1. CHAPTER 1: OVERVIEW AND INTRODUCTION TO PRODUCT MANAGEMENT

2. LEARNING OBJECTIVES:
After studying this chapter, you should be able to:
Understanding the principals of product management
Outlining the role of a product manager
Discussing the different approach of product management via the organizational structure
Highlighting the skills needed in managing a product
Discussing the challenges facing product management

3. CHAPTER OUTLINE Introduction A product manager’s potential interaction
Product Vs. General Marketing Management
Marketing Organization
Critical Skills in Product Management
Challenges Affecting Product Management

4. INTRODUCTION
The planning activities related to the management of product(s) or product line
Obtaining organizational support for the marketing plan

5. A PRODUCT MANAGER’S POTENTIAL INTERACTION
Manufacturing & distribution
R&D
Legal
Fiscal
Market Research
Sales
Publicity
Purchasing
Packaging
Promotion services
Advertising Agency
Media
Product Manager

6. PRODUCT Vs. GENERAL MARKETING MANAGEMENT
Product Management
General Marketing Management
Scope of Responsibility
Narrow: Single product or product line
Broad: Portfolio of products
Nature of Decision Making
Mainly tactical
Mainly strategic
Time Horizon
Short-run (often annual or shorter)
Long run

7. Marketing Organization: Product- Focused Organizations
Head of company/division
Manufacturing
Marketing
Marketing research
Product management
Manager of product A
Manager of product B
Manager of product C
Support
Finance
Corporate communications

8. Marketing Organization: Product- Focused Organizations
Advantages
Locus of responsibility is clear
Develop the ability to work with other areas in org.
Advocate for the product

9. Marketing Organization: Product- Focused Organizations
Weaknesses
Focus on one product
Removed from “where the action is”
Too myopic
In-bred competition (product cannibalization)

10. Marketing Organization: Market- Focused Organizations
Head of company/division
Manufacturing
Marketing
Manager, market A
Manager, market B
Manager, market C
Finance
Corporate communications

11. Marketing Organization: Market- Focused Organizations
Advantages
Focus on customer
Resource & knowledge sharing
Work well for “system” or bundle sale

12. Marketing Organization: Market- Focused Organizations
Weaknesses
Potential conflict within the product management structure
Locus of responsibility is ambiguous

13. Marketing Organization: Functionally Focused organizations
Head of company/division
Manufacturing
Marketing
Product marketing
Advertising
Sales promotion
Marketing research
Finance
Corporate communications

14. Marketing Organization: Functionally Focused organizations
Advantages
Administratively simple
Specialization
Well-coordinated

15. Marketing Organization: Functionally Focused organizations
Weaknesses
Who is ultimately responsible for the product?
Focused only on functional development

16. CRITICAL SKILLS IN PRODUCT MANAGEMENT
Negotiation
Teamwork
Communication skills
Analytical ability

17. CHANGES AFFECTING PRODUCT MANAGEMENT
Internet
Data explosion
Increased emphasis on brand equity
Changes in the balance of market power
Increased importance of customer retention programs
Global competition