8, 9 Product Management 040910

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MARKETING MANAGEMENT


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PRODUCT MANAGEMENT Product management is an organizational

lifecycle function within a company dealingwith the planning or forecasting or marketing

of a product or products at all stages of theproduct lifecycle.
http://en.wikipedia.org/wiki/Product_lifecyclehttp://en.wikipedia.org/wiki/Product_lifecyclehttp://en.wikipedia.org/wiki/Product_lifecyclehttp://en.wikipedia.org/wiki/Product_lifecycle


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PRODUCT MANAGEMENT Product management (inbound focused) and

product marketing (outbound focused) aredifferent yet complementary efforts with theobjective of maximizing sales revenues, market

share, and profit margins. The role of product management spans many

activities from strategic to tactical and variesbased on the organizational structure of the

company. Product management can be afunction separate on its own and a member ofmarketing or engineering.


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PRODUCT MANAGEMENTWhile involved with the entire product

lifecycle, product management's main focusis on driving new product development.

According to the Product Development andManagement Association (PDMA), superiorand differentiated new products ones thatdeliver unique benefits and superior value tothe customer

is the number one driver of

success and product profitability.
http://en.wikipedia.org/wiki/Product_lifecyclehttp://en.wikipedia.org/wiki/Product_lifecyclehttp://en.wikipedia.org/wiki/New_product_developmenthttp://en.wikipedia.org/wiki/New_product_developmenthttp://en.wikipedia.org/wiki/New_product_developmenthttp://en.wikipedia.org/wiki/New_product_developmenthttp://en.wikipedia.org/wiki/New_product_developmenthttp://en.wikipedia.org/wiki/New_product_developmenthttp://en.wikipedia.org/wiki/Product_lifecyclehttp://en.wikipedia.org/wiki/Product_lifecyclehttp://en.wikipedia.org/wiki/Product_lifecycle


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PRODUCT MANAGEMENT Aspects of product management

Depending on the company size and history, productmanagement has a variety of functions and roles.Sometimes there is a product manager, andsometimes the role of product manager is held byothers.

Frequently there is Profit and Loss (P&L)responsibility as a key metric for evaluating product

manager performance. In some companies, theproduct management function is the hub of manyother activities around the product. In others, it is oneof many things that need to happen to bring a product

to market.


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PRODUCT MANAGEMENT Product management often serves an inter-

disciplinary role, bridging gaps within the companybetween teams of different expertise, most notablybetween engineering-oriented teams and business-

oriented teams. For example product managers oftentranslate business objectives set for a product byMarketing or Sales into engineering requirements.

Conversely they may work to explain the capabilitiesand limitations of the finished product back to

Marketing and Sales. Product Managers may alsohave one or more direct reports such as a ProductExecutive who can manage operational tasks or aChange Manager who can oversee new initiatives.


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PRODUCT MANAGEMENT Product planning

Identifying new product candidates

Gathering market requirementsDetermine business-case and feasibility

Scoping and defining new products at high

level Evangelizing new products within the

company


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PRODUCT MANAGEMENT Building product roadmaps, particularly

Technology roadmaps

Working to a critical path and ensuring allproducts are produced on schedule

Ensuring products are within price marginsand up to spec

Product Life Cycle considerations

Product differentiation
http://en.wikipedia.org/wiki/Technology_roadmaphttp://en.wikipedia.org/wiki/Product_Life_Cycle_Managementhttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Product_Life_Cycle_Managementhttp://en.wikipedia.org/wiki/Product_Life_Cycle_Managementhttp://en.wikipedia.org/wiki/Product_Life_Cycle_Managementhttp://en.wikipedia.org/wiki/Product_Life_Cycle_Managementhttp://en.wikipedia.org/wiki/Product_Life_Cycle_Managementhttp://en.wikipedia.org/wiki/Technology_roadmaphttp://en.wikipedia.org/wiki/Technology_roadmaphttp://en.wikipedia.org/wiki/Technology_roadmap


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PRODUCT MANAGEMENT A technology roadmap is a plan that matches

short-term and long-term goals with specifictechnology solutions to help meet those goals. Itis a plan that applies to a new product or

process, or to an emerging technology.Developing a roadmap has three major uses.

