INTRODUCTION TO PRODUCT MANAGEMENT 4Cs of Customers

Product Management vs. Product Marketing 1. CUSTOMER SOLUTIONS - not products;

customers want to buy value or a solution
Product Management is a function wihin a company
to their problems.
that deals with the planning or marketing or
2. CUSTOMER COST - not price; customers
forecasting of a product/s through at all stages of the
want to know the total cost of acquiring,
product lifecycle
using and disposing of a product.
Product Marketing is a process of promoting and 3. CONVENIENCE - not place; customes want
selling a product to a customer. producst and service to be as convenient to
purchase as possible.
Sales refers to a company's revenue earned from the 4. COMMUNICATION - not promotion;
sales of products or services (net sales). customers want two-way communicatin
with the companies that make the product.
4PS of Product Management (MARKETING MIX)
PRODUCT MANAGEMENT PROCESS & THE
1. PRODUCT - Is tangible object or an
PRODUCT PLANNING SYSTEM
intangible one for sale.
2. PLACE - The location where a product can ANSOFF MATRIX
be purchased. Available for sale
(distribution channel). 1. Market Penetration: How to sell more of
3. PRICE - Amount that a product is asking in your existing products to existing customer
the market. base?
4. PROMOTION - Communications that a 2. Market Development: How to enter new
marketer may use in that marketplace. It ha markets
5 distinct elements; ADVERTISING, PUBLIC 3. Product Development: How to develop
RELATIONS, OR PUBLICITY, SALE existing products or services
PROMOTION, DIRECT MARKETING, 4. Diversification: How to move into new
PERSONAL SELLING, and INTERNET markets?
MARKETING. (IMC = INTEGRATED,
4 types of Market Segmentation
MARKETING COMMUNICATION)
1. Demographic - Age, Gender, Income,
SAVE MODEL
Education, Social Status, Family, Life stages,
● PRODUCT = Solutions Occupation
● PLACE = Access 2. Psychographic - Lifestyle, AIO: Activity,
● PRICE = Value Interest, Opinion, Concerns, Personality,
● PROMOTION = Education Values, Attitudes
3. Behavioural - Benefits Sought, Purchase,
7PS of PM (MARKETING MIX) Usage, Intent, Occasion, Buyer Stage, User
Status, Life cycle Stage, Engagement
5. PHYSICAL EVIDENCE - the tangible element
4. Geographic - Country, City, Density,
that allow consumer to make judgements
Language Climate, Area, Population
about the organization.
6. PROCESS - the procedure, mechanism and PRODUCT LIFE CYCLE management is the succession
flow of activitiies to produce a product or to of strategies by business management.
provide services to consumers.
7. PEOPLE - the transactional interface 4 Primary stages: INTRODUCTION, GROWTH,
between an organization and consumers. MATURITY, DECLINE
Custmer relationship management.
INTRODUCTION STAGE is marked with slow growth
in sales and a very little or no profit.
INTRODUCTION STAGES ● Innovators = 2.5%
● Early Adopters = 13.5%
1. Rapid Skimming- high price & high
promotional level chasm
2. Slow Skimming- high price & low
● Early Majority = 34%
promotional level
● Late Majority = 34%
3. Rapid Penetration- low price with significant
● Laggards = 16%
promotion
4. Slow Penetration- low price & minimal Total 100%
promotion
● Innovators - These are people who want to
GROWTH STAGE is a stage of rapid market be the first to try the innovation.
acceptance. The strategies are aimed at sustaining Venturesome and interested in new ideas.
market growth as long as possible. First to develop new ideas.
● Early Adopters- Opinion leaders, they
MATURITY STAGE competitors have enter the
embrace change opportunities. They are
market. The company adopts offensive/aggressive
already aware of the need to change.
marketing strategies to defeat competitors.
● Early Majority- They do adopt new ideas
Maturity Strategies before the average person, they typically
need to see evidence that the innovation
1. To do nothing
works.
2. Market Modification
● Late Majority- Skeptical of change, will only
3. Product Modification
adopt an innovation after it has been tried
4. Marketing Mix Modification
by the majority.
DECLINE STAGE the first important tast is to detect ● Laggards- Bound by tradition and very
the poor products. After detecting company should conservative. Hardest group to bring on
decide whether poor products should be dropped. board.

