MGT-519 STRATEGIC MARKETING

AAMER SIDDIQI

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LECTURE 28

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RECAP• Service Marketing Mix• Physical evidence• Material part of service• Physical evidence• People• Training• Personal selling• Customer services• Process

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PRODUCT MANAGEMENT• Product management is an organizational lifecycle function

within a company dealing with the – planning, – forecasting, and – production, or marketing

• Of a product(s) at all stages of the product lifecycle

• The role may consist of – product development and – product marketing,

• Different (yet complementary) efforts, with the objective of – maximizing sales revenues, – market share, and – profit margins.

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• Product management's main focus is on driving newproduct development.

• Superior and differentiated new products• Deliver unique benefits and superior value to the

customer • The number one driver of success and product

profitability• Involved with the entire product lifecycle• Depending on the company size and history, product

management has a variety of functions and roles

PRODUCT PERFORMANCE

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PRODUCT MANAGEMENT FUNCTION

• Profit and Loss (P&L) responsibility as a key metric for evaluating

• In some companies, the product management function is the hub of many other activities around the product.

• It is one of many things that need to happen to bring a product to market and actively monitor and manage It

• In very large companies, the product manager may have effective control over shipment decisions to customers, when system specifications are not being met.

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• Product management is a well-understood role in virtually every industry except technology.

• In the last ten years, the product management role has expanded its influence in technology companies

• The role of product management spans many activities from strategic to tactical

• The strategic role of product management is to be messenger of the market, delivering information to the departments that need market facts to make decisions.

ROLE OF PRODUCT MANAGEMENT

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ROLE OF PRODUCT MANAGEMENT

• Changes based on the organizational structure of the company.

• Product management can be a function separate on its own, or a member of marketing or engineering.

• The product manager is often responsible for analyzing market conditions and defining features or functions of a product.

• Product management, is inbound focused• Product marketing, is outbound focused• Complementary efforts which both have the objective of

maximizing sales revenues, market share, and profit margins.

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• This is why it is not surprising that 8% of product managers report directly to the CEO, acting as his or her representative at the product level

• Companies that do not see the value of product management go through a series of expansions and layoffs.

• They hire and fire and hire and fire the product management group.

• These same companies are the ones that seem to have a similar roller-coaster ride in revenue and profit.

• The role of product management spans many activities from strategic to tactical

• These are the province of a Product manager.

ROLE OF PRODUCT MANAGEMENT

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• Over the years we have seen extensive evidence that product management is a role that can even out the ups-and-downs

• Can help push a company to the next level of performance.• Product management often serves an inter-disciplinary role, • Bridge gaps within the company between teams of different

expertise • Most notably between engineering-oriented teams and

commercially oriented teams. • Product managers often translate business objectives set for a

product by Marketing or Sales into engineering requirements (sometimes called a Technical Specification).

ROLE OF PRODUCT MANAGEMENT (CONT’D)

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• Conversely they may work to explain the capabilities and limitations of the finished product back to Marketing and Sales (sometimes called a Commercial Specification).

• Product Managers may also have one or more direct reports who manage operational tasks

• Who can oversee new initiatives. • Where manufacturing is separate from the research function,

the product manager has the responsibility to bridge the gaps

ROLE OF PRODUCT MANAGEMENT (CONT’D)

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PRODUCT MANAGERS

• Product Managers can be a formal part of the marketing department

• In some technology based companies they may be within the engineering department or may indeed be engineers with supplementary marketing training or vice versa.

• In some companies, the product management function is the hub of many other activities around the product.

• In others, it is one of many things that need to happen to bring a product to market.

• As such product management often serves an inter-disciplinary role

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IDENTIFYING NEW MARKETS• Product Management identifies a market opening• Quantifies the opportunity to make sure it’s big enough to

generate profit• Then articulates this to the rest of the organization. • Product Management communicates the market opportunity to

the executive team• Also communicates the problem to product development in the

form of market requirements.• A business rationale for pursuing the opportunity including

financial forecasts and risk assessment. • Empowers the sales effort by defining a sales process• Supported by the requisite sales tools so the customer can choose

the right products and options

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CONCLUSIONProduct management is involved in developing an understanding of the market, leading to STP, which leads to branding and from those

to the marketing mix, in particular to product design and development. In essence Product management IS marketing in

marketing organisations

•Product management is a strategic role•Product managers bring a powerful combination of skills: product and technology expertise combined with market and domain knowledge as well as business savvy.

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• Marketing people know how to communicate; Product managers know what to communicate

• Sales people know what one customer wants to buy; Product managers must determine if the deal represents a single customer or a market full of customers.

• Developers know what can be built; product managers know whether it should be built.

• Product management is a strategic role focused on what Products and markets we can serve in the years to come.

CONCLUSION

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THANKYOU

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