Download Introduction to Product Management & Marketing Planning

Introduction to Product
Management & Marketing
Planning Session 1
By: - Neeraj Gupta
Product Concept
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It is anything that can be offered to a market that
might satisfy a want or a need.-Marketing
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Products are purchased as raw materials and sold
as finished goods. – Manufacturing
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Anything that is produced, whether as a result
generation, growth, labor, or thought, or by the
operation of involuntary causes, of seasons, or of
farms, of manufacturers, or of brain.
COMPONENTS OF THE MARKET OFFERING
The customer will judge the offering by three basic elements : product features
and quality, services mix and quality, and price appropriateness.
Value based pricing
Attractiveness of the
market offering
Product features and
quality
Services mix and
quality
Product
Product: Five Levels of Meaning
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The core benefit level is the fundamental need or want that consumers satisfy by
consuming the product or service.
The generic product level is a basic version of the product containing only those
attributes or characteristics absolutely necessary for its functioning but with no
distinguishing features. This is basically a stripped-down, no-frills version of the
product that adequately performs the product function.
The expected product level is a set of attributes or characteristics that buyers
normally expect and agree to when they purchase a product.
The augmented product level includes additional product attributes, benefits, or
related services that distinguish the product from competitors.
The potential product level includes all the augmentations and transformations that a
product might ultimately undergo in the future.
1.5
Classification
Durable
Non Durable
Service
Product Related Concepts
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Product Development: -Product development is the
process of designing, building, operating, and maintaining a
good or service. Product development adds things like pricing,
marketing, and customer support to the technology to create a
complete product.
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New Product: -A new product can be defined as a
product that is new to the market.
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---5 categories
New- to-the-world – e.g. new inventions
New category –products or services that are new to a firm
Additions to product lines -- add products or services that are
new to a firm
Product Improvements – dettol soap
Repositioning target products to new markets for new uses.
Product Related Concepts
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Product Life Cycle: -Products need managing throughout
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their working lives.
This requires deciding:
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– What products should be created.
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– The best time to launch them and introduce them to
the public.
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– How to capitalise on a product’s strengths and iron
out any weaknesses.
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– When an older product is past its prime and needs
modification or withdrawal from the market
Stages in PLC
Life Cycle Concepts on Which a Product Planning
Team Works
Life Cycle Concepts on Which a Product Planning
Team Works
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Initiation Phase:- Product management, Engineering, or
Operations submits a request for a new product or service or
modification to a existing product or service.
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Feasibility Phase: -Here idea is explored in more depth to
determine the feasibility of requested product or service within scope
of Business needs.
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Design and Plan Phase: -Cross functional team documents all detail
pertaining to development of product or service based on their own
assessments. Using this a design and plan checklist is presented to
governing committee for final approval before moving into the
development phase. Blue print is created.
Life Cycle Concepts on Which a Product Planning
Team Works
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Development Phase: -Actual engineering of product or service is
completed. Then preparatory work for testing and introduction phases is
taken care of side by side.
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Testing Phase: -It is spent certifying the hardware and software changes
involved in the product or service. Readiness tests in lab are conducted.
Then after this field trials are undertaken. The a go decision at the testing
phase decision gate authorises the launch of product or service
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Product launch Phase: -Deployment of product or service in the market.
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Operation Phase: -Typically the longest of phases since development of
product phase. It requires an organization that can manage the product,
track problems and bugs, and respond to customer issues regarding the
product in a timely and cost effective manner.
Life Cycle Concepts on Which a Product Planning
Team Works
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Decommissioning Phase: -It occurs at the end of
Product life cycle. If a product is successful then it is continued
otherwise it is taken out of market in such a way that company’s
assets are managed properly.
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Product Upgrade: -After using the product it can be
upgraded to a new product that meets their needs or is
deprovisioned. Upgrade is desirable.
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Deprovisioning: -Planned departure of customers by the
company who have stopped making further purchases of their
products as otherwise they can prove to be unsuccessful.
What is Product Mix ?
Product Item
A specific version of a product
that can be designated as a
distinct offering among an organization’s
products.
Product Line
A group of closely-related
product items.
