1. Unit 3
By:
Sydney Eaker, Lauren David, Parker Stone, Lauren Wallace, Sarah Neely, and Khiala Myers

2. Product/Service Management
3.01 A, B, and C

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

4. 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. Benefits 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. The Role in Marketing Affects positioning of product
Improves product success
Gives product an image
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. 3 Main Phases Developing New Products Monitoring Existing Products
Eliminate Weak Products
Developing New Products
2. Monitoring Existing Products
- Sales, Profit, Market Share
Eliminate Weak Products

8. Product Life Cycle
represents the stages that a product goes through during its life
4 Stages:
Introduction
Growth
Maturity
Decline

9. Product life cycle
What are good examples of the stages?

10. Goals of Introduction Stage
Increase Product Awareness
Get the Customers attention with promotion
Lots of Special Promotions

11. Growth Stage Customers are aware of product, sales increase
Companies focus on customer satisfaction
Competition starts from other companies

12. Maturity and Decline Stage
The product’s sales level off. More money is spent on competition during this stage.
Decline
Sales start to decline. A company must decide to alter the product, discount, or discontinue product.

13. Technology Point-of-Sale Systems Interactive Touch Screen Computer
Scanners at cash registers, touch screens,
hand-held devices at checkout
Interactive Touch Screen Computer
-Example: Kiosks

14. Technology Interactive TV Customer Relationship Management
Where TV is like a computer- order movies,
click on Ragu for recipes, order food
4. Customer Relationship Management
A customer can track an order. The CRM or
business can track customer satisfaction

15. Technology Enterprise Resource Planning Systems Internet
Software that allows all parts of the company’s management to be
integrated
6. Internet
Wi-Fi
Search Engines
E-commerce

16. Technology
Mass customization is a technologically advanced method that allows businesses to produce products that are specialized for a very few customers.
Mass customization is a technologically advanced method that allows businesses to produce products that are specialized for a very few customers.
An example is Herff Jones being able to personalize a key chain for each school

17. Ethical Packaging
3.01 D

18. Ethical Product Packaging
Why do you think companies package and label their products?
Creates a good impression, Help sell product, and Communicate benefits

19. Packaging Concerns Product Safety Glass now plastic
Tamper-resistant packages
Airtight containers for foods
Wasteful packaging
Switching for spray cans and pumps

20. Label Information
Must have name of manufactures
Quantity of contents

21. Label Information Nutritional Information
Health claims are the same on all products; light, fat free, etc.

22. Label Information Warnings on products like alcohol and cigarettes
How to care for clothes

23. Ethical Labeling
What happens when a company fails to inform customers about product risks?
Company can get sued
Harm to Customer
Planned Obsolescence
Making products that are known to not last long, or change, so that people will need to replace them

24. 3.02

25. Competitive Advantage
the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
Multiple Products designed to integrate -Competitive Advantage

26. Positioning
developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line or organization in general.

27. Purpose of Positioning
Used to find a place for the product in the marketplace and distinguish the product from competitors
Actual Position
How the customers see the product
The position and the actual position is the product are the same, IF MARKETING HAS BEEN SUCCESSFUL.

28. Relationship between the Target Market and Positioning
The objective is for marketers to position their products to appeal to the desires and perceptions of a target market.

29. Relationship between Competition and Positioning
It is important to use positioning to your advantage. You want to position your product so that customers will continue to purchase from you rather than the competition.  
The pricing, promotion, product development, and distribution strategies are all planned with an eye toward the competition.

30. Market Position
unique image of a product or service in a consumer’s mind relative to similar competitive offerings.

31. 6 Bases For Positioning:
Attibute- one way of positioning a product is to highlight a product feature or attribute.
Price and Quality – this position strategy may stress high price as a sign of quality, or emphasize low price as an indication of value.
Use or Application – stressing unique uses or applications can be an effective means of positioning a product.

32. 6 Bases Cont.
Product User – this positioning strategy encourages use of a product or service by associating a personality or type of user with the product.
Product Classification – when positioning according to product class, the objective is to associate the product with a particular category of products.
Competitor – sometimes marketers make an effort to demonstrate how they are positioned against the competitors that hold a strong market position.

33. Positioning Strategies revolve around 3 areas
Consumer perception – are the images consumers have of competing goods and services in the marketplace.
Competitors in the marketplace – The ideal situation is when consumers perceive a business’ products to be superior to its competitors’ products or services.
Changes in the business environment – organizations need to be aware of changes in the business environment that might affect the position of their products or services.

34. Brand Name Should: Describe the product’s benefits and uses
Be easy to read, pronounce, and remember
Create appealing images
Be distinctive
Be adaptable
Be legally available for use
Be appropriate for packaging and advertising

35. Levels of Brand Loyalty
Brand Recognition – is when consumers become aware of a brand and recognize the brand.
Brand Preference – when consumers prefer to purchase a certain product brand based on their positive experience with the brand.
Brand Insistence – when the consumer insists on “their” brand and will not accept substitutes.

