1 - Product Management

Product Management Overview

Definition of Product

• Product: A set of tangible and intangible attributes including:

  • Packaging

  • Color

  • Price

  • Manufacturer and retailer prestige

  • Services

• Products are seen as fulfilling consumer wants and needs (Stanton, William J.)

Marketing Perspective on Product

• Davar, Rustam S.: A product is a bundle of benefits offered to consumers.

• Kotler, Philip: A product can be anything offered to a market for attention, acquisition, use, or consumption, encompassing:

  • Physical objects

  • Services

  • Personalities

  • Places

  • Organizations

  • Ideas

Management Principles

Definition of Management

• A set of principles associated with:

  • Planning

  • Organizing

  • Directing

  • Controlling

• Effective management aims to harness resources (physical, financial, human, informational) to achieve organizational goals.

Product Management Role

• Product Management: Manages the lifecycle of products through:

  • Planning

  • Marketing

  • Forecasting

• Involves all stages of a product’s lifecycle.

Product Management vs. Product Marketing

Product Management Responsibilities

• Focuses on the planning of products and aligning product requirements with market demands.

• Collaborates closely with development and product marketing teams.

Product Marketing Responsibilities

• Customer and market-facing role

• Aligns product packaging and messaging with market demands.

• Defines key value propositions for sales and marketing.

Historical Context

Evolution of Product Management

• Modern product management started in 1931 with Neil H. McElroy’s memo at Procter & Gamble.

• The memo led to a brand-centric organizational structure and the establishment of the product manager role in FMCG (Fast-Moving Consumer Goods).

Key Figures

• Neil H. McElroy: Later became Secretary of Defense, indicating the significant impact of product management.

• Influenced notable entrepreneurs such as Bill Hewlett and David Packard.

Principles of Modern Brand Management

• Focus on understanding customer needs through the marketing mix: Product, Place, Price, Promotion.

• Emphasis on maximizing brand marketing alongside product development.

Lean Manufacturing Principles

Lean Practices Development

• The Toyota Production System developed by Taiichi Ohno and Eiji Toyoda emphasizes:

  • Continuous improvement (Kaizen)

  • Decision-making based on facts (Genchi Genbutsu)

Agile Manifesto Impact

• Introduced a new focus in product development towards customer collaboration and less on strict processes.

• Shifted relationship dynamics between product management and engineering teams.

Current Trends in Product Management

• Increasing recognition of product management as a standalone function with direct reporting to the CEO.

• Product management as a cross-functional role bridging various departments within an organization.

Role and Responsibilities of a Product Manager

• Follow up with sales, marketing, and customer service teams to address customer complaints.

• Conduct root cause analysis for reported issues.

• Coordinate with finance and legal teams.

• Develop customer requirement documents (CRD).

• Translate product strategy into planned work.

• Curate ideas that deliver value to customers.