This document provides an agenda and overview for a marketing class on product management. It discusses areas students did well and could improve on for Assignment 1, including providing more research and clarity. Product development and innovation sources are reviewed. Product characteristics and classifications are defined, including tangible vs intangible goods and services. Segmenting markets for products like the iPad and EcoSpout are discussed. Finally, a target profit analysis process is described to estimate segment size, revenue, costs, and volume needed to break even for a new product.

1. Welcome to MKT 100-021Week 10– Product Mgmt Anthony Francescucci Assistant Professor, Marketing Please ensure all electronic devices are in “silent mode”, “vibrate mode” or “turned off” 1

2. Agenda 2

3. Assignment 1 Summary Feedback 3

4. Areas that you did well Discussing implications for your strengths, weaknesses, opportunities and threats SWOT tables and Prioritization tables points were under the appropriate headings Recommendation sections were well done for the most part good overview of your SWOT analysis which supported your decision to offer the internet-based video streaming service or not 4

5. Areas to improve upon RESEARCH, RESEARCH, RESEARCH to support your claims (cannot be based on your personal experience or opinion) When discussing your SWOT, some reports lacked clarity in specifics pertaining to the decision at hand (very general statements were made) Example: consumer preferences are constantly changing. You need to explain what preferences are changing and why this is relevant to your decision Always remember your executive summary should provide the reader a thorough overview of your entire report. In this section there was not enough detail of your SWOT analysis. APA Works Citedis ALWAYS double-spaced, with hanging lines indented, in alphabetical order. In-text citations are cited as (author, year). Not using footnotes or numbers. 5

6. Product Development 6

7. Superior product innovation leads to features that better fit customer segment benefits and increase shareholder value. The product development process must produce the innovations that drive profit, shareholder value, customer value, brand reputation and equity. Product Customer Profit Introduction 7

8. Sources of Innovations Lithium batteries in watches Using baking soda as a deodorizer IBM Personal computer Incorporation of supplier’s innovation Design simplification of existing product New ideas from employees Soft soap, microwave ovens Diet Pepsi Copying and improving competitors’ innovation Idea Generation and Concept Development Existing specialized industrial product New technology from pure research New ideas from the channel Doctors recommending aspirin to prevent heart attacks DuPont’s invention of nylon New ideas from consumers Copying innovations in foreign markets TV programs Lite beer 8

9. Product Management Characteristics & classifications 9

10. Product More than tangible offering; anything that can be offered to a market to satisfy a want or need. 10

11. Product Classifications 11

12. Product Classifications 12

13. Product classification 13

14. Product classification 14

15. Product Classifications Cont'd 15

16. Product Classifications Cont'd 16

17. Differentiation 17

18. Product Differentiation 18

19. Product-Line Decisions 19

20. Product Mix Product Mix Width Product Mix Length 20

21. Product –Line length 21

22. Services 22

23. 13-23 Service Any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.

24. Continuum of SERVICE / PRODUCT Evaluation 24

25. High experience & credence qualities 25

26. Intangibility Inseparability Variability Perishability Distinctive Characteristics of Services 26

27. TANGIBILIZING THE INTANGIBLE Place People Equipment Communication material Symbols Price 27

28. How to REDUCE VARIABILITY Invest in good hiring and training procedures Standardize the service-performance process Monitor customer satisfaction 28

29. How to reduce perishability 29

30. Any Questions 30

31. Let’s revisit Segmentation 31

32. What are Some potential Segments for IPAD ? 32

33. Let’s Focus in on Entertainment Segment 33 Remember to include sources to support your claims re: characteristics

34. Segment Potential EcoSpout Case 34

35. How Might we segment The Market for Eco-spout ? 35

36. Let’s Focus in on Household Plant Segment 36

37. Target Profit Feasibility analysis Process 37

38. Estimate the Segment Size 100 Million Households 80% 40% 32 Million Households 38 http://www.nationalgardenmonth.org/index.php?page=storyline-houseplants

39. Let’s work with Target Break-even 39

40. What do we know from the case? 40 Is there a profitable market segment to target for this product?

41. Wholesale Revenue Per Unit 41

42. $71,000 + $14,200 = $85,200 284,000 units $0.90 - $0.60 = $0.30 20% $14,200 $71,000 Target Volume to achieve profit 42

43. Likelihood of Attaining Target Volume 43

44. Estimated Likely demand 44

45. Assignment 2 Financial Template 45

46. Financial Analysis Template 46

47. Any Questions About the assignment 47

48. Before you leave today Hand In: 48

49. See you next Week 49