София 1700, Студентски град “Христо Ботев”,
Endorsed:
Adopted by a decision issued by the Faculty
Council of „Management and Administration”
Dean
Protocol № /
CURRICULUM
Academic subject:
Subject code:
Educational and qualification degree:
Status of the course:
Field of higher education:
Professional:
Specialty:
Faculty:
Department:
Total student academic load
(average classes per course):
Non-contact student academic load
Credits:
Lecturer of the course:
3.
3.8.
3.8.34.
Product Policy
B33834C0641
Bachelor
Compulsory, Department course
Social, Economic and Law Sciences
Economics
Economics taught in English
Marketing and Strategic Planning
Management and Administration
Marketing and Strategic Planning
60 (30/30)
90
6
Assoc. Prof. Krasimir Marinov
Marinov, Ph.D.
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ANNOTATION
1. The academic course ”Product Policy” starts from 2014-2015 academic year. It is
to be taught to students of “Marketing and Strategic Planning”; professional field of
study “Economics“ - Economics taught in English; educational and qualification degree
of “Bachelor”.
Preparation for this course requires preliminary knowledge in general Marketing,
knowledge in Statistics, in management, in marketing research and in behavior of end
consumers and organizational consumers. These requirements could be defined as a
vertical input. At the same time the Product Policy course has horizontal relations to a
number of courses: Price Policy, Communication Policy and Distribution Policy.
Horizontal relations are also considered those with National Accounts System,
Marketing Modelling, and Business Planning.
2. Content of the course
Scholars define Product Policy as being at the core of marketing and as a body of
knowledge that defines direction on which all other marketing elements should be
oriented. These opinions reveal the importance of the academic course of Product
Policy for the body of professional knowledge of students in Marketing.
The goals of the training in Product Policy are to confirm, to enlarge and to deepen
those part of students’ professional knowledge that they have gained during the main
course in Marketing, and also to add new knowledge that would be necessary in
Master’s degree of education. It is also the goal of this course to develop a set of
practical skills for creation of company product policy.
The course consists of the main elements of the Product Policy, subtracted from the
product levels: main marketing features of the product (utility, quality, and
competitiveness); trade mark (brand); end user and transportation package; customer
service. A special importance is given to the trade mark, which has become a focus of
marketing in the last decades. Strong attention is paid to the product mix – its
parameters and its directions for development in depth and in breadth. Considerable
time is devoted to decisions related to the product innovations.
3. Language of education: English
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CONTENT OF THE CURRICULUM
А. LECTURES
№
TOPIC
Classes
Part I (15 Classes): The Object of the Product Policy
1
STRATEGY AND POLICY. PRODUCT POLICY AND MARKETING
STRATEGY
 Definitions for business strategy and business policy. Discussions on
the essence of strategy and policy. Classifications of business
strategy and business policy.
 Role of the marketing strategy and the product policy in the
management of the company. Model of strategic management.
 Product policy as a core marketing element. Essence and content of
the product policy. Role of the product policy in the marketing system.
2
2
THE PRODUCT AS A MARKETING INSTRUMENT
 Products and goods. Differences between marketing definitions and
statistical standards definitions. Reaching a compromise in
definitions: needs (basic and derivative; elastic and non-elastic);
preferences; exchange; transactions; market (buyer’s market and
seller’s market).
 Product levels: their essence and their meaning to marketing.
 Types of products and specific marketing tasks: types of products
according to their tangible or intangible character (features of
services); types of products according to their demand; types of
products according to the area of their use (consumer products and
investment products).
 Demand of products. Demand as a modified manifestation of needs.
Influence of price on the individual and on the market demand of a
product. Implications for development of the product policy.
Dependence of demand from income – income elasticity of demand.
Elasticity of a product’s demand on the prices of other’s product –
substitute products and complementary products. Price elasticity of
demand. Applications of elasticity in development of marketing
strategy and product policy.
5
3
PRODUCT QUALITY
 Definitions for quality. The multifaceted nature of quality. Objective
and subjective quality.
 Marketing approach to quality – the chain of quality; fundamental,
competitive and parametric quality.
 Structure of quality – criteria and indicators for quality assessment.
4
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4
PRODUCT COMPETITIVENESS
 Definition for competitiveness. Relations to customer value and
product quality.
