PRODUCT MANAGEMENT

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PRODUCT MANAGEMENT

• Part I-Terms, Classification, and New Products

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PRODUCT DEFINITIONS

• PRODUCT-A good, service or idea consisting of a
  bundle of tangible and intangible attributes that
  satisfies consumers and is received in exchange
  for money or some other unit of value!
• THREE TYPES
• PHYSICAL
• BENEFIT
• EXTENDED
• LINE A group of products that are closely
  related.
• MIX of product lines offered by a company
• CANNIBALIZATION-Introducing a new product that
  will take sales away from another product.

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CLASSIFICATION

• DEGREE OF TANGIBILITY
• DURABLE
• NONDURABLE
• USER
• CONSUMER
• INDUSTRIAL

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CLASSIFICATIONCONSUMER

• HOW THEY DIFFER
• Effort consumer spends
• Attributes used in purchase
• Frequency of Purchase
• CONVENIENCE GOODS
• STAPLE, IMPULSE EMERGENCY
• SHOPPING GOODS
• HETEROGENEOUS HOMOGENE
• SPECIALTY
• UNSOUGHT

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CLASSIFICATIONINDUSTRIAL

• PRODUCTION GOODS-Become part of the finished
  product
• RAW MATERIALS COMPON. PARTS
• SUPPORT GOODS
• INSTALLATIONS
• ACCESSORY EQUIPMENT
• SUPPLIES-MRO
• SERVICES

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NEW PRODUCT PROCESS

• STRATEGY DEVELOPMENT
• IDEA GENERATION
• SCREENING AND EVALUATION
• BUSINESS ANALYSIS
• DEVELOPMENT
• MARKET TESTING
• TEST MARKETING
• COMMERCIALIZATION
• SLOTTING FEES
• FAILURE FEES

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POPULAR TEST MARKETS

• COLORADO SPRINGS, CO
• DES MOINES, IA
• HARRISBURG, PA
• KANSAS CITY, KA
• MEMPHIS, TN
• PITTSFIELD, MA
• ROANOKE, VA

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SPREAD OF NEW PRODUCTS

• DIFFUSION OF INNOVATION
• Innovators-1st 2.5
• Early Adopters-Next 13
• Early Majority-Next 34
• Late Majority-Next 34
• Laggards-Last 16
• PRODUCT CHARACTERISTICS
• Complexity, Compatibility, Relative advantage,
  Observability Trialability.

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OF U.S.HOMES