Public Policy Issues In Product

Management
Submitted by
G.KARTHIK
19L31E0087

Department of Management Studies.

Wha product t 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
ii. Trial Support by
State of those
idleness attacked
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.
 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 Bases Negligence Warranty Strict Liability Misrepresentation

Source By Law A Promise Court Decisions By Law

Condition •Defective product •Defective Product •Defective product •Untrue Claim

•Failure to warn •Implied Warranty •Reasonably •Misrepresentation
•Express Warranty Foreseeable

Defense •Not Negligence •Not implied by •Buyer Knew So •Truthful

•Not Defective Common Usage. assumed Risk . •Normal puffery
Product •Not Actually •Unforeseeable •Buyer Should Know
Stated. misuse.
•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
• Monopoly: It is obtaining market dominance and pressurizing the
customer for purchase or removal of alternatives from the market.
• Personal Ethics: Taking Decisions at Individual Level rather than at Manger
Level.
May or may not be based on Business management.
Thank you