Production and Marketing Management Discuss the development, manufacturing, and marketing of products/services.

BM Examine methods and tools to design or redesign products.

New Product Development Creating product Ideas –Consumer research –Product research Pure research Applied research

New Product Development Designing new products –Involve all major departments –Meet consumers needs –Tested –Determine cost of production

Product Design Levels Basic product –Simple in design –Easy to understand –Usually like competitor’s product Enhanced product Extended product

Product Selection Methods Product line –Different categories –Different sizes –Different qualities –Different prices Product assortment –Product depth –Product breadth

Product Selection Methods Packaging –Protects product –Gives information –Ease of use –Used as promotional tool Branding

Technological Process Used in Product Design Computer-aided design (CAD) –View design from various angles –Study possible modifications –Test for strength and durability Computer-aided engineering (CAE) Computer-aided manufacturing (CAM) Computer-integrated manufacturing (CIM)

BM Discuss the factors to be considered in the manufacturing process.

Site Selection Cost of land, materials, construction Location of competitors Location of customers Labor costs Taxes/laws Climate/living conditions

Equipment Selection Purchase or lease Training required Availability –Workers to operate –Parts and service –Supplier assistance in installation/debugging

Equipment Selection Compatibility with existing equipment Maintenance/safety Warranty coverage Price

Facilities Layout Materials-handling system Types of layouts –Product Simplifies production Allows workers to specialize –Process –Fixed-position

Producing the Product Mass production Continuous processing Repetitive Production Intermittent Processing Custom Manufacturing

Enhanced Production Process Robotics –Complex tasks –Dangerous tasks Flexible Manufacturing Systems –No skilled machinist/conventional machine tools used –No costly delays for changing dies or tools

BM Explain how quality control relates to the efficiency and effectiveness of a company’s products and services.

Quality Management Quality planning –Identify customers and their needs –Develop product features to respond to need –Develop product processes to produce product features –Establish quality goals and process controls

Quality Management Quality control –Quality inspection –Quality assurance Statistical quality control “No rejects” philosophy Quality circles

Quality Management Quality improvement with TQM (Total Quality Management). –What do customers want? –Design product to meet consumers’ wants. –Design production process that gets the job done correctly the first time. –Keep track pf results and make improvements. –Share improvement recommendations with suppliers and distribution.

Quality Control and Service Businesses Nature of Services –Form Intangible More customer contact More labor/less equipment –Availability

Quality Control and Service Businesses Nature of Services –Quality Who Where When –Timing

Quality Control and Service Businesses Operating a service business –Must plan and demonstrate services to prospective customers –Must be available and provided in acceptable way –People must be well trained –Supply must be matched with demand

Quality Control and Service Businesses Changes in service businesses –More careful hiring of employees –More planning to maintain service quality standards –Use of technology to improve delivery and availability –Response to specific needs of consumers

BM Review basic marketing concepts and the elements of the marketing mix.

Nature of Marketing Marketing activities –Buying –Selling –Transporting –Storing –Financing –Researching –Risk taking –Grading/valuing Cost of marketing

Nature of Marketing Role of marketing –Production-oriented –Sales-oriented –Customer-oriented Market determination –Whom to serve –Where to serve –Target markets

Elements of the Marketing Mix Product –Number to produce –Physical features –Quality –Number of different models –Packaging –Brand name –Guarantees/services –Image

Elements of the Marketing Mix Price –High enough to cover costs of producing/marketing product –Number competing of competing products/their prices –Demand for product –Sold for cash or credit –Discounts, coupons, other promotions

Elements of the Marketing Mix Place (Distribution) –Choosing routes products will follow and businesses that will sell them –Physical handling of products –Customer service in processing orders

Elements of the Marketing Mix Promotion –Advertising –Personal selling –Sales promotion For Sale!

Marketing Plan Goals of business Target markets Marketing mixes Evaluation methods

Product Life Cycle Introduction –Brand-new product –Different from and better than products being used –No competition Maturity Growth Decline Introduction

Product Life Cycle Growth –Company attracts customers to its brand –Improve brand by adding features to satisfy customers –Make product readily available –Profits increase Maturity Growth Decline Introduction

Product Life Cycle Maturity –Has been purchased by large number of customers –Profitable –Companies emphasize promotion, packaging, image and price –Wide distribution –Competition intense –Increased promotion –Reduction in price Maturity Growth Decline Introduction

Product Life Cycle Decline –Decline in profits/sales –Products dropped from market –New uses found for old products Maturity Growth Decline Introduction