CH 1 MKTG 450

Product planning
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Terms in this set (32)
Product planning
Process through which a product or service is conceived, brought to market, and managed across the life cycle
Product planning can be characterized as comprising 2 processes
product development and product management
product development
represents the up-front process, where the product/service is conceived, conceptualized, developed, produced, and tested
product management
represents the back-end process, where the product or service is commercialized, sustained, and eventually, disposed
product planning roles:
1. resource allocation
2. product mix coordination
3. marketing program support
4. appraisal of company offerings
resource allocation
product planning analyzes each product or service, whether current or new, to determine the resources that it will need to be successful and prioritize the impact that it has for the company
product mix coordination
the objective is to balance the various products that the company offers to ensure that a particular type of product is not overwhelming the company's offerings or diluting customer interest
marketing program support
product planning can provide market information based on the current performance of existing products
appraisal of company offerings
product planning evaluates the performance of current products (and services) to reveal their impact on the business
product
a particular offering that a company provides to customers
A product can mean different things to different people based on the context - 3 particular contexts arenature of innovation, nature of market demand, nature of a company's internal perspectivenature of innovationthe terms "invention", "innovation", and "imitation" can be associated with productinventionstaking pre-existing knowledge and combining it in such a way as to develop something that never existed beforeinnovationsinventions around which a marketing program has been built to clearly offer a benefit to customers, which in turn satisfies the market for need, want, or desire can be classified as continuous (incremental) and discontinuous (radical) innovationsCore Benefitthe fundamental element or benefit that the consumer is really buying, derived from the consumer's needs or wantsGeneric Productthe basic version of the product and typically a rudimentary product (rudimentary means that the product does not have features or forms that generally distinguish the given products or services)Expected Productincludes a set of attributes and conditions that buyers normally expect and agree to when they purchase this productAugmented Productincludes additional services/benefits that distinguish the company's offering from its competitors' offeringsPotential Productall the augmentations and transformations that the product might undergo in the future; represents a product that attempts to satisfy all consumers' needs and wants related to the product, thereby creating customer delightA 3rd way to define a product is from an internal company perspective, where the product is defined in terms of1. product item 2. product line 3. product family 4. product mixproduct itemRepresents a specific model, brand, or size of a product that a company offers and is the individual product that a particular customer may buyproduct lineWhere closely related product items are groupedproduct familyWhere related product lines are groupedproduct mixconsist of all the different product families, product lines, and product items that a company offerscharacteristics of product mixwidth, depth, consistencywidth of product mixrepresents the number of different product linesdepthrepresents the number of product items within each lineconsistencydegree of commonality among lines with respect to end use, distribution outlets, consumer groups, and/or price rangeproduct proliferationoccurs when a company faces severe resource constraints as the width and depth of the mix increase and the company becomes overwhelmedcannibalizationoccurs when a product takes sales from another product offeringdifferent types of new productscost reductions product improvements line extensions new markets new uses new category entries new-to-the-world productsNew product success measures can be classified into 4 general categories:1. Customer-based measures 2. Competitive-based measures 3. Financial measures 4. Technical performance measures