public policy issues in product management presented by:- anuj gupta pallavi abrol
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Public Policy
Issues In Product
ManagementPRESENTED
BY:- ANUJ GUPTA PALLAVI ABROL
CONTENTS What is a Product ? Public Policy Issue Public Pressure: A Cycle Of Concerns Business Attitudes toward Product Issues The “Battle”: New Products Manager Public Policy : Problem Areas Underlying Issues Finding Solutions Conclusion
What is a Product?
It is defined as a "thing produced by labor or effort“ or the
"result of an act or a process”.
In marketing, a product is anything that can be offered to a
market that might satisfy a want or need.
In retailing, products are called merchandise.
In manufacturing, products are purchased as raw
materials and sold as finished goods.
In project management, products are the formal
definition of the project deliverables that make up or
contribute to delivering the objectives of the project.
Contd….
PUBLIC POLICY ISSUES
PUBLIC POLICY:-
The course of action or inaction taken by the
government with regard to a particular issue.
Relationship between firm and citizenry.
Public Pressure: A Cycle of Concerns
State of idleness
Defusedby
thoseattacked
i. Stirring
ii. Trial Support
iii. Political Arena
iv. Regulatory Adjustment
Public Pressure: A Cycle of Concerns1. Stirring: Individuals begin to sound off long
before enough people have been injured or
irritated to cause a general reaction.
2. Trial Support: As the stirring over an issue increase, a
champion may decide to take it on as a cause.
3. The Political Arena: Issue acquired a political base.
4. Regulatory Adjustment: New regulatory legislation is
rarely precise and this imprecision leads to a period of
jockeying by the adversaries over its interpretation.
Contd….
Business Attitudes toward Product Issues Business firms deal with public policy issues on
a much broader base than just new products.
Reached a structure of beliefs on interface between
business and society Our concerns ‘at the margin’, that is dealing in
areas of temporary uncertainty and change. New product causing unexpected concern on
Public Policy is result of careless management.
The “Battle”: New Products Manager
Service to Customers
And Public
Public Policy : Problem Areas Product Liability Environmental Needs Worthy Products Morality Monopoly Personal Ethics
Product liability
Person buys a product and gets injured - If guilty, the accused party is liable
for the cost and the pain of the injury,plus
damages as well.
Product liability applied both to goods as well as
services.
Typology Of Injury Sources
Inherent risks: Example: A chair that is designed
with only three legs might be
considered defectively designed because it tips
over too easily .
Design defects Dangerous Condition: Example: An airplane could explode due
to wires rubbing & sparking over a fuel
tank due to a bad design. Safety Device: Example: Lack of mechanisms to limit
excessive heat or other foreseeable dangers.
Inadequate Materials
Contd….
Defects in manufacture Example: Improper
assembly of an item Inadequate instructions for use or
warnings against particular uses After use Dangers
Forms and Sources of Product Liability
A Manufacturer is liable for its failure to exercise due care to any person who sustained an injury caused by manufacturer’s negligence with regard to- design of product selection of materials assembly and testing of products placement of adequate warning on the product
Negligence:-
Warranty A promise Forms:- Express warranty: Example:- An automobile repair shop may
guarantee its repair for a period of 90 days. Implied warranty: - Warranty of merchantability - Warranty of fitness for a particular
purpose
Strict Liability A manufacturer or seller of goods will be
strictly liable, regardless of the exercise of reasonable care, for any personal injury to consumers caused by the goods it manufactures, sells or as long as:
the product is defective when the defendant sells it.
the defendant is normally engaged in the business of selling or otherwise distributing the product in question.
Contd….
the product is unreasonably dangerous to the user or consumer because of its defective condition.
the product must not have been
substantially changed between the time it was sold or otherwise distributed by the defendant and the time the injury occurred.
Misrepresentation
A manufacturer may also be liable for any misrepresentations made to a consumer or user of its product if the misrepresentation causes the consumer or user to suffer some injury.
Example: A pharmaceutical company may say a drug is
not habit forming, it turns out it is, and people
have been harmed.
Environmental Needs
New products environment hazards:- If its raw materials are scarce or hard to
get If its design or manufacture causes
pollution or excess usage If its use cause pollution If any disposal problem cannot be
handled by recycling
Managerial Dilemma Problems of reconciling trade offs
• Between costs and efficiency in the firm • Between price and environmental
benefits to society.
Social costs and social benefits are difficult to be
measured. Example:- P&G, Ariel Ultra Detergent
Relating System To Environment
Strategic planning
Concept generation
Pre Technical screening
Technical development Marketing developmentTechnical development Marketing development
launchlaunch
Worthy Products It is producing the products that have
worth of their money for a particular segment.
Example: AIDS medicine because of less
potential of customers.
Morality
It is careful positioning of the product in line with the
benefits and prosperity of society.
Example:
Monopoly
It is obtaining market dominance and pressurizing the
customer for purchase or removal of alternatives from
the market.
Example:
Personal Ethics Taking Decisions at Individual Level rather
than at Manager Level. May or may not be based on Business
management. Example:-
Copying and declaring Innovation. Hiding Information from Distributors And
Dealers. Misleading Names and Labels. Lying to Customer for sale purpose.
Underlying Issues!!!! Reasonable Goal For Action
Risk Free Existence (Not Possible). Zero Defect Quality Control.
Trade Off Problem Example :- DDT Insecticide.
Cost Perspective No system can make products perfectly No consumer group will use product with full wisdom Who Should Pay ?
Finding Solutions Strategy And Policy
Involvement of Top management. Example: TATA Nano Project in WB
Control Systems Tough Standards Rigorous Auditing Good Record Keeping Training Of New Product Employee Example: NOKIA, BL-5C Battery
replacements.
Contd….
Product Testing Understanding Customer Usage Matching the product in terms of
usage pattern Marketing
Labeling And Adequate Warning Cautious Distribution Channel
Contd…
Market Testing Market Tests combining product and
promotion Distributor’s Understanding Right Target Customer Example: GSK, Women’s Horlicks
Education Company Personnel Consumers
Finding Solutions
External Affairs Accepting Legislature Public Affair Programs Consumer Participation
Conclusion
Public Policy Issues are complex and are always
present. Every Public policy Issue don’t have an
answer. Only solution which will be always fruitful is –
“Prevention Is Better Than Cure”
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