1. Principles of Marketing
What are we doing?
Product/Service Management

2. Define 7 Functions using 1 word:
channel management = distribution
marketing-information management = data
Pricing = price
product/service management = lifecycle
Promotion = communication
Selling = personal (1 on 1)
Financing = capital (investment, backing)

3. Marketing IS EVERYWHERE!

4. Product Service Management – Designing, producing, maintaining, improving, and obtaining products to meet customer’s wants and needs

5. Product/Service Management
Helps to determine which products a business will offer and in what quantities
Aids in determining and developing a company’s/product’s image
Provides direction for other marketing activities based on changes in a product’s life cycle

6. Product Planning
Making decisions about features that are needed to sell a business’s products, services or ideas
Product Features
Packaging
Labeling
Branding
Services
Warranties
Water bottle example: How much would you pay for a deer park bottle? Smart water? Fiji? Why would you pay more for one than the other?

7. Product Planning Allows a business to
Coordinate existing products and features
Add new products
Delete products that are no longer attracting customers

8. Product Mix KRAFT Company:
All the different products that a company makes or sells
KRAFT Company:
Kraft
Kool-Aid
Nabisco
Maxwell House
Oscar Mayer
Post Cereal products

9. Product Mix another example
SC Johnson

10. Product Mix another example
Procter and Gamble

11. Product Mix
To determine a company’s product mix, a business needs to identify:
Its target market
Its competitors
The image it wants to project
The product mix must be periodically reviewed to determine if products need to be expanded, modified, decreased, or eliminated

12. Product Lines
Product line – a group of closely related products sold by a business

13. Product Items
Product item – a specific model, brand, or size of a product within a product line

14. Product Width and Depth
The width and depth of a company’s product offerings defines the product mix

15. Product Width
The number of different product lines sold by one manufacturer

16. Product Depth From one brand name
The number of product items within each specific product line
From one brand name
depth

17. Gillette Product Mix Width vs. Depth
Oral Care
Blades & Razors
Personal Care
Batteries
Appliances
Depth

18. Product Mix Strategies
Develop completely new products for existing lines
Drop existing product to allow room for new products
Expand or modify existing product lines

19. Developing New Products
7 Key Steps to New Product Development
1. Generate idea – focus groups, idea sessions
2. Screening ideas – evaluated for potential conflicts and profitability
3. Developing a business proposal – production requirements are considered
4. Developing the product – takes on a physical shape, develop marketing strategy

20. Developing New Products
7 Key Steps to New Product Development
5. Testing the product with consumers – test on small groups
6. Introducing the product (commercialization) – must introduce product to public ASAP
7. Evaluating customer acceptance – study sales information

21. Developing Existing Products
Companies constantly evaluate their product mix to see if they can further expand their product lines or modify existing products
Helps to reach new markets and increase overall sales
Can be very expensive
Increased inventory
More promotion
Additional storage and distribution

22. Introducing new product items, or services to meet customer needs
Line Extensions
Introducing new product items, or services to meet customer needs

23. Product Modifications
An alteration in a company’s existing products

24. Deleting a Product
There are several reasons why a company may decide to eliminate a product item or line
Obsolescence
Loss of Appeal
Change in company objective
Replacement with new products
Lack of profit
Conflict with other products in the line
Why do you think the Tiger Gatorade was eliminated by Gatorade?