|Management of a business|
Product management is an organisational function within a company dealing with new product development, business justification, planning, verification, forecasting, pricing, product launch, and marketing of a product or products at all stages of the product lifecycle. Similarly, product lifecycle management (PLM) integrates people, data, processes, and business systems. It provides product information for companies and their extended supply chain enterprise.
Product managers are responsible for managing a company's product line on a day-to-day basis. As a result, they are critical in both driving the firm's performance, and producing financial gains. They are in-charge of conceptualizing, planning, creating, advertising, and delivering products to their target market.
The role may consist of product development and product marketing, which are different (yet complementary) efforts, with the objective of maximizing sales revenues, market share, and profit margins. Product management is an active part of the initiation of a new product concept through to the readiness and commercial launch and sales of new products.
Product management drives the business case and justification to start new product development and has an active role throughout the steps, and or stages to develop, test, and launch a new product. Product management is also involved in product change and lifecycle decisions and planning. Product elimination can begin with the identification of candidates for a change in the lifecycle (in some cases due to a new product launch and therefore replacement; a lack of sales of a product and therefore a phase-out plan; or obsolescence in technology and therefore an immediate removal from sale).
This process then proceeds with a cross-functional plan to remove the product from active sale. The obsolescence plan will include a comprehensive view of the impact on the organization (inventory associated with the product, assets, and manufacturing/assembly resources associated with producing the products, active commercial agreements, service and support requirements, and marketing assets and areas to update and update).
The product manager is often responsible for analyzing market conditions and defining features or functions of a product and for overseeing the production of the product. The role of product management spans many activities from strategic to tactical, and varies based on the organizational structure of the company. To maximize the impact and benefits to an organization, Product Management must be an independent function separate on its own.
While involved with the entire product lifecycle, the product management's main focus is on driving new product development. According to the Product Development and Management Association (PDMA), superior and differentiated new products—ones that deliver unique benefits and superior value to the customer—are the number one driver of success and product profitability.
Depending on the company size and history, product management has a variety of functions and roles. Sometimes there is a product manager, and sometimes the role of product manager is shared by other roles. Frequently there is Profit and Loss (P&L) responsibility as a key metric for evaluating product manager performance. In some companies, the product management function is the hub of many other activities around the product. In others, it is one of many things that need to happen to bring a product to market and actively monitor and manage it in-market. In very large companies, the product manager may have effective control over shipment decisions to customers, when system specifications are not being met.
Product management often serves an inter-disciplinary role, bridging gaps within the company between teams of different expertise, most notably between engineering-oriented teams and commercially oriented teams. For example, product managers often translate business objectives set for a product by Marketing or Sales into engineering requirements (sometimes called a Technical Specification). Conversely, they may work to explain the capabilities and limitations of the finished product back to Marketing and Sales (sometimes called a Commercial Specification). Product managers may also have one or more direct reports who manage operational tasks and/or a change manager who can oversee new initiatives.
In most technology companies, most product managers possess knowledge in the following areas: computer science, business and user experience. Also, in many companies the role is understood as a project manager. The difference between a product manager and a project manager is that the project manager focuses on building a solution and tracking its progress, while a product manager focuses on providing a vision to then solve a customer problem.
Examples of the responsibilities of a product manager are: Perform market and competition analysis, initiate product and product-specific service improvements, requirement profiles (specifications) for new products and product-specific services, participate in the creation of the specifications, create and implement market launch concepts, support and train the salespeople as well as accompany field service employees on customer visits.
The product manager is responsible both for the development of the product strategy and for planning, implementation and coordination of the measures derived from it and for the permanent and final control. They are responsible for managing products across departments.
While the Product Owner is a role you play in a Scrum team, Product Manager is the job. The responsibilities of a Product Manager may shift depending on the context and stage of the product. Without a Scrum team or in a smaller team, they will likely approach more strategical and validation tasks. If they are part of a Scrum team, there is a high chance that daily tasks are more execution-related.
Product management is typically divided into three parts: strategic product management, technical product management, and Go-To-Market (product marketing), which is illustrated in the Open Product Management Workflow model. In addition to the three-part division, this model shows which tasks and steps must be performed by product management in the course of a product cycle in order to produce an innovative and profitable product.
Strategic product management encompasses all strategic aspects and tasks required to make an existing or future product successful. This includes, among other things, the information analysis, the development of a concept as well as coordination and optimization measures. In technical product management there is a similar approach.
The market analysis identifies existing market problems and trends.
