Product/Service Management (PSM) involves obtaining, developing, maintaining, and improving products based on factors like customer needs, company goals, costs, competition, and regulations. When done effectively through the three phases of developing new products, monitoring existing ones, and eliminating weak products, PSM can increase profits by offering desired products, gain new customers by developing the right products, and reduce failure risks by well-managing products over their life cycles from introduction to decline. PSM also affects a product's positioning and image to improve its success in the marketplace.

1. Product Service Management

2. Product Service Management
Product/Service Management (PSM) is a
marketing function that involves
obtaining, developing, maintaining, and
improving a product.

3. Factors Affecting PSM
1. Customer Needs and Wants
2. Company Goals and Strategies
3. Cost and Available Resources
4. Competition
5. Product Itself
6. Government Regulation
7. Stages in Life Cycle
8. Business and Economic Trends

4. Benefits
Offer products consumers want and
company’s profits increase.
When developing the right products, a
company can gain new customers.
When products are well managed there
is less of a chance for failure.

5. Role In Marketing
Affects positioning of product
(What image do you want to create about the
product in the minds of consumers?)
Improves Product Success
Gives product an image

6. 3 Phases of PSM
1. Developing a new product
2. Monitoring existing products
3. Eliminating weak products

7. Product Life Cycle
The four stages that a product goes
through during its life.

8. 1. Introduction
Increase product awareness
Get the customer’s attention
through promotion
Lots of special promotion

9. 2. Growth
Customers are aware of product, sales
increase
Companies focus on customer
satisfaction
Competition starts from other
companies

10. 3. Maturity
The product’s sales level off. More
money is spent on competition
during this stage.

11. 4. Decline
Sales start to decline. A company
must decide to alter the product,
discount, or discontinue product.