2. Who is responsible for the last product
you bought?
Did you know…..
-It took over 3 years to develop
Google’s search engine
-It took over 4 years to develop the
famous chicken sandwich at Chick-
fil-a
3. Product/ServiceManagement is a
marketing function that involves
obtaining, developing,
maintaining, and improving a
product.
4. Factors affecting Product/Service
Management:
1. Customer Needs and Wants
2. Company Goals and Strategies
3. Cost and Available Resources
4. Competition
5. Product Itself
6. Government Regulation
7. Stages in Life Cycle
8. Business and Economic Trends
5. What are Benefits to Product/Service
Management?
-Offer products consumers want and
company’s profits increase
-When developing the right products, a
company can gain new customers
-When products are well managed there is
less of a chance for failure
6. What role does Product/Service Management
play in Marketing?
1. Affects positioning of product
-what image do you want to create about the
product in
the minds of consumers?
2. Improves product success
3. Gives product an image
-what impressions do you have of certain brands
7. Who is responsible for managing
product/service management?
-Several employees of a company, certain departments, 1
employee or just the boss. Normally depends on size of
company.
• 3 Main Phases of Product/Service
Management
1. Developing New Products
2. Monitoring Existing Products
- Sales, Profit, Market Share
3. Eliminate Weak Products
10. What is a product that has been around for as
long as you can remember?
How has it changed over the years?
11. Product Life Cycle represents the stages that
a product goes through during its life.
There are 4 Stages of Life Cycle:
1. Introduction
2. Growth
3. Maturity
4. Decline
12. What are the goals of the Introduction Stage?
– To increase product awareness
– Get the customer’s attention thru promotion
– Lots of special promotion
• During Growth Stage:
– Customers are aware of product, sales increase
– Companies focus on customer satisfaction
– Competition starts from other companies
13. What happens during Maturity Stage?
◦ The product’s sales level off. More money is spent
on competition during this stage.
• Discussion: Have class to choose a
mature product
• Discuss how company is managing:
1. Competition
2. Advertising
3. Distribution – Is it only sold at 1 place
4. Other Strategies they have put in place
14. During the Decline Stage:
◦ Sales start to decline. A company must decide to
alter the product, discount, or discontinue product.
18. Applications of Technology in Marketing:
1. Point-of-Sale Systems
2. Interactive Touch Screen Computer
3. Interactive TV
4. Customer Relationship Management
5. Enterprise Resource Planning Systems
6. Internet
19. Point of Sale
– Scanners at cash registers, touch screens, hand-held
devices at
checkout
• Interactive Touch Screen Computers
– Example: Kiosks
• Interactive TV
– Where TV is like a computer- order movies, click on Ragu
for
recipes, order food
20. CRM- Customer Relationship Management
– A customer can track an order. The CRM or business can
track
customer satisfaction
• ERP- Enterprise Resource Planning
– Software that allows all parts of the company’s
management to be
integrated
• Internet
– Wi-Fi
– Search Engines
– E-mail
– E-commerce
21. Interactive TV helps marketers to develop a
database of their uses
• This database analysis helps see the
customer’s reaction to products
• They are testing Interactive TV for
promotion
25. Why do you think companies package and
label their products?
Answer: Create a good impression
Help sell product
Communicate benefits
• Concerns for Product Packaging?
Product Safety- Glass now plastic
Tamper-resistant packages
Airtight containers for foods
Wasteful packaging
Switching for spray cans and pumps
26. Product labeling must inform customers
about a product’s contents and give
directions for use.
1. Must have name of manufactures
2. Quantity of contents
3. Nutritional info
4. Health claims are the same on all products; light, fat
free, etc.
5. Warnings on products like alcohol and cigarettes
6. How to care for clothes
27. In order for a product to say recycled it must
show proof that it is retrieved a certain
amount of scraps.
For a food to be organic it must meet certain
standards
28. What happens when a company fails to
inform customers about product risks?
1. Company can get sued
2. Harm to customer
• What is Planned Obsolescence?
– Making products that are known to not last long, or
change, so that people will need to replace them
–Example: Cell phones are always coming out with newer functions
and it makes consumers want to purchase the new and improved
cell phone
