Succeeding in Product Management
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This document discusses product lifecycles and marketing strategies. It defines a product and outlines different types including tangible goods and intangible services. It then describes the typical stages a product goes through - development, introduction, growth, maturity, and decline. Finally, it suggests marketing strategies to apply at each stage, such as using promotional spending to create trial in the introduction stage and diversifying brands and models during maturity.
Succeeding in Product Management
- 2. WHAT IS A PRODUCT ? A product is anything that can offered to market for attention, acquisition ,use, consumption that might satisfy a want or need.
- 3. PRODUCTS Tangible products Intangible products GOODS SEVICES
- 4. FEATURES OF PRODUCT Features of product Associated attributes Intangible attributes tangibility Exchange value Customer satisfaction
- 5. LEVELS OF PRODUCT Potential product Augmented product Expected product Generic product Core benefit Unexpected features Luxury features Expected features Basic features Basic product
- 6. CLASSIFYING PRODUCTS Durable products Consumer products, Business products
- 7. DURABLE PRODUCTS Durable Non-durable Services
- 8. CONSUMER PRODUCTS Convenience Products Shopping Products Specialty Products Unsought Products
- 9. CONVENIENCE GOODS Convenience goods – consumers use minimal effort for frequently purchased low cost items Staples - Emergency goods – Impulse purchases –
- 10. SHOPPING PRODUCTS Shopping goods - consumers make a considerable effort to evaluate … Consumers make product comparison(s), They seek information before purchase, they are not impulsive Moderate substitutions are made Product’s last a considerable time Monetary & social costs may be high
- 11. TV’S AS A SHOPPING PRODUCT (2007 ---- 1950’S) Attribute-based Price-based PICTURE SIZE WARRANTY REMOTE CONTROL LOW PRICE Plasma –LCD screen Homogeneous products select on price Heterogeneous products select on benefits
- 12. BUSINESS PRODUCTS Materials and parts Raw materials and parts Manufactured materials and parts Capitals items 1.installation 2.equiptment Suppliers and business services 1.maitainance and repair items 2.operating suppliers
- 13. RAW MATERIALS Farm products Natural products
- 14. MANUFACTURED MATERIALS AND PARTS
- 15. CAPITALS ITEMS 1.installation 2.equiptment
- 16. SUPPLIERS AND BUSINESS SERVICES 1.mainteinance and repair items 2.operating suppliers
- 18. THREE KEYS TO PRODUCT MANAGEMENT SUCCESS As product managers you have a significant responsibility for the success of your company. It’s easy to get bogged down in the countless tasks that are thrown your way every day. With all the meetings, floods of email, and requirements to manage, the thought of spending time on areas of strategic focus can seem overwhelming. However, with planning and a little effort you can make the difference. Start by focusing on three simple, yet powerful, keys to success:
- 19. THREE KEYS TO PRODUCT MANAGEMENT SUCCESS 1. Know your market: Get a clear understanding of the market where your products compete, and work diligently to stay out in front of new trends and technologies. Make customer calls and customer visits often. Work with the sales team; understand how they sell your products. Know what works. Know the weaknesses of the products (and take action to correct them). Understand why people pay (or don’t pay) for your products. Be the voice of the customer to your company.
- 20. THREE KEYS TO PRODUCT MANAGEMENT SUCCESS 2. Provide clear direction: One of your key directives as a product manager is to provide clear direction to the engineering/development teams. Spend the time to write understandable and timely requirements and prioritize them effectively. Provide solid product design (with the help of good designers). Give clear direction and project confidence and your full support to the work the engineering is doing. Earn their trust. Inspire them to do great things. “Have their backs” with the rest of the company (i.e. be their outspoken supporter).
- 21. THREE KEYS TO PRODUCT MANAGEMENT SUCCESS 3. Launch successfully: Work with the sales team to make sure they understand the new product and hit the ground running when it releases. After a successful launch, monitor the product’s uptake and financials and make sure it continues to succeed. This, of course, loops back to knowing your market and making sure your product meets the needs of the people in your market.
