Nature and Scope of the Product/Service Management Function
Product and service management is assisting in the design and development of products and services to meet the needs of prospective customers.
Product Life Cycle
1. Introduction- Product is new so advertising is needed to show consumers how it will meet their needs. The product is very simple so a brand name will help, and the price will be high with no competition.
2. Growth- Where the product is selling more so extra distribution is needed along with features and a brand name that will make it stand out from the competition. Advertising is important because of the added competition.
3. Maturity- The stage where sales start to drop, and the competition is at its highest point. Promotion, pricing, and brand name are most important at this point.
4. Decline- Where the product loses a lot of sales very quickly, and money is not invested as much. The business tries to get out right away with a group of loyal consumers.
2. Growth- Where the product is selling more so extra distribution is needed along with features and a brand name that will make it stand out from the competition. Advertising is important because of the added competition.
3. Maturity- The stage where sales start to drop, and the competition is at its highest point. Promotion, pricing, and brand name are most important at this point.
4. Decline- Where the product loses a lot of sales very quickly, and money is not invested as much. The business tries to get out right away with a group of loyal consumers.
New Product Development
Idea Development-
In this step, producers encourage a large number of new product ideas.
Idea Screening-
In this step, the developers answer the following questions: Is there an identified market for the product with a strong need?, Is the competition in the market reasonable?, Do we have or can we obtain the sources to produce the product?, Is the product legal and safe?, and Can we Produce a quality product at a reasonable cost?
Strategy Development-
In this step, the business will create and test a sample marketing strategy as a first step in developing a business proposal.
Financial Analysis-
In this step, the company will complete a financial analysis.
Product Development and Testing-
In this step, the manufacturer will design the production process, obtain needed equipment and materials, and train personnel.
Product Marketing-
This is the final step, this step involves marketing mix elements and involving cooperating companies such as wholesalers, retailers, transportation companies, and advertising agencies.
In this step, producers encourage a large number of new product ideas.
Idea Screening-
In this step, the developers answer the following questions: Is there an identified market for the product with a strong need?, Is the competition in the market reasonable?, Do we have or can we obtain the sources to produce the product?, Is the product legal and safe?, and Can we Produce a quality product at a reasonable cost?
Strategy Development-
In this step, the business will create and test a sample marketing strategy as a first step in developing a business proposal.
Financial Analysis-
In this step, the company will complete a financial analysis.
Product Development and Testing-
In this step, the manufacturer will design the production process, obtain needed equipment and materials, and train personnel.
Product Marketing-
This is the final step, this step involves marketing mix elements and involving cooperating companies such as wholesalers, retailers, transportation companies, and advertising agencies.
Important Qualities of Services that Are Not Shared by Products
Intangible- the service cannot be touched, seen, tasted, heard, or felt.
Inseparable- the service is produced and consumed at the same time.
Perishable- services unused in one time period cannot be stored for use in the future.
Heterogenous- there are differences between services.
Inseparable- the service is produced and consumed at the same time.
Perishable- services unused in one time period cannot be stored for use in the future.
Heterogenous- there are differences between services.
Warranties and Guarantees
Guarantee is a general promise or assurance.
Warranty is a specific written statement of the seller's responsibilities related to the guarantee.
Warranty is a specific written statement of the seller's responsibilities related to the guarantee.
Concept of Product Mix
Product line- group of similar products with slight variations in the product mix to satisfy different needs in the market.
Product assortments- complete set of all products a business offers to its market.
Packaging- serves the dual purpose of protection and promotion, and some packaging improves the use of the product. The characteristics of packaging include the ease of use, safety, attraction, handling, and the environment-friendly parts of the package.
Brand Development-
It includes...
Product assortments- complete set of all products a business offers to its market.
Packaging- serves the dual purpose of protection and promotion, and some packaging improves the use of the product. The characteristics of packaging include the ease of use, safety, attraction, handling, and the environment-friendly parts of the package.
Brand Development-
It includes...
- Brand- A name, symbol, word, or design that identifies a product, service, or company.
- Trademark- Legal protection of the words or symbols for use by a company.
- Licensed Brand- Well known name or symbol established by one company and sold for use by another company to promote its products.
Nature of Branding
Brands are an important to consumers because in many situations, the consumer will only purchase a product with a specific brand name. Brand recognition results in a higher amount of sales which leads to more profits.
Consumer Classification
Staple goods- Products that are regular, routine purchases.
Impulse goods- Items purchased on the spur of the moment without advance planning.
Emergency goods- Products or services that are purchases as a result of an urgent need.
Attribute-based goods- When a variety of differences exist and the consumer considers a number of factors to determine the best value.
Price-based goods- When products that consumers believe are similar but have significant price differences.
Specialty goods- Products that have this strong brand loyalty.
Unsought goods- Those products that consumers do not want to buy.
Impulse goods- Items purchased on the spur of the moment without advance planning.
Emergency goods- Products or services that are purchases as a result of an urgent need.
Attribute-based goods- When a variety of differences exist and the consumer considers a number of factors to determine the best value.
Price-based goods- When products that consumers believe are similar but have significant price differences.
Specialty goods- Products that have this strong brand loyalty.
Unsought goods- Those products that consumers do not want to buy.
Business Classification
Capital equipment- Includes a business's land, buildings, and major pieces of equipment.
Operating equipment- Smaller, less-expensive equipment used in the operation of the business or in the production and sale of products and services.
Supplies- Are the products and materials consumed in the operation of the business.
Raw materials- Are unprocessed products used as basic materials for the products to be produced.
Component parts- Parts that have been either paritally or totally processed by another company.
Operating equipment- Smaller, less-expensive equipment used in the operation of the business or in the production and sale of products and services.
Supplies- Are the products and materials consumed in the operation of the business.
Raw materials- Are unprocessed products used as basic materials for the products to be produced.
Component parts- Parts that have been either paritally or totally processed by another company.
Service Organization Classifications
Ways to classify service organizations are....
- Type of market
- Goals of the organization
- Labor intensiveness
- Customer contact
- Level of skill
Futuristic Flower Packaging
This Packaging includes...
- The ease of use
- Safety
- Attraction
- Environment-friendly parts of the package
Logo Example
This Logo includes what the MoTown Market customers desire such as...
- Purple, Grey, and Black Colors
- Universal Logo- no specific gender, sport or age
- it doesn't include the word "Indians"
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