Chapter 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-1 Product and...
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Transcript of Chapter 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-1 Product and...
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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 1
Product and Service Strategies
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Chapter Objectives
1. What are products and services? What are their categories?
2. How do firms manage all of their products and services? What are the steps in the best development process for new products?
3. What is the product life cycle, and how is it used?
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Objective 1
What are products and services? What are
their categories?
DEFINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Products are items consumed for
personal or business use.
Services are activities that
deliver benefits to consumers
or businesses.
EXPLAINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Products
Product
Good Service
Tangible Intangible
EXPLAINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 6Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Distinctions of a Service
Intangible
Inseparable
Perishable
Variability
EXPLAINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Goods – Services Continuum
Hair Brush
HaircutHair
Transplant
Pure
Good
Pure S
ervice
Hybrid
APPLIED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 8Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Levels of Product
Core Benefits
Actual ProductAugmented Product
Brand NameAttributes
Packaging
Style
Design
DeliveryFinancing
Service
Warranty
Customer Support
APPLIED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 9
Consumer Product Classifications
Shopping
SpecialtyUnsought
Convenience
APPLIED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 10
Industrial Product Classifications
MRO Products
Processed Materials and Services
Components
Equipment
Raw Materials
APPLIED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 11
New Product Development
Idea Generation
Idea Screening
Concept Development
Business Analysis
Market Testing
Commercialization
APPLIED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 12
Types of New Products
Cosmetic(Incremental)
Context(New Direction)
Concept(Breakthrough)
Web 1.0 2.0 iPod / iTunes
PC, airplanes
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Objective 2
How do firms manage all of their products
and services? What are the steps in the best
development process for new products?
DEFINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 14Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
A Product Portfolio is the
collection of all products and services
offered by a company.
APPLIED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 15
Sony U.S. Product Portfolio
Computer Cameras TelevisionsTheatre
Portable Electronics
Sony Pictures Games
VAIO -notebook-desktop
Digital Home
Disc Burner
Location Free
mylo
Software
Cyber-shot
Alpha SLR
HandyCam
Printers
Digital picture frames
Photo services
Televisions
Home theatre systems
Blu-ray Disc
DVD players
Home audio components
Walkman Video MP3
Rolly
Reader Digital Book
Sony Cell Phone
GPS
Movies -Theatre-DVD-Blue-ray
Television-Comedy-Drama-Daytime-Cartoons
Music
PlayStation-PS3-PS2-Portable
APPLIED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 16
Sony U.S. Product Portfolio
Product Mix Width
Product Mix Depth
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Objective 3
What is the product life cycle, and how is it
used?
DEFINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 18
The Product Life Cycle is a model
describing the evolution of a product’s
sales and profits throughout its lifetime.
EXPLAINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 19
Product Life Cycle
EXPLAINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 20
Introduction Stage
Sales Volume
Product Features
Retail Outlets
Marketing Goal
EXPLAINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 21
Growth Stage
Sales Volume
Product Features
Retail Outlets
Marketing Goal
EXPLAINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 22
Maturity Stage
Sales Volume
Product Features
Retail Outlets
Marketing Goal
EXPLAINED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 23
Decline Stage
Sales Volume
Product Features
Retail Outlets
Marketing Goal
APPLIED
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11- 24
Diffusion of Innovation
InnovatorsEarly
AdoptersEarly
MajorityLate
MajorityLaggards
2.5% 13.5% 34% 34% 16%
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 25Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 11-
Visual Summary
