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Product Planning. Ch. 30 ME. Section 30 .1. Product Planning, Mix and Development. Product Planning. Product – is anything a person receives in an exchange Product Planning – involves making decisions about what features should be used in selling a business’s products, services or ideas.
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Product Planning Ch. 30ME
Section 30.1 Product Planning, Mix and Development
Product Planning Product – is anything a person receives in an exchange Product Planning– involves making decisions about what features should be used in selling a business’s products, services or ideas.
Product Mix • Product Mix – includes all the different products that a company makes or sells • The types and number of products to be carried must be based on the objectives, the image, and the market of the business
Product Items & Lines Product Line – is a group of closely related products manufactured or sold by a business Product Item - is a specific model, brand, or size of a product within a product line
Product Widths & Product Depth Product Width – refers to the number of different product lines a business manufactures or sells Product Depth – refers to the number of items offered within each product line
Product Mix Strategies • Product Mix Strategy – is a plan for determining which products a business will make or stock • Developing new products • Developing existing products • Deleting a product or product line
Developing New Products • Seven Step Process of New Product Development • Generating ideas • Screening ideas • Developing a business proposal • Developing the product • Testing the product with consumers • Introducing the product (commercialization) • Evaluating customer acceptance
Developing Existing Products Line Extensions – is intended to be a different product that appeals to somewhat different needs of consumers Product Modification – is an alteration in a company’s existing product
Deleting a Product or Product Line • Reasons for deleting a product or product lines: • Obsolescence • Loss of appeal • Changes in company objectives • Replacement with new products • Lack of profit • Conflict with other products in the line
Section 30.2 Sustaining Product Sales
The Product Life Cycle Product Life Cycle – represents the stages that a product goes through during its life
Managing the Product • Introduction – focuses on efforts of promotion and production • Growth – success as shown by increasing sales and profit • Maturity – sales level off or slow down • Decline • Sell or license the product • Recommit to the product line • Discount the product • Regionalize the product • Modernize or alter the product offering
Product Positioning • Product Planning – is the image that a product projects • Goal – is to set the product apart from the competition • Types of Positioning: • Price and Quantity • Features and Benefits • Relation to the Competition • Relation to Other Products in Line
Category Management • Category Management – is a process that involves managing product categories as individual business units • Category Manager – is responsible for all brands for one generic product category • Manufacturers can customize a product mix with a category according to customer preference on a store-by-store basis • Planogram – is a computer-developed diagram that shows retailers how and where products within a category should be displayed on a shelf at individual stores
