PRODUCT MANAGEMENT

• Competition is the process by which the "invisible hand" of the market seeks to solve the basic economic problem of maximizing satisfaction from the consumption of scarce resources.
• Marketing the essence or concept is concerned with 'mutually satisfying exchange relationship'.
• Mutually Satisfying Exchange Relationship the idea that two parties can enter freely into an exchange of object (or service) of commercial value such as a way that it will enhance the value for both of them.
• Ricardo’s Original Conceptualization, economic efficiency would be

  optimized when nations based their production decision a/on the creation of those goods or services were they enjoyed a natural advantaged over other potential producers, and then engaged in international exchange to the mutual benefit of both importer and exporter.
• Michael Porter developed the following ideas:

  • Competitive Strategy (1980)
  • Competitive Advantage (1985)
  • The Competitive Advantage of Nations (1990)
• Baker and Hart, present a multi factor model which guided both of consideration of other work and the survey of actual practice.
• Baker and Hart's 5 multi model Factor:

  • Environmental Factor
  • Strategic Factor
  • Managerial Factors
  • Organizational Factors
  • Marketing Factors
• Management Scarcity

  • the greatest challenge facing humanity.
  • the ability to exercise a degree of control over an often hostile environment and so secure physical survival.
• History

  • is an almost continuous record of progress to the achievement of his ultimate goal.
  • the elimination of want.
• Peter Ducker

  • the consideration of the roles of buyer and seller.
  • pronounced that marketing is the distinguishing, the unique function of the business.
• Environmental Factor

  • The marketing environment is made up of factors that can influence the ability of a firm to provide services to its customers and to build relationship with the customers.
  • A company should know its marketing environment sa that it has an overview of its position in the market.
  • The marketing environment of an organization is constituted by the following aspects. (Competition, structure organization, economic, political, social and technological).
• Strategic Factor

  • It measures the strengths and weaknesses of a company's position.
  • There are a number of tools or methods used as the foundation for strategic analysis of a business; strategic factor analysis strategy is one of the most popular methods because not only does it focus on internal strengths and weaknesses but also on the external environment the company is operating in.
  • It focusses also on the long-term objectives, strategic time horizon and product market strategy.
• Managerial Factors managers in both types of firms agreed on the relative importance and presence of the following factors: work habits, teamwork, creativity, ethics, communication, leadership, and business area knowledge.
• Organizational Factors Examine the influence of industry, leadership, size, structure, culture, and manufacturing capability.
• Marketing Factors

  • Marketing is the design, development and promotion of product and services.
  • Thus, the nature of your industry, company attributes and preferred promotional tools all go into decisions on marketing strategy development.
  • Thus, this factor focuses on the marketing research, customer service and product quality.
• Michael Porter's Five Forces

  • Threat of New Entrants
  • Threat of Substitute of Products or Services
  • Bargaining Power of Suppliers
  • Bargaining Power of Buyers
  • Rivalry Among Existing Competitors
• Threat of New Entrant

  • freedom of entry to an industry is widely regarded as a key indicator of an industry’s competitiveness
  • monopoly, by definition no other firm can enter
  • ‘perfect competition’ there are no barriers to entry
• Threat of substitution

  • Identifying substitute products is a matter of searching for other products that can perform the same function as the product of the industry.
  • Given such a position the danger lies in complacency, for change is inevitable, if only because the act of consumption will change the consumers and so make them susceptible to improved products.