COMPANY STRATEGIES DOI Process

1. Continue with the original Products 1. Knowledge- Aware of the innovation's

2. Continue products with improvement existence and becomes interested in
3. Drop the product understanding it's functions.
2. Persuasion- Individual is ascertaining the
Product Planning- product management team and potential value of adopting new innovations
the top management must work in close 3. Decision- Will be adopted or rejected.
coordination with each other. 4. Implementation- Process of putting the
innovation into practice.
WHAT IS INNOVATION?
5. Confirmation- Seeks supportive
Is the ability to conceive, develop, deliver, and scale, confirmation
new products, services, processes, and business
5 Factors that Influence Adoption of Innovation
models for customers.
1. Relative Advantage- Seen as better than the
2 types of Innovations
idea, program, or the product it replaces.
● New things 2. Compatibility- How consistent the
● Development of new things innovation is with the values, experience,
and needs lf the potential adopters.
DIFFUSION OF INNOVATION (DOI) THEORY 3. Complexity- How difficult yhe innovation is
It seeks to explain how, why, and at what rate new to understand or use.
ideas and technology spread.
 4. Trialability- Innovation can be tested or Consumer Products
experimented with before a commitment to
1. Convenience Goods - Consumer knows
adopt is made.
what they want, usually, have purchased
5. Observability- Innovation provides tangible
the product before.
results.
2. Shopping Products - Compares on such
MANAGING PRODUCTS bases as suitability, quality, price and style.
3. Specialty Products - Strong brand preferred
Components of a Product
and loyalty, special, purchase effort, little
A product is simply a marketing offering, whether comparison of brands, or price sensitivity.
Tangible or Intangible, that someone wants to 4. Unsought Products - Goods that potential
purchase and consume. customers do not yet want to know they
can buy.
● Core Benefits - the main functions of the
product. Convenience Goods types:
● Tangible or Physical Element - what the
1. Staple Goods - Very regular basis plans for
product is made of; what it looks like;
the purchase
dimensions or duration.
2. Impulse Goods - Sudden but strongly felt
● Argumented Benefits - The extra element
need. (Cravings)
which add to the perceived value of the
3. Emergency Goods - Planned for on short
product in the eyes of the consumer.
notice.
Types of Products (Industrial Products & Consumer
Shopping Products types:
Products)
1. Homogeneous Shopping Goods - Same in
Industrial Products
terms of quality, price, styling and suitability
1. Capital Goods - Product that are directly for their needs.
used in production. Consists of installations 2. Heterogeneous Shopping Goods - Consumer
and accessory equipment. perceived slme discernible differences in
2. Raw Materials - Industrial goods that will be suitability etc. Consumer consider product
used in the making of other products. features more important than price.
Includes natural resources (forest products,
Product Line Decisions — A group of products that
minerals, water etc.)
are closely related because they function similarly.
3. Major Equipment - Used to make, process,
or sell other goods. Includes machinery, Product Line Analysis (PLA)
typewriters, computers etc.
● Should know the sales and profits of each
4. Accessory Equipment - Used to facilitate the
items
production process or middleman sales. (Ex.
● Should know the comparative status of his
Calculator)
product.
5. Component Parts - Means materials,
supplies, equipment, apparatus etc. Which Product Line Strategies (PLD)
become part of the facility.
6. Operating Supplies - Like office stationery, Product Line Expansion - is the use of an established
repair, and maintenance items. product brand name for a new item in the same
7. Service - Business Service include product category. Introduces additional items in the
maintenance and repair services. same product category.
PRODUCT MIX (also known as Product assortment) changes in the currencies as well as
inflation.
● Width - Refers to how many different
● Psychological Pricing - Into a small incentive
product lines the company carries.
that can makena huge impact
● Depth - Refers to how many variants,
psychologically on customers.
shades, models, pack sizws etc. are offered
● Economic Pricing - Bare minimum to keep
of each product in line.
prices low and attract specific segment of
● Length - Refers to the total number of items
the market that is highly price sensitive.
in the mix.
● Penetration Pricing - By entering the market
● Consistency - Refers to how closely the
with a low price as compared to the
various product lines are related in end use.
competition.
Product Line Reposition - is a strategy that changes ● Premium Pricing - A price higher than your
the target market for a given product. competitors to achieve a premium
positioning.
1. Product Line Modernization - modified to ● Skimming Price - Gain. Maximum revenue
suit modern styling and tastes and re- advantage before other competitors begin
launched. offering similar products or substitutes.
2. Line-Featuring - certain items in a product ● Recurring Price - Monthly fee
line are given special promotional attention, ● Cost-Based Pricing - Setting prices based on
either to boost interest. the cost of the goods or services being sold.
3. Line-Pruring - to cutting the depth of
product category by reducing the BRANDING & PACKAGING DECISIONS
alternative
Product Portfolio - is the collection of all the
3 Product Line Stretching Methods: products or services offered by a company.

