1. Have you ever noticed or wondered why products are placed the way they are on the shelves? Did you ever purchase something you were not planning on purchasing because it was next to another item???
Product Pos – an image a product projects

2. Did you know that is all another part of MARKETING
Did you know that is all another part of MARKETING!? Category Management (Planograms)

3. Category Management
category management
A process that involves managing product categories as individual business units.
Category management - is a process that involves managing product categories as individual business units.
A category may include a group of product lines with the same target market and distribution channels (ex. Beauty products or fishing tackle).
Marketing Essentials Chapter 30, Section 30.2

4. Category Management
The category manager is responsible for all the brands of one product category such as:
Foods
Beverages
Health and beauty products
They are responsible for profits or losses of the product mix and lines in their category.
Deal more with other managers from finance, production, and research and development (vs. Product Manager)
Position evolved from a “product manager” – they handle a specific product and deal directly with sales force
Cm ranked 81 in Americas top jobs in 2010
*Marketing consultants *# according to cnn money ,000
Marketing Essentials Chapter 30, Section 30.2

5. Category Management
planogram
A computer-developed diagram that shows retailers how and where products within a category should be displayed on a shelf at individual stores.
Manufacturers can customize a product mix within a category on a store-by-store basis.
A planogram - is a computer-developed diagram that shows retailers how and where products within a category should be displayed on a shelf at individual stores.
Maximize a products potential
Highlight related products
Customizable per store
Next time you visit a supermarket, walk down the aisle and notice how products are placed on shelves!

6. The stores planogram will indicate that items (ex
The stores planogram will indicate that items (ex. Baking supplies) be stocked together.
Sugar, floar, oil grouped vertically and like items side-by-side
Top dia- aisle number, hight/width of shelves, and overall, indv product position
Bottom- try not to place outside customers reach – shows how high the avg. man/woman can reach

7. Where do you think name brand items are typically placed?
Eye level for maximum exposure
Generics are often displayed on bottoms shelves
Ever notice adult products (ex. Cereal) placed high and children's low?? No coincidence…marketing at its finest!
-Cornell Study

8. Different planograms may be used to position products at clothing stores.
Focus on display and design
Featured lines placed to attract target customers

9. Why might a retail chain want all of its stores to use the same planograms?
Familiar with where to find product (ex. Different Walmart locations)
Uniform appearance
Corporate managers may be more qualified to create one than local store managers
May have agreements with manufacturers and/or vendors on how to display products
Why might a retail chain want all of its stores to use the same planograms?
To customize and meet local needs/tastes

10. Complete your study guide!

11. SECTION 30.2 REVIEW

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SECTION 30.2 REVIEW
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13. Section 30.1
Product planning involves deciding what features are needed to sell a business’s products, services, or ideas. A product mix strategy is the plan for how the business determines which products it will make or stock.
continued

14. Section 30.2
A product life cycle represents the stages that a product goes through during its life (introduction, growth, maturity, and decline). The goal of product positioning is to set the product apart from the competition.

15. This chapter has helped prepare you to meet the following DECA performance indicators:
Explain the concept of production mix.
Identify product to fill customer needs.
Establish the nature and scope of the product/service management function.
Orient new employees.

16. CHAPTER 30 REVIEW

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CHAPTER 30 REVIEW
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