1. Standard 5 - Product Management

2. Standard 5 Day 1 Students will be able to: Understand the importance of generating product ideas to the ongoing success of a business –Identify product opportunities –Identify methods/techniques to generate a product idea

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

4. Developing New Products Generating Ideas –Come from a variety of sources –Creativity and Brainstorming is essential Screening Ideas –Ideas are evaluated and matched against the company’s overall objectives.

5. Developing New Products Developing a Business Proposal –Consider a product’s potential sales, costs, and production requirements. Developing the Product –The new idea takes physical shape –Marketers develop a marketing strategy. Testing the Product with consumers

6. Developing New Products Introducing the Product –The product has been researched successfully –This stage also is called commercialization. Evaluating Customer Acceptance –Marketers track new product performance.

7. 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:

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

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

10. 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

11. Standard 5 Day 2 – Explain and describe the nature and scope of the product/service management function Explain and describe the nature and scope of the product/service management function –Identify the components of the product life cycle –Identify the impact of product life cycles on marketing decisions –Understand market position and market share What you’ll learn...

12. Product Life Cycle 1. Introduction 2. Growth 3. Maturity 4. Decline

13. Product Life Cycle 1. Introduction Product awareness Least profitable stage because of high costs. Special promotions to get customers to try the product.

14. Product Life Cycle 2. Growth Push Features and Benefits New models or modifications made to compete and keep sales growing.

15. Product Life Cycle 3. Maturity Other companies enter market Spends more of the marketing $$ on fighting off competition. Considerations in improvements of product to compete with competition.

16. And Then Comes Decline Explained on Next Slide Flavors that were pretty good but we came up with similar but vastly better recipes to take their place (and sometimes we re-name these flavors, too, just to keep you on your toes); Flavors we just aren’t making anymore, anywhere. Hunka Burnin' Fudge Jerry's Jubilee™ Malted Milk Ball

17. Product Life Cycle 4. Decline Sales decline or fall Profits may be smaller than costs. Can stop producing the product or use product mix strategies to capture profits. o Sell or license the product o Recommit to the product finding new uses o Discount the product o Regionalize - Only offer the product in certain areas of the county (BBQ in the South) o Modernize or alter

18. Market Share and Position Market Share is the percentage of the industry that you control. Market Position is the ranking of you company within your industry

19. Standard 5 Day 3 Students will be able to: Understand how product-mix strategies are employed to meet customer expectations. –Explain the concept of product mix –Describe the nature of product bundling

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

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

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

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

24. Product Depth Oral Care Blades & Razors Personal Care BatteriesAppliances The number of product items offered within each product line.

25. 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