36. Brand Strategies
Brand Positioning – means the way consumers see the brand as compared to a competitive brand.
Brand extension – in which an existing brand name is used for a new or improved product line. Starbucks extends its coffee line to include ice cream and candy bars.

37. Brand Strategies Cont.
Brand licensing - allows one company to use its brand name, logo, or character for a fee.
For example, NFL Teams allow logo to be used on merchandise
Co-branding. – occurs when companies join forces to increase recognition, customer loyalty, and sales of both brands.
For example, United Airlines and VISA combine brands for a credit card.

38. International Branding
Marketers must research their brands to determine whether they would be acceptable in different countries.
How would the brand be pronounced in Italian, Spanish, German, etc.
Is the brand name culturally taboo in certain areas of the world?

39. Impact of Internet on Branding
MUST have a web presence to be successful.
Most companies must determine what URLs are available. They need to have web addresses that represent their brands.
It is also more common for companies to promote their product using social media sites such as Facebook and Twitter.

40. Forms of Branding
A brand is a design, name, symbol, term or word that distinguishes and identifies a company and/or products or services
A corporate brand represents the entire company or organization
For example, Coca-Cola, Ford, McDonalds, Kraft or Microsoft

41. Forms of Branding
A product brand represents a specific product of a company or organization
For example, Diet Vanilla Coke, Big Mac, or Windows XP

42. Forms of Branding
A private distributor brand, also called a store brand
For example, Radio Shack brand of batteries, Lowe’s brand of macaroni and cheese

43. Trade Character
Personified symbol that represents the brand name

44. 3.03

45. Product Mix All the types of products a company makes or sells
Some companies have different brands for different markets
Coca-Cola has different drinks for sparkling beverages, water, juice, performance, coffee, tea, and international flavors.

46. Reasons to Narrow Product Mix
Product Width – number of different product lines
CONTRACTING
Ease on management
Cost effective
Simplicity
Consistency

47. Reasons to Broaden Product Mix
Product Width – number of different product lines
EXPANDING
Reach all markets
Competitive advantage
Ex: Red Lobster specializes in seafood, but offers chicken and steak to broaden their product mix.

48. Reasons to Deepen Product Mix
Product Depth – number of items offered within each product line
EXPANDING
Variety
Quantity
Ex: Kohl’s carries various quantities of sizes, colors, & styles of Levi Jeans.

49. Reasons to Offer to Shallow Product Mix
Product Depth – number of items offered within each product line
CONTRACTING
Cost effective
Satisfy small markets

50. Importance of Product Mix
Businesses must plan their product mix carefully because they cannot offer all the products that customers may want.
They should be a profitable market for product offered by a company

51. Trading Up/Down
Trading up: Adding a higher-priced product to a line to attract a higher-income market and improve the sales of existing lower-priced products.
Trading down: Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.

52. Positioning Product Mix Strategies
Positioning – actions marketers take to create a certain image of a product in the minds of the customers
In Relation to a Competitor
In Relation to a Product Class or Attribute
In Relation to a Target Market
By Price and Quality
Difficult to change

53. Ways Lines can be organized
Product Line – group of closely related products manufactured by a business
Product Item – specific model, brand, or size of a product within a line
Ex: P&G has over 250 products within 21 product lines
Dish care is a product line
Cascade, Dawn, Joy, & Ivory are items

54. 3.04

55. Physical Distribution
Organizing and moving products through the channels
Logistics = ordering, transporting, storing, handling and inventory control

56. Channel Functions Providing marketing information: Promoting products:
Companies rely on market research to determine their target markets’ needs and wants
Ex: small business producing handmade greeting cards
Promoting products:
Can be expensive
Retailers often take a large portion of promotion responsibilities
Ex: local supermarkets/discount stores

57. Channel Functions Cont.
Contact
Matching
Negotiating with the customers:
Different prices are paid by the wholesaler, retailer and consumers based on negotiation
Physical distribution
Financing and risk taking:
Moving products through a channel costs money
When channel members work together to finance activities and to assume financial risks, channels will be more effective

58. Tasks of Intermediaries-Retailer
Much stronger personal relationship with the consumer
Hold a variety of products
Offer consumers credit
Promote and merchandise products
Price the final product
Build retailer ‘brand’ in the high street

59. Tasks of Intermediaries-Internet
Sell to a geographically disperse market
Able to target and focus on specific segments
Relatively low set-up costs
Use of e-commerce technology (for payment, shopping software, etc)
Paradigm shift in commerce and consumption

60. Horizontal Conflict Occurs between channel members at the same level
Good, old-fashioned business competition
Ex: two retailers selling pet supplies compete to sell to the same target market

61. Vertical Conflict
Occurs between channel members at different levels within the same channel
Producers and wholesalers, wholesalers & retailers, or producers and retailers

62. Dual Distribution
A manufacturer may sell its products through multiple outlets at the same time:
Toll-free phone system
Company website
Multiple retailers

64. http://www. savingwithshellie