introduction to product managementPRODUCT MANAGMENT.pptx

product management provides an in-depth overview of the discipline, emphasizing its crucial role in the development, marketing, and continuous improvement of products. It begins with a definition and highlights the importance of product management in ensuring products meet market needs and align with business goals. Key topics include the role of a product manager, which involves market research, product strategy, and cross-functional collaboration, and the stages of the product lifecycle from ideation to launch and beyond. The presentation also covers best practices for effective product management, such as utilizing customer feedback, agile methodologies, and data-driven decision-making, all aimed at delivering value to customers and achieving business success.

1. (Q) PRODUCT PRODUCT (GOODS) Product (Goods): A tangible item that is produced, sold, and bought. Examples include electronics, clothing, food items, and vehicles PRRODUCT (SERVICE) Product (Services): An intangible offering that involves a deed, performance, or effort that cannot be physically possessed. Examples include banking, cleaning, consulting, and education services

2. PRODUCT ECONOMICS Economic Product : Any good or service that satisfies a want or need and has exchange value. It is something produced to be sold or exchanged in a market MARKETING Product in Marketing : Anything that can be offered to a market to satisfy a need or want, including physical goods, services, events, persons, places, organizations, information, and ideas

3. (Q) CLASSIFICATION OF PRODUCT TANGIBILITY TANGIBLE PRODUCT Physical items that can be touched and owned. Examples include clothing, electronics, furniture, and food. INTANGIBLE PRODUCT Non-physical items that cannot be touched. Examples include services like consulting, education, and digital products like software and e-books.

4. CONSUMER USE CONSUMER PRODUCT Products purchased by individuals for personal use CONVIENCE PRODUCTS Items bought frequently and with minimal effort, such as groceries, toiletries, and snacks.

5. CONSUMER USE SHOPPING GOODS Items that consumers compare based on quality, price, and style before purchasing, such as clothing, electronics, and appliances. SPECIALTY GOODS Unique and expensive items that consumers are willing to make a special effort to buy, such as luxury cars, designer clothing, and high-end electronics.

6. DURABILITY DURABILITY : Items that last for a long time and can be used repeatedly, such as furniture, cars, and appliances NON DURABLE Items that are consumed quickly or have a short lifespan, such as food, beverages, and paper products.

7. BUYING BEHAVIOUR Convenience Goods : Products that are bought frequently and with minimal effort, such as snacks and everyday household items. Shopping Goods : Products that require more time and effort for comparison and decision-making, such as clothing and electronics. Specialty Goods : Unique items with distinct characteristics that consumers are willing to make a special effort to purchase, such as luxury brands and custom-made items.

8. PRODUCTION PROCESS Primary Products : Raw materials and natural resources extracted or harvested from the environment, such as minerals, timber, and agricultural products. Secondary Products : Manufactured goods produced by transforming primary products, such as machinery, vehicles, and processed foods

9. LIFECYCLE STAGE New Products: Recently introduced to the market and still in the growth stage. - Mature Products: Established in the market with stable sales. - Declining Products: Experiencing a decrease in demand and sales.

10. (Q) PRODUCT MIX DECISION Product mix decisions are crucial for a company to effectively meet market demands and achieve its business objectives. Product Line - Width : The number of different product lines a company offers. A broader product line can attract a wider customer base. - Length: The total number of items a company carries within its product lines. - Depth : The number of variations of each product within a product line. This can include variations in size, colour, flavours, etc. - Consistency : How closely related the various product lines are in terms of end use, production requirements, distribution channels, or any other way.

11. PRODUCT MIX DECISION Product Line Decisions - Line Stretching: Adding products that are of higher or lower quality or price than the existing products. - Upward Stretching: Adding higher-end products to attract a more upscale market. - Downward Stretching: Adding lower-end products to attract a more price-sensitive market. - Line Filling: Adding more items within the existing range of the product line to fill gaps and meet market demand more effectively.

12. (Q) PRODUCT LINE DECISION Product Line Length: Expand the Product Line by adding more items, which can cater to more market segments or customer needs. Contract the Product Line by removing less profitable or outdated items, which can streamline operations and focus on core offerings. Product Line Depth: Product Line Depth involves the variations of each product in the line, such as different sizes, colours, or features. Product Line Consistency: High consistency can lead to operational efficiencies and a clear brand image, while low consistency can cater to diverse markets and reduce risk.

13. PRODUCT LINE DECISION Product Line Extensions Upward Stretching: Introducing higher-end products to tap into a more premium market.  Downward Stretching: Introducing lower-end products to attract a more cost-conscious segment. Horizontal Stretching: Adding products at the same price level but with different features or benefits to cater to different preferences. Product Life Cycle Management Different products in the line may be at different stages of their life cycle (introduction, growth, maturity, decline). Decisions need to account for strategies appropriate for each stage, such as innovation, marketing push, or phasing out.

14. PRODUCT LINE DECISION Market and Competitive Analysis Understanding customer needs, market trends, and competitors' offerings is vital. This includes identifying gaps in the market that the product line can fill and responding to competitive pressures. Profitability and Financial Considerations cost structures, pricing strategies, and the potential return on investment for new or existing products. Brand Strategy - The product line should align with the overall brand strategy and positioning. This involves ensuring that new products enhance the brand's value and do not dilute its equity.

15. (Q) PRODUCT LIFE CYCLE STRATEGIES Introduction Stage Characteristics : Low sales volume High costs due to marketing, distribution, and production Limited competition Customer awareness and acceptance are key focuses Strategies: Marketing and Promotion: Invest heavily in marketing to create awareness and stimulate demand. Focus on educating potential customers about the product's benefits. Distribution: Selective distribution to focus on key markets and channels. Product Quality: Ensure high quality to build a strong initial reputation and customer trust.

16. PRODUCT LIFE CYCLE STRATEGIES Growth Stage Characteristics: Rapidly increasing sales Lower costs due to economies of scale Growing competition Increasing market acceptance Strategies: Marketing: Expand marketing efforts to a broader audience. Highlight the product’s unique features and benefits compared to competitors. Product Development: Improve the product based on customer feedback. Introduce variations and enhancements. Distribution: Expand distribution channels to reach a wider audience. Ensure product availability. Pricing: Adjust pricing strategies to balance volume growth and profitability. Consider competitive pricing.

17. PRODUCT LIFE CYCLE STRATEGIES Maturity Stage Characteristics: Peak sales volume Intense competition leading to price wars and market saturation Profit margins may begin to erode Focus shifts to differentiation and maintaining market share  Strategies: Marketing: Focus on differentiation and brand loyalty. Highlight unique selling propositions (USPs) and customer testimonials. Product Management: Innovate and update the product to keep it relevant. Consider bundling, new features, or related products. Cost Management: Streamline operations and reduce costs to maintain profitability. Market Segmentation: Target new market segments or niches to sustain growth. Customer Loyalty Programs: Implement programs to retain existing customers and encourage repeat purchases.

18. PRODUCT LIFE CYCLE STRATEGIES Decline Stage  Characteristics: Decreasing sales Reduced number of competitors as some exit the market Shifting consumer preferences or technological advancements Focus on managing profitability and deciding the product's future  Strategies: Product Rationalization: Evaluate whether to rejuvenate, discontinue, or harvest the product. Consider rebranding or repositioning if there's potential. Cost Reduction: Minimize costs and maximize cash flow. Cut down on marketing and production expenses. Selective Distribution: Reduce distribution channels to the most profitable or strategic ones. Product Updates: If the market still has potential, update the product to meet new needs or preferences. Exit Strategy: Plan for an orderly exit from the market if continuing is not viable. Manage inventory and transition customers to other products .