product management

MODULE 1: PRODUCT MANAGEMENT CONCEPTS AND PROCESS



PRODUCT MANAGEMENT - includes a whole range of activities pertaining to product planning and development and extends itself to brand building and management



PRODUCT - is core to any business enterprise and forms the most tangible expression offered by the firm in response to consumer needs and wants

  • Are offered to earn revenue which is the bread and butter for the firm to survive and sustain

  • Any tangible, intangible offering that might satisfy the needs or aspirations of a consumer



3 LEVELS OF PRODUCT OFFERING



CORE BENEFITS - what the product means to the customer



TANGIBLE SPECIFICATIONS - features, colors, design, quality, size, weight: materials used in making the product, durability, operating resources (diesel, petrol or electricity) & price



AUGMENTED FEATURES - company name, brand image, warranty/guarantee for the whole machine or specific parts, may include dimensions like delivery, easy accessibility, credit, packaging, repair/service facilities



Types of product:

Tangible (can be touched)

Intangible (cannot be touched)



CONSUMER PRODUCTS - traditionally all consumer product based on their nature, durability, utility and involvement of the consumer are further segmented into:

  • Convenience product

  • Shopping product

  • Specialty product



PRODUCT LINE AND PRODUCT MIX



PRODUCT LINE - includes all closely related or similar products offered by the firm

  • Each product line has a range of models, sizes and styles

  • Collection of products, offered by the firm, that satisfy similar needs for different audiences

  • Expanding product line helps company to survive in competitions

  • Multinational companies generally have large product line



PRODUCT MIX - encompasses and includes all individual products available offered by the firm

  • Includes all the product lines offered by the firm

  • Set of all product offered for sale by a company

  • It consist of various product’s line



  • Any companies product mix has four dimensions

    • Width

    • Length

    • Depth

    • Consistency

DIMENSION OF PRODUCT MIX



WIDTH - number of different product lines carried by the company



LENGTH - total number of items in the product mix of the company



DEPTH - assortment of size, color and models offered in each item of a product line



CONSISTENCY - refers to relationship of various product line either on their end use, production requirement distribution channel or other way



LINE STRETCHING - the decision pertaining to adding or dropping items from the lie as and when it is profitable to do so

  • Line stretching could be upwards or downwards or both ways

  • Occurs when a company wants to lengthen its product lines beyond its currents line



Successful product line stretching

  • New customers

  • Selling millions of units per year

  • Company became more popular

  • Improving of reputation

LINE FILLINGS - adding more items within the existing product range results in lengthening the line

  • Aiming for incremental profit

  • Optimal utilization of excess and under utilized capacities

  • An attempt to offer a full line of the product



The difference is that life filling is when you add more product items within the present range of the product line. On the other hand, line stretching is when you increase the current product line beyond the current product range.



MAJOR RESPONSIBILITIES OF PRODUCT MANAGEMENT FUNCTION



All activities (both minor and major) related to products and its linkages with other three elements of the marketing mix



All related activities and tasks of STP strategies (segmenting, targeting and positioning)



Short term and long term production planning in consultation with manufacturing



Meticulous planning for promotional activities with communication and advertising department



Planning and forecasting sales and market potential with sale department



Coordinating marketing research activities within house/external agencies



Coordinating with advertising agencies and other external agencies like Government for seeking statutory license



SCOPE OF PRODUCT MANAGEMENT

Diagram Description automatically generated

ELEMENTS OF MARKETING PROGRAM



  • Product lines decisions 

  • Product Life Cycle 

  • Segmenting Targeting and Positioning Strategies 

  • Branding 

  • New product development 

  • Test marketing 

  • Product launch 

  • Business environment 

  • Competition 

  • Trade, Industry and other market forces etc.





































MODULE 1: PRODUCT MANAGEMENT CONCEPTS AND PROCESS



PRODUCT MANAGEMENT - includes a whole range of activities pertaining to product planning and development and extends itself to brand building and management



PRODUCT - is core to any business enterprise and forms the most tangible expression offered by the firm in response to consumer needs and wants

  • Are offered to earn revenue which is the bread and butter for the firm to survive and sustain

  • Any tangible, intangible offering that might satisfy the needs or aspirations of a consumer



3 LEVELS OF PRODUCT OFFERING



CORE BENEFITS - what the product means to the customer



TANGIBLE SPECIFICATIONS - features, colors, design, quality, size, weight: materials used in making the product, durability, operating resources (diesel, petrol or electricity) & price



AUGMENTED FEATURES - company name, brand image, warranty/guarantee for the whole machine or specific parts, may include dimensions like delivery, easy accessibility, credit, packaging, repair/service facilities



Types of product:

Tangible (can be touched)

Intangible (cannot be touched)



CONSUMER PRODUCTS - traditionally all consumer product based on their nature, durability, utility and involvement of the consumer are further segmented into:

  • Convenience product

  • Shopping product

  • Specialty product



PRODUCT LINE AND PRODUCT MIX



PRODUCT LINE - includes all closely related or similar products offered by the firm

  • Each product line has a range of models, sizes and styles

  • Collection of products, offered by the firm, that satisfy similar needs for different audiences

  • Expanding product line helps company to survive in competitions

  • Multinational companies generally have large product line



PRODUCT MIX - encompasses and includes all individual products available offered by the firm

  • Includes all the product lines offered by the firm

  • Set of all product offered for sale by a company

  • It consist of various product’s line



  • Any companies product mix has four dimensions

    • Width

    • Length

    • Depth

    • Consistency

DIMENSION OF PRODUCT MIX



WIDTH - number of different product lines carried by the company



LENGTH - total number of items in the product mix of the company



DEPTH - assortment of size, color and models offered in each item of a product line



CONSISTENCY - refers to relationship of various product line either on their end use, production requirement distribution channel or other way



LINE STRETCHING - the decision pertaining to adding or dropping items from the lie as and when it is profitable to do so

  • Line stretching could be upwards or downwards or both ways

  • Occurs when a company wants to lengthen its product lines beyond its currents line



Successful product line stretching

  • New customers

  • Selling millions of units per year

  • Company became more popular

  • Improving of reputation

LINE FILLINGS - adding more items within the existing product range results in lengthening the line

  • Aiming for incremental profit

  • Optimal utilization of excess and under utilized capacities

  • An attempt to offer a full line of the product



The difference is that life filling is when you add more product items within the present range of the product line. On the other hand, line stretching is when you increase the current product line beyond the current product range.



MAJOR RESPONSIBILITIES OF PRODUCT MANAGEMENT FUNCTION



All activities (both minor and major) related to products and its linkages with other three elements of the marketing mix



All related activities and tasks of STP strategies (segmenting, targeting and positioning)



Short term and long term production planning in consultation with manufacturing



Meticulous planning for promotional activities with communication and advertising department



Planning and forecasting sales and market potential with sale department



Coordinating marketing research activities within house/external agencies



Coordinating with advertising agencies and other external agencies like Government for seeking statutory license



SCOPE OF PRODUCT MANAGEMENT

Diagram Description automatically generated

ELEMENTS OF MARKETING PROGRAM



  • Product lines decisions 

  • Product Life Cycle 

  • Segmenting Targeting and Positioning Strategies 

  • Branding 

  • New product development 

  • Test marketing 

  • Product launch 

  • Business environment 

  • Competition 

  • Trade, Industry and other market forces etc.