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 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 Structure

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 day-

to-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