12 copyright © 2012 pearson education, inc. publishing as prentice hall12-1 product and service...
TRANSCRIPT
12
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-1
Product and Service Strategies
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-2
CHAPTER OBJECTIVES
1. What are products and services? What are their categories?
2. How do firms manage all of their products and services? What are the steps in the best development process for new products?
3. What is the product life cycle, and how is it used?
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OBJECTIVE 1
What are products and services? What
are their categories?
DEFINED
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Products are items consumed for
personal or business use.
Services are activities that
deliver benefits to consumers
or businesses.
EXPLAINED
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PRODUCTS
Product
Good Service
Tangible Intangible
EXPLAINED
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DISTINCTIONS OF A SERVICE
Intangible
Inseparable
Perishable
Variability
EXPLAINED
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GOODS – SERVICES CONTINUUM
Hair Brush
HaircutHair
Transplant
Pure
Good
Pure S
ervice
Hybrid
APPLIED
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LEVELS OF PRODUCT
Core Benefits
Actual ProductAugmented Product
Brand NameAttributes
Packaging
Style
Design
DeliveryFinancing
Service
Warranty
Customer Support
APPLIED
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CONSUMER PRODUCT CLASSIFICATIONS
Shopping
SpecialtyUnsought
Convenience
APPLIED
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INDUSTRIAL PRODUCT CLASSIFICATIONS
MRO Products
Processed Materials and Services
Components
Equipment
Raw Materials
APPLIED
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NEW PRODUCT DEVELOPMENT
Idea Generation
Idea Screening
Concept Development
Business Analysis
Market Testing
Commercialization
APPLIED
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TYPES OF NEW PRODUCTS
Cosmetic(Incremental)
Context(New Direction)
Concept(Breakthrough)
Web 1.0 2.0 iPod/iTunes
PC, Airplanes
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OBJECTIVE 2
How do firms manage all of their
products and services? What are the
steps in the best development process
for new products?
DEFINED
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A Product Portfolio is the
collection of all products and services
offered by a company.
THINK
ABOUT
IT
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SONY U.S. PRODUCT PORTFOLIO
Computer Cameras TelevisionsTheatre
Portable Electronics
Sony Pictures Games
VAIO -Notebook-Desktop
Digital home
Disc burner
Location free
Mylo
Software
Cyber-shot
Alpha SLR
Handycam
Printers
Digital picture frames
Photo services
Televisions
Home theatre systems
Blu-ray disc
DVD players
Home audio components
Walkman Video MP3
Rolly
Reader digital book
Sony cell phone
GPS
Movies -Theatre-DVD-Blu-ray
Television-Comedy-Drama-Daytime-Cartoons
Music
PlayStation-PS3-PS2-Portable
APPLIED
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SONY U.S. PRODUCT PORTFOLIO
Product Mix Width
Product Mix Depth
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OBJECTIVE 3
What is the product life cycle, and how
is it used?
DEFINED
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The Product Life Cycle is a model
describing the evolution of a product’s
sales and profit throughout its lifetime.
EXPLAINED
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PRODUCT LIFE CYCLE
EXPLAINED
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INTRODUCTION STAGE
Sales Volume
Product Features
Retail Outlets
Marketing Goal
EXPLAINED
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GROWTH STAGE
Sales Volume
Product Features
Retail Outlets
Marketing Goal
EXPLAINED
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MATURITY STAGE
Sales Volume
Product Features
Retail Outlets
Marketing Goal
EXPLAINED
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DECLINE STAGE
Sales Volume
Product Features
Retail Outlets
Marketing Goal
APPLIED
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DIFFUSION OF INNOVATION
InnovatorsEarly
AdoptersEarly
MajorityLate
MajorityLaggards
2.5% 13.5% 34% 34% 16%
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VISUAL SUMMARY
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