Product Planning

1
Product Planning

• BMI 3C Unit 2

2
Product Planning, Mix, and Development
What youll learn . . .

• The nature and scope of product planning
• The concept of product mix
• The different product mix strategies
• The steps in new product development

3
Product Planning
Involves making decisions about those features
that are needed to sell a businesss products,
services, or ideas.
4
Product Mix
Includes all the different products that a
company makes or sells.
5
Product Line
A group of closely related products manufactured
and/or sold by a business.
6
Product Item
A specific model, brand, or size of a product
within a product line.
7
Product Width
The number of different product lines a business
manufactures or sells.
Width of the Gillette Product Mix
Oral Care
Blades Razors
Personal Care
Batteries
Appliances
8
Product Depth
The number of product items offered within each
product line.
Oral Care
Blades Razors
Personal Care
Batteries
Appliances
9
Product Mix Strategies

• The plan for how the business determines which
  products it will make or stock
• May develop completely new products
• May expand or modify their current product lines
• May drop existing products

10
Developing New Products

• Generating Ideas
• Come from a variety of sources
• Creativity is essential
• Screening Ideas
• Ideas are evaluated and matched against the
  companys overall objectives.

11
Developing New Products

• Developing a Business Proposal
• Consider a products potential sales, costs, and
  production requirements.
• Developing the Product
• The new idea takes physical shape
• Marketers develop a marketing strategy.
• Testing the Product with consumers

12
Developing New Products

• Introducing the Product
• The product has been researched successfully
• This stage also is called commercialization.
• Evaluating Customer Acceptance
• Marketers track new product performance.

13
Developing Existing Products

• Companies constantly review their product mix to
  see if they can further expand their product
  lines or modify existing products.
• Two ways to do this

14
Developing Existing Products
Line Extensions new product lines, items, or
services
Original Product
Newer Products
15
Developing Existing Products
Product Modifications an alteration in a
companys existing product
16
Deleting a Product or Product Line

• Obsolescence
• Loss of appeal
• Conflict with current company objectives
• Replacement with new products
• Lack of profit
• Conflict with other products in the line
• Leads to PRODUCT LIFE CYCLE!