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Product Planning Unit 9

Product Planning Unit 9. Product Planning. How are decisions made to introduce new products and delete old old ones?. Unit 9 Vocabulary. National Brands Package Planograms Price Bundling Private Distributor Brands Product Depth Product Item Product Life Cycle Product Line Product Mix

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Product Planning Unit 9

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  1. Product PlanningUnit 9

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

  3. Unit 9 Vocabulary • National Brands • Package • Planograms • Price Bundling • Private Distributor Brands • Product Depth • Product Item • Product Life Cycle • Product Line • Product Mix • Product Modification • Product Planning • Product Positioning • Product Width • Trade Name • Trade Character • Trademark • Aseptic Packaging • Blisterpacks • Brand • Brand Extension • Brand Label • Brand Licensing • Brand Mark • Brand Name • Category Management • Cause Packaging • Co-Branding • Descriptive Label • Generic Brands • Grade Label • Label • Mixed Brand • Mixed Bundling

  4. Unit 9 EssentialQuestion • What processes and techniques are used to develop, maintain, and improve a product/service mix in order to utilize market opportunities?

  5. Essential Question 1 Product Planning • What is the nature and scope of the product/service management function?

  6. What is Product Planning? • Product Planning: The decisions made about what features should be used in selling of a business’s products. • These decisions relate to: • guarantees • branding • product mix • packaging • labeling • warranties

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

  8. What is Product Planning? • A well defined product plan allows a business to: • Create sales opportunities. • Design appropriate marketing programs. • Develop effective advertising campaigns. • Coordinate the product mix offered to customers. • Add new products. • Delete older products that no longer appeal to customers

  9. Essential Question 2 Product Planning • How do businesses determine which products to produce and sell?

  10. Determining what to produce or sell • Businesses will use different product mix strategies to determine what to produce or sell. • Product mix strategies depend on: • Resources • Objectives • Past and current sales • Consumer trends

  11. Essential Question 3 Product Planning • How are products/services positioned in the market place?

  12. Product Positioning • Product positioning:Efforts a business makes to identify, place and sell its products in the marketplace. • Positioning by price and quality: • Ex: Ford Motor Company positions its Focus as an economical passenger car while still emphasizing quality.

  13. Product Positioning • Positioning by features and benefits: • Ex: Oil of Olay was positioned as a premium facial moisturizer and cleanser to keep skin soft and young. • Positioning by unique characteristics: • Ex: Cell phones that can text message or take pictures and send them.

  14. Product Positioning • Positioning in relation to the competition: • Ex: Warner-Lambert Company introduced Cool Mint Listerine by positioning against the “theraputic” benefits of Original Listerine and the “cosmetic” benefits of Scope. • Positioning in relation to other products in a line: • Ex: Binney & Smith introduced washable crayons and positioned them as a specialty item in the company’s Crayola crayon line.

  15. Essential Question 4 Product Planning • What is the concept of product mix and product/service branding?

  16. Product Mix Strategies • Developing New Products • Follows six steps: • Generate Ideas • Screen Ideas • Develop a Business Proposal • Test the product with consumers • Introduce the product • Evaluate customer acceptance

  17. Product Mix Strategies • Developing Existing Products • Line Extensions: Adding new product lines, items or services. • Ex: Tylenol • Product Modifications: An alteration to an existing product: • New and different varieties • Formulations • Colors • Styles • Features • Sizes

  18. Product Mix Strategies • Deleting a Product or Product Line • Obsolescence • Loss of Appeal • Changes in Company Objectives • Replacement with New Products • Lack of Profit • Conflict with other products in the line

  19. Essential Question 5 Product Planning • What is the nature of product bundling?

  20. Multiple products or components packaged together into one bundled solution. What is Product Bundling?

  21. Benefits for Businesses and Customers • BUSINESSES • Introduce New Products • Acquire New Customers • Higher Profits • Increase Product Turnover (distressed inventory)

  22. Benefits for Businesses and Customers • CUSTOMERS • Save Money • Perception of Greater Value • Low Risk to Try New Products

  23. Examples Astound X-Box Happy Meal

  24. Essential Question 6 Product Planning • What is the nature of corporate branding?

  25. Branding, Packaging, and Labeling • Brand: Name, design or symbol that identifies the products of a company. • Brand Name: • Word or group of words that can be spoken. • Ex: Nike, Coca-Cola Classic, Cover Girl, Tylenol • Brand Mark: • Symbol, design, distinctive coloring, or lettering

  26. Branding, Packaging, and Labeling • Trade Name: • Identifies the company or a division of a particular corporation. • Trade Character: • A personified brand mark.

  27. Branding, Packaging, and Labeling • Trademark: • When used, it is followed by the registered trademark symbol ®

  28. Branding, Packaging, and Labeling • Package: Physical container or wrapping for a product. • Label: Information tag, wrapper, seal, or imprinted message that is attached to a product or package.

  29. Essential Question 7 Product Planning • How do you identify product opportunities?

  30. New Product Opportunities • Changes in life cycle • Changes in technology • Changes in market/society • Changes in economy

  31. Finding the GAPS! • Find the opportunities when you find the gaps! • Gap=the difference between what is currently available and what is needed/desired

  32. Changes in Life Cycle • Product planning does not end when a product is new! • Must decide what to do with existing products as they change through the life cycle

  33. Product Life Cycle Maturity Growth Decline Introduction Delete or Reinvent • What do we do when a product declines? • Have to decide to modify or delete • THIS IS AN OPPORTUNITY!

  34. Changes in Technology • Smartphones • Voice recognition technology • Siri • GPS • Garmin, Tom Tom • Google Maps • Social Media

  35. Changes in Market/Society • Health Conscience • McDonalds Happy Meal • Apple Slices, Milk • Salads, wraps • Bottled water • Convenience • Entertainment • Games, music, movies, culture

  36. Changes in Economy • Economic downturn • Created opportunity for new product and product expansion • Generic brands, discount stores, low cost alternatives and substitutes

  37. Ways To Find the Gaps • Market research • Surveys • Asking customers what they would like, what's lacking • Focus Groups • Sales records • Where are sales decreasing/not improving? • Competitors • What are our competitors offering that we aren’t? • What are they doing better than us?

  38. Essential Question 8 Product Planning • What methods/techniques can be used to generate a product idea?

  39. New Product Categories • Products that create a new market or niche segment. • Paper disposable diapers. • Additions or line extensions to existing products. • New flavors and new sizes of existing products.

  40. New Product Categories • Product improvements. • Cars. • Cell phones • Repositioned products. • Tums repositioned itself to feature its high calcium content as a benefit for women's health.

  41. Product Development • The first step is to generate new business ideas that are unique. • Can the product be • Repositioned • Improved • Brought out in a new size, flavor, or package?

  42. Product Development • Techniques used to generate new product ideas: • Periodically screen your products and compare them with competitors' products, with an eye toward: • improving attributes of products • combining the features/benefits of several separate products into a single new product • examining users' needs that are not being met by current competitive products • using idea-generating methods like brainstorming

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