Product Management

“Product Management refers to the function of planning, and analysing all internal and external information pertinent to the product with respect to all its stakeholders and using this information in an efficient and smart manner to develop a marketing programme for the product/product lines, in line with the overall marketing strategy of the organisation “

Product vs. General Marketing Management

Features

features product mgmt. Gen. mktg. mgmt.

Scope of responsibility

Nature of decisionMaking, time horizon

Narrow, single product or product line

Broad portfolio of products

Mainly tactical, short-run( often annual or shorter)

Mainly strategic, long-run

A Product Manager’s Potential Interactions

Advertising agency

Media

Promotion Services

Packaging

Purchasing

PublicitySales

Market research

Fiscal

Legal

Research & Development

Manufacturing and

Distribution

Product manager

Suppliers

Trade

Suppliers

Research Suppliers Trade

Suppliers

Designers Researchers

Agency media department Company media department media sales reps

Premium suppliers Premium screening Store testing Sampling Couponing

Product ManagementTypes of Organisations

Product Focussed

Market Focussed

Functional Focussed

Product Manager Role and Job

Product Manager’s job varies among industries and products

Consistent Factors

•Proven as managers in prior or current role •preferably MBA.

High-tech Companies

Value placed on understanding technological possibilities and applications, preferably an engineering background otherwise marketing concepts clarity, People skill and marketing / advertising exposure.

Critical Skills

a) Negotiation

b) Teamwork

c) Communications Skills

d) Analytical Ability

Changes Affecting Product Management

a) The Web

b) The data explosion

c) The increased emphasis of brands

d) Changes in the balance of market power

e) Increased importance of customer retention programs

f) Increased global competition

Concept of category marketing

• Developed in early 1990s. Category management is defined as a process that considers product categories to be business units that should be customised on a store-by-store basis in a way that satisfies customer needs

• Retailers empower their category managers who operate their categories as separate businesses , just as product managers do

• Hence , marketing ( under which product management operates) needs to work with the research and sales team in a manner where they collectively address and focus on consumer and retail needs

Hence the marketing function( under which the product management area Operates) need to work cooperatively with the research and sales teams with

a focus on customers and the retail trade

Marketing Planning

Definition: A marketing plan is a written document containing guidelines for the business centre’s marketing programmes and allocations over the planning period

Marketing Plan Summary

1. Executive summary2. Situation analysis - category/competitor definition - category analysis - company and competitor analysis - customer analysis - planning assumptions3. Objectives4. Product/ Brand strategy5. Supporting marketing programmes6. Financial documents7. Monitors and controls8. Contingency plans

Hierarchy of Planning

Corporate strategic planning

Group or sector

planning

SBU planning

Annual marketing (business)

plan

The Planning Process

Evaluating Implementing

Planning

Analysis objectives strategies

Marketing Planning SequenceUpdate historical data

Collect current situation data

Data analysis

Develop objectives, strategies, programs

Develop financial documents

Negotiate final plan

Measure progress toward objectives

Audit