DECA FMS 24-25 Product/Service Management KPI's

Determine the impact of product standards’ issues associated with global business

Can impact a company’s operations by causing legal complications, reputation damage, increase costs, and reduce customer satisfaction. However, different countries have different standards for products that can be in terms of product specification, such as the 110 volt difference between Europe and the United States.

Explain new product-development processes

New product-development is a multi-step process where you first understand the market, client, technology, and limitations of the problem; Synthesize the information collected at the first step; Visualize new customers using the product; Prototype, evaluate and improve the concept; Implementation of design changes (require technical advanced procedures and will require more time)

Assess product-packaging requirements

Determined by the federal trade commission including legislative requirements such as listing the manufacturers named in a visible manner. Beyond this, there are requirements to keep the product contained.

Evaluate graphic design on packages

Design must be clear enough so the customer gets an understanding of what the product is. The packaging needs to be honest or the customer will be confused. Must not be too complex or it will detract from memorability, factors to take into account are being consistent with brand image and the shelf impact.

Evaluate adequacy of product packaging

Must be strong enough to withstand damage and wear, but allow ease of opening. As the product price increases, the value of being protected increases with it thus decreasing the need for ease of opening.

Develop positioning concept for a new product idea

Positioning refers to the place that a brand occupies in the mind of the customers and how it distinguishes products from competitors. Positioning a new product idea, companies may emphasize different features of their brand or create a suitable image.

Communicate core values of product/service

Help companies in decision-making processes and educate clients and potential customers about what the company is about and clarify the identity of the company. Having a set of core values to speak to the public will help gain a competitive advantage.

Identify product/service competitive advantage

(product) A distinct advantage a business has over its competitors that allows it to generate greater profits or retain more customers than similar companies. (service) Comes from discounted pricing or additional services offered with it such as loyalty programs or superior customer service.

Explain the nature of product/service branding

Uses a name, term, design, or symbol, or a combination of those elements to distinguish a product/service from a competing product. Branding should help a customer answer the question “Why should I buy this or use this service?”

Identify Consumer Protection Provisions of Appropriate Agencies

The CPSC (Consumer Product Safety Commission) sets the standards for products and has authority to issue recalls for products proven to be unsafe. The Food and Drug Administration (FDA) has the authority to approve new products, oversee labeling and safety regulations and can issue consumer alerts for products.

Describe the nature of product bundling

A technique of offering two or more complementary goods or services together as a package deal. Bundled items are sold at a price attractively lower than the total of their individual selling prices.

Explain the nature and scope of the product/service management function

The creation and growth of a product, businesses could miss out on opportunities and let threats ruin a product if not used effectively. Basically develops, obtains, maintains, and improves a good/service in response to market opportunities (new product development, monitor old products, eliminating weak products). Increase profits, improve market share, gain new customers, and reduce risk of bad products

Explain the nature of marketing planning

Creating a detailed strategy to achieve business goals through marketing and advertising activities. Helps define the “what” and “when” of marketing efforts and outlines how to reach, attract, and persuade customers to buy products or services.

Explain the concept of market and market identification

A market refers to a group of potential buyers and sellers actively exchanging goods/services. Marketing identification is the process of analyzing and defining the target market that a business should focus on for their product/service (consider factors such as demographics, needs, competition)

Describe factors used by marketers to position products/services

Marketers position products/services based on price and quality such as high prices = quality, low price = value, features and benefits (focus on effectiveness and use), and compares benefits of a product to other competitors