PRODUCT MANAGEMENTCHAPTER 1: OVERVIEW AND INTRODUCTION TO PRODUCT MANAGEMENT

LEARNING OBJECTIVES:

After studying this chapter, you should be able to:

1. Understanding the principals of product management

2. Outlining the role of a product manager3. Discussing the different approach of product

management via the organizational structure4. Highlighting the skills needed in managing a

product5. Discussing the challenges facing product

management

CHAPTER OUTLINE

1. Introduction2. A product manager’s potential

interaction3. Product Vs. General Marketing

Management4. Marketing Organization5. Critical Skills in Product Management6. Challenges Affecting Product

Management

INTRODUCTION

The planning activities related to the management of product(s) or product line

Obtaining organizational support for the marketing plan

A PRODUCT MANAGER’S POTENTIAL INTERACTION

PRODUCT Vs. GENERAL MARKETING MANAGEMENT

Product Management

General Marketing Management

Scope of Responsibility

Narrow: Single product or product line

Broad: Portfolio of products

Nature of Decision Making

Mainly tactical Mainly strategic

Time Horizon Short-run (often annual or shorter)

Long run

MARKETING ORGANIZATION: PRODUCT- FOCUSED ORGANIZATIONS

MARKETING ORGANIZATION: PRODUCT- FOCUSED ORGANIZATIONS

Advantages Locus of responsibility is clear Develop the ability to work with other

areas in org. Advocate for the product

MARKETING ORGANIZATION: PRODUCT- FOCUSED ORGANIZATIONS

Weaknesses Focus on one product Removed from “where the action is” Too myopic In-bred competition (product

cannibalization)

MARKETING ORGANIZATION: MARKET- FOCUSED ORGANIZATIONS

MARKETING ORGANIZATION: MARKET- FOCUSED ORGANIZATIONS

Advantages Focus on customer Resource & knowledge sharing Work well for “system” or bundle sale

MARKETING ORGANIZATION: MARKET- FOCUSED ORGANIZATIONS

Weaknesses Potential conflict within the product

management structure Locus of responsibility is ambiguous

MARKETING ORGANIZATION: FUNCTIONALLY FOCUSED ORGANIZATIONS

MARKETING ORGANIZATION: FUNCTIONALLY FOCUSED ORGANIZATIONS

Advantages Administratively simple Specialization Well-coordinated

MARKETING ORGANIZATION: FUNCTIONALLY FOCUSED ORGANIZATIONS

Weaknesses Who is ultimately responsible for the

product? Focused only on functional development

CRITICAL SKILLS IN PRODUCT MANAGEMENT Negotiation Teamwork Communication skills Analytical ability

CHANGES AFFECTING PRODUCT MANAGEMENT Internet Data explosion Increased emphasis on brand equity Changes in the balance of market power Increased importance of customer

retention programs Global competition