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
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