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.