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Role of Product Manager


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Role of Product Manager.
It will help to train-up a Product Manager of Pharmaceutical Marketing and Branding Division.

Published in: Marketing, Business

Role of Product Manager

  1. 1. Training on Product Management
  2. 2. Market Segmentation  Market Analysis  Positioning Outline  Product Profile  SWOT  Strategy
  3. 3. What Is A Segment A customer group having Similar buying needs And/or Similar reactions to what product offers
  4. 4. Useful Ways To Segment Markets Geographically Regions, cities, urban/rural Demographically Age, sex, income group, occupation, educational level Disease Type, severity, acute, chronic recurrent Doctor Specialty, place of practice, age group affiliation, educational background
  5. 5. How To Segment  Example Patients of all ages suffering from acute URTI
  6. 6. Why Segment Identifies target group, customer needs Efficient way of using scarce resources Creates strong product image to offset competition
  7. 7. A Segment Must Be Measurable: Potential + Results Accessible: Via promotion resources, cost effective Substantial: Large enough Financial Objectives) Homogenous: Customers with sufficiently similar needs
  8. 8. Important Considerations In Segmentation Trends of segment Identification of existing unsatisfied needs
  9. 9. Potential Drawbacks Of Market Segmentation Tunnel Vision - Losing track of overall market evolution • Acceptance + Execution by sales force • Requires market data
  10. 10. Market Analysis Quantitative questions The trend of the market The historical sales trend of your product/competitive products The relative position of the competitors
  11. 11. Market Analysis Qualitative questions Structure of the market Competitiveness (fragmented vs concentrated) Price sensitivity Market needs Any unmet needs/opportunities Competitors Current/new Opportunities & threats
  12. 12. Product Positioning What are the NEEDS of my customer WHAT BENEFITS/COMPETITIVE EDGE Does my product have? WHAT product FEATURES substantiate these claims
  13. 13. Product Positioning Analysis  Examples of product attributes for positioning and mapping Dosage versus convenience Price versus severity of medical conditions Price versus dosage regimen Efficacy versus safety Side-effect profile versus efficacy Duration of action versus onset of action
  14. 14. Product Positioning Analysis  Applications New product launches When market share is threatened Changing population of market segment Changing market needs
  15. 15. Product Positioning Analysis Product positioning must be reviewed periodically, at its different life cycle Comparative positions of products must be the result of MR findings, not the perceptions of PMs
  16. 16. Product Profile Checklist Target indicators Target doctors Dosage recommendation Presentation, strengths and pack sizes Key advantages & disadvantages (Efficacy, contra-indicators, side effects/safety, patient convenience, etc.)
  17. 17. Product Profile Checklist Product profile Main indications Main side effects Contra-Indications Major Advantages Major Disadvantages Average Daily dose Presentation Target doctors
  18. 18. INFORMATION REGARDING THE MAIN COMPETING PRODUCTS PRODUCT CHARACTERISTICS Active ingredient(s) Main Indications Main Side Effects Contra-Indications Major Advantages Major Disadvantages Best Selling Pack Sizes Average Daily Dose Cost of Average Daily Dose Sales in $ (’000) Market Share Sales Trend (3 yrs) Product Profile Checklist
  19. 19. SWOT Analysis A technique combining all elements to arrive at a strategy, tactics and objectives Strengths Weakness Of your company (or product) Opportunities Threats In the market/ environment
  20. 20. SWOT Analysis Strengths Good side-effect profile Good efficacy Good local and international trail program Support from HQ New chemical entity Variety of presentations
  21. 21. SWOT Analysis Weakness Company has limited experience here Limited comparative data Seen more as a tranquilizer than as antiemetic Limited resources
  22. 22. SWOT Analysis Opportunities Medics aware of benzodiazepine problem Market decline halted in tranq. Segment Premium price acceptable in tranq. Market Future product development Vale growth
  23. 23. SWOT Analysis Threats Strong competition Dominant brands in both segments 2 new competitor products soon
  24. 24. Opportunities & Threats  From OUTSIDE Market segment Environment Few competitors From INSIDE Company Products
  25. 25. Opportunities & Threats Market segment High growth rate High level of customer interest Large segment size High degree of acceptance High-untapped patients Low level of price sensitivity
  26. 26. Opportunities & Threats Environment Good economic growth Few government regulations Little adverse public opinion Active consumer action
  27. 27. Opportunities & Threats Few competitors No new products Weak sales team Poor marketing skills Little promotional activity Poor promotional mix Large product range Poor company image
  28. 28. Opportunities & Threats Company Excellent image Large size Adequate promotion budgets Good R & D products Effective sales force Well-trained sales force Good management/employee rapport Excellent customer service Excellent distribution
