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
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
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
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
Advantages Administratively simple Specialization Well-coordinated
MARKETING ORGANIZATION: FUNCTIONALLY FOCUSED ORGANIZATIONS
Weaknesses Who is ultimately responsible for the
product? Focused only on functional development