PRODUCT MANAGEMENT

1.What is a Product?

q It is anything that can be offered to a mkt. for

attention, acquisition, use or consumption that
might satisfy a want or a need.
PRODUCT COMPONENTS

Supporting
Service
components

Core component
Packaging component
 Significance of New Product

qGrowth.

qResponse to competition.

qExcess capacity.

qTo increase cash flow/ profitability.

qCost reduction.

qCreativity of management.
 WHAT IS A NEW PRODUCT?

qNew to the world.

qNew Product Lines.

qAddition to existing product lines/product mix.

qImprovements in/ Revision to existing product.

qRepositioning.

qCost reduction.
 FIRM’S POINT OF VIEW
Increasing Technological Newness
Objecti

No. Tech. Improved New Technology

Change Technology

ng Market
NoNewness
Mkt
Change -- Reformulation Replacement

Strengthen
Mkt
Remerchandising Improved Product line
Product Extn.

New Mkt.
New use Mkt. Extension Diversification
 REASONS FOR NEW PRODUCT FAILURE

Ø“Me Too” product.

Ø Lack of genuine superiority.
Ø Price resistance.
Ø Poor Mkt.Research.
Ø Rush to the Mkt. with defective product.
Ø Ahead of time.
Ø Ignoring the competition.
Ø Over Promise.
Ø No adequate resource to support.
 BENEFIT STRUCTURE ANALYSIS

Ø What is the actual operation?

Ø What ingredients are used in this operation?

Ø What are the attributes of the product?

Ø What are the benefits sought from this operation?

Ø How is the operation done?

Ø When is the work done?

 THE NATURE OF THE PRODUCT

a.What type of product is it?

b.What is it primarily used for?
c.Are there any other applications for the product?
d.Who uses this product?
e.Why do customers use it?
f.What benefits are customers seeking?
g.Any thing customers / potential customers don’t
like about the product?
h)Does the product have any other favorable
property positions? (patent/design, etc.).
1How is it priced/ promoted / distributed?
k)What is the competitive environment?
l)Does the company produce any related products?
 WHAT IS PRODUCT MANAGEMENT?

qIt is part of Mktg. mgt. which concerns with product

plg. & development & is now extended to Brand
building.
SCOPE OF PRODUCT MANAGEMENT

Prod.plg.& Dev.

Brand. Mgt.
PLC

Prod.
Mgt.

Corp.,Mkt.plg.
Compt.,Ind.ana.
 VALUE CREATION

Oppo.
identified

Oppo
Developed

Value Value Value

Developed Added Retained