For the determination of market problems, the conducting of interviews with customers as well as potentials (reports) has established itself, whereby existing problems are specifically asked for. Market trends are determined by the analysis of studies or with the help of market research. The results are checked by means of larger & regular surveys and that a market problem only refers to one persona ("stereotype for a group of people with concrete characteristics and concrete behaviour") in a certain scenario. If several products/markets are involved, they can be structured according to criteria such as market segments, product segments, functions, technologies or regions, and later be illustrated, for example, in a product-market matrix. Market segmentation is of particular importance; strategic product management focuses on the target segments that have the greatest market potential and require the lowest costs.
Both for the future market message and for improved communication with customers, it is important to determine the attributes and added values that differentiate the company from the competition in the long term: "If you can do one thing best, you should do the one thing you can do". A competence analysis forms the basis for this. A competitive analysis and a SWOT analysis can provide further clarity. While the competitive analysis reveals gaps, among other things, the portfolio, price model, market message and communication analysis, the SWOT analysis determines the company's position in a specific market. In addition, the analysis can show what opportunities for further development and difficulties in implementation exist.
Technical product management includes all aspects and tasks necessary to design a functional physical new product.
TPMs frequently have a extraordinary belief of who their users are. Often TPMs have a challenge of empowering others to more effectively serve users, as opposed to serving them at once. In reality, some TPMs construct products for use via other Product Managers.
At the beginning the requirements from the strategic product management must be evaluated, which consist of the parts problem, persona and scenario. In practice, the information is written for it on so-called "Story Cards". With the help of an evaluation scheme with the criteria importance, number of reports and priority, the requirements can be weighted and prioritized. The importance is based on the different customer types in the following decreasing order: evaluating customer, potential customer, existing customer. The priority can be calculated by multiplying the importance and the number of reports. If required, the scheme can be supplemented with additional information such as costs, usability or time expenditure.
If the requirements are sufficiently prioritised, they can be bundled into work packages and put in order; for this purpose the respective priorities are summed up and an overall priority for a work package is calculated. Afterward, the time and costs required for the work packages must be estimated for product development. Then engineers devote themselves to the solution of the work packages, giving the entire team information about their current status in regular status meetings and modifying the schedule by possible delays. In order to check the functionality of a product solution or to reduce the risk of undesirable developments, the creation of a pre-prototype and a prototype is recommended.
The results from strategic product management serve as a prerequisite for a successful product management (Go-To-Market). Product marketing is a component of product management that is under the jurisdiction of a company's product manager or product marketing manager. The product marketing manager is primarily responsible for the profitability of the products, product launches, messaging, and all sales-supporting materials. Together with the communication team (press department), the plan for all marketing activities and the communication channels has to be created. At the same time, measuring points (KPIs) need to be defined for reviewing the success of the marketing measures and regularly present their evaluation. Product marketing is involved in strategic derivatives such as market strategies, distribution strategies, positioning and communication strategies. Sales documents, presentations and tools from the results have to be created while the sales channels need to be supported with the relevant market facts from the strategic section so that their forecast is fact-based and more accurate. Through the contact with customers and non-customers the buyer persona develops steadily and their buying criteria, channels, and problems can be identified and optimized. The product marketing manager creates the positioning for all defined market segments and enables the sales channels to deliver the persona-specific selling points.
Responsibilities within product marketing include:
Product development is the complete process of delivering a new product or improving an existing one for customers. The customers can be external or internal within a company. And it can support many different types of products from software to hardware, to consumer goods and services.
Product managers often work collaboratively with engineers, designers, and other stakeholders to accomplish tasks, such as:
Inbound product management (also called inbound marketing) is the "radar" of the organization and involves absorbing information like customer research, competitive intelligence, industry analysis, trends, economic signals and competitive activity as well as documenting requirements and setting product strategy. In comparison, outbound activities are focused on distributing or pushing messages, training salespeople, go to market strategies and communicating messages through channels like advertising, PR and events. In many organizations, the inbound and outbound functions are performed by the same person.
Another way of looking at these activities is upstream and downstream product management, where "upstream" is referring to any activity that helps to define, create, or improve the product, while "downstream" refers to any activity that promotes the product. This avoids the confusion with the term "inbound marketing" which nowadays clearly refers to a way of doing downstream product management, "making the product accessible", that is, making sure it can be found by suspects and prospects (compared to "outbound marketing", where the product is "pushed" in front of the suspect or prospect). The confusion stems mainly from the mix-up between the term "marketing" as a discipline, comprising Product Management, Marketing Communications, etc. and using the same term "marketing" as a synonym for "promotion" or "advertising", i.e. taking a product to the market (i.e. 'downstream').
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