 Criteria and indicators for assessment of competitiveness.
 Algorithm for assessment of competitiveness: definition of system of
indicators; methods for identification of values of indicators;
identification of basic values of indicators; identification of comparison
results; assessment of competitiveness using the Differentiated
method; identification of importance scores for quality indicators;
assessment of competitiveness using the Complex method.
4
Part II (15 Classes): Elements of the Product Policy
5
TRADEMARK POLICY
 Essence of the trade mark as an object of industrial property. Trade
mark and law. Trade mark and its valuation.
 Types of trade marks: according to the specifics of the sign; according
to their law protection; according to the owner of the trade mark;
according to their use as an instrument in marketing strategy;
according to their scope.
 Requirements to the trade mark: law requirements; commercial
requirements.
4
6
PRODUCT PACKAGING AND LABELING
 Product packaging: definition of product packaging; levels of product
packaging; functions of user packaging.
 Essence and functions of transport packaging.
 Product labeling: user labeling; transport labeling.
1
7
CUSTOMER SERVICE AND SERVICE POLICY
 Essence and role of customer service.
 Types of customer service: pre-sale service; warranty service; postwarranty service.
 Service policy: essence; development of service policy; organization
of service delivery.
1
8
PRODUCT ASSORTMENT POLICY
 Terms and definitions in assortment policy.
 Decisions on the depth of the product assortment: development of the
product assortment through growth (upward growth, downward
growth, two-way growth) and through saturation. Risks associated
with the different assortment development options.
 Decisions on the breadth of the product assortment. Consistency of
the product assortment.
 Relations between depth, breadth and consistency of the product
2
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
9
assortment. Strategies for diversification of the product assortment.
Organizational forms for management of the product assortment.
NEW PRODUCT DEVELOPMENT
 New products: their role for company competitiveness.
 Reasons for new product development.
 Definition for new product.
 Types of new products according to different criteria: novelty to the
consumer; novelty to the producer; degree of innovation; launch time
to the market.
 Process of new product development: stage and gate system. Idea
generation (sources of ideas; methods for idea creation). Idea
screening (compulsory and recommendatory criteria). Preliminary
research (market research; technical research). Second screening.
Business analysis (product concept, methods for business analysis:
Project attractiveness; Payback period; Net Present Value;
Profitability coefficient on net value). Decision for product
development. Actual development (functional tests; consumer tests).
Decision for test marketing. Test marketing. Launch decision. Product
launch in the market.
 Indicators for measuring results of new product development. Types
of indicators. Indicators on a separate new product project level.
Indicators on a product innovation process level. Indicators on a
strategic level.
 Success factors in new product development.
10 PRODUCT LIFE CYCLE
 Essence and elements of the product life cycle (S-curve; intensity
angle; point of inflection; stages of the life cycle).
 Diffusion of the product in the market.
 Importance of the product life cycle concept.
 Product management in the launch stage.
 Product management in the growth stage.
 Product management in the maturity stage.
 Product management in the decline stage.
 Modified curves of the product life cycle.
11 PRODUCT POSITIONING




4
1
2
Essence and features of positioning.
Relationship “Segmentation – Targeting – Positioning”. Mass
marketing. Differentiated marketing. Concentrated marketing.
Preparation of positioning information: definition of purchasing
determinants; definition of the ideal product; definition of competitive
situation.
Positioning strategies: convergent and divergent strategies;
competitive and non-competitive strategies.
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

Positioning methods.
Repositioning.
B. SEMINARS
№
1
2
3
4
5
6
7
TOPIC
Student Student
contact
nonacademic contact
load academic
(number
load
of
(number
classes)
of
classes)
Entry test for determination of the required preliminary level;
distribution of individual assignments (students will be given
the main titles and will be asked to make their own literature
search); distribution of team assignment; clarification of the
rules for presentations of individual and team assignments
during the semester.
Types of products and specific marketing tasks.
Students are expected to read respective literature and to be
ready for discussion in the class.
Product quality and competitiveness.
Presentation of assignments and discussion of examples for
determination of product competitiveness. Students are
expected to read respective literature and to be ready for
discussion in the class.
Trade mark.
Presentation of assignments and discussion of real business
examples. Students are expected to read respective literature
and to be ready for discussion in the class.
