Page 12 - DMGT508_PRODUCT_AND_BRAND_MANAGEMENT

Unit 1: Introduction to Product Management

decommissioned. The operation phase requires an organization that can manage the Notes
product, track problems and bugs, and respond to customer issues regarding the product
in a timely and cost effective manner. A multi-tiered product support model is used to
ensure that products are operated in a way that leads to RASM (reliability, availability,
security, and manageability).
8. Decommissioning Phase: The Decommissioning Phase occurs at the end of the product life
cycle. While it may seem like the decommissioning phase is something that can be safely
ignored since there will likely be larger problems if the product is decommissioned, the
truth is that many products are taken out of service. Even when a company is in bankruptcy,
the rational, orderly closing down of a product or service is important to managing the
company’s assets.

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Caution The distinction between a new product and a minor modification to an existing
product is not always clear. Certain products have a product life cycle in which the supply
and demand for the product increases then decreases over time. The demand for certain
food products such as bread will tend to increase with population, but the supply and
demand for a specific brand of bread may decline over time.

1.2.4 Product Upgrade

When a customer is finished using a product, he can be upgraded to a follow a product that meets
their needs or deprovisioned. The product upgrade path is desirable because it keeps the customer
and reduces customer reacquisition costs. Customers frequently outgrow products or their
needs change. If a company has a well managed product portfolio, a product more suited for the
customer’s current situation will be waiting for them.

Did u know? What is Deprovisioning?
Deprovisioning a customer may seem like an issue that need not be dealt with: the customer
stops using the product and nothing more need be done. However, in many cases,
particularly where service with a recurring billing has been provided, if the customer is
not properly deprovisioned, there will be future costs resulting from either providing
service that is not being paid for or from billing a customer who is not receiving service.
In either case there are likely to be costly customer support calls and an unhappy customer.
Customer deprovisioning, where appropriate, should be planned for and built into the
product from the beginning.

Self Assessment

Fill in the blanks:
1. Effective ………………………..is a practical, purposeful and positive approach of
improving the company results.
2. A commodity can also be anything widely available in the ………………………..market.
3. The product ………………………..path is desirable because it keeps the customer and
reduces customer reacquisition costs.
4. The dynamics of markets, technology, and competition have brought changes to virtually
every market sector and have made ………………………..development one of the most
powerful business activities.

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