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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

Product Planning

  • How are decisions made to introduce new products and delete old old ones?
unit 9 vocabulary
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
unit 9 essential question
Unit 9 EssentialQuestion
  • What processes and techniques are used to develop, maintain, and improve a product/service mix in order to utilize market opportunities?
essential question 1 product planning
Essential Question 1 Product Planning
  • What is the nature and scope of the product/service management function?
what is product planning
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
what is product planning7
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.
what is product planning8
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
essential question 2 product planning
Essential Question 2 Product Planning
  • How do businesses determine which products to produce and sell?
determining what to produce or sell
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
essential question 3 product planning
Essential Question 3 Product Planning
  • How are products/services positioned in the market place?
product positioning
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.
product positioning13
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.
product positioning14
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.
essential question 4 product planning
Essential Question 4 Product Planning
  • What is the concept of product mix and product/service branding?
product mix strategies
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
product mix strategies17
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
product mix strategies18
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
essential question 5 product planning
Essential Question 5 Product Planning
  • What is the nature of product bundling?
benefits for businesses and customers
Benefits for Businesses and Customers
  • BUSINESSES
    • Introduce New Products
    • Acquire New Customers
    • Higher Profits
    • Increase Product Turnover (distressed inventory)
benefits for businesses and customers22
Benefits for Businesses and Customers
  • CUSTOMERS
    • Save Money
    • Perception of Greater Value
    • Low Risk to Try New Products
examples
Examples

Astound

X-Box

Happy Meal

essential question 6 product planning
Essential Question 6 Product Planning
  • What is the nature of corporate branding?
branding packaging and labeling
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
branding packaging and labeling26
Branding, Packaging, and Labeling
  • Trade Name:
    • Identifies the company or a division of a particular corporation.
  • Trade Character:
    • A personified brand mark.
branding packaging and labeling27
Branding, Packaging, and Labeling
  • Trademark:
    • When used, it is followed by the registered trademark symbol ®
branding packaging and labeling28
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.
essential question 7 product planning
Essential Question 7 Product Planning
  • How do you identify product opportunities?
new product opportunities
New Product Opportunities
  • Changes in life cycle
  • Changes in technology
  • Changes in market/society
  • Changes in economy
finding the gaps
Finding the GAPS!
  • Find the opportunities when you find the gaps!
  • Gap=the difference between what is currently available and what is needed/desired
changes in life cycle
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
product life cycle
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!
changes in technology
Changes in Technology
  • Smartphones
    • Voice recognition technology
      • Siri
  • GPS
    • Garmin, Tom Tom
    • Google Maps
  • Social Media
changes in market society
Changes in Market/Society
  • Health Conscience
    • McDonalds Happy Meal
      • Apple Slices, Milk
    • Salads, wraps
    • Bottled water
  • Convenience
  • Entertainment
    • Games, music, movies, culture
changes in economy
Changes in Economy
  • Economic downturn
    • Created opportunity for new product and product expansion
      • Generic brands, discount stores, low cost alternatives and substitutes
ways to find the gaps
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?
essential question 8 product planning
Essential Question 8 Product Planning
  • What methods/techniques can be used to generate a product idea?
new product categories
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.
new product categories41
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.
product development
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?
product development43
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