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Public Policy Issues In Product Management

Public Policy Issues

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This document is related to the issues we have in public policy for product management.

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Page 1: Public Policy Issues

Public Policy Issues In Product

Management

Page 2: Public Policy Issues

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 !!!

Page 3: Public Policy Issues

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.

Page 4: Public Policy Issues

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

Page 5: Public Policy Issues

Public Pressure: A Cycle of Concerns!!!

State of idleness

Defusedby

thoseattacked

i. Stirring

ii. Trial Support

iii. Political Arena

iv. Regulatory Adjustment

Page 6: Public Policy Issues

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 base4. 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.

Page 7: Public Policy Issues

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.

Page 8: Public Policy Issues

The “Battle”: New Products Manager

Service to Customers

And Public

Page 9: Public Policy Issues

Public Policy : Problem Areas!!!

• Product Liability.• Environmental Needs.• Worthy Products.• Morality.• Monopoly.• Personal Ethics.

Page 10: Public Policy Issues

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.

Page 11: Public Policy Issues

Product Liability : Concept Explained!! Legal Bases Negligence Warranty Strict Liability Misrepresentation

Source By Law A Promise Court Decisions By Law

Condition •Defective product•Failure to warn

•Defective Product•Implied Warranty•Express Warranty

•Defective product•Reasonably Foreseeable

•Untrue Claim•Misrepresentation

Defense •Not Negligence•Not Defective Product

•Not implied by Common Usage.•Not Actually Stated.•Normal Puffery (Praise)

•Buyer Knew So assumed Risk .•Unforeseeable misuse.•Product Not Defective.

•Truthful•Normal puffery•Buyer Should Know

Page 12: Public Policy Issues

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 recyclingManagerial 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 measuredExample:- P&G, Areil Ultra Detergent

Page 13: Public Policy Issues

Relating System To Environment!!!

Strategic planning

Concept generation

Pre Technical screening

Technical development Marketing developmentTechnical development Marketing development

launchlaunch

Page 14: Public Policy Issues

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

Page 15: Public Policy Issues

Morality

• It is careful positioning of the product in line with the benefits and prosperity of society.

• Example:-– I- Pill Contraceptive Pill.

Page 16: Public Policy Issues

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.

Page 17: Public Policy Issues

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.

Page 18: Public Policy Issues

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 ?

Page 19: Public Policy Issues

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.

Page 20: Public Policy Issues

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

Page 21: Public Policy Issues

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.

Page 22: Public Policy Issues

Finding Solutions!!!

• External Affairs:-– Accepting Legislature – Public Affair Programs– Consumer Participation– Example:- P&G , Duncan Hines fantastic Party

Cakes.

Page 23: Public Policy Issues

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”

Page 24: Public Policy Issues