3.01 product/service management
DESCRIPTION
3.01 Product/Service Management. Intro. Who is responsible for the last product you bought? Did you know…. -It took over 3 years to develop Google’s search engine -It took over 4 years to develop the famous chicken sandwich at Chick-fil-a . Product/Service Management. - PowerPoint PPT PresentationTRANSCRIPT
3.01
Product/Service Management
Intro• Who is responsible for the last product you bought? • Did you know…..-It took over 3 years to develop Google’s search engine
-It took over 4 years to develop the famous chicken sandwich at Chick-fil-a
Product/Service Management
• Product/Service Management is a marketing function that involves obtaining, developing, ____________, and ___________ a product.
Product/Service ManagementFactors affecting Product/Service Management:1. Customer Needs and Wants2. Company Goals and Strategies 3. Cost and Available Resources4. Competition5. Product Itself6. Government Regulation7. Stages in Life Cycle8. Business and Economic Trends
Product/Service ManagementWhat are Benefits to Product/Service Management?
-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
Product/Service ManagementWhat role does Product/Service Management play in Marketing?
1.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?
Product/Service ManagementWho is responsible for managing product/service
management?-Several employees of a company, certain departments, 1 employee or just the boss. Normally depends on size of company.
3 Main Phases of Product/Service Management
1. __________ New Products2. Monitoring Existing Products - Sales, Profit, Market Share3. Eliminate Weak Products
Now let’s see if you got it…
• Get into assigned groups. • Think of a product that needs to be improved,
redesign the package, reposition the product, etc.
• Create a new ideas for the product; draw a sample picture and be ready to present to class.
Critical Thinking???? • What is a product that has been around for
as long as you can remember?
• How has it changed over the years?
Product Life Cycle• Product Life Cycle represents the stages that a product goes
through during its life.• Company needs to know what cycle they’re in order to adapt
its marketing strategies to the product.• There are 4 Stages of Life Cycle: 1. Introduction 2. Growth 3. Maturity 4. Decline
What Product Life Cycle?
– Hand written letter– Check books– Refrigerator– E-conferencing– Internet– Personal Computers
• Decline• Decline• Maturity• Introduction• Growth• Maturity
• Get w/ your 5 o’clock• What stage do you think the following products are in
& why?- Introduction - Growth - Maturity - Decline
Product Life CycleWhat are the goals of the Introduction Stage?– To increase product awareness– Get the customer’s attention through promotion– Lots of special promotion
During Growth Stage:– Customers are aware of product, sales increase–Companies focus on customer satisfaction–Competition starts from other companies
Product Life CycleWhat happens during Maturity Stage?
– The product’s sales level off. More money is spent on competition during this stage.
What’s an example of a mature product?
During the Decline Stage:
–Sales start to decline. A company must decide to alter the product, discount, or discontinue product.
Which Product Life Cycle?• Sales increase as consumers are aware of the
product’s existence.– Growth
• Sales have fallen to a very low level and the product is becoming unprofitable– Decline
• Intense competition in the marketplace– Maturity
• The product should be withdrawn from the market– Decline
Which Product Life Cycle?• Competition increases for company/product
– Growth• The product is launched into the market and
sales are slow at the beginning– Introduction
• The product is established in the market, sales are high– Maturity
• Products are still making a loss as sales are not yet high enough to cover expenses– Introduction
REVIEW
• Get with your 1 o’clock appointment• Think of a product that has been around as long as
you can remember? You can not choose Ipods/ipads (anything in that family), coke, or pepsi
• Write down the 4 stages of the life cycle.• Write down how it changed over the years for each
of the 4 stages. If you believe it has not yet reached the stage, predict what you think the future holds for the product when it does hit this stage – what could be done?
Technology in Product/Service Management
Applications of Technology in Marketing:
1. Point-of-Sale Systems
2. Interactive Touch Screen Computer
– Scanners at cash registers, touch screens, –hand-held devices at checkout
– Example: Kiosks
Technology in Product/Service Management Continued
• 3. Interactive TV
• 4. Customer Relationship Management
– Where TV is like a computer- order movies, click on Ragu for recipes, order food
– A customer can track an order. The CRM or business can track customer satisfaction/visitors on websites
Technology in Product/Service Management Continued
5. Enterprise Resource Planning Systems
– Software that allows all parts of the company’s management to be integrated
Technology in Product/Service Management Continued
6. Internet– Wi-Fi– Search Engines– E-mail– E-commerce
Technology in Product/Service Management
• Interactive TV helps marketers to develop a database of their uses
• This database analysis helps see the customer’s reaction to products
• They are testing Interactive TV for promotion
• Mass customization: technologically advanced method that allows businesses to produce products that are specialized for a very few customers
Now you design some Technology!• In the assigned groups select a store & design a
touch screen computer interface for an in store kiosk.
• Write down: 1) What questions should be asked? 2) What data/ information should be collected?
• Think about:– How could the company use the information? – What information does the company need to save
about the transactions?– What information does the company need to save
about the customers?
Example of interactive computer/kiosk
Ethical Considerations in Product Packaging
• Business Ethics in Product/Service Management
Ethical Considerations in Product Packaging
• Why do you think companies package and label their products?
Answer: Create a good impression Help sell product Communicate benefits
• Concerns for Product Packaging?
Product Safety- Glass now plastic Tamper-resistant packages Airtight containers for foods Wasteful packaging Switching for spray cans and pumps
Ethical Considerations in Product Packaging
• Product labeling must inform customers about a product’s contents and give directions for use. 1. Must have name of manufactures2. Quantity of contents3. Nutritional Information4. Health claims are the same on all products; light, fat free, etc.5. Warnings on products like alcohol and cigarettes6. How to care for clothes
Ethical Considerations in Product Packaging
• In order for a product to say recycled it must show proof that it is retrieved a certain amount of scraps.
• For a food to be organic it must meet certain standards
Ethical Considerations in Product Packaging
• What happens when a company fails to inform customers about product risks?1. Company can get sued2. Harm to customer
• What is Planned Obsolescence?– Making products that are known to not last long, or change, so
that people will need to replace them
– Example: Cell phones are always coming out with newer functions and it makes consumers want to purchase the new and improved cell phone
Gum Project • Students worked in groups of three of
the same sex. They will create a brand new pack of gum for the opposite sex.
• The tasks that must be completed are listed on the paper presented.
• Teams will present their creation and will be evaluated by the following rubric.