Product & Operations Management | Terminology

Regardless of the industry, a product/service professional requires a standard set of skills and knowledge base from which to draw. The AIPMM certification programs set the standard with proven methods and processes, rather than relying on any one particular methodology.
There is no strict borderline between what is a product or service.
Manufactured products are always, except for the case of commodities, attached to services, such as distribution, whereas service providers in all sectors try to reinforce the presence of their products attaching tangible goods, such as documentation.

TThe tools and techniques to be acquired address types of products from various industry sectors, such as manufacturing, components, H/W, information services, S/W, healthcare, financial services, consulting, IT and Telecommunications industry. Service oriented organisations have been the firsh to apply Product and Operation Management Techiques, such as Banks to secure standardisation and quality for their products. For AIPMM terminology please consult with:

A-Z Product | Operations
 

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Actual product-	The tangible product, including styling, quality level, features, brand name and packaging; also called the Formal Product or Tangible Product.
Augmented product-	A product enhanced by the addition of related services and benefits, e.g. installation, warranty, maintenance and repair services, etc.
BCG Growth-share matrix	A portfolio-planning method that evaluates a company’s strategic business units in terms of their market growth rate and relative market share.
Brand-	A name, term, sign, symbol, or design, or a combination that identifies the maker or seller of a product or service.
Brand Equity-	Value perceived by consumers over time; the value built-up in a brand; accumulated a mass of positive sentiment; the positive differential effect that knowing the brand name has on customer response to the product or service.
Brand Extension-	Using a successful brand name to launch a new or modified product in a new category.
Brand Identity-	Name, term, symbol or design intended to signify the goods or services of seller(s) to differentiate them from similar offerings.
Brand Positioning-	Understanding what a brand stands for, its associations, assets, personality and in what competitive context it exists.
Branding-	Creating, maintaining, protecting, and enhancing the identity of products and services.
Business portfolio-	The collection of businesses and products that make up the company.
Connectedness 4C’s -	Customer solution, Customer cost, Convenience, Communication
Channel conflict-	Disagreement between channel members over goals and roles, who should do what and for what rewards.
Consistency-	How closely related the various lines are.
Consumer Products-	Products and services bought by consumers for personal consumption.
Convenience Products-	Purchased frequently & immediately.
Core product-	The intangible benefit or service offered by a product; for example, the core product offered to a purchaser of shampoo is clean, healthy hair.
Cost-based Pricing-	Adding a fixed markup to the cost of a product or service.
Depth-	The number of versions offered of each product in the line.
Distribution Channel-	Provides place, time, and possession utility demanded by customers.
Everyday Low Pricing (EDLP)-	Charging a constant low price with few discounts or promotional sales; used most successfully by Wal-Mart - suits price-conscious buyers and encourages impulse buying.
Fads-	Gain rapid acceptance, peak early, and decline quickly. Tend to attract limited market. Products that are novel and do not address basic needs.
Fashion-	A currently accepted or popular style. Gains acceptance, peaks, then declines. Tend to go in cycles with generations.
Filling-	Adding a new product within the current range of an incomplete line.
Inseparable -	Not capable of being separated
Intangible -	Incapable of being touched or seen
Kotler Model-	Market Leader; Market Challenger; Market Follower; Market Nicher.
Length of Product Mix-	Total number of products sold in all lines.
Line Consistency-	How closely related the products that make up the line.
Line Extension-	Introduction of additional items in a given product category under the same brand name (e.g.,new flavors, forms, colors, ingredients, or package sizes).
Line Stretching-	Introducing new products into a product line.
Line Vulnerability-	The percentage of sales or profits that are derived from only a few products in the line.
Low Priced-	Mass marketing with many purchase locations. Examples: candy, soda, newspapers.
Market Positioning-	Arranging for a product or company to occupy a clear, distinctive, and desirable place relative to competing products or companies in the minds of target customers.
Market Segment-	A group of consumers or companies with distinct needs, characteristics, or behavior who respond in a similar way to a given set of marketing efforts.
Market Segmentation-	Dividing a market into distinct groups with distinct needs, characteristics, or behavior.
Market Targeting-	The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Marketing logistics-	Physical distribution of the products.
