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Product Management
1. Differentiation 2. Product Mix
Issues 3. Product Development
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Differentiation through Brands
Value based on the stature of the brand or the
assurance of a well known company
Become distinctive
Are free from poor foreign language meanings
Suggest product qualities
Suggest product benefits
Are easy to pronounce, recognize, remember
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Differentiation by Low-Price Position or Lower
Transaction Costs
Low-Price PositionCompetitive advantage based on
consistently offering a lower list price
Lower Transaction CostsCompetitive advantage
based on consistently lower exchange costs
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Product Differentiation
Quality Killers
Reliability Conformance
Performance Durability
Quality Drivers
Quality Enhancers
Features Serviceability
Appearance Reputation
Quality Aesthetics
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Service Differentiation
Reliability
Ability to perform the promised service
dependably and accurately
Responsiveness
Willingness to help customers and provide prompt
service and readiness to provide prompt service
Assurance
Employee knowledge, courtesy, and ability to
convey trust and confidence
Empathy
Caring, individualized attention the business
offers its customers
Facilities that enhance service quality
Tangibles
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Product Mix Strategies
Product Mix is the Total Set of all Products a
Firm Offers for Sale
Beauty Products
Health Care Products
Laundry Cleaning Products

• Line
• Extensions
• Branding
• Bundling

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Product Line Strategies
A Product Line is a Firms Total Product Offering
Designed to Satisfy a Single Solution
Joy
Ivory
Dawn
Antibacterial
Special Care
Length of Product Line
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Product Line Strategies
Product Line Extensions
Contracting a Product Line Dropping items
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Branding Strategies

• Branding Strategies are a Major Part of
• Product Decision Making

Family/ Umbrella Brand Multiple Items Under the
Same Brand Name Solving Different Cust. Problems
Individual Brand Separate Unique Brand for Each
Product Item
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Product BundlingCreating a complete customer
solution that has the potential to create a
superior customer value and attract customers
Pure two or more products usually at an overall
price lower than the total price Mixed offers
the opportunity to purchase each items separately
or bundled with an additional level of savings
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Product Development

• Types of Innovations
• Adoption Factors
• Product Life Cycle

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Types of Innovations
Discontinuous Innovations Totally New
Product Requires Much Learning Airplane, Car, TV
Dynamically Continuous Innovations Significant
Change to an Existing Product Requires Some
Learning Tapes - CD - DVD
Continuous Innovations Modification to an
Existing Product Knockoffs Honey Nut Cheerios
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Product Factors Affecting the Rate of Adoption
Product Characteristics
Compatibility Does the new product fit the
existing values, customs practices?
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Product Life Cycle
Time
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Levels of Product Knowledge
Folgers Maxwell House
Ground Instant
Coffee
1-pound can 8-ounce jar
Autos
Sedan Sports Car Sports Sedan
Ford Taurus Mazda Miata BMW
Station wagon, Air power steering Leather
seats, Air 5 speeds Model 325e, Air Automatic
Trans
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Product Life Cycle
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Product Life Cycle
Time
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Product Life Cycle
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Product Life Cycle Activity
Activity
Get with your group. For the following electronic
good, list as many specific product forms as you
think presently fit into the PLC
categories. Still Cameras
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Product Life Cycle Characteristics
Introduction Growth Maturity Decline Sales Low Ra
pidly Peak Decline Rising
Profits
Cash Flow
Customers
Competitors
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Product Life Cycle Characteristics
Introduction Growth Maturity Decline
Strategic Focus
Marketing Expenditures
Advertising Emphasis
Distribution
Price
Product
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