MKT510 Lec 3

Product
Management
Learning Outcome

 Students will be able to understand the basics related to product

management.
 Understanding marketing plan.
REVISION..

Which of the following statements is true?

A- Product line stretching occurs when a company lengthens its product

line beyond its current range
B-Product line filling involves adding more items within the present
range of the line
C-Companies in the middle range of the market may decide to stretch
their lines both downwards and upwards
D-All of the above
REVISION..

Product mix depth refers to the number of versions offered

of each product in the line.
A- True
B- False
REVISION..

The Parker pen company make good quality pens and

pencils. Their ballpoint pens come in various styles and with
different coloured ink. Which ring of the total product
offering model does the coloured ink fit into?

A. core benefit
B. core product
C. basic product
D. augmented product
E. perceived product
What is a product ?
A product is anything that can offered to
market for attention, acquisition ,use,
consumption that might satisfy a want or
need.
 PRODUCTS

Tangible Intangible
products products

GOODS SEVICES
Features of product

tangibility
Associated
attributes
Intangible
Features of attributes
product

Customer
Exchange
satisfaction
value
Marketing Plan

A marketing plan is a written

document containing the
guidelines for the business
center’s marketing programs
and allocations over the
planning period.
Time Horizons for Marketing Plans

Time Consumer Industrial Services

Period Products Products
1 year 62% 45% 65%
3 years 5 5 8
5 years 15 17 3
Long term 4 3 6
Indefinite 0 2 2
Other 14 28 16
Hierarchy of Planning
Corporate Strategic
Planning

Group or Sector
Planning

SBU Planning

Annual Marketing
(Business) Plan
Objectives of a Marketing
Plan
1. Define the current business situation.
2. Define problems and opportunities facing the business.
3. Establish objectives.
4. Define the strategies and programs necessary to achieve the
objectives.
Objectives of a Marketing
Plan cont.
5. Pinpoint responsibility for achieving product objectives.
6. Encourage careful and disciplined thinking.
7. Establish a customer/competitor orientation.
Frequent Mistakes in the Planning
Process
 The speed of the Process
 The Amount of Data Collected
 Who does the Planning?
 The Structure
 Length of the Plan
Frequent Mistakes in the Planning
Process (cont)
 Number of Courses of Action Considered
 Who Sees the Plan
 Not Using the Plan as a Sales Document
 Insufficient Senior Management Leadership
 Not Tying Compensation to Successful Planning Efforts
 Frequency of Planning
Marketing Planning
Sequence
Update
historical
data
Collect
current
situation
data
Data
analysis

Develop
objectives,
strategies,
programs
Develop
financial
document
Negotiate
s
final plan
Measure
progress
toward
objectives
Audit
Marketing Plan Summary

I. Executive summary
II. Situation analysis
A. Category/competitor definition
B. Category analysis
C. Company and competitor analysis
D. Customer analysis
E. Planning assumptions
Marketing Plan Summary
cont.
III. Objectives
IV. Product/brand strategy
V. Supporting marketing programs
VI. Financial documents
VII. Monitors and controls
VIII. Contingency plans
A Product Manager’s Potential
Interactions Agency media department
Company media department
Suppliers Media sales reps
Advertis-
Trade Manufactur- ing
ing and agency Media
Suppliers Premium
distribution suppliers
Research Premium
and Promotion screening Store
development services testing Sampling
Couponing

Product Packagin
Legal
manager g

Designers
Purchasin Researchers
Fiscal g

Market Publicity Suppliers

research
Sales
Research
suppliers Trade
Product-Focused Structure
Head of
company/division

Manufacturing Marketing Corporate

Finance
communications

Marketing Product
Support
Research management

Manager of Manager of Manager of

product A product B product C
 Adobe Systems Marketing Organization

Product
Sales Corporate
Development
Communications
& Marketing

Product Channel Public Trade

Marketing
Marketing Merchandising Relations Shows

- Specification
- Cross Product Programs - Channel Promotions - Organize Press Tours - Trade Shows
- Positioning - Road Shows - Channel Advertising - Press Communications
- Pricing
- Seminars - Coop Advertising - Editorial Opportunities
- Spokesperson
- Third Party promotions
Internal & External - Events
- Promotions
- Creative Services
- Advertising
- Product Strategy
- Product Analysis
- Anything Cross
Functional
- Keep communication
flow going
GM’s New Organizational Structure
Ron Zarrella
VP & group executive, North American Operations

John Middlebrook Phil Guarascio Roy Roberts John Middlebrook William Lovejoy VP
VP & GM, vehicle VP & GM, advertis- VP & GM, field sales Support staff group & GM, service parts
brand marketing ing & corp. mktg. service & parts directors operations

Division marketing Regional general Service parts

general managers (6) manager(s) organization

Regional Regional
Brand services Regional Regional
Brand teams support divisional
managers service parts
manager marketing
manager manager
manager

Marketing area
managers

Area sales Area parts

Area service manager
manager manager
Market-Focused Organization

Head of the
company/division

Corporate
Manufacturing Marketing Finance
communications

Manager, market Manager, market Manager, market

A B C
 Levels of product

Unexpected features Potential product

Luxury features Augmented product

Expected features Expected product

Basic features
Generic product

Basic product Core benefit

Classifying Products

Durable products

Consumer products,

Business products
Durable products
Durable

Non-durable

Services
 Consumer Products

Shopping Specialty
Products Products

Convenience
Products

Unsought
Products

. . To satisfy information needs & buying motives

CONVENIENCE GOODS
Convenience goods – consumers use minimal effort for
frequently purchased low cost items

 Staples -

 Emergency goods –

 Impulse purchases –
 Shopping Products
Shopping goods - consumers make
a considerable effort to evaluate …
Consumers make product comparison(s),

They seek information before purchase,

they are not impulsive

Moderate substitutions are made

Product’s last a considerable time

Monetary & social costs may be

TV’s As a Shopping Product
(2007 ----
1950’s) Price-based
Attribute-based
Plasma –LCD screen
LOW PRICE

WARRANTY
REMOTE CONTROL
PICTURE SIZE
Homogeneous products select on price Heterogeneous
products
select on benefits
Business products
 Materials and parts
 Raw materials and parts

 Manufactured materials and parts

 Capitals items
 1.installation
 2.equiptment

 Suppliers and business services

 1.maitainance and repair items
 2.operating suppliers
Thank You!!!