this ppt briefly explains about product planning

1. What You'll Learn
Product Planning, Mix,
and Development
The nature and scope of product planning
The concept of product mix
The different product mix strategies
The steps in new product development

2. Product Planning, Mix,
and Development
Why It's Important
Product planning allows a business to make
or sell products that are wanted by
customers. Product planning is also used to
design appropriate marketing programs that
help create increased sales and profit
opportunities.

3. Product Planning, Mix,
and Development
product plannin
product mix
product line
product item
product width
product depth
product modific

4. Product Planning, Mix,
and Development
A product is anything a person receives in an
exchange—a tangible item (car), a service
(haircut), an idea (a good education), or a
combination of all of these concepts. Product
planning involves making decisions about
features needed to sell a business's products,
services, or ideas.
Product Planning

5. Product Mix
Product mix includes all the different
products that a company makes or sells.
A large manufacturer may have hundreds of
products in its product mix.
Retail stores must plan their product mix
carefully because they cannot offer all of the
products that customers may want.

6. Product Items and Lines
A product line is a group of closely
related products manufactured and/or
sold by a business.
A product item is a specific model,
brand, or size of a product within a
product line.

7. Product Width and Product Depth
Product width refers to the number of
different product lines a business
manufactures or sells.
Product depth refers to the number of
product items offered within each product line.

8. A product mix strategy is the plan for how the
business determines which products it will
make or stock. Businesses will either develop
a new product or expand an existing product to
add to their mix.
Product Mix Strategies

9. New product development generally involves
seven key steps:
1. Generating ideas
2. Screening ideas
3. Developing a business proposal
4. Developing the product
5. Testing the product
6. Introducing the product (commercialization)
7. Evaluating customer acceptance
Developing New Products

10. New product ideas come from a variety of sources:
 customers
 competitors
 channel members
 company employees
 research and development departments
Generating Ideas

11. During product development, a prototype
(a model of the product) is made, and
marketers develop a marketing strategy.
The prototype is tested, and adjustments
are made to improve the final product.
Developing the Product

12. Developing Existing Products
Line Extensions Companies can expand
product offerings by adding new product lines,
items, or services.
 Example: Tylenol expanded to Tylenol Flu,
Tylenol Cold, and Tylenol Allergy/Sinus
Extensions can also be new lines of products.
 Example: Bic pens and Bic lighters

13. Developing Existing Products
Product modification is an alteration in a
company's existing product. Product
modifications are a relatively quick and easy
way to add new products to a company's
product line.

14. Deleting a Product or Product Line
Sometimes companies decide that they will no
longer produce or sell a particular product or
perhaps even a whole product line. Some of the
reasons for this are:
 obsolescence
 loss of appeal
 conflict with current company objectives
 replacement with new products
 lack of profit
 conflict with other products in the line

15. Deleting a Product or Product Line
Obsolescence Changing interests and
technology make many products obsolete.
They are dropped in favor of newer
technologies.
Loss of Appeal As consumer tastes
change, companies drop products that no
longer appeal to popular tastes.

16. Deleting a Product or Product Line
Conflict with Current Company Objectives
Sometimes a product does not match a company's
current objectives.
 Example: Sears sold unrelated businesses
to concentrate on retail.
Replacement with New Products A store decides
it can make more money selling a different brand, or
replaces one brand for another because another
manufacturer offers better terms.

17. Lack of Profit To increase profits, retailers
will handle only fast-moving and profitable
items. Product developers may drop
products when sales drop below company
objectives.
Conflict with Other Products in the Line
Sometimes increased sales of one product
can cause decreased sales of another
product.

18. 1. What is product planning?
2. What is product mix?
3. Name four product mix strategies.
4. Identify the steps for new product development.
5. Name one advantage and one disadvantage to
expanding a product line.
6. Suppose a company is developing a new product,
when a competitor introduces a new product that
is similar. What are some things the company
should consider in deciding whether to proceed
with the development of its new product?