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Managing products & services
Product Life cycle
Managing the product life cycle
Common reasons for resisting a product Cultural differences or image .  Psychological barrier Physical, economic, or socia...
How AM should manage the product during its cycle? <ul><li>Modify the product </li></ul><ul><li>Modify the market </li></u...
When to reposition a product? <ul><li>In reaction to competitor positioning </li></ul><ul><li>Catching rising trend </li><...
Marketing MIX <ul><li>Product line </li></ul><ul><li>Product line depth </li></ul><ul><li>Product MIX breadth </li></ul><u...
Why new products may Fail? <ul><li>Undifferentiated product </li></ul><ul><li>Too little market attractiveness </li></ul><...
Product warranty Full warranty Limited coverage warranty Implied warranty <ul><li>Warranty </li></ul><ul><li>Express of wa...
Characteristics of services <ul><li>When the service is available but there is no demand .  </li></ul><ul><li>Cost of payi...
Services buying behavior <ul><li>Pre-sales assessment </li></ul><ul><li>After or during sales assessment </li></ul><ul><li...
Assessing service quality Gap Service that customers receive & Service they want Service What the company provides & What ...
Services marketing (service mix) <ul><li>Product: </li></ul><ul><ul><li>Exclusivity </li></ul></ul><ul><ul><li>Branding </...
Case study 2 <ul><li>Binary Works plans to offer an e-learning consultation services. Form your point of view what is the ...
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Sales & Marketing introduction - Session 2

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Sales & Marketing introduction - Session 2

  1. 1. Managing products & services
  2. 2. Product Life cycle
  3. 3. Managing the product life cycle
  4. 4. Common reasons for resisting a product Cultural differences or image . Psychological barrier Physical, economic, or social Risk barrier Product provides no incentive to change Value barrier Product is incompatible with existing habits Usage barrier
  5. 5. How AM should manage the product during its cycle? <ul><li>Modify the product </li></ul><ul><li>Modify the market </li></ul><ul><li>Reposition the product </li></ul>
  6. 6. When to reposition a product? <ul><li>In reaction to competitor positioning </li></ul><ul><li>Catching rising trend </li></ul><ul><li>Reaching new market </li></ul><ul><li>Changing offered value: </li></ul><ul><ul><li>Trade up </li></ul></ul><ul><ul><li>Trade down </li></ul></ul>
  7. 7. Marketing MIX <ul><li>Product line </li></ul><ul><li>Product line depth </li></ul><ul><li>Product MIX breadth </li></ul><ul><li>Product MIX consistency </li></ul><ul><li>Cross products </li></ul>
  8. 8. Why new products may Fail? <ul><li>Undifferentiated product </li></ul><ul><li>Too little market attractiveness </li></ul><ul><li>Poor marketing mix </li></ul><ul><li>Poor product quality </li></ul><ul><li>Bad timing </li></ul><ul><li>No economical access to buyers </li></ul>
  9. 9. Product warranty Full warranty Limited coverage warranty Implied warranty <ul><li>Warranty </li></ul><ul><li>Express of warranty </li></ul>
  10. 10. Characteristics of services <ul><li>When the service is available but there is no demand . </li></ul><ul><li>Cost of paying the people and overhead </li></ul><ul><li>Inventory carrying costs of service vary between high and low </li></ul>Inventory <ul><li>Consumers cannot and do not separate the deliverer of the service from the service itself . </li></ul><ul><li>Interaction between consumer and the service provider varies based on whether consumer must be physically present to receive the service. </li></ul>Inseparability <ul><li>Quality is often inconsistent . </li></ul><ul><li>Service personnel (have different capabilities, vary performance from day to day) </li></ul><ul><li>Problems can be reduced by standardization and training </li></ul>Inconsistent <ul><li>Services cannot be held, touched, or seen before the purchase decision . </li></ul><ul><li>Marketing must make them tangible or show the benefits </li></ul><ul><li>Marketers often use tangible cues to communicate service </li></ul>Intangible
  11. 11. Services buying behavior <ul><li>Pre-sales assessment </li></ul><ul><li>After or during sales assessment </li></ul><ul><li>Less-assessable </li></ul>
  12. 12. Assessing service quality Gap Service that customers receive & Service they want Service What the company provides & What the customer is told it provides Communication Service quality specifications & Service that is actually provide Delivery What management thinks customers want & Quality specifications that management develops to provide the service Standard What management thinks customers want & What customers want Knowledge
  13. 13. Services marketing (service mix) <ul><li>Product: </li></ul><ul><ul><li>Exclusivity </li></ul></ul><ul><ul><li>Branding </li></ul></ul><ul><ul><li>Capacity management </li></ul></ul><ul><li>Pricing </li></ul><ul><li>Place </li></ul><ul><li>Promotions </li></ul>
  14. 14. Case study 2 <ul><li>Binary Works plans to offer an e-learning consultation services. Form your point of view what is the considerations should be taken to offer such services. </li></ul><ul><ul><li>How it can position its product </li></ul></ul><ul><ul><li>How this new service comply with the current marketing mix </li></ul></ul><ul><ul><li>Plan of the service mix </li></ul></ul>
  15. 15. Thanks

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