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PRODUCT SERVICE MANAGEMENT FUNCTION

PRODUCT SERVICE MANAGEMENT FUNCTION. MKT-MP-9 Employ processes and techniques to develop, maintain, and improve a product/service mix to utilize market opportunities. Product Planning. How are decisions made to introduce new products and delete old ones?. Product Planning.

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PRODUCT SERVICE MANAGEMENT FUNCTION

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  1. PRODUCT SERVICE MANAGEMENT FUNCTION MKT-MP-9 Employ processes and techniques to develop, maintain, and improve a product/service mix to utilize market opportunities.

  2. Product Planning • How are decisions made to introduce new products and delete old ones?

  3. Product Planning Involves making decisions about those features that are needed to sell a business’s products, services, or ideas.

  4. Product Planning • These decisions relate to: • packaging • labeling • warranties • guarantees • branding • product mix

  5. What is Product Planning? (cont.) • Product Item: A specific model, brand, or size of a product within a product line. • Product Line: A group of closely related products manufactured or sold by a business. • Product Mix: All the different products that a company makes or sells. • Product Width: The number of different product lines a business manufactures or sells. • Product Depth: The number of product items in a product line.

  6. PRODUCT LINE A broad group of products for similar uses and with similar characteristics Product Mix and Product Line PRODUCT MIX The set of all products offered for sale by a company

  7. Product Mixhttp://www.fritolay.com/index.htm Includes all the different products that a company makes or sells.

  8. Identify ways in which product lines can be organized. • Product Line = group of closely related products manufactured by a business • Product Item = specific model, brand, or size of a product within a line • Ex: P&G has over 250 products within 21 product lines • Dish care is a product line • Cascade, Dawn, Joy, & Ivory are product items

  9. Describe product mix dimensions. • Some companies have different brands for different markets • Coca-Cola has different drinks for sparkling beverages, water, juice, performance, coffee, tea, and international flavors.

  10. Product Line A group of closely related products manufactured and/or sold by a business.

  11. Product Item A specific model, brand, or size of a product within a product line.

  12. DIMENSIONS • WIDTH = number of product lines carried by a company. • NARROW = offering a limited number of product lines • BROAD = many different product lines carried • DEPTH = number of products and the assortment of sizes, colors, and models offered in a product line • SHALLOW = limited variety within a product line • DEEP = extensive variety within a product line

  13. PRODUCT MIX Product Mix DEPTH Variety of sizes, colors, models within a product line BREADTH The number of product lines carried

  14. Product Width The number of different product lines a business manufactures or sells. Width of the Gillette Product Mix Oral Care Blades & Razors Personal Care Batteries Appliances

  15. Product Depth The number of product items offered within each product line. Oral Care Blades & Razors Personal Care Batteries Appliances

  16. NARROW PRODUCT MIX = Limited product lines carried, typically very specialized. A description of the width of a business's product mix offering a limited number of product lines.

  17. Broad Product Mix = Many different product lines carried. A description of the width of a business's product mix offering many product lines.

  18. Shallow Product Mix = Limited variety within a product line. A description of the depth of a business's product mix offering few items in the product line.

  19. Deep Product Mix = Extensive variety within a product line. A description of the depth of a business's product mix offering a great many items in the product line.

  20. Identify reasons that a business would offer a narrow product mix. • Product Width – number of different product lines • CONTRACTING - Pruning weak brands can strengthen the remaining brands in the line. • Ease on management • Cost effective • Simplicity • Consistency

  21. Identify reasons that a business would offer a broad product mix. • Product Width – number of different product lines • EXPANDING • Reach all markets • Competitive advantage • Ex: Red Lobster specializes in seafood, but offers chicken and steak to broaden their product mix.

  22. Identify reasons that a business would offer a deep product mix. • Product Depth – number of items offered within each product line • EXPANDING • Variety • Quantity Ex: Kohl’s carries various quantities of sizes, colors, & styles of Levi Jeans.

  23. Identify reasons that a business would offer a shallow product mix. • Product Depth – number of items offered within each product line • CONTRACTING • Cost effective • Satisfy small markets • Ex: Only 2 chicken items on Red Lobster’s menu.

  24. Work Session: • Choose a company that offers a variety of products. • Outline the product width and depth.

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