1. Product Planning
And Utility

2. Product Planning
Involves making decisions about those features that are needed to sell a business’s products, services, or ideas.

3. Product Mix
Includes all the different products that a company makes or sells.

4. Product Line
A group of closely related products manufactured and/or sold by a business.

5. Product Item
A specific model, brand, or size of a product within a product line.

6. Product Width
The number of different product lines a business manufactures or sells.
Width of the Gillette Product Mix
Oral Care
Blades & Razors
Personal Care
Batteries
Appliances

7. Product Depth
The number of product items offered within each product line.
Oral Care
Blades & Razors
Personal Care
Batteries
Appliances

8. Product Mix Strategies
The plan for how the business determines which products it will make or stock
May develop completely new products
May expand or modify their current product lines
May drop existing products

9. STAGES OF PRODUCT DEVELOPMENT

10. Developing New Products
1) Generating Ideas
Come from a variety of sources
Creativity is essential
2) Screening Ideas
Testing of consumer reaction and competitive situation in the market.
Ideas are evaluated and matched against the company’s overall objectives.

11. Developing New Products
3) Concept Development
Consider a product’s potential sales, costs, and production requirements.
If consumers think the idea is a good one, a “prototype” is created.
4) Marketing Strategy
--Marketers develop a marketing strategy.

12. Developing New Products
5. FEASIBILITY STUDY
Marketing, production, and finance departments assess whether or not the product/service is viable or profitable enough.
6. PRODUCT DESIGN
Includes product and its warranty, instructional manual, packaging and service information.

13. Developing New Products
7. TEST MARKETING
Involves product trial and auditing of consumer reactions.
8. MARKET ENTRY
Beginning of the product life cycle (Ch2).
This stage also is called commercialization.
Evaluating Customer Acceptance
The consumer will determine how long the product lasts.

14. Developing Existing Products

15. Developing Existing Products
Companies constantly review their product mix to see if they can further expand their product lines or modify existing products.
Two ways to do this:

16. Developing Existing Products
Line Extensions – new product lines, items, or services
Original Product
Newer Products

17. Developing Existing Products
Product Modifications – an alteration in a company’s existing product

18. Deleting a Product or Product Line
Obsolescence
Loss of appeal
Conflict with current company objectives
Replacement with new products
Lack of profit
Conflict with other products in the line

19. Utilities

20. Form Utilitiy
Enhancing the marketability of a product by changing its physical characteristics like; design, scent, flavour, colour, packaging.
For example, boxed detergent can be produced in liquid form, which may be more advantageous for certain consumer requirements.

21. Information Utility
The value when the consumer knows the product exists and the benefits it offers.
Example: instructions, directions and user manuals or advertising of the product

22. TIME UTILITY
Enhancing a product's marketability by making it available at a convenient time.
For example, a daily newspaper home delivered so that the customer has it available immediately when he/she awakes for the day.

23. PLACE UTILITY Where the product or service is made available.
For example, if it is a retail establishment, people should be provided with easy access. Mail order companies make it easy for customers to shop whenever they want and then have their purchases delivered to them.

24. POSSESSION UTILITY:
Additional consumer value created by allowing easy transferring of a product's ownership.
For example, various time payment, leasing, and credit purchase strategies can be important in making a product more attractive to a consumer.