It helps reach a consensus about a set of needsand the technologies required to satisfy those

needs; it provides a mechanism to help forecasttechnology developments and it provides aframework to help plan and coordinatetechnology developments.
http://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Plan


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PRODUCT MANAGEMENT The existence of product managers in the product

software industry indicates that software is becomingmore commercialized as a standard product. Thismanager is responsible over the whole line of

software requirement management, defining ofproducts and their releases and this with all internaland external stakeholders involved.

In this context, product road mapping can be placedto aid software product managers in planning and

placing their products with the use of scientific andtechnological resources. For managing and using thetechnological resources technology planning can beused.
http://en.wikipedia.org/wiki/Product_managerhttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Product_managerhttp://en.wikipedia.org/wiki/Product_managerhttp://en.wikipedia.org/wiki/Product_manager


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PRODUCT MANAGEMENT


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PRODUCT MANAGEMENT Phase 1: Preliminary phase The first phase, the preliminary phase, consists

of 3 steps: satisfy essential conditions,

provide leadership / sponsorship and

define the scope and boundaries for the technologyroadmap.

In this phase the key decision makers mustidentify that they have a problem and thattechnology road mapping can help them insolving the problem.


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PRODUCT MANAGEMENT Phase 2: Development phase

The second phase, the development of thetechnology roadmap phase, consists of 7 steps:

identify the product that will be the focus of theroadmap,

identify the critical system requirements and their targets,

specify the major technology areas,

specify the technology drivers and their targets,

identify technology alternatives and their timelines,

recommend the technology alternatives that should bepursued and

create the technology roadmap report.

These steps create the actual roadmap.


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PRODUCT MANAGEMENT Phase 3: Follow-up activity phase

This is the moment when the roadmap must becritiqued, validated and hopefully accepted by

the group that will be involved in anyimplementation.

For this a plan needs to be developed using the

technology roadmap. Next there must be aperiodical review and update point, because theneeds from the participants and thetechnologies are evolving.


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PRODUCT MANAGEMENT


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PRODUCT MANAGEMENT Product life cycle management (or PLCM)

is the succession of strategies used bybusiness management as a product goes

through its life cycle. The conditions in whicha product is sold (advertising, saturation)changes over time and must be managed as

it moves through its succession of stages.
http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_(business)


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PRODUCT MANAGEMENT Like human beings, products also have their

own life-cycle. From birth to death humanbeings pass through various stages e.g. birth,growth, maturity, decline and death. A similar

life-cycle is seen in the case of products. The product life cycle goes through multiple

phases, involves many professional disciplines,and requires many skills, tools and processes.

Product life cycle (PLC) has to do with the life ofa product in the market with respect tobusiness/commercial costs and salesmeasures.


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PRODUCT MANAGEMENT To say that a product has a life cycle is to assert

four things: that products have a limited life, product sales pass through distinct stages, each

posing different challenges, opportunities, andproblems to the seller,

profits rise and fall at different stages of productlife cycle, and

products require different marketing, financial,manufacturing, purchasing, and humanresource strategies in each life cycle stage.


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PRODUCT MANAGEMENT In marketing, product differentiation (also

known simply as "differentiation") is theprocess of distinguishing a product or

offering from others, to make it moreattractive to a particular target market. Thisinvolves differentiating it from competitors'

products as well as a firm's own productofferings.
http://en.wikipedia.org/wiki/Differentiation_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Competitionhttp://en.wikipedia.org/wiki/Competitionhttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Differentiation_(economics)


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PRODUCT MANAGEMENT Differentiation can be a source of competitive

advantage. Although research in a niche market mayresult in changing a product in order to improvedifferentiation, the changes themselves are notdifferentiation. Marketing or product differentiation isthe process of describing the differences betweenproducts or services, or the resulting list ofdifferences.

