PM Session 3 Evolution of Product Management (1).ppt

7/26/2019 PM Session 3 Evolution of Product Management (1).ppt

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Product Management

Session 3Wednesday June 15 2016

Evolution of Product Mana ement


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What do e mean !y a Product"

#s the meaning evolving ith time"


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$ Product is any offering

to a mar%et

&for attention' ac(uisition' use' or consum)tion*

that aims to meet some +customer as)irations,


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-fferings could !e ...

/oods

angi!le o!ects &that can !e felt' tasted' heard' smelled or seen*

eg motorcycles' cell )hones' and soa)s etc.

Services

-!tained through the machines' or% or la!our of others

May result in creation of some goods' !ut service is a %ey to solution

4ariation in out)ut normal

#deas

#ntention to alter )erce)tion' attitude or !ehaviour

-ften associated ith )u!lic service' social attitudes' ideologies...


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$nything Else"

Events

Persons

Places

-rganiations

once)ts

E7)eriences

om!ination of the a!ove


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Mechanics does not buy a drill,he actually buys its ability

to make holes of the same size

heodore 8evitt


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Product 9he ustomer Solution Pers)ective


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+$ Product is an -ffering

that serves certainustomer :eeds ; Wants'

i.e. )rovides ustomer 4alue,


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Who =etermines 4alue"


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What do customersreally ant or need

&and hence value*"


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=on>t sell me #nsurance?


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=on>t sell me #nsurance?

@el) me gain )eace of mind'and a great future

for my family and meA


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=on>t sell me a amera?


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=on>t sell me a amera?

@el) me ca)ture and relivethe most memora!le

moments of my lifeA


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=on>t sell me a @ouse?


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=on>t sell me a @ouse?


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=on>t sell me lothes?


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=on>t sell me lothes?

/ive me a desira!le a))earance'style and attractivenessA


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=on>t sell me oys?


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=on>t sell me oys?

@el) me to give my child&ren*ha))y momentsA


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=on>t sell me hings?


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=on>t sell me hings?


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Product 9he ustomer 4alue Pers)ective


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Mar%eting ; ustomer 4alue

Understanding

Customer

Value

Creating

Customer

Value

he Process 4ie

Capturing

Customer

Value

Delivering

Customer

Value

Sustaining

Customer

Value


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Bnderstanding ustomer 4alue

Psychological


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Bnderstanding ustomer 4alue

4alue is defined as the )erceived orth

in monetary units of the of the set of

economic' functional' technical and )sychological !enefitsreceived !y the customer in e7change for

the )rice )aid for a )roduct offering'

ta%ing into consideration all the availa!le offerings and )rices.

Anderson, Jain and Chintagunta(199!


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Product 8evelsCom)onents


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8evelsC om)onents of a Product

Core Benefit he !asic need ; core !enefit that the customer is

really !uying Basic or Actual Product he !asic form of hat you really !uy ;

hat hel)s fulfil !asic need

Expected Product he offering that most customers e7)ect or

are used to. he set of attri!utes that the consumers e7)ect aso!vious along ith the )roduct &otherise dissatisfaction*

Augmented Product $ttri!utes C features that e7ceed consumer

e7)ectationCvalue9added offering that can create customer delight

Potential Product $ll )ossi!le augmentation' value addition ;

transformation that the )roduct may go through in future 9 the

!est or most a )roduct can !e


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Some $reas of 4alue $ddition

/uarantee

Warranty

Fe)lacementCMoney !ac%

ustomer Service

om)lementary ProductsC$ccessories

$ccessi!ility

Preferential Status

Mem!ershi)C8oyaltyCFelationshi) Programs

PipalMajik


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he conce)t of ustomer =elight

E7ceeding ustomer 4alue E7)ectations'

again ; again?

&$ forever moving goal)ostA*


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Product 9he 4alue Gundle Pers)ective


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om)onents of the Product -ffering

Pricing

Service mi7Product features


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Product 9

he Service =ifferentiation

Pers)ective


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he once)t of HProdice>


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Product 9he E7)erience Pers)ective


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Product 9he Felationshi) Pers)ective


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Product 9he Grand Pers)ective


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Product vs. Grand -rientation

Product

Product comes first

s visi!le

; differentiatingcharacteristics

Search for H!est )roduct>

an e have )roduct

ithout !randing"

Production' echnology'

F;= are the %ey )rocesses

Brand

Grand is more im)ortant s intangi!le

values ; imagery

category

Grand needs at least one

flagshi) )roductCservice onsumer Fesearch'

-))ortunity Ma))ing'ommunication are the %ey)rocesses


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he Grand Management Paradigm

The ld Paradigm

Product Management focus

#ndividual )roduct !rands

Grand managed !y ad de)t; agency

Grand strategy su!set ofmar%eting' involving onede)artment

#nard focus' functionalde)artmental Hsilos>

Granding done throughidentity and ads

The !e" Paradigm

Grand Management focus

or)orate or Master !rand

E- Honershi)>' cross9functional Hmanagement> of

Grand )riority for holeorganisation' involving allde)artments

#ntegrated mar%et9drivenorganisation

Granding done through allcustomer9facing touch )oints&communication ;e7)erience*


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he Grand Management Paradigm

The ld Paradigm

Gusiness defined !y )roductcategory

/roth driven !y )roductdevelo)ment' F;= ;ac(uisition

; He7)ense>

Grand e7)enses managedfor short9term )rofits

The !e" Paradigm

Gusiness defined !y !randessence


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hanges $ffecting Product Management

hanging consumer needs ; e7)ectations

hanges in the !alance of mar%et )oer

#ncreased im)ortance of customer retention

echnology change 9 =ata e7)losion echnology change #nternetC#nteractivity

echnology change Mass ustomiation

#ncreased glo!al com)etition

Proliferation of !rands in any Product ategory


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he Mar%et Partici)antsI he s

Company

Consumer Channels

Competitors

The Market

Participants


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he 5th 9 olla!orators

#ncreasingly' source of differentiation ; com)etitive

advantage

Shared 4ision olla!orators ata $ce ; :ano

Partnershi)s &:i%e ; $))le* :i%eK

-)en Source C ommon Platforms 8inu7 ; $ndroid

Fevenue9sharing Platforms $))le $))s' $maon

"hat are the im#lications of Collaboration for $roduct Management%


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he 6th 8arger onte7tI

Macro Environment

he PESE8


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Managing any Product means

#C Anal$sis

ustomerom)any

om)etitors

&Su))ly

hain*

olla!orators

onte7t

S%T%P &ar'eting

Segmentation

argeting

Positioning

(P &ar'eting Plan

Product

Price

Promotion

Place

he


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he


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:e7t lass

o)ics )ndian &ar'et* An vervie" of its

Diversit$

&acro Trends

Consumer Behaviour Trends noticed in

an$ particular Product +roup or

Categor$

Assessing !e" Competition , Strategic

-esponse


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han% Lou

Documents

PM Session 3 Evolution of Product Management (1).ppt