PRODUCT MANAGEMENT

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Product ConceptsAndMarketing Principles
Part 1 of 3
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What is a PRODUCT?Anything received in an
exchange to satisfy a need or want

• Goods Persons
• Services Places
• Ideas Organizations

3
Self Analysis of Personal Characteristics
YOU ARE THE PRODUCT

• Self-imposed standards
• Dealing with failure
• Moderate risk-taking
• Taking initiative
• Drive and energy
• Integrity/work ethic

Everyone exists by selling something
Key point
4
Product Continuum
GOODS SERVICES IDEAS
Heart Surgery
Church Service
Automobile
Tangible
Intangible
RABBITFOOD
Make the tangible . . . . intangible
ATTRIBUTES SYMBOLIZE VALUE
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Principle A Product Is a bundle of benefits

• Maintenance/service Brand Name
• Warranty Safety
• Price Confidence
• Quality In Use
• Image
• Package Shape
• (Appearance)

CORE (Primary) BENEFITS (utility)
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Product Concept, Core Auxilliary
Customers dont buy products, they seek to
acquire benefits.
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Product Concepts(What Business Are You in ?)
To succeed in business, know with absolute
precision, what business you are in

• Identify generic/core product
• benefits
• A product is a means to an end -
• want satisfaction

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Production-selling M
arketingCompany Orientation Orientati
on
Applied Marketing

• Universal Studios We make movies We
  market entertainment
• Union Pacific We run a railroad We offer a
  bulk
  
  
  .
  transportation and
  materials handling
• system.
• Mountain Bell We operate a tele- We market
  a
• phone company communication
• system.

9
Avoid Marketing Myopia..A narrow view of your
product time frame

• Principle Avoid a short run time perspective
  remember

Your product is what the consumer perceives,
not what you sell
The concept will never work! Fed Ex founder
graded a C on concept paper in 1956 at YALE.
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A Product Is a Means to an end ..to satisfy
needs wants (benefits)

• Charles Revlon (1930s) said . . .
• Women
• - Seek hope and beauty
• - Not cosmetics and liquid diet food
• Men
• - Seek virility and masculinity
• - Not toupees or after-shave lotion

11
Revlons Status (2001)
Applied Marketing

• Revlons status image has declined over the
  years their products are often perceived as
  the same-old, same old product. Newer products
  are often out of stock
• No major new product releases in 6 yrs.
• Chapter 8 bankruptcy was declared Jan.2001.

WSJ, January 2001
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Consumer Concerns

• Consumers perceive Revlons products as not
  improving their skin are dissatisfied with
  products like Outrageous Shampoo/Conditioner and
  ColorStay Lipstick
• Revlons newest strategy
• Advertise in trendy magazines (ex. wallpaper)
• Target younger women
• Release new tinted face powder lotion

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Total Product Concept,Three Perspectives (3
publics)



Management Consumer Society
View View View


Brand Package Warranty
Symbolism Communication Satisfaction
Social Effects Pollution Claim On Resources
External
Explicit
Implicit
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• Crime enforcement
• Catching crime in action
• Shoplifting
• Vandalism
• Assault
• Car theft

Your on Candid Cell Phone WSJ, 30 Sept 03
Applied Marketing

• Fear of photos being taken in locker rooms
  (nudity)
• in jury courtrooms
• In RD labs as top secret info will be stolen

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(No Transcript)
16
Everyday Hazards
Spencer, Jane, Crossen, Cynthia. Fear Factors.
WSJ, A1, April 24, 2003
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Product Quality

• Car SUV Truck - safety issues
• Crash-tests are conducted by the US government
  and Insurance Institute for Highway Safety

• New Safety Innovations for older drivers
• Improved designs make for a sturdier car
• Sophisticated Cruise-Control Systems
• Collision Mitigation Brake Systems

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Applied Marketing
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Welsh, Jonathan. Blind Spots Plague New Car
Models. WSJ, July 16, 2003, D1.