  29. 29. Opportunities & Threats Products Very reliable Highly efficacy Highly acceptable by opinion leaders Convenient packaging Convenient dosaging Acceptable taste Minimal side effects High market share Acceptable pricing
  30. 30. Definitions Of Terms Used Concepts Contents             What you need to be achieve, which must be: - Timed - Measurable - Desirable - Realistic  How you intended to achieve your objective: - Target audience - Key product features/ benefits you will stress - The segment you will attack    Actions will take or the methods you will use to achieve the strategy, i.e. promotion policy Strategies     Road Objectives     Destination Tactics    Vehicle
  31. 31. Market Penetration Strategy Increase sales & market share in existing segment with existing product Examples of tactics  Doubling call frequency on A-class doctors  More A.V. meetings with specialists  Goods on consignment to pharmacies
  32. 32. Market Development Strategy Increase sales in new markets with existing products Examples of tactics  Promote to another group (specialists to GPs)  Promote new indications to reach different group of patients  OTC to Rx Switch  Rx to OTC Switch
  33. 33. Product Development Strategy Introducing new or improved products, line extension to an existing market segment. Examples of tactics  Develop new product features to offer new benefits or minimize/ eradicate existing product problems  Create high quality version of existing product  Modifying pack sizes
  34. 34. Diversification Entering new market with a completely new product Examples of tactics  New product in a new therapeutic class area  New product line in a related or non-pharma industry
  35. 35. Strategy Approach Undifferentiated Marketing Going after large part of market to get at as many prescribes for as many patients as possible   Concentrated Marketing Going after one party of segment alone   Differentiated Marketing Going after several defined markets, with tailored versions for each segment
  36. 36. Product Strategy Statement A product strategy statement gives a precise direction as to how you will achieve your objectives 3 questions to ask To concentrate on the URTI market amongst patients of all ages Market segment Which segment? Statement Dosage convenience and efficacy All general practitioners Product position Which product position? Target market Which target?
  37. 37. What Is The Objective Of Promotion Objective 1 To change the attitudes of target audience from non-usage to repeated usage Objective 2 To generate increased profitable sales
  38. 38. Promotion Methods Sales presentation Media mix Journal advertising Brochures In-house journals Direct mail Symposia Clinical trials ‘Seeding’ trials Exhibition Public/professional services Others
  39. 39. Sales Presentation Advantages Allows complete sales story Has the greatest impact Great flexibility for sales person to react accordingly Generates vital ‘feedback’
  40. 40. Sales Presentation Disadvantages A high-cost element; fixed cost too A limited resource Not always readily available Slow: Restricted access of targets and physical ability to meet ‘Selling message’ may be inconsistent
  41. 41. Sales Presentation Basic questions to ask before using the sales force Is material supportive to the personal presentation Is the message logical, manageable and suitable Is sales technique well understood and used Is product knowledge good
  42. 42. Sales Presentation Comments Concentrate on a message which meet objectives Concentrate on neutralizing weakness, reinforcing strengths Sales force be trained in usage, objection handling and closing Material flexible to meet different situations  
  43. 43. Promotion Material Advantages Adds ‘visual’ power to sales person’s words Samples allow doctor to try product Complements the sales visit
  44. 44. Promotion Material Disadvantages If not practical and well designed, it is very costly If it is not seen as practical, it will not be used It has no effect without personal interpretation
  45. 45. Promotion Material Basic questions to ask before using Does the material support the promotion objective It is absolutely necessary Is it too much, too little, too many or too few Will the sales person use it; does it help or hinder him Will it have a positive impact on the target audience
  46. 46. The Buying Process Unawareness Existence of product Awareness Succinct summary Interest Phase of reasoning Evaluation Clinical Trails Trial Opportunities to use Usage Reminders Repeat Usage
  47. 47. Promotion SALES TO PHARMACY/HOSPITAL Less wholesalers margin (@ 9%) SALES TO WHOLESALERS Less sales tax (@ 9% of 3) NET SALES EX MANUFACTURER Less production costs (@ 20%) GROSS PROFIT Less selling expenses (field force cost) Less marketing expenses (field force cost) Samples, Advertising, Mailings, Reps. Detailing aids/literature, Gifts Congresses, exhibits, symposia, Doctor meetings, Audio visual/films, Market research Less administrative overheads (@ 16% of net sales ex manufacturer) NET PROFIT (OR LOSS) BEFORE TAX % of net sales CUMULATIVE PROFIT BEFORE TAX
  48. 48. Executive Summery Key features Environmental, Market Situation, Product review Product objectives Financial/Marketing, Short term/Long Term Product strategy Segment, Position, Target Market, Product Priorities, Tactics Promotion Strategy, Mix, Spending Specific Market Opportunities, Threats and Trends Overall Profits Key Actions Repackaging/Hire new team/Monitor generic law