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3.01-A

Product/Service Management

Who is responsible for the last product you bought?

Did you know…..

Intro

-It took over 3 years to develop Google’s search engine

-It took over 4 years to develop the famous chicken sandwich at Chick-fil-a

Product/Service Management is a marketing function that involves obtaining, developing, maintaining, and improving a product.


Factors affecting Product/Service Management:


1. Customer Needs and Wants

2. Company Goals and Strategies

3. Cost and Available Resources

4. Competition

5. Product Itself

6. Government Regulation

7. Stages in Life Cycle

8. Business and Economic Trends

What are Benefits to Product/Service Management?


-Offer products consumers want and company’s profits increase

-When developing the right products, a company can gain new customers

-When products are well managed there is less of a chance for failure

What role does Product/Service Management play in Marketing?


1.Affects positioning of product-what image do you want to create about the

product in the minds of consumers?

2. Improves product success

3. Gives product an image -what impressions do you have of certain

brands

Who is responsible for managing product/service management?


-Several employees of a company, certain departments, 1 employee or just the boss. Normally depends on size of company.

• 3 Main Phases of Product/Service Management

1. Developing New Products

2. Monitoring Existing Products - Sales, Profit, Market Share

3. Eliminate Weak Products

Marketing Essentials MBA-LAPS-PM-017-SP

Sources

3.01-BProduct Life Cycles

What is a product that has been around for as long as you can remember?

How has it changed over the years?

Intro

Product Life Cycle represents the stages that a product goes through during its life.

There are 4 Stages of Life Cycle:

Product Life Cycle

1. Introduction

2. Growth

3. Maturity

4. Decline

What are the goals of the Introduction Stage?

Product Life Cycle

– To increase product awareness

– Get the customer’s attention thru promotion

– Lots of special promotion

• During Growth Stage:– Customers are aware of product, sales increase

– Companies focus on customer satisfaction

– Competition starts from other companies

What happens during Maturity Stage?◦ The product’s sales level off. More money is

spent on competition during this stage.

Product Life Cycle

• Discussion: Have class to choose a mature product• Discuss how company is managing:

1. Competition

2. Advertising

3. Distribution – Is it only sold at 1 place

4. Other Strategies they have put in place

During the Decline Stage:◦ Sales start to decline. A company must

decide to alter the product, discount, or discontinue product.

Product Life Cycle

Sources:◦Marketing Essentials

Product Life Cycle

3.01-CTechnology in


Describe the use of technology in Product/Service Management

Intro

Applications of Technology in Marketing:

Technology in Product/Service Management

1. Point-of-Sale Systems

2. Interactive Touch Screen Computer

3. Interactive TV

4. Customer Relationship Management

5. Enterprise Resource Planning Systems

6. Internet

Point of Sale


– Scanners at cash registers, touch screens, hand-held devices at checkout

– Example: Kiosks

• Interactive Touch Screen Computers

• Interactive TV

– Where TV is like a computer- order movies, click on Ragu for recipes, order food

CRM- Customer Relationship Management


– A customer can track an order. The CRM or business can track customer satisfaction

• ERP- Enterprise Resource Planning– Software that allows all parts of the company’s management to be integrated

• Internet– Wi-Fi– Search Engines– E-mail– E-commerce

Interactive TV helps marketers to develop a database of their uses


• This database analysis helps see the customer’s reaction to products

• They are testing Interactive TV for promotion

Sources:◦Marketing Essentials


3.01-DEthical Considerations

in Product Packaging

Business Ethics in Product/Service Management

Ethical Considerations in Product Packaging

Why do you think companies package and label their products?


Answer: Create a good impression Help sell product Communicate benefits

• Concerns for Product Packaging?Product Safety- Glass now plastic

Tamper-resistant packages Airtight containers for foods Wasteful packaging Switching for spray cans and

pumps

Product labeling must inform customers about a product’s contents and give directions for use.


1. Must have name of manufactures

2. Quantity of contents

3. Nutritional info

4. Health claims are the same on all products; light, fat free, etc.5. Warnings on products like alcohol and cigarettes6. How to care for clothes

In order for a product to say recycled it must show proof that it is retrieved a certain amount of scraps.

For a food to be organic it must meet certain standards


What happens when a company fails to inform customers about product risks?


1.Company can get sued2.Harm to customer

• What is Planned Obsolescence?– Making products that are known to not last long, or change, so that people will need to replace them

– Example: Cell phones are always coming out with newer functions and it makes consumers want to purchase the new and improved cell phone

Sources: ◦Marketing Essentials


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Business

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