1. Stretching Downward: Targets the product - Systematic screening of your products.

for a lower level and lower-priced market
Boston Consulting Group's Product Portfolio Matrix
segment.
(BCG MATRIX)
2. Stretching Upward: Targets product for a
higher level and higher priced market SWOT ANALYSIS - is a strategic planning technique
segment. used to help a person or organization identify
3. Stretching Both Ways: Targets a different STRENGTHS, WEAKNESSES, OPPORTUNITIES, and
group of upper, middle, or lower-class THREATS.
buyers.
BRANDING
Product Line Contraction - Strategy is followed to
- A brand is a name, term, design, symbol
reduce the number of items the company offers for
that identifies one seller's good or service as
sale.
distinct from those of other sellers.
They are: - Customers associate with the name of your
company.
Analyzing the product for possible removal; and
removing it from the mix. Branding And Logo - Logo is just one aspect of the
company's branding.
PRODUCT PRICING
Branding Types
Types Of Pricing
● Personal Branding - anyone else who wants
● Geographical Pricing - Product and service is
to create and maintain positive image.
being sold and is mostly Influenced by the
 ● Geographical Branding - characteristic traits 4. Brand Preference - customers usually
of a particular geographical area life choose the brand over other brands.
country, state or city and portrays. Favourable experience.
● Service Branding - promise to provide their 5. Brand Insistence - customers insist on a
clients with best services firm's branded product and willing to search
● Activist Branding - channel a cause for a for it.
purpose you strongly believe in are known
Elements of Brand
as activists branding.
● Online Branding - Internet branding. ● Brand Name - a word, grouo of words,
● Offline Branding - branding operations that letters, etc. that represents a product that
occur off the web. can be spoken.
● Product Branding - consumers pick one
product over an identical one just because Naming process
of the brand name.
Client Workshop — Creative Brief — Keywords
● Corporate Branding - reputation as it deals
Generation — Final Name — Legal Check — Names
with an entire organization.
Testing & Selection
● Co-Branding - merger between two or more
companies and they collaborate. ● Brand Mark - the part of brand that isba
● Ingredient Branding - importance and symbol of design.
achievements of a specific ingredients ● Trade Name/ Legal Name - or corporate
contained in the product. brand.
● No Brand Branding - tries to convey the ● Trade Mark - a combination of these that
message that the product is self-sufficient the federal government gives legal
and does not require any branding to grab protectio. (Ex. ® ™ SM)
the attention of consumers. 1. R - Registered trademark symbol
2. TM - Unregistered trademark
Brand Equity & Brand Promise
3. SM - Service mark symbol
Brand Equity - added value endowed on products ● Trade Character - a brand mark with human
and services. form or characteristics.

Brand Promise - marketer's vision of what the brand Brand Strategies

must be and do for consumers.
● Brand Extension - uses existing brand name
KELLER'S BRAND EQUITY MODEL - CBBE MODEL to promote new or improved product in a
company.
● Resonance ● Brsnd Licensing - some companies allow
● Brand Response (Judgement & Feelings) organizations to use their brand through
● Brand Meaning (Performance & Imagery) licensing.
● Brand Identity ● Mixed Brands - combination of
manufacturer, private distributor and
5 Levels of Brands Familiarity
generic brands.
1. Brand Rejection - if someone associates ● CO-BRANDING - combines brands in the
your brand with something negative, they manufacture of product or in delivery of
purposely avoid your product. service.
2. Brand Nonrecognition - customers didn't ● Re-branding - a change to a product brand
recognize your brand. with a purpose of updating or revising.
3. Brand Recognition - means the customers ● Partial Rebrand - tweaking is required and
remember the brand. not a ful rebrand.
● Total Rebrand - replace it with completely
new imagery.
Brand Positioning - refers to technique value that a 6. Name, Address, Manufacturer, Packer,
brand presents to its customers. Value proposition. Distributor
7. Lot Identification Code
● Winning Zone (Green)
8. Open-date marking for a specific food
● Losing Zone (Red)
● Consumer before
● Risky Zone (Gray)
● Best before
● Dumb Zone (Blue)

4 elements of brand positioning includes the;

1. Target - TO
2. Category - YOUR BRAND IS THE
3. Main Benefit - THAT IS THE
4. Support Points THAT'S BECAUSE

GAPS IN THE MARKETPLACE

● FUNCTIONAL
● EMOTIONAL

(RTB) REASON TO BELIEVE IN MARKETING should

never be the conclusion.

PACKAGING DECISIONS

● Labeling is used in American US English en-

US
● Labelling is used in British English

Republic Act of 3720 (Food, Drug, and Cosmetic Act)

- to protect public health (FDA food drug

administration in the department of health)
- adequate information and accurate
identification, communicates with, must be
correct andbnot misleading.

PARTS OF LABEL

PDP - Principal Display Panel or Alternate Principal

Display Panel. Most likely to be seen by consumers.

1. Determination of the area of PDP:

● Rectangular = height x width = sq.
in
● Cylindrical = (Circumference x
height) x 40% = sq. in.
2. Information Panel
3. Product Name
4. Net Content Declaration
5. Ingredients
● Descending order of predominance
by weight.