 6. How to care for clothes

Ethical Considerations in Product Packaging In order for a product to say recycled it must show proof that it is retrieved a certain amount of scraps. For a food to be organic it must meet certain standards

Ethical Considerations in Product Packaging What happens when a company fails to inform customers about product risks? 1.Company can get sued 2.Harm to customer What is Planned Obsolescence? – Making products that are known to not last long, or change, so that people will need to replace them –Example: Cell phones are always coming out with newer functions and it makes consumers want to purchase the new and improved cell phone

Gum Project Work in groups of three of the same sex. They will create a brand new pack of gum for the opposite sex. The tasks that must be completed are listed in the bulleted list below. Teams will present their creation and will be evaluated by the following rubric. be evaluated by the following rubric.