marketing

1. PRODUCT
MANAGEMENT
CHAPTER 1: OVERVIEW AND INTRODUCTION
TO PRODUCT MANAGEMENT

2. 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 manager
3. Discussing the different approach of product
management via the organizational structure
4. Highlighting the skills needed in managing a
product
5. Discussing the challenges facing product
management

3. CHAPTER OUTLINE
1. Introduction
2. A product manager’s potential interaction
3. Product Vs. General Marketing Management
4. Marketing Organization
5. Critical Skills in Product Management
6. Challenges Affecting Product Management

4. INTRODUCTION
 The planning activities related to the
management of product(s) or product line
 Obtaining organizational support for the
marketing plan

5. A PRODUCT MANAGER’S POTENTIAL
INTERACTION
Manufacturin
g &
distribution
R&D
Legal
Fiscal
Market
Researc
h
Sales
Publicit
y
Purchasin
g
Packaging
Promotion
services
Advertisin
g Agency Media
Product
Manage
r

6. 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

7. MARKETING ORGANIZATION: PRODUCT-
FOCUSED ORGANIZATIONS
Head of
company/division
Manufacturing Marketing
Marketing
research
Product
management
Manager of
product A
Manager of
product B
Manager of
product C
Support
Finance
Corporate
communications

8. 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

9. MARKETING ORGANIZATION: PRODUCT-
FOCUSED ORGANIZATIONS
Weaknesses
 Focus on one product
 Removed from “where the action is”
 Too myopic
 In-bred competition (product cannibalization)

10. MARKETING ORGANIZATION: MARKET-
FOCUSED ORGANIZATIONS
Head of
company/division
Manufacturing Marketing
Manager, market
A
Manager, market
B
Manager, market
C
Finance
Corporate
communications

11. MARKETING ORGANIZATION: MARKET-
FOCUSED ORGANIZATIONS
Advantages
 Focus on customer
 Resource & knowledge sharing
 Work well for “system” or bundle sale

12. MARKETING ORGANIZATION: MARKET-
FOCUSED ORGANIZATIONS
Weaknesses
 Potential conflict within the product
management structure
 Locus of responsibility is ambiguous

13. MARKETING ORGANIZATION:
FUNCTIONALLY FOCUSED
ORGANIZATIONS
Head of
company/division
Manufacturing Marketing
Product
marketing
Advertising Sales promotion
Marketing
research
Finance
Corporate
communications

14. MARKETING ORGANIZATION:
FUNCTIONALLY FOCUSED
ORGANIZATIONS
Advantages
 Administratively simple
 Specialization
 Well-coordinated

15. MARKETING ORGANIZATION:
FUNCTIONALLY FOCUSED
ORGANIZATIONS
Weaknesses
 Who is ultimately responsible for the product?
 Focused only on functional development

16. CRITICAL SKILLS IN PRODUCT
MANAGEMENT
 Negotiation
 Teamwork
 Communication skills
 Analytical ability

17. 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