PRODUCT MANAGEMENTCHAPTER 1: OVERVIEW AND INTRODUCTION TO PRODUCT MANAGEMENT

LEARNING OBJECTIVES:After studying this chapter, you should be able to:Understanding the principals of product managementOutlining the role of a product managerDiscussing the different approach of product management via the organizational structureHighlighting the skills needed in managing a productDiscussing the challenges facing product management

CHAPTER OUTLINEIntroductionA product managers potential interactionProduct Vs. General Marketing ManagementMarketing Organization Critical Skills in Product ManagementChallenges Affecting Product Management

INTRODUCTION

The planning activities related to the management of product(s) or product lineObtaining organizational support for the marketing plan

A PRODUCT MANAGERS POTENTIAL INTERACTION

PRODUCT Vs. GENERAL MARKETING MANAGEMENT

Product ManagementGeneral Marketing ManagementScope of ResponsibilityNarrow: Single product or product lineBroad: Portfolio of productsNature of Decision MakingMainly tacticalMainly strategicTime HorizonShort-run (often annual or shorter)Long run

MARKETING ORGANIZATION: PRODUCT- FOCUSED ORGANIZATIONS

MARKETING ORGANIZATION: PRODUCT- FOCUSED ORGANIZATIONSAdvantagesLocus of responsibility is clearDevelop the ability to work with other areas in org.Advocate for the product

MARKETING ORGANIZATION: PRODUCT- FOCUSED ORGANIZATIONSWeaknessesFocus on one productRemoved from where the action isToo myopicIn-bred competition (product cannibalization)

MARKETING ORGANIZATION: MARKET- FOCUSED ORGANIZATIONS

MARKETING ORGANIZATION: MARKET- FOCUSED ORGANIZATIONSAdvantagesFocus on customerResource & knowledge sharingWork well for system or bundle sale

MARKETING ORGANIZATION: MARKET- FOCUSED ORGANIZATIONSWeaknessesPotential conflict within the product management structureLocus of responsibility is ambiguous

MARKETING ORGANIZATION: FUNCTIONALLY FOCUSED ORGANIZATIONS

MARKETING ORGANIZATION: FUNCTIONALLY FOCUSED ORGANIZATIONSAdvantagesAdministratively simpleSpecializationWell-coordinated

MARKETING ORGANIZATION: FUNCTIONALLY FOCUSED ORGANIZATIONSWeaknessesWho is ultimately responsible for the product?Focused only on functional development

CRITICAL SKILLS IN PRODUCT MANAGEMENTNegotiationTeamworkCommunication skillsAnalytical ability

CHANGES AFFECTING PRODUCT MANAGEMENTInternetData explosionIncreased emphasis on brand equityChanges in the balance of market powerIncreased importance of customer retention programsGlobal competition