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