Session 8 Product Management

8/2/2019 Session 8 Product Management

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Product ManagementSession 8

By

Sandy De Mel
http://www.gre.ac.uk/


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learning objectives_1

Understand the product lifecycle concept,its influence on marketing strategies andits limitations

Appreciate the importance of productpositioning and how it both affects and isaffected by marketing strategies


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learning objectives_2

Understand the scope and implications ofthe various decisions that managementcan take with regard to product ranges,including deletion

Define the role and responsibilities of theproduct or brand manager


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Product Lifecycle (PLC) Defined

The Product Lifecycle is a conceptsuggesting that a product goes

through various stages in thecourse of its life: introduction,growth, maturity and decline


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Figure 8.1 The Product Lifecycle


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eg Active Health Drinks Market

h ld d


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Should Organisations IntroduceNew Products or

Rejuvenate Old Ones? Why is the product going into decline? Is the environment right for a rejuvenation

strategy?

What does the product name mean to themarket?

Is there still a segment worth reaching?

Can value be created for customers?


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Famous Grouse is a Mature Brand

Source: The Edrington Group http://www.thefamousgrouse.co.uk
http://www.thefamousgrouse.co.uk/http://www.thefamousgrouse.co.uk/http://www.gre.ac.uk/


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Options for Brands in Decline

Milkingor harvesting

Phasedwithdrawal

Contractingout

or selling


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Figure 8.2 PLC Variations


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Wristbands: A Fashion Product


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Brand Variables Affecting PLC

Positioning Personality

Brand nameIdentity


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Diffusion of Innovation Defined

The Diffusion of Innovation is a conceptsuggesting that customers first enter a

market at different times, depending ontheir attitude to innovation and new

products, and their willingness to takerisks. Customers can thus be classified as

innovators, early adopters, early majority,late majority and laggards.


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Jimmy Choo Influences Otherswith Early Adopters


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Factors Affecting theRate of Adoption

Relativeadvantage

Compatibility

Complexity

Divisibility

Communicability

Perceivedrisk


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Competitor Entry Timing

Pioneers

Early differentiators

Early nichers

Early imitators

Late entrants


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eg Microsofts Xbox versus SonysPlayStation
http://www.xbox.com/http://www.xbox.com/en-US/hardware/xbox360/default.htmhttp://www.gre.ac.uk/


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Creating aBalanced Product Portfolio

Retain and maintain existing products

Modify and adapt existing products

Delete old products Introduce flow of new products


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Stages of Selecting aProduct Position

Conduct market researchto establish important attributes

Shortlist existing products that offer attributes

Identify ideal level of attributesand ratings of brands attributes


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Figure 8.4 Perceptual Map


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Figure 8.5 MultidimensionalPerceptual Map


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Implications of Repositioning

Quality

Design

Performance

Jaeger retained its classic looks but incorporatedmore fashionable design


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Lucozade Repositions

Source: GlaxoSmithKline http://www.lucozade.com
http://www.lucozade.com/http://www.lucozade.com/http://www.gre.ac.uk/


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Product Range Management

Extending the product line

Filling the product range


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Extending Product Lines

Upwards

Achieve highermargins

Enhance image Builds consumer

staircase

Downwards

Achieve highervolume

Attack competition Build large base of

sales


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eg Volkswagen Overextended


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Questions to Consider

Will sufficient customers emerge to purchasenew product?

Will new product cannibalise others?

Is it a significant profit opportunity?


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Deleting Products

Phase out

Run out

Drop or sell

eg Low Carb KitKat
http://www.snackspot.org.uk/thread.php?story=0407252029sbchttp://www.gre.ac.uk/


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Product Management Defined

The job of the product manager isto manage the product through its

lifetime, from launch, through anymodifications, to its eventual demise.


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Tasks of the Product Manager

Produce annual product plan

Specify actions, resources and strategies

Justify investments of resources


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Essential Criteria forBuilding a Brand

Resources Quality Timing


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International Branding

Advantages

Increased market size

Economies of scale

Competitiveadvantage

Disadvantages

Dispersedgeographically

Avoidance of culturalproblems

Heavy resource

requirements


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Key Terms_1

_____ is a concept that suggests customers firstenter a market at different times, depending ontheir attitude to innovation and new products,and their willingness to take risks.

Diffusion of innovation


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Key Terms_2

_____ means adding further product items into aproduct line to extend coverage of the market.

Extending the product line

_____means adding further product items into aproduct line to fill gaps within the range.

Filling the product range


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Key Terms_3

The _____ suggests that a product goes throughvarious stages in the course of its life includingintroduction, growth, maturity and decline.

Product lifecycle What title is used to describe the individual

responsible for the day-to-day management andwelfare of a product or family of products at allstages of their product lifecycle?

Product manager


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Key Terms_4

The _____ is the set of different products that anorganisation produces, ideally balanced so thatsome products are mature, some are still in their

growth stage while others are waiting to beintroduced.

Product portfolio


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Key Terms_5

_____ refers to the development of a product andmarketing strategy that places the brand as closeas possible in the minds of target customers to

their ideal in terms of important features andattributes and clearly differentiates it from thecompetition.

Product positioning

Documents

Session 8 Product Management