Customer service.
Discussion of real business examples. Students are expected
to read respective literature and to be ready for discussion in
the class.
Product assortment policy.
Presentation of assignments and discussion of real business
examples. Students are expected to read respective literature
and to be ready for discussion in the class.
New product development.
Presentation of assignments. Discussion of examples for
implementation of methods for business analysis. Students
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2
2
5
6
10
5
10
3
3
3
7
7
22
6
are expected to read respective literature and to be ready for
discussion in the class.
2
8
8 Product management in the different stages of their life cycles.
Presentation of assignments and discussion of real business
examples. Students are expected to read respective literature
and to be ready for discussion in the class.
Note: Student non-contact academic load (number of classes) are 65 and not 90, as
per approved curriculum, because 10 classes are intended for preparation of
students for the Interim test at the end of the semester, and 15 classes are
intended for exam preparation. The total of 65 classes for student non-contact
academic load includes all classes, required for preparation of individual and team
assignments.
METHOD / TEACHING STRATEGY
The teaching is done through the combination of lectures with seminars. During the
seminar classes individual assignments are given to every student and their
presentation is taking place. Students are also assigned bigger team projects in order to
build their teamwork skills. Team assignments are also discussed during seminars.
Presentations are prepared and delivered in PowerPoint.
Required resources for classes are whiteboard and markers, PC and multimedia.
INDIVIDUAL ASSIGNMENTS
The connection with the practice is ensured by placing individual assignments to the
students. Assignments are placed and defended during the seminars according to
individual preferences and abilities of the students. Practical work is for a particular real
business object. It is evaluated separately and there is a certain weight in the final
assessment for the course.
ASSESSMENT METHODS
During the semester the students prepare individual assignments, participate in team
assignment and have to take an interim test.
Assessment is done through an integral final grade which is based on the following
elements:
 Presence and Active Participation of the student in classes – it is assessed on a
6-grade scale and its relative importance in the final assessment is 10%.
 Individual Assignment - it is assessed on a 6-grade scale and its relative
importance in the final assessment is 10%.
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


Team Assignment - it is assessed on a 6-grade scale and its relative importance in
the final assessment is 20%.
Interim Test - its relative importance in the final assessment is 20%.
Final Exam – it is done during the session and its relative importance in the final
assessment is 40%.
The formula for the final grade is as follows:
FG = 10%*PAP + 10%*IA + 20%*TA + 20%*IТ + 40%*FE
where
FG = Final Grade
PAP = Presence and active participation in the class
IA = Individual Assignment
TA = Team Assignment
IT = Interim Test
FE = Final Exam
Note: Student is allowed to take the final exam only after completion of all other
(listed above) requirements. Students are not released from the final exam. This
approach is justified by the great importance of this course for building the students’
professional knowledge.
The final grade is a 6-grade scale. The minimum grade for the successful completion of
the training is Fair /3/.
A compliance assessment with the European system of credit transfer is as follows:
Excellent /6/
A
Very good /5/
Good /4/
B
C
Fair /3/
D
Credits are awarded as provided for in the plan
Poor /2/
E
FX
F
No credits are awarded
EXPECTED RESULTS OF THE ACADEMIC TRAINING
The course Product Policy will give students possibility to acquire following
knowledge and skills:
 What product policy is as a part of the marketing activities of an organization?
 Who the main elements of the product policy are?
 What the main stages in the development of assortment policy, trade mark policy,
product innovation policy and customer service policy are?
The knowledge and skills delivered by the course of product policy are part of the
professional education of bachelors in Marketing and are required for education in
Master’s degree.
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DISSEMINATION OF THE COURSE
Course
University
Country
University of London
United Kingdom
University of Portsmouth
United Kingdom
Universitat Graz
Austria
Universitat Passau
Germany
1. Рroduct and Product
Management
2. Product and Brand
Management
3. Produktpolitik
4. Produkt und Sortimentpolitik
TOTAL STUDENT ACADEMIC LOAD
Type of classes/academic load
Lectures
Seminars
Laboratory training
Practical training
Term paper
Individual assignment
Team assignment
Interim exam/test
On-going assessment
Exam
Total
Overall
student
academic
load
30
30
written
60
Student
academic
load,
average
classes per
week
2
2
4
Student
non-contact
academic
load
Total
35
30
65
10
20
10
10
20
10
15
90
15
150
RECOMMENDED LITERATURE
А. BASIC
1. Cooper, Robert. Winning at New Products: Accelerating the Process from Idea to
Launch, Third Edition, Basic Books, 2001.
