Download Introduction to Product Management

Introduction to Product
Management
Today’s Agenda
Role of the Product Management
 Organizational Structures
 Critical Skills of the Product Manager
 Changes affecting Product Mgmt.
 Overview of the Marketing Planning
Process
 Marketing Plan Assignment

Role of the PM
What Does A Product Manager
Do?
JUGGLES
 Must manage agendas of all functional
groups while staying focused on key
brand/corporate objectives

Marketer’s Job
Simplified
Planning
Internal Selling
Planning Activities
Annual Business Plans

•
•
Collect & Analyze product & category
data
Use analysis to develop marketing
strategies
Internal Selling

Coordinating with other areas of the
corporation to execute programs (ie
R&D, Graphics & Promotion, Research
etc)

Keeping Senior Management informed
and supportive
 “The
product manager has
broad/heavy responsibility but
virtually no authority per se (except
the “authority” that is derived from
the plans which have received
approval by senior management)
Organizational
Structures
Organizational Structures
PM’s Job depends on how the
organization is structured
 We will explore 3 Organizational
structures;

1. Product-Focused Organizations
2. Market-Focused Organizations
3. Functionally Focused
Product-Focused Structure
Product Manager Acts as a “mini-CEO”
 Takes responsibility for overall health of
a brand
 Well Defined Hierarchy exists (ie Group

product Manager, Brand manager, Assistant Brand
Manager)
Product-Focused Organization

Advantages
 Locus of
responsibility is
clear (directly
accountable for
brand)
 Invaluable training &
experience for PM




Disadvantages
Inability to ask
fundamental questions
(too close)
PM is may become
somewhat removed
from the action in the
field
Short-term focused
Market-Focused Organization
Defines authority by Market segment
 Segments can be industry, channel,
regions of the country or customer size
 Useful when there are significant
differences in buyer behaviour among
the market segments

Market-Focused Organizations

Advantages
 Strong Customer
Focus
 Easier to get
Product Managers
to ‘pull together’
 Better knowledge of
company’s line of
products

Disadvantages
 Does not give
managers full
responsibility for
products services
(more coordination)
 Lose ‘mini-CEO
training’
Functionally-Focused
Organizations

Align themselves by functions (ie Advertising,
Sales, merchandising)
 No Single person is responsible for the dayto-day health of a brand
 CEO & Vice Presidents (VP’s) make
marketing strategy decisions
 Strategies are implemented through
discussion & coordination among functional
groups
Functionally-Focused
Organizations

Advantages
 Administratively
simple
 Functional training is
strong
 CEO & VP’s make
important strategy
decisions




Disadvantages
Limited responsibility for
specific products
Conflicts b/w strategies
can only be resolved
through discussion –
time consuming
Narrow scope of
managers – limits
development
More Variables:
Industry & Size of Company

High-tech Companies
– New Products
– Feedback via web

Smaller Companies
– more execution

Consumer Products Companies
– more research
– Evaluations on Profit & Loss
Product Management: Critical
Skills
Teamwork
 Communication Skills
 Analytical Ability

Discussion Topic
What market trends are
impacting the role of the
Product Manger?
Category Management
Driven by increased power by retailer
 Analysis of category to optimize product
mix
 Product are business units customized
on a store-by-store basis
 Impact on marketing organization

Marketing Planning
Process Overview
Exercise
Get into groups of 4-5 people and
complete the 2 pages on Marketing
Plans handout
 Be prepared to share your answers with
the class
