1. Product/Service Management

2. Intro Who is responsible for the last product you bought?
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

3. Product/Service Management
Product/Service Management is a marketing function that involves obtaining, developing, maintaining, and improving a product.

4. 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

5. 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

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

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

8. 3.01-B
Product Life Cycles

9. Intro
What is a product that has been around for as long as you can remember?
How has it changed over the years?
Example: Purina Cat Chow- offers food for fat cats, hairball cats, indoor cats, kittens, old cats, and cats with kidney problems.

10. Product Life Cycle
Product Life Cycle represents the stages that a product goes through during its life.
There are 4 Stages of Life Cycle:
1. Introduction
2. Growth
3. Maturity
4. Decline

11. Product Life Cycle What are the goals of the Introduction Stage?
To increase product awareness
Get the customer’s attention thru 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

12. Product Life Cycle What happens during Maturity Stage?
The product’s sales level off. More money is spent on competition during this stage.

13. Product Life Cycle During the Decline Stage:
Sales start to decline. A company must decide to alter the product, discount, or discontinue product.

14. Technology in Product/Service Management

15. Technology in Product/Service Management
Applications of Technology in Marketing:
1. Point-of-Sale Systems
2. Interactive Touch Screen Computer
3. Interactive TV
4. Customer Relationship Management
5. Enterprise Resource Planning Systems
6. Internet

16. Technology in Product/Service Management
Point of Sale System
Scanners at cash registers, touch screens, hand-held devices at
checkout
Interactive Touch Screen Computers
Example: Kiosks
Interactive TV
Where TV is like a computer- order movies, click on Ragu for
recipes, order food

17. Technology in Product/Service Management
CRM- Customer Relationship Management
A customer can track an order. The CRM or business can track
customer satisfaction
ERP- Enterprise Resource Planning
Software that allows all parts of the company’s management to be
integrated
Internet
Wi-Fi
Search Engines
E-commerce

18. 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

19. Ethical Considerations in Product Packaging

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

21. 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

22. 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 manufacturer
2. Quantity of contents
3. Nutritional info
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

23. Ethical Considerations in Product Packaging
In order for a product be labeled “recycled” it must show proof that it is composed of a certain amount of scraps/recycled materials.
For a food to be labeled “organic” it must meet certain standards.

24. Ethical Considerations in Product Packaging
What happens when a company fails to inform customers about product risks?
Company can get sued (the company becomes liable)
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 phones