1. 3.01 A -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:
Customer Needs and Wants
Company Goals and Strategies
Cost and Available Resources
Competition
Product Itself
Government Regulation
Stages in Life Cycle
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?

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.
Discuss how company is managing:
1. Competition
2. Advertising
3. Distribution – Is it only sold at 1 place
4. Other Strategies they have put in place

13. The life product cycle model
Development
Development
Growth
Growth
Maturity
Maturity
Decline
Decline
Few:
Few:
Growing adopters:
Growing adopters:
Growing selectivity
Growing selectivity
Saturation of
Saturation of
Drop-off
Drop-off
trial of
trial of
trial of
trial of
of purchase
of purchase
users
users
in usage
in usage
early
early
product/service
product/service
Repeat purchase
Repeat purchase
adopters
adopters
reliance
reliance
Entry of
Entry of
May be many
May be many
Fight to maintain
Fight to maintain
Exit of some
Exit of some
competitors
competitors
share
share
competitors
competitors

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

16. Product Life Cycle Sources: Marketing Essentials Marketingteacher.com
Google