Marketing Mix-	The set of controllable tactical marketing tools-product, price, place, and promotion- that the firm blends to produce the response it wants in the target market.
Marketing Strategy-	The marketing logic by which the business unit hopes to achieve its marketing objectives. Analysis, Planning, Implementation, Control.
Mission Statement-	A statement of the organization’s purpose-what it wants to accomplish at a macro level. Transcends all products and services
Multi-branding-	Offers a way to establish different features and appeal to different buying motives.
New Brands-	Developed based on belief that the power of its existing brand is waning and a new brand name is needed.
Organizations-	Profit (businesses) and nonprofit (charities and schools).
Penetration Pricing-	Setting a low initial pricing to penetrate a market deeply and win a large market share.
Perishable -	Easily undergo a transformation or a change of position or action
Persons-	Politicians, entertainers, sports figures, doctors, lawyers and other commonly named professions.
Places-	Create, maintain, or change attitudes or behavior toward particular places
Porter Competitive Forces Model-	Four forces -- the bargaining power of customers, the bargaining power of suppliers, the threat of new entrants, and the threat of substitute products -- combine with other variables to influence a fifth force, the level of competition in an industry.
Porter’s Competitive Advantage/Scope Model-	Cost leadership; Differentiation; Cost Focus; Differentiation Focus.
Portfolio Analysis-	A tool by which management identifies and evaluates the various businesses making up the company.
Price Elasticity-	Elastic products: lower price to maximize revenue; Inelastic products: raise price to maximize
Product-	Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need - Includes physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.
Product Life Cycle Management (PLC, PLM)-	Determines if each product has a different life cycle. Determines revenue earned. Contributes to strategic marketing planning. Helps the firm to identify when a product needs support, redesign, reinvigorating, withdrawal, etc. Helps in new product development planning. Helps in forecasting and managing cash flow.
Product Life Cycle Stages-	Development, Introduction/Launch, Growth, Maturity, Saturation, Decline, Withdrawal.
Product Life Cycle-	The stages that products go through from development to withdrawal from the market.
Product Line Length-	Strategy of offering for sale several related products Unlike product bundling where several products are combined into one, lining involves offering several related products individually.
Product Mix-	All of the product lines and items that a particular seller offers for sale.
Product Portfolio-	The range of products a company has in development or available for consumers at any one time. Managing product portfolio is important for cash flow.
Product Width-	The number of different product lines the company carries.
Product-Market Expansion Grid-	A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Services-	A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. Examples: banking, hotel, airline, retail, tax preparation, home repairs.
Shopping Products-	Bought less frequently; Higher price; Fewer purchase locations; Comparison shop. Examples: furniture, clothing, cars, appliances.
Skimming Policy-	Set price high to skim the maximum amount of revenue from various segments of the market.
Social marketing-	Marketing campaigns conducted in socially versus commercially. Public health campaigns, environmental campaigns, family planning, or human rights.
Specialty Products-	Special purchase efforts. High price. Unique characteristics. Brand identification. Few purchase locations. Examples: Van Cliff, Aston Martin
Stages of Adoption-	1. Awareness, 2. Interest, 3. Evaluation, 4. Trial, 5. Adoption
Strategic Business Unit-	A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.
Strategic Planning-	The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. Defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies.
Styles-	Basic and distinctive mode of expression. Once accepted, popularity will vary over time.
Supply chain management Managing value-	added flows between suppliers, the company, resellers, and final users.
The Boston Matrix-	A means of analysing the product portfolio and informing decision making about possible marketing strategies.
Treacy & Wiersema Value Disciplines Model-	Operational excellence; Customer intimacy; Product leadership.
Value Chain-	The series of departments which carry out value-creating activities to design, produce, market, deliver, and support a company’s product.
Value Delivery Network-	The network made up of the company, suppliers, distributors, and ultimately, customers who “partner” with each other to improve the performance of the entire system.
Value-based Pricing-	Setting price based on buyers’ perceptions of value rather than on the seller’s cost.
Variable -	Designed so that an attribute or property can be varied
Width of Product Mix-	The number of different product lines sold by a company.