What is Product planning? Objectives and step by step process of product planning

Summary

In this video, we explore the essential process of product planning, which involves identifying market needs, defining product features, and guiding decision-making for pricing, distribution, and promotion. Key objectives include meeting customer needs, identifying strengths and weaknesses, and ensuring better resource utilization. The video covers the step-by-step product planning process, including concept definition, market research, product testing, and managing the product through its life cycle stages. Additionally, the advantages of effective product planning—such as improved efficiency, reduced costs, and smoother production—are highlighted. This video offers valuable insights for businesses aiming to develop successful products.

Takeaways

• 😀 Product planning is the process of defining market requirements and creating a product idea from concept to market introduction.
• 😀 The main objectives of product planning include meeting customer needs, improving resource utilization, and ensuring the firm's survival.
• 😀 Product planning links a company with its market, guiding decision-making on pricing, distribution, and promotion.
• 😀 Defining the product concept is the first step in product planning, ensuring clear knowledge of the product and potential problems.
• 😀 Market research is crucial, involving both qualitative (understanding behavior) and quantitative (using data) research methods.
• 😀 Product testing is important before launch, starting with small-scale distribution and tracking success indicators like sales.
• 😀 The product life cycle includes four stages: introduction, growth, maturity, and decline, each requiring specific planning.
• 😀 In the introduction stage, the product is launched and promoted to the market.
• 😀 During the growth stage, sales and profits increase as the product gains acceptance.
• 😀 The maturity stage sees slow growth as sales peak, while the decline stage signals the product’s end or discontinuation.
• 😀 The advantages of product planning include improved organizational systems, better supplier communication, reduced inventory investment, and increased production efficiency.

Q & A

What is product planning?

Product planning is the process of identifying and defining market requirements that shape a product's features and benefits. It includes creating a product idea and managing its development until it reaches the market.

Why is product planning important for a company?

Product planning is crucial because it ensures the development of products that meet customer needs, supports resource optimization, and helps the company stay competitive in the market.

What are the key objectives of product planning?

The main objectives of product planning are to meet customer needs, identify strengths and weaknesses within the company, improve resource utilization, and ensure the firm's survival by anticipating market changes.

Who is typically responsible for product planning within a company?

Product planning can be managed by either top management or line management. However, successful planning depends on clear goals set by the company's board of directors.

What is the first step in the product planning process?

The first step is to define the product concept, which involves understanding the product you aim to create and being aware of potential challenges and solutions.

What role does market research play in product planning?

Market research is essential in product planning as it helps assess market potential through quantitative and qualitative methods, providing insights into customer behavior and market trends.

What is the difference between qualitative and quantitative market research?

Qualitative research focuses on understanding human behavior and motivations through non-numerical analysis, while quantitative research uses numerical data and statistical methods to study trends and phenomena.

What is product testing and when does it occur during the planning process?

Product testing occurs after market research, where a product is introduced on a small scale or in selected markets. This phase helps evaluate its viability before a full-scale launch.

What are the four stages of the product life cycle?

The four stages of the product life cycle are Introduction (launch phase), Growth (acceptance and increasing sales), Maturity (peak sales), and Decline (product phase-out and discontinuation).

What are some advantages of product planning?

Advantages of product planning include improved organizational systems, better communication with suppliers, reduced inventory investment, cost reductions through increased efficiency, and smoother production processes.