B. ADDITIONAL
2. Argouslidis, P. C., Baltas, G., Structure in product line management: The role of
formalization in service elimination decisions, Journal of the Academy of
Marketing Science, Vol. 35, 2007, pp. 475–491.
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3. Avlonitis, G.L., S. Hart, and N. Tzokas, An analysis of product deletion scenarios,
Journal of Product Innovation Management, Vol. 17, 2000, pp.41-56.
4. Berman, Barry, Strategies to reduce product proliferation, Business Horizons,
Vol. 54, 2011, pp. 551-561.
5. Cooper, Robert, The invisible success factors in product innovation, Journal of
Product Innovation Management, Vol. 16 №2, April 1999, pp.115-133.
6. Cooper, Robert, Benchmarking new product performance: Results of the best
practices study, European Management Journal, Vol. 16 № 1, February 1998,
pp.1-17.
7. Crawford Ch.M., New Products Management, Irwin, 2011.
8. Crosby P.B., Quality is Free, NY, McGraw-Hill, 1984.
9. Garvin D., Competing on the Eight Dimensions of Quality, Harvard Business
Review, Nov./Dec., 1987.
10. Gorchels, Linda, The Product Manager’s Handbook, Third ed., McGraw-Hill,
2006.
11. Griffin, A., PDMA research on new product development practices: Updating
trends and benchmarking best practices, Journal of Product Innovation
Management, Vol. 14 № 6, 1997, pp.429-458.
12. Guiltinan, J., Paul, G. Marketing Management: Strategies and Programs. 5th ed.
McGraw-Hill, 1994.
13. Haines, Steven, The Product Manager's Desk Reference, McGraw-Hill
Professional, 2008.
14. Harness, D.R. and T. Harness, The new customer relationship management tool
- product elimination?, The Service Industries Journal, Vol. 24 No. 2, 2004, pp.
67-80.
15. Hitchens, Julia, Paul Hitchens, Create the perfect brand, Hodder Education,
2010.
16. Homburg, C., Furst, A., and Prigge, J.-K., A customer perspective of product
eliminations: how the removal of products affects customers and business
relationships, Journal of the Academy of Marketing Science, Vol. 38 No. 5, 2010,
pp. 531–549.
17. Isaacson, Walter, Steve Jobs. Simon & Schuster; 1 edition, 2011.
18. Juran J.M., Universal Approach to Managing for Quality. The Quality Trilogy,
Quality Progress, Aug., 1986.
19. Karol, R. and B. Nelson, New Product Development for Dummies, John Wiley &
Sons, 2007.
20. Lehmann, Donald R. and Russell Winer, Product Management, Fourth Ed., Tata
McGraw-Hill, 2005.
21. Levitt, T., Exploit the Product Life Cycle, Harvard Business Review, Nov-Dec
1965.
22. Modern A.R., Elements of Marketing, London, 1991.
23. Montoya-Weiss, M. and R.Calantone, Determinants of new product performance:
А review and meta-analysis, Journal of Product Innovation Management, Vol. 11,
1994, pp. 397-417.
24. Pearce, J., Robinson, R., Strategic Management: Planning for Domestic & Global
Competition. McGraw-Hill/Irwin, 2012.
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25. Porter, Michael, How Competitive Forces Shape Strategy, Harvard Business
Review, March-April 1979, pp.137-145.
26. Ries, Al, Jack Trout, Positioning: The Battle for Your Mind, First Edition Revised,
McGraw Hill, 1986.
27. Thompson, A., Strickland A., Strategic Management. Irwin McGraw-Hill, 1997.
DRAFTED BY:
Assoc. Prof. Krasimir Marinov, Ph.D.
HEAD OF DEPARTMENT:
Assoc. Prof. Pencho Ivanov, Ph.D.
DEAN:
Prof. Мargarita Harizanova, Ph.D.
Идентификация на статуса: ОДНК_7.1.3-1/ Версия 01/Изменение ____/____________; стр. __/__
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