Product/Service Management Flashcards

Questions and Answers

What is the definition of Product/Service Management?

A marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities.

Which of the following are types in the Product/Service Classification System? (Select all that apply)

Shopping Goods (correct)

Industrial Goods (correct)

Emergency Goods

Convenience Goods (correct)

What are the eight factors affecting Product/Service Management?

Customer needs and wants, company goals and strategies, cost and available resources, competition, product itself, government regulation, stages in life cycle, business and economic trends.

What are the benefits of Product/Service Management?

Offer products consumers want, increase company profits, gain new customers, and reduce the chance of product failure. Signup and view all the answers

What role does Product/Service Management play in marketing?

It affects product positioning, improves product success, and gives products an image. Signup and view all the answers

What are the three main phases of Product/Service Management?

Developing new products, monitoring existing products, eliminating weak products. Signup and view all the answers

Who is responsible for managing Product/Service Management?

Several employees of a company, certain departments, or one employee depending on the size of the company. Signup and view all the answers

What are the four stages of the Product Life Cycle?

Introduction, Growth, Maturity, Decline. Signup and view all the answers

What happens during the introduction stage of a product?

The product is launched and is very risky as market reception is uncertain. Signup and view all the answers

What occurs during the growth stage of a product?

The product starts showing better returns on investment, and competition may increase. Signup and view all the answers

What is a significant challenge during the maturity stage of a product?

High competition due to duplication of products with similar features. Signup and view all the answers

What occurs during the decline stage of a product?

Expenditures begin to equal or exceed profits, necessitating market exit. Signup and view all the answers

What are the three options during the decline stage?

Re-positioning or rebranding, maintaining the product while reducing costs, or taking the product off the market. Signup and view all the answers

What does the Product Life Cycle represent?

The stages that a product goes through during its life. Signup and view all the answers

How can companies extend a product's Life Cycle?

Make modifications, change packaging, reduce price, export to new markets, introduce new varieties, increase advertising. Signup and view all the answers

What are the four important terms related to product management? (Select all that apply)

Product Line Signup and view all the answers

What is a Product Mix?

All the products a given company produces comprise the product mix. Signup and view all the answers

What is a Product Line?

A group of products associated by function, consumer group, distribution channel or price range. Signup and view all the answers

What is Product Width?

The number of product lines that a company sells. Signup and view all the answers

What is Product Depth?

The total number of variations for each product. Signup and view all the answers

What is Product Lifecycle Management (PLM)?

Software market is evolving rapidly and growing fast. Signup and view all the answers

Which of the following are applications of technology in marketing? (Select all that apply)

Internet Signup and view all the answers

What is the purpose of product labeling and packaging technology?

Some packages and labels are used for track and trace purposes. Signup and view all the answers

What are some functions of packaging technology?

To preserve the product, protect from damage, make it more attractive, and facilitate transport. Signup and view all the answers

What role does technology play in market testing?

The use of virtual store simulations offers a variety of business benefits. Signup and view all the answers

What are ethical considerations in product packaging?

Consumers expect that packaging accurately represents the product, which may not always be the case. Signup and view all the answers

Why do companies package and label their products?

To create a good impression, help sell products, and communicate benefits. Signup and view all the answers

What are concerns for product packaging?

Issues like using glass versus plastic, tamper-resistant packages, and managing wasteful packaging. Signup and view all the answers

What information must be included in product packaging?

Name of manufacturer, quantity of contents, nutritional info, health claims, warnings, and care instructions. Signup and view all the answers

What happens if a company fails to inform customers about product risks?

The company can get sued, and customers may be harmed. Signup and view all the answers

What is planned obsolescence?

Making products that are known to not last long, encouraging repeat purchases. Signup and view all the answers

What potential issues can arise from marketing poor quality or unsafe products?

The organization risks developing a reputation for poor products and may face legal actions. Signup and view all the answers

Study Notes

Product/Service Management Overview

Defined as a marketing function aimed at managing a product or service mix based on market needs.
Involves processes of obtaining, developing, maintaining, and improving offerings.

Product/Service Classification

Categories include:
- Convenience Goods
- Shopping Goods
- Specialty Goods
- Unsought Goods
- Industrial Goods, which further breaks down into:
  - Installations
  - Accessories
  - Raw Materials
  - Components
  - Business-to-Business offerings

Factors Influencing Product/Service Management

Customer needs and desires directly affect product offerings.
Alignment with overall company goals and strategies is crucial.
Costs and available resources shape what products can be successfully developed.
Competitive landscape influences product positioning and innovation.
The intrinsic attributes and quality of the product itself matter significantly.
Compliance with government regulations can affect product design and marketing.
Products go through various stages in their life cycle which impacts management strategies.
Business trends and economic conditions can dictate market opportunities.

Benefits of Effective Management

Increases company's profitability by aligning products with consumer demands.
Attracts new customers through well-developed products.
Reduces risks of product failures through strategic management.

Role in Marketing

Influences product positioning in the market.
Enhances chances of product success through strategic management.
Contributes to shaping the product's image and brand identity.

Phases of Product/Service Management

Developing new products to meet market needs.
Monitoring existing products to ensure they remain competitive.
Identifying and eliminating underperforming products from the market.

Product Life Cycle Stages

Introduction: Risky phase where new products are launched.
Growth: Products show improved returns, attracting competition.
Maturity: High competition and product duplication occur.
Decline: When profits equal or fall below expenses, products may exit the market.

Strategies for Decline Stage

Reposition or rebrand to extend the product's life.
Maintain current product, optimizing costs for maximum profits.
Withdraw the product from the market if necessary.

Product Life Cycle Management (PLM)

Evolving software market contributes to effective product lifecycle management.

Technology Applications in Marketing

Implements systems like Point-of-Sale and Customer Relationship Management to enhance customer interaction.
Utilizes internet technologies for marketing reach.

Packaging Functions & Technology

Aims to preserve, protect, and enhance the product's appeal.
Packaging plays a critical role in logistics and consumer attraction.

Ethical Considerations

Accurate representation of products through packaging and labeling is essential.
Misleading packaging can lead to legal actions and customer mistrust.

Importance of Effective Packaging

Creates positive impressions and aids in product sales.
Communicates essential product benefits to consumers.

Packaging Concerns

Transition from glass to plastic can raise safety concerns.
Tamper-resistant designs and airtight food containers are increasingly critical.
Addresses issues of wasteful packaging practices.

Product Information Requirements

Must include manufacturer's name, quantity, nutritional info, health claims, and care instructions.

Consequences of Poor Risk Communication

Companies face potential lawsuits and consumer harm if they neglect to inform of product risks.

Planned Obsolescence

Strategy of designing products to have a limited lifespan to encourage repeat purchases.

Reputation Risks

Companies marketing unsafe or low-quality products risk damaging their reputation and facing legal repercussions.

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Description

Test your knowledge of Product/Service Management with these flashcards. This quiz covers definitions and classification systems essential for understanding how products and services are managed in the market. Perfect for marketing students and professionals!