This document provides an introduction to product management. It defines a product as something sold by an enterprise to customers. Product development is the set of activities from identifying a market opportunity to producing, selling, and delivering the product. Key characteristics of successful product development include quality, cost, development time, and capability. A product development team typically includes representatives from marketing, design, manufacturing, and other functions. The document discusses trends in future products and challenges in balancing quality, value, time, and cost for new products. It also categorizes different types of new products that companies develop.

1. Introduction to Product
Management
MM7

2. What is a Product?

A product is something sold by an enterprise
to its customers.
What is Product Development?

Product development is the set of activities
beginning with the perception of a market
opportunity and ending in the production,
sale, and delivery of a product.

3. Characteristics of Successful
Product Development
 Product Quality
 Product Cost
 Development Time
 Development Cost
 Development Capability

4. Who Designs and Develop Products?
3 Functions to a Product Development
Project:

a. Marketing

b. Design

c. Manufacturing

5. The Composition of a Product Development
Team for an electromechanical product of modest
complexity.
LEGAL FINANCE
MARKETING
LEGAL PROFESSIONAL
INDUSTRIAL
MANUFACTURING
ENGINEER
ENGINEER
TEAM
LEADER
PURCHASING MECHANICAL
SPECIALIST DESIGNER
ELECTRONICS
DESIGNER

6. Products of the Future

According to two professional “trend-
watchers,” here is a glimpse of technologies
that will find their ways into our lives in the
near future.

7. 
Intelligent refrigerators will track food inventories,
and will either provide a hard-copy shopping list or
send an electronic list to a home-delivery service.

Intelligent wallpaper will transform a wall to a
television, a computer screen, works of arts, etc.

Robotic lawn mowers will tend the grass within any
specified boundary.

“Nanny-cams” hidden in teddy bears permit parents
to watch their children at daycare; camera-
surveillance systems will keep an eye on latchkey
kids home alone.

8. 
Lasers and decay-preventive gum and
toothpastes will minimize the need for the
dentist’s drill.

Robots will dispense gasoline, and know your
preferred grade.

“Smart” heart pacemakers will be placed in
the wrist.
Source: “Lifestyle of the Next Millennium: 65
Forecasts,” The Futurist, July-August 1998.

9. The Conflicting Masters of New
Products Management
Quality
Value
Time Cost

10. 
The new products process must respond to the
three unique inputs – the right quality product,
at the right time, and at the right cost.

The three inputs tend to conflict with each
other, though there are synergies too.

The three inputs contribute to the value of
new products, but in different ways and in
different amounts from project to project.

11. What is Kainotophobia?

fear of change, and thus resistance to it.

12. New Products
Categories:
1. New-to-the-World Products
- these products are inventions that create a whole
new market.
ex. Digicams, Ipods, laser printers
2. New-to-the-Firm Products
- products that take a firm into a category new to it.
The products are not new to the world but are new to
the firm.
ex. P&G first shampoo or coffee, AT&T Universal
Credit Cards, Sony Camera and laptop.

13. 1. Additions to existing product lines
- products that are line extensions in the
firm’s current market
ex. P&G’s Tide Liquid Detergent,
Coke zero, Coke Light
1. Improvements and Revisions to exiting
products.
- current products made better
ex. Sunsilk, Bear Brand Milk

14. 1. Repositionings
- products that are retargeted for a new use or
application.
ex. Aspirin repositioned as a safeguard
against heart attack.
Arm & Hammer Baking Soda
repositioned as a refrigerator’s
deodorant.
6. Cost reductions
- new products that simply replace existing products
in the line, providing the customer similar
performance but at a lower cost.
ex. Safeguard in plastic packaging

15. Activity 1:

List down as many as you can on the
Breakthrough Innovations that changed yours
lives.

17. Breakthrough Innovations That
Changed Our Lives

Personal computer

Automatic teller

MS-DOS

Microwave oven

Answering machine

Magnetic Resonance Imaging

Photocopier

Velcro fastener

Gene-splicing technique

Pocket calculator

Touch-tone telephone

Microsurgery

Fax machine

18. 
Laser surgery

Camcorder

Birth control pill

Apollo lunar spacecraft

Space shuttle

Home VCR

Computer disk drive

Home smoke alarm

Communication satellite

Organ transplanting

CT scan

Bar coding

Fiber-optic systems

Liquid crystal display

Integrated circuit

Disposable diaper

CAD/CAM

19. Note:

This list was completed in the early part of the
1990’s. If you were to redo the list today,
undoubtedly the Internet or World Wide Web
would be in the top 30.

What other products would you like to add if
you were compiling this list today?

20. Thank you…