Public Policy Issues
Uploaded by
Saurabh GPublic Policy Issues
Uploaded by
Saurabh GPublic 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”