Public Policy

Issues In
Product
Management
 Introdcution
• 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.
 PUBLIC POLICY ISSUES

• PUBLIC POLICY:-
– The interest of the community.
– If any contract or deal contrary to
public policy, it will make it an
illegal contract
Public Pressure: A Cycle of
Concerns!!!

i. Stirring
Defused
State ii. Trial by
of Support those
idlenes attacked
s iii. Political
Arena
iv.
Regulatory
Adjustment
 Public Pressure: A Cycle of
Concerns!!!
1. 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 (taking advantage) by the adversaries
over its interpretation.
 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 punitive damages as well
 Product liability applied both to goods as well as
services
• Typology Of Injury Sources
 Inherent risks
 Design defects
 Dangerous Condition.
 Safety Device
 Inadequate Materials
 Defects in manufacture
 Inadequate instructions for use or warnings against particular uses
 After use Dangers.
 Product Liability : Concept
Explained!!
Legal Negligence Warranty Strict Liability Misrepresenta
Bases tion
Source By Law A Promise Court Decisions By Law

Conditio •Defective •Defective •Defective •Untrue Claim

product Product product •Misrepresentatio
n
•Failure to warn •Implied Warranty •Reasonably n
•Express Foreseeable
Warranty

Defense •Not Negligence •Not implied by •Buyer Knew So •Truthful

•Not Defective Common Usage. assumed Risk . •Normal puffery
Product •Not Actually •Unforeseeable •Buyer Should
Stated. misuse. Know
•Normal Puffery •Product Not
(Praise) Defective.
 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, Areil Ultra Detergent
Relating System To
Environment!!!
Strategic planning

Concept generation

Pre Technical screening

Technical development
Marketing development

launch
 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:-
– I- Pill Contraceptive Pill.
 Monopoly
• It is obtaining market dominance and
pressurizing the customer for
purchase or removal of alternatives
from the market.
• Example:-
– Apple And Luxpro MP3
manufacturers ,Apple filed a case
against Luxpro.
 Personal Ethics
• Taking Decisions at Individual Level
rather than at Manger 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.
 Finding Solutions!!!
• Product Testing : -
– Understanding Customer Usage
– Matching the product in terms of usage
pattern.
– Example :- Godrej; office Sitting Chair
• Marketing :-
– Labeling And Adequate Warning.
– Cautious Distribution Channel.
– Example:- Pidilite, Terminator Wood
Preservative
 Finding Solutions!!!
• Market Testing :-
– Market Tests combining product and promotion.
– Distributors Understanding.
– Right Target Customer.
– Example:- GSK, Women’s Horlicks
• Education:-
– Company Personnel
– Consumers
– Example:- HUL , Colgate Tooth Paste.
 Finding Solutions!!!
• External Affairs:-
– Accepting Legislature
– Public Affair Programs
– Consumer Participation
– Example:- P&G , Duncan Hines fantastic
Party Cakes.
 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”