PRODUCT DEVELOPMENT

Chapter 30 and 31

PRODUCT/SERVICE MANAGEMENT Overseeing the ______ and _____________

of new productsBenefits to us?

New and improved products on the market More choices to pick from

THINGS TO CONSIDER WHEN DESIGNING A PRODUCT 1. The c___ to d_____ the product

2. Will you have a m______ for the product?

PRODUCT M__ All of the different p_______ that a

company makes or sells. Example: Nike sells clothes, shoes, sports

products

WHAT PRODUCT M_____ SHOULD YOU CARRY? Objectives of the business –

Carry a v______ of products that will make our business a p_____

I______ the business wants to project -Trendsetting, fashion-conscious, expensive,

low-price

M______ business is trying to reach –Kids, teens, Generation X, Baby Boomers

PRODUCT L___ A group of closely r______ products

manufactured and/or sold by a businessExamples:

Frito Lay makes Ruffles, Doritos, Tostitos

Cereals produced by Kellogg's: Frosted Flakes, Corn Pops

PRODUCT ITEM Is a specific m_____, b_____, or s____ of a

product within a product line

REASONS COMPANIES DELETE PRODUCT LINES Obsolescence (changing interests and

technology) Loss of appeal – consumer tastes

change Conflict with company objectives Replace with new products – limited

shelf space Lack of profit Conflict with other product lines –

competing with own brands not good

INTRODUCTION STAGE OF PRODUCT LIFE CYCLE Product first introduced Focus on promotion and production Draw attention to the product Least profitable stage of life cycle

because of costs being so high to promote/make

GROWTH – PRODUCT LIFE CYCLE Increasing sales and profits Most knows about and buys the product Competition starts offering products to

compete Advertising focuses more on customer

satisfaction

M_______ STAGE Sales level off or s___ down Product has h_______ level of

competition Most of target market owns product Most of advertising is fighting off

c__________

I phone 4 and 4S

DECLINE STAGE Sales f___ Profit may be s_____ than c____ May sell or license the product D_______ the product

POSITIONING PRODUCTS P____ and q______ – economy line, mid-

priced line, and luxury line based on how they want to be viewed

F_________ and b_______ – Rockport positioned as comfortable shoes (features/benefits)

Competition – How is my product better than theirs

Relation to other products in line – Crayola came out with a washable marker/crayon to go along with the rest of their product line

BRANDS Can be a n___, t___, d_____, s_____ that

identifies a business or organization and its productsExamples are Coca Cola, McDonalds,

Microsof A b______ n____ is the word, group of

words, letters or numbers representing a brand that can be spokenExamples are: Mountain Dew, SnackWells,

Honda Accord

BRANDS (CONTINUED) A brand m_____ is the part of the brand

that is a symbol or mark – known as a logoExamples:

T____ n_____ – identifies the company or division of a particular corporationExamples are: Dell, Kellogg’s and Xerox

TRADE CHARACTER Trade character is a brand mark with a

human f____ or c____________

TRADEMARK

A trademark is a brand n___, brand m___, trade name, trade character, or a combination that is given legal p__________ by the federal government

PACKAGING Two main purposes: for p__________ and

p__________

P_________ and s_______ the product – make packages attractive, colorful and artistic

PACKAGING Ease of u__ – consider the way the

consumer uses the product

Providing i___________: Information about its contents, calories, guarantees, nutritional value and potential hazards

SAFETY Products come in p________ containers

instead of glass now Drugs and food items are in t______

resistant containers with s______ lids and blisterpacks

HANDLING Prevent t_________ while on display Use bubble wrap/packing paper to keep

product from b__________

E______________ packaging – packaging that is reusable, recyclable, safer, and less wasteful

MANUFACTURER BRAND Also known as p_________ brands –

owned by manufacturers Generate the majority of s____ Identify a given p______ Indicate a standard q_____ and p_____Appeal to customers who want consistent

quality, dependable performance, and status Examples: Kraft, General Electric, Heinz, Keebler

INFORMATION ON A PRODUCT LABEL B_____ name L___ I__________ D__________ Special pr____tional m________ W______ E_________n dates

PRIVATE DISTRIBUTOR BRANDS Also known as store or p_______ brands

Owned by w________ and retailersAppeal to customers who want q_____ and

performance at a lower priceCan generate a h_____r profit marginLead to customer l______

Examples: Sears Kenmore and Craftsman brands

Kroger brand of products Great Value – Wal-Mart

GENERIC BRANDS Does n__ carry a c________ or brand

namePackaging only has a d_________ of the

productOften priced 30-50% l______ than other

manufacturer brandsPriced 10-15% b_____ private distributor

brandsNot heavily a_________ or promoted

LABELING LAWS Name and address of m__________ has to

be on the l_____ Q_________ of the contents must be on

label Product w_____ has to be listed in

traditional American weights and metric weights

Some countries require that labeling is b_________

FDA LAWS State amount of c________ Percentage of daily intake of calories Fat, carbohydrates, sodium, etc.

Contents Health w________: Such as women who

are pregnant should not drink alcoholic beverages due to increase risk of birth defects

FEDERAL TRADE COMMISSION C____ labeling rules: information about

the care of garments related to washing, drying, and ironing.

En_______ information about recyclable contents

O_____ safe information

AGENCIES THAT REGULATE PRODUCTS/BUSINESSES B_______ B________ B_______– Help

customers to work with businesses to resolve complaints

(you can call them to file a complaint) Better Business Bureau of Louisville

C_________ P_______ S_______ C_______ – work with businesses on unsafe products in the marketplace (do recalls on products)

CPSC Home Page | cpsc.gov Federal Trade Commission –

Prevent unfair pricing practices Investigations of false advertising

DIFFERENCE BETWEEN WARRANTIES AND GUARANTEES? W________– is a promise or guarantee,

given to a customer that a product will meet certain standards (given a time period)6 month warranty on IPhone

G__________ – Used in promotional phrases such as “money back guaranteed”, “satisfaction guaranteed”