8/20/2015 Product Management  Charles A. Besio, Jr.  Southern Methodist University

8/20/2015 Marketing ComponentsMarketing Components  Product  Pricing  Distribution  Promotion (Marketing Communications)

8/20/2015 Overview - Product Management  Product Manager-vs.-General Marketing Management  Many Different titles  Manage a Product or Group of Closely Related Products  Focus is Tactical-vs.-Strategic

8/20/2015 Product Manager’s Qualifications  MBA - vs.-Non-MBA  1/2 required  Several had internal training  MBA -vs.- Non-MBA  Experience more important  Consumer Product Companies  Small Companies  Industrial Sector From a Survey of Product Managers ( $500 Million - 15)

8/20/2015 Product Manager’s Critical Skills From a Survey of Product Managers ( $500 Million - 15) Organized  Organized  Efficient  Excellent Interpersonal Skills  Persuasive  Aware of Business Environment

8/20/2015 Product Manager’s Responsibilities  General Mgr. Responsibilities for Their Products  Profit & Loss  Market Share & Volume Targets  Marketing Planning  Planning Product Strategies  Implementing Strategies From a Survey of Product Managers ( $500 Million - 15)

8/20/2015 Marketing Organization  Product-Focused Organizations  Market-Focused Organizations  Functionally Focused Organizations  Marketing Organizations Implications of Global Marketing

8/20/2015 Product-Focused Organizations  Classic P&G Brand Structure (1930s)  Product Manager = “Mini CEO”  Assistant Product Manager  Associate Product Manager

8/20/2015 Market-Focused Organizations  Segments  Industry  Channels of Distribution  Geographic Regions  Significant Buyer Behavior Differences

8/20/2015 Functionally Focused Organizations  Aligned By Function  Most Marketing Orgs. Have Some  Coordinated Implementation

8/20/2015 Role of Sales Force  Part of the Marketing Mix  Separate from Marketing Organization  3 Structures  Product/Product  Product/Market  Market/Market

8/20/2015 Marketing Organization Implications of Global Marketing  Facilitate within Existing Structure  Change Tactics  Often Conflicts w/in Structure  Most Companies Evolve Into  Begin through Exporting  Strong Local Organizations Develop  Few Strong Centralized PM Systems Exist

8/20/2015 Changes Affecting Product Management  New Ways to Reach Customers  World Wide Web  Data Explosion  Geographic/Demographic Purchase Patterns  Market Share, Sales, Distribution  Increased Brand Value  90s Sales Promo & Price Discounts  Product Life Cycles Shortening

8/20/2015 Changes Affecting Product Management  Increased Power of Retailers  Category -vs.-Brand Perspective  business units  retailers organized with category mgrs.  Significant Spending on Sales Promo  90s Sales Promo Passes Advertising  Pricing and Value

8/20/2015 Impact of Change on Organizational Structure: Category Management  Customer Retention More Important  Focus on Lifetime Value of Customers  Increased Global Competition  Asia, India, Latin America