- 22. PRODUCT LIFE CYCLE STRATEGIES
- 23. THE PRODUCT LIFE CYCLE STRATEGIES: PLC Stages • Product development • Introduction • Growth • Maturity • Decline 23
- 24. PRODUCT LIFE CYCLE Time Sales and Profits ($) Product Develop-ment Introduction Profits Sales Growth Maturity Decline Losses/ Investments ($)
- 25. PRODUCT LIFE CYCLE APPLICATIONS Product class has the longest life cycle (e.g., gas-powered cars) Product form tends to have the standard PLC shape (e.g., dial telephone) Brand can change quickly because of changing competitive attacks and responses (e.g., Tide, Cheer) Style is a basic and distinctive mode of expression (e.g., formal clothing, Danish modern furniture) Fashion is a popular style in a given field (e.g., business casual) Fad is a fashion that enters quickly, is adopted quickly, and declines fast (e.g., pet rocks) 25
- 26. PRACTICAL PROBLEMS OF PLC • Hard to identify which stage of the PLC the product is in. • Hard to pinpoint when the product moves to the next stage. • Hard to identify factors that affect product’s movement through stages. • Hard to forecast sales level, length of each stage, and shape of PLC. • Strategy is both a cause and result of the PLC. 26
- 27. PRODUCT LIFE-CYCLE STRATEGIES The Product Life Cycle (PLC) has Five Stages • Product Development, Introduction, Growth, Maturity, Decline • Not all products follow this cycle: • Fads • Styles • Fashions
- 28. PRODUCT LIFE-CYCLE STRATEGIES The product life cycle concept can be applied to a: • Product class (soft drinks) • Product form (diet colas) • Brand (Diet Dr. Pepper) • Using the PLC to forecast brand performance or to develop marketing strategies is problematic
- 29. PRODUCT LIFE-CYCLE STRATEGIES Product development Introduction Growth Maturity Decline Begins when the company develops a new-product idea Sales are zero Investment costs are high Profits are negative PLC Stages
- 30. PRODUCT LIFE-CYCLE STRATEGIES Product development Introduction Growth Maturity Decline Low sales High cost per customer acquired Negative profits Innovators are targeted Little competition PLC Stages
- 31. MARKETING STRATEGIES: INTRODUCTION STAGE Product – Offer a basic product Price – Use cost-plus basis to set Distribution – Build selective distribution Advertising – Build awareness among early adopters and dealers/resellers Sales Promotion – Heavy expenditures to create trial
- 32. PRODUCT LIFE-CYCLE STRATEGIES Product development Introduction Growth Maturity Decline Rapidly rising sales Average cost per customer Rising profits Early adopters are targeted Growing competition PLC Stages
- 33. MARKETING STRATEGIES: GROWTH STAGE Product – Offer product extensions, service, warranty Price – Penetration pricing Distribution – Build intensive distribution Advertising – Build awareness and interest in the mass market Sales Promotion – Reduce expenditures to take advantage of consumer demand
- 34. PRODUCT LIFE-CYCLE STRATEGIES Product development Introduction Growth Maturity Decline Sales peak Low cost per customer High profits Middle majority are targeted Competition begins to decline PLC Stages
- 35. MARKETING STRATEGIES: MATURITY STAGE Product – Diversify brand and models Price – Set to match or beat competition Distribution – Build more intensive distribution Advertising – Stress brand differences and benefits Sales Promotion – Increase to encourage brand switching
- 36. PRODUCT LIFE-CYCLE STRATEGIES Product development Introduction Growth Maturity Decline Declining sales Low cost per customer Declining profits Laggards are targeted Declining competition PLC Stages
Editor's Notes
- #25: The Product Life-Cycle This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293. Instructor’s Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.