Business Model Canvas (BMC)- A new venture concept
Succeeding in Product Management
1.
2. WHAT IS A PRODUCT ?
A product is anything that can offered to
market for attention, acquisition ,use,
consumption that might satisfy a want or
need.
4. FEATURES OF PRODUCT
Features of
product
Associated
attributes
Intangible
attributes
tangibility
Exchange
value
Customer
satisfaction
5. LEVELS OF PRODUCT
Potential product
Augmented product
Expected product
Generic product
Core benefit
Unexpected features
Luxury features
Expected features
Basic features
Basic product
10. SHOPPING PRODUCTS
Shopping goods - consumers make a
considerable effort to evaluate …
Consumers make product comparison(s),
They seek information before purchase,
they are not impulsive
Moderate substitutions are made
Product’s last a considerable time
Monetary & social costs may be high
11. TV’S AS A SHOPPING PRODUCT
(2007 ---- 1950’S)
Attribute-based Price-based
PICTURE SIZE
WARRANTY
REMOTE CONTROL
LOW PRICE
Plasma –LCD screen
Homogeneous products select on price Heterogeneous products
select on benefits
12. BUSINESS PRODUCTS
Materials and parts
Raw materials and parts
Manufactured materials and parts
Capitals items
1.installation
2.equiptment
Suppliers and business services
1.maitainance and repair items
2.operating suppliers
18. THREE KEYS TO PRODUCT MANAGEMENT
SUCCESS
As product managers you have a significant
responsibility for the success of your
company. It’s easy to get bogged down in the
countless tasks that are thrown your way
every day. With all the meetings, floods of
email, and requirements to manage, the
thought of spending time on areas of strategic
focus can seem overwhelming. However, with
planning and a little effort you can make the
difference. Start by focusing on three simple,
yet powerful, keys to success:
19. THREE KEYS TO PRODUCT MANAGEMENT
SUCCESS
1. Know your market:
Get a clear understanding of the market where
your products compete, and work diligently to
stay out in front of new trends and technologies.
Make customer calls and customer visits often.
Work with the sales team; understand how they
sell your products. Know what works. Know the
weaknesses of the products (and take action to
correct them). Understand why people pay (or
don’t pay) for your products. Be the voice of the
customer to your company.
20. THREE KEYS TO PRODUCT MANAGEMENT
SUCCESS
2. Provide clear direction:
One of your key directives as a product manager is to
provide clear direction to the engineering/development
teams. Spend the time to write understandable and
timely requirements and prioritize them effectively.
Provide solid product design (with the help of good
designers). Give clear direction and project confidence
and your full support to the work the engineering is
doing. Earn their trust. Inspire them to do great things.
“Have their backs” with the rest of the company (i.e. be
their outspoken supporter).
21. THREE KEYS TO PRODUCT MANAGEMENT
SUCCESS
3. Launch successfully:
Work with the sales team to make sure they
understand the new product and hit the ground
running when it releases. After a successful launch,
monitor the product’s uptake and financials and
make sure it continues to succeed. This, of course,
loops back to knowing your market and making sure
your product meets the needs of the people in your
market.
23. THE PRODUCT LIFE CYCLE
STRATEGIES:
PLC Stages
• Product development
• Introduction
• Growth
• Maturity
• Decline
23
24. PRODUCT LIFE CYCLE
Time
Sales and
Profits ($)
Product
Develop-ment
Introduction
Profits
Sales
Growth Maturity Decline
Losses/
Investments ($)
25. PRODUCT LIFE CYCLE APPLICATIONS
Product class has the longest life cycle (e.g., gas-powered
cars)
Product form tends to have the standard PLC shape
(e.g., dial telephone)
Brand can change quickly because of changing
competitive attacks and responses (e.g., Tide,
Cheer)
Style is a basic and distinctive mode of expression
(e.g., formal clothing, Danish modern furniture)
Fashion is a popular style in a given field (e.g.,
business casual)
Fad is a fashion that enters quickly, is adopted quickly,
and declines fast (e.g., pet rocks)
25
26. PRACTICAL PROBLEMS OF PLC
• Hard to identify which stage of the PLC the
product is in.
• Hard to pinpoint when the product moves
to the next stage.
• Hard to identify factors that affect
product’s movement through stages.
• Hard to forecast sales level, length of each
stage, and shape of PLC.
• Strategy is both a cause and result of the
PLC.
26
27. PRODUCT LIFE-CYCLE STRATEGIES
The Product Life Cycle (PLC) has Five
Stages
• Product Development, Introduction, Growth,
Maturity, Decline
• Not all products follow this cycle:
• Fads
• Styles
• Fashions
28. PRODUCT LIFE-CYCLE STRATEGIES
The product life cycle concept can be
applied to a:
• Product class (soft drinks)
• Product form (diet colas)
• Brand (Diet Dr. Pepper)
• Using the PLC to forecast brand performance
or to develop marketing strategies is
problematic
29. PRODUCT LIFE-CYCLE STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Begins when the
company develops a
new-product idea
Sales are zero
Investment costs are
high
Profits are negative
PLC Stages
30. PRODUCT LIFE-CYCLE STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Low sales
High cost per customer
acquired
Negative profits
Innovators are targeted
Little competition
PLC Stages
31. MARKETING STRATEGIES:
INTRODUCTION STAGE
Product – Offer a basic product
Price – Use cost-plus basis to set
Distribution – Build selective distribution
Advertising – Build awareness among early
adopters and dealers/resellers
Sales Promotion – Heavy expenditures to
create trial
32. PRODUCT LIFE-CYCLE STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Rapidly rising sales
Average cost per
customer
Rising profits
Early adopters are
targeted
Growing competition
PLC Stages
33. MARKETING STRATEGIES:
GROWTH STAGE
Product – Offer product extensions,
service, warranty
Price – Penetration pricing
Distribution – Build intensive distribution
Advertising – Build awareness and interest
in the mass market
Sales Promotion – Reduce expenditures to
take advantage of consumer demand
34. PRODUCT LIFE-CYCLE STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Sales peak
Low cost per customer
High profits
Middle majority are
targeted
Competition begins to
decline
PLC Stages
35. MARKETING STRATEGIES:
MATURITY STAGE
Product – Diversify brand and models
Price – Set to match or beat competition
Distribution – Build more intensive
distribution
Advertising – Stress brand differences and
benefits
Sales Promotion – Increase to encourage
brand switching
36. PRODUCT LIFE-CYCLE
STRATEGIES
Product development
Introduction
Growth
Maturity
Decline
Declining sales
Low cost per customer
Declining profits
Laggards are targeted
Declining competition
PLC Stages
Editor's Notes
The Product Life-Cycle
This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293.
Instructor’s Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.