This is done in order to demonstrate the unique

aspects of a firm's product and create a sense ofvalue. Marketing textbooks are firm on the point thatany differentiation must be valued by buyers. Theterm unique selling proposition refers to advertising tocommunicate a product's differentiation.
http://en.wikipedia.org/wiki/Niche_markethttp://en.wikipedia.org/wiki/Unique_selling_propositionhttp://en.wikipedia.org/wiki/Unique_selling_propositionhttp://en.wikipedia.org/wiki/Unique_selling_propositionhttp://en.wikipedia.org/wiki/Unique_selling_propositionhttp://en.wikipedia.org/wiki/Unique_selling_propositionhttp://en.wikipedia.org/wiki/Unique_selling_propositionhttp://en.wikipedia.org/wiki/Niche_markethttp://en.wikipedia.org/wiki/Niche_markethttp://en.wikipedia.org/wiki/Niche_market


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PRODUCT MANAGEMENT The brand differences are usually minor; they

can be merely a difference in packaging oran advertising theme. The physical product

need not change, but it could.Differentiation is due to buyers perceiving a

difference, hence causes of differentiationmay be functional aspects of the product orservice, how it is distributed and marketed, orwho buys it.
http://en.wikipedia.org/wiki/Packaginghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Packaging


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PRODUCT MANAGEMENT The major sources of product differentiation are as

follows.

Differences in quality which are usually accompaniedby differences in price

Differences in functional features or design Ignorance of buyers regarding the essential

characteristics and qualities of goods they arepurchasing

Sales promotion activities of sellers and, in particular,advertising Differences in availability (e.g. timing and location).
http://en.wikipedia.org/wiki/Quality_(business)http://en.wikipedia.org/wiki/Ignorancehttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Ignorancehttp://en.wikipedia.org/wiki/Quality_(business)


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PRODUCT MANAGEMENT Product marketing

Product positioning and outbound messaging

Promoting the product externally with press,customers, and partners

Conduct customer feedback and enabling(pre-production, beta software)

Bringing new products to market

Monitoring the competition


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PRODUCT MANAGEMENT Product marketing deals with the first of the

"7P"'s of marketing, which are Product,Pricing, Place, and Promotion, Packaging,

Positioning & People.
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Marketing


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PRODUCT MANAGEMENT Product marketing, as opposed to product

management, deals with more outboundmarketing tasks. For example, productmanagement deals with the nuts and bolts of

product development within a firm, whereasproduct marketing deals with marketing theproduct to prospects, customers, and others.

Product marketing, as a job function within a

firm, also differs from other marketing jobs suchas marketing communications ("marcom"),online marketing, advertising, marketingstrategy, etc.
http://en.wikipedia.org/wiki/Product_managementhttp://en.wikipedia.org/wiki/Product_managementhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Product_developmenthttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Prospect_(marketing)http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketing_communicationshttp://en.wikipedia.org/wiki/Online_marketinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Online_marketinghttp://en.wikipedia.org/wiki/Online_marketinghttp://en.wikipedia.org/wiki/Online_marketinghttp://en.wikipedia.org/wiki/Marketing_communicationshttp://en.wikipedia.org/wiki/Marketing_communicationshttp://en.wikipedia.org/wiki/Marketing_communicationshttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Prospect_(marketing)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_developmenthttp://en.wikipedia.org/wiki/Product_developmenthttp://en.wikipedia.org/wiki/Product_developmenthttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Product_managementhttp://en.wikipedia.org/wiki/Product_managementhttp://en.wikipedia.org/wiki/Product_management


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PRODUCT MANAGEMENT A Product market is something that is referred to

when pitching a new product to the general public.The people you are trying to make your productappeal to is your consumer market. For example: If

you were pitching a new video game console game tothe public, your consumer market would probably bethe adult male Video Game market (depending on thetype of game).

Thus you would carry out market research to find outhow best to release the game. Likewise, a massagechair would probably not appeal to younger children,so you would market your product to an older

generation
http://en.wikipedia.org/wiki/Product_markethttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Generationhttp://en.wikipedia.org/wiki/Generationhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Product_markethttp://en.wikipedia.org/wiki/Product_markethttp://en.wikipedia.org/wiki/Product_market

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8, 9 Product Management 040910