Product Mix
All products that an
organization sells.
Product Line Decisions: Product Mix
• Product mix: set
of all product lines
– Width: # of
product lines
– Length: # of
products in
lines
Width
Detergent
Soap
# product lines (3)
Shampoo
ABC
– Depth: # of
versions of
each product
carried
– Consistency:
how closely
related the
product lines
are
Adapted from Kotler, McDougall and Picard, p.360
Product Management
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Product management: -is an organizational lifecycle
function within a company dealing with the planning or marketing of
a product or products at all stages of the product lifecycle.
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Product management and product marketing:
-complementary efforts with the objective of maximizing sales
revenues, market share, and profit margins.
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Product Management starts with type of company one works for: 
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Technology-driven
Company driven
Sales-driven
Market-driven
Role of a Product Manager
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Serving as the voice of customer.
Indirect management and cooperation with other members of
various groups .
It has four main tasks: 
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Developing the market requirements document.
Managing the product features list.
Coordinating activities of different functional groups.
Participating in and/or running the launch and post-lunch marketing
activities for a product.
Goal of Product Management: Ensure market driven whole product offering,
Establish competeitive and profitable pricing models.
Ensure the existence and support of product distribution
Create effective marketing promotions that generate revenue.
Aspects of Product Management
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Product Management:- has a variety of functions and
roles. P&L responsibility is used as a key metric for evaluating product
managers performance.
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PRODUCT PLANNING: -is ongoing process of identifying and articulating
market requirements that define a product’s feature sets.
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Defining new products: -ideas for new products can be obtained from
SWOT or brainstorming.
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Gathering Market Requirements: -by analyzing market and consumer
trends, competitors, focus groups, corporate spies, trade shows, or ethnographic
discovery methods.
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Building Product Roadmaps, particularly technology roadmaps: used as a tool to predict future path a particular product’s in its lifecycle.
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Product Life Cycle Considerations: -designing and selling is just a part of
story. Every product has to go through a series of steps between the time it is
first concieved and the time the manufactured product is retired or discarded.
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Product Differentiation
Product Marketing
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Product Marketing: - is based on identifying, anticipating and
satisfying customer needs effectively and profitably. It encompasses market
research, pricing, promotion, distribution, customer care, your brand image
and much more.
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Product Positioning and outbound messaging
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Promoting the product externally with press,
customers, and partners, packaging, trade shows,
exhibitions, promotional videos etc.
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Monitoring the Competition:- Keep your friends close, and your
enemies closer.
Product Management: Scope
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Product managers are advocates for the customer's needs and
desires.
A product manager's responsibilities include the following:
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Defining and planning product lines and product enhancements
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Managing product contracts and saleso Setting strategic direction based on customer needs
and business goals
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Interpreting strategic goals into operational tasks
Making proposals to senior management regarding implications of proposed plan
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Serving as a representative to internal and external clients. Taking the leading establishing
tactical plans and objectives
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Developing and implementing administrative and operational matters ensuring achievement
of objectives
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Evaluating risks and trade-offs
Proposing contingency plans
Analyzing business processes and creating applications to improve or support those
processes
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Branding
Working with graphic designers to create look and feel
Defining navigational flow and user experience
Defining feature sets and scooping releases.
Marketing Organization
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organization that markets one or more systems,
applications, and/or components produced by a
development organization to potential customer
organizations.
Responsibilities: 
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Market applications to the customer
organization(s).
Provide change requests based on customer
feedback to the development organization.
Act as a source of requirements during the
performance of the requirements identification
task
Marketing Organization
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Characteristics of Good Marketing Organization: 
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flexible to allow the managers to use any type of marketing
structure.
It must give possible future growth and acceptable philosophy to
the whole concern.
Personnel in marketing department must be willing to take
various job assignments.
Connected with the problem of flexibility is the growth potential.
So, the provisions are required for the growth of new products
and segments in concern in future.
There should be a central philosophy or tradition prevailing in the
concern that should be intimated to all. In this way while policies
and programmes change, the central philosophy remains guide
to the future action.
