PRODUCT MANAGEMENT

The sessions will include: Definitions Scope Reasons for Failure Process

PRODUCT MANAGEMENT

Definition

A Product is anything that can be offered to the market to satisfy a want or a need.

Definition…………..

A Product is anything that is potentially valued by a target market for the benefits or satisfactions it provides.

Definition…………..

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers which they receive in exchange for money or some other unit of value.

Product Scope…

Physical goods

Services

Experiences

EventsPersons

PlacesProperties

OrganizationsInformation

Ideas

New Product Development Process

Idea Generation and Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization

Reasons of Product FailureCost of Product DevelopmentCompetitive Actions

Overestimation of Market Size

Product design problems

Product incorrectly positioned,priced or advertisedPoorly priced or overpricedLack of sufficient capital

Slow from idea to market,losing out to others

Classifications of Product

Durable Non – durable Services

Product Levels

Customer value hierarchy

Core benefit

Basic product

Expected product

Augmented product

Potential product

Convenience goods

Shopping goods

Specialty goods

Unsought goods

Consumer goods classification

Convenience Goods

These are the products that the customer wants but is not willing to spend much time shopping for such as candy bars,cigarettes, soaps and most grocery items.

Shopping goods

These are the products that are considered worth the time and efforts needed to carefully evaluate them and to compare them with competing products like refrigerators and furniture and fixtures.

Specialty goods

These are the products that consumer will make a special effort to buy,usually specific branded items of special importance to the consumers.

Unsought goods

These are the products that consumers do not yet know they can buy or the products that they usually do not want.

Industrial goods classification

Materials and Parts

- raw materials

- manufactured materials and parts

Capital items

Supplies and business services

Material and parts

These are basic commodities such as logs ,iron sand and fresh fish on which processing is to be done to transform them into final products.

Manufactured material and parts

Automobiles batteries Wires Small motors cement

New Idea Spoilers

I have got a better idea It will not work here It has been tried before This is not the right time It cannot be done It is not the way we do things here We have done all right without it. It will cost too much Let us discuss it at the next meeting

Product Strategy

Total Market share Consumer behaviour Product positioning Sales plan Profit targets Product price

Continued….

Market channels Marketing expenses Long range market and profit plans Launch of the new product