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.
Impact of Product Life Cycles on Marketing Decisions
Three factors considered each time a business plans its marketing mix are the type of competition, the purchase behavior of consumers, and the strenghs and weaknesses of the business. The marketing tool used to identify the type of competition faced by a business is the product life cycle. A product life cycle identifies the stages a product goes through from the time it enters the market until it is no longer sold. The four steps are introduction, growth, maturity, and decline.
1. The first stage, introduction, 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 stage is 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 is 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 is 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.
1. The first stage, introduction, 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 stage is 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 is 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 is 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.
Steps of New Product Development
New product developement is a very important process that a company must complete or they could lose too much money on a product that is not going to be successful. The product must meet a market need, be produced at a reasonable price, and be competive.
1. Idea development is crucial because it is necessary to create a successful product, and it can be completed through creative brainstorming and thinking excercises to go along with problem solving.
2. Idea screening is second and it is mainly about choosing the best product ideas through a series of questions about the product's market need, competition, necessary resouces, safety, and quality for a reasonable price.
3. Strategy development is the research step where identifying the correct target market based on the marketing mix combinations of product, distribution, price, and promotion.
4. Once the final product is selected, financial analysis is about calcuating cost of production and marketing, sales projections, and profits by a computer. Demand of the product and matching company goals is also important.
5. Product development and testing involves generally either going the route of builiding a prototype or a test market where both methods will show if a product is successful before full-scale production and loss of money.
6. Product maketing is the last step where the marketing mix is used, and cooperating companies need to be involved for things like transportation. The only other item needed for success is studying the market to make adjustments.
1. Idea development is crucial because it is necessary to create a successful product, and it can be completed through creative brainstorming and thinking excercises to go along with problem solving.
2. Idea screening is second and it is mainly about choosing the best product ideas through a series of questions about the product's market need, competition, necessary resouces, safety, and quality for a reasonable price.
3. Strategy development is the research step where identifying the correct target market based on the marketing mix combinations of product, distribution, price, and promotion.
4. Once the final product is selected, financial analysis is about calcuating cost of production and marketing, sales projections, and profits by a computer. Demand of the product and matching company goals is also important.
5. Product development and testing involves generally either going the route of builiding a prototype or a test market where both methods will show if a product is successful before full-scale production and loss of money.
6. Product maketing is the last step where the marketing mix is used, and cooperating companies need to be involved for things like transportation. The only other item needed for success is studying the market to make adjustments.
Important Qualities of Services that Are Not Shared by Products
-Intangible means that the service cannot be touched, seen, tasted, heard, or felt.
-Inseperable means that the service is produced and consumed at the same time.
-Perishable means that services unused in one time period cannot be stored for use in the future.
-Heterogenous means there are differences between services.
-Inseperable means that the service is produced and consumed at the same time.
-Perishable means that services unused in one time period cannot be stored for use in the future.
-Heterogenous means there are differences between services.
Warranties and Guarantees
Products that do not function well are not attractive for the consumer, but for some products companies offer guarantees or waranties to provide insurance for repairs and replacements. A guarantee is a general promise or assurance while a warranty is a specific written statement of the seller's responsibilities related to the guarantee.
Concept of Product Mix
The product mix is what is used to evaluate products to determine the one that is the most satisfying, and interest goes beyond just the physical product. The product must meet the wants and needs of customers through the ways listed below.
-Product line is a group of similar products with slight variations in the product mix to satisfy different needs in the market.
-Product assortments is the 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 includes the brand which is a name, symbol, word, or design that identifies a product, service, or company. A trademark is the legal protection of the words or symbols for use by a company. Individual products can have their own brands, or groups of products can carry an identical or family brand. A liscensed brand is a well known name or symbol established by one company and sold for use by another company to promote its products.
-Product line is a group of similar products with slight variations in the product mix to satisfy different needs in the market.
-Product assortments is the 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 includes the brand which is a name, symbol, word, or design that identifies a product, service, or company. A trademark is the legal protection of the words or symbols for use by a company. Individual products can have their own brands, or groups of products can carry an identical or family brand. A liscensed brand is a well known name or symbol established by one company and sold for use by another company to promote its products.
Nature of Branding
A brand is a unique name, symbol, or design that idenitfies a product, service, or company. 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. The levels of brand recognition are non-recognition, rejection, recognition, preference, and insistence. Non-recognition is the worst level while insistence is the best. Other parts of branding include the family brand and liscenses brand that I listed above.
Consumer Classifications
The consumer purchase classification system includes convience goods, specialty goods, shopping goods, and unsought goods.
-Staple goods are products that are regular, routine purchases.
-Impulse goods are items purchased on the spur of the moment without advance planning.
-Emergency goods are products or services that are purchases as a result of an urgent need.
-Attribute-based goods is when a variety of differences exist and the consumer considers a number of factors to determine the best value.
-Price-based goods is when products that consumers believe are similar but have significant price differences.
-Specialty goods are products that have this strong brand loyalty.
-Unsought goods are those products that consumers do not want to buy.
-Staple goods are products that are regular, routine purchases.
-Impulse goods are items purchased on the spur of the moment without advance planning.
-Emergency goods are products or services that are purchases as a result of an urgent need.
-Attribute-based goods is when a variety of differences exist and the consumer considers a number of factors to determine the best value.
-Price-based goods is when products that consumers believe are similar but have significant price differences.
-Specialty goods are products that have this strong brand loyalty.
-Unsought goods are those products that consumers do not want to buy.
Business Classifications
-Capital equipment includes a business's land, buildings, and major pieces of equipment.
-Operating equipement is 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 have been either paritally or totally processed by another company.
-Operating equipement is 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 have been either paritally or totally processed by another company.
Service Organization Classifications
The different ways to classify service organizations are by type of market, goals of the organization, labor intensiveness, customer contact, and level of skill. The degree of labor intensiveness a company has refers to the amount of human effort required to deliver a service.
Futuristic Flowers Packaging
Logo Example
The logo below meets the consumers' needs in a variety of ways. The consumer of MoTown Market sweatshirts prefer purple, gray, and black sweatshirts, but they don't like white sweatshirts. The logo is universal since it isn't specific to one sport, gender, or age. This sweatshirt would work for adult and youth sizes. Also, the logo doesn't include the word "Indian."
Memo
assignment_1.pdf | |
File Size: | 5 kb |
File Type: |
Spreadsheet
assignment_2.pdf | |
File Size: | 180 kb |
File Type: |