Product Planning and the Product Life Cycle

Product Service Management

• Product Planning

  • The process of defining the characteristics of a product and its market.
  • Essential for aligning the product with customer needs and market trends.

• Product Features

  • Kotler's 5 Levels of Product:
  • Core Product: The fundamental benefit that the product provides.
  • Basic Product: The basic version of the product.
  • Expected Product: The set of attributes that buyers normally expect when they purchase a product.
  • Augmented Product: Additional services and benefits that distinguish the product from its competitors.
  • Potential Product: All the augmentations and transformations that the product might undergo in the future.

• Product Mix

  • Width: The number of different product lines a company offers.
  • Depth: The number of products in each product line.
  • Modifying the Mix:
  • Add: Introducing new products to the mix.
  • Modify: Altering existing products to meet changing consumer needs.
  • Delete: Removing products that are no longer profitable or relevant.

The Product Life Cycle

• Understanding the stages of the product life cycle is crucial for developing effective marketing strategies:

  1. Introduction
  • The initial stage of the product life cycle.
  • Focus on building awareness and generating interest.
  • Marketing Adjustments: Establishing distribution channels, setting promotional strategies to create product awareness.
  1. Growth
  • The product starts to gain acceptance in the market.
  • Sales increase rapidly.
  • Marketing Adjustments: Emphasize product benefits, expand distribution, and consider pricing strategies.
  1. Maturity
  • The product reaches its peak in sales.
  • Competition increases leading to price pressure.
  • Marketing Adjustments: Focus on differentiation, improving product features, and maximizing profit.
  1. Decline
  • The product starts to lose market share and sales decrease.
  • Factors leading to decline may include market saturation or changes in consumer preferences.
  • Marketing Adjustments: Decide whether to rejuvenate the product, discontinue it, or harvest remaining revenue.

Launching a New Product

• The process for launching a new product includes several key stages:
  1. Generating Ideas: Brainstorming sessions to create a pool of new product ideas.
  2. Screening Ideas: Evaluating ideas to eliminate those that do not align with business goals or market needs.
  3. Business Proposal: Developing a comprehensive plan that outlines the product, target market, estimated costs, and projected revenues.
  4. Product Development: Creating prototypes and refining the product before it goes to market.
  5. Product Testing: Conducting market tests to collect feedback and make necessary adjustments.
  6. Evaluating Acceptance: Final assessment of the product’s performance in the market post-launch.