Types Of Marketing Organization
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Function Oriented (increased efficiency & elasticity)
Market Oriented (Regional-for large territories)
Product Oriented
Customer Oriented:- Classes Of customers:
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Distributors
Retailers
Customers
Combined Type:- such as
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Functional with territorial
Functional with product oriented
Market oriented with product
Organizational Structure
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Functional Organizations: - products needing
high level of specialized knowledge require a
functionally organized structure e.g. a light
weighted matrix organization with a product
manager almost is functional.
Project Organization- product oriented flows:
projects and teams. (Persons leave functions
and have to devote time to project tasks they
have been assigned).
Organizational Structure-another way for
classification
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Product to be developed can be developed by one
person. Development department small structured
as functional ones.
Product less complex with high workload. One
whole functional department required for
development.
Product is most complex. Various disciplines do their
own bit for it. Employees cannot work fulltime on
one project. Cross-functional team creation in this
situation is best alternative. Only problem being
those persons in team are working on more than
one project at a time.
Product complex with high work. Employee
participation full time so project organization best
suited.
Role of a Product Manager
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The key responsibilities of a product manger may
include
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Managing the entire product line life cycle from strategic
planning to tactical activities
Specifying market requirements for current and future
products by conducting market research
Driving a solution set across development teams (primarily
Development/Engineering, and Marketing
Communications) through market requirements, product
contract, and positioning.
Developing and implementing a company-wide go-tomarket plan, working with all departments to execute.
Analyzing potential partner relationships for the product.
Marketing Planning/Strategic Planning
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Any plan to be formalized has to be in written form as a Marketing
Plan.
Plan should move from general to specific
Output of each stage checked to see the impact it has on all other
stages and is amended
Mission-Objectives
Components of a Marketing Plan
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Marketing plans vary by industry, by size of company and by
stage of growth. The form isn't as important as the process of
preparing it. Preparing a marketing plan is a process that
makes you think about your business goals and what your
marketing strategy will be to achieve those goals.
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This is an outline of a typical marketing plan: Executive Summary: The executive summary introduces
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your company and explains the major points of your plan
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Describes nature of your business
States mission and company objectives
Describes your team and organization structure
Summarize the marketing objectives and strategies of the plan
Components of a Marketing Plan
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Current Situation: -issues being faced, location,
target market, competitive environment.
Competitor and Issue analysis: 
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Information about other individuals or companies offering
similar products as you.
Listing key business issues that can be challenges
Marketing Objectives: -stating of your objectives
along with time frame for achieving them
Marketing Strategy: -Plan to achieve your marketing
objectives using 4P’s of marketing mix.
Action Plan: -what will be done, when it begins and is
completed, and who will do what
Components of a Marketing Plan
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Budget: -costs of marketing activities used in
marketing plan
Measurements: -Describes numerical targets that will
measure the results of implementing your marketing
plan, including time limits for achieving your goals
Supporting Documents: -any document used in
other sections to be included in this section as
reference
Defining the Competitive set
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Thorough study of your competitors essential for successful
positioning of yourself.
Choosing competitors is a step by step task.
Data collection for each step necessary.
Bases of competition
Defining Competitors: First in terms of their primary and secondary importance.
List basis of competition and key success factors for industry and
then define competitive characteristics in terms of :
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Market Segments
Products offered
Price/Rates
Advertising Programs
Distribution channels
Levels Of Market Competition
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Product: - Convincing customers that your
brand is better
Category: - Convincing customers that your
product form is best in a particular category
e.g. Cars
Generic: -convince customers that particular
category is best to satisfy his needs
Budget: - convince customers that generic
benefits are best use of income as compared
to Bikes, scooters, jeeps etc.
Factors Determining Competition
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Price ---Telecom
Cost of Production ----because of factors of production
Demand in the market
Availability of Substitutes---less competitors will enter if more
substitutes
Number of existing players in the market
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Barriers to entry--- blocks potential entrants entry
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Patents
Limit Pricing-lowering prices so much that new entrants are at loss
Cost Advantage due to economies of scale
Advertising and Marketing
R&D expenditure
Presence of Sunk Costs--- unrecoverable costs
International trade Restrictions----tarriffs, quotas etc.
Thank You