Study Notes on Product Management
Introduction to Product Management
Overview
Introduction to key concepts in product management.
Understanding of product attributes, life cycle stages, and marketing strategies associated with products.
Exploration of product packaging and marketing trends.
Objectives
Define the types of product attributes.
Understand the stages in the product life cycle and the corresponding marketing strategies for each stage.
Learn about the types and functions of product packaging.
Understand how new packaging trends assist in marketing products.
Product Attributes
Definition: The characteristics by which products are identified and differentiated.
Essential for understanding how consumers perceive products.
Levels of Attributes
Core Benefit: The main benefit that a consumer derives from a product.
Expected Attributes: The basic characteristics necessary for delivering benefits or attributes that have become standard expectations among consumers.
Add-on Attributes: Unexpected extra features that provide additional value to consumers.
Product Attribute Levels for a Cell Phone
Add-on Attributes:
Access to Apps.
High-Definition (HD) filming capabilities.
Expected Attributes:
The desired color of the phone.
The ability to film high-quality videos.
Core Benefit:
Long battery life.
Convenient communication capabilities.
Good phone reception.
Functional selfie camera.
High-quality internet capabilities.
High-resolution camera.
Large storage for music and pictures.
Quality audio speaker.
Product Attribute Levels for a Cell Phone Over Time
During the product's lifecycle, certain attributes become core benefits, expected, or add-on extras based on technological advancement and consumer expectations.
Changes Over Time:
Add-on Attributes: Access to Apps, Selfie Cam
Expected Attributes: HD Filming, The Color of the Phone
Core Benefits: Convenient Communication, Good Phone Reception, Long Battery Life.
Four Product Categories
Convenience Products:
Frequently purchased, generally low-cost, widely available.
Shopping Products:
Consumers spend more time researching and deciding upon the purchase.
Specialty Products:
Possess unique attributes that differentiate them from others.
Unsought Products:
Products that consumers do not think about or are unaware of until prompted by external cues.
Additional Types of Products
1. Durable Products
Last for a long time and are not quickly consumed.
2. Non-durable Products
Have a shorter life span, consumed quickly, or lose value rapidly.
3. Staple Products
Basic items needed by most consumers, commonly available in the market.
4. Consumer Packaged Goods (CPG)
Products that are quickly consumed and frequently purchased, such as grocery items.
5. Impulse Products
Low-cost items bought spontaneously without prior planning.
6. Emergency Products
Items purchased during urgent need or emergencies.
Product Life Cycle
Definition: The typical pattern that a successful new product follows from development through to the end of its life cycle.
Product Class and Form
Product Class: A grouping of products considered to be substitutes for one another.
Product Form: A segment within the product class, denoting variations or types.
Product Life Cycle Stages
Product Development:
The product is under development and testing, and preliminary marketing research is advised to gauge customer needs.
Introduction:
The product is launched commercially; marketing efforts focus on building brand awareness.
Growth:
Sales and profits increase; marketing aims to persuade consumers to choose this product over others.
Maturity:
Sales plateau and profits begin to decline; marketing strategies focus on maintaining market share through reminders to consumers.
Decline:
Sales and profits drop; many companies exit the market as investments in development or advertising cease.
Marketing in the Product Life Cycle Stages
Introduction: Create product awareness.
Growth: Encourage trial usage.
Maturity: Maintain brand awareness and foster brand loyalty.
Decline: Decrease or phase out promotion and target a loyal customer base.
Extending the Product Life Cycle
Market Modification Strategies:
Enhance frequency of use in the current market.
Identify new applications for the product.
Target new customer segments.
Product Modification Strategies:
Modify the product's features or dimensions or alter packaging.
Managing Products: Variations
High-learning Product: Requires longer explanation and understanding before adoption.
Low-learning Product: Easily grasped and widely accepted quickly by consumers.
Fashion Products: Follow a short, cyclical life cycle.
Fads: Experience rapid growth followed by a sharp decline.
Managing Products: Functions of Packaging
Brand Communication: Conveys brand identity and benefits.
Protection: Safeguards products from damage or leakage.
Compliance: Displays any mandatory information or warning labels.
Levels of Packaging
Primary Packaging: Contains a single unit of the product.
Secondary Packaging: Contains multiple units forming a wholesale unit.
Tertiary Packaging: Designed for transportation of multiple wholesale units.
Unboxing
Definition: The act of opening a new product package and exploring its contents and features.
The Unboxing Experience
Provides a means for sellers to differentiate products and connect with customers.
Generates a 'wow' factor that fosters positive word-of-mouth advertising, particularly beneficial in online sales.
Premium Packaging Trends
A 2024 study by Ryder indicates that premium packaging enhances customer sentiment.
Premium unboxing experiences drive repeat business and increase social media interactions regarding purchases.
Review Points
Different stages of the Product Life Cycle require tailored marketing strategies.
Variations may occur across different products or services in the product life cycle.
Adapting packaging and labeling trends can yield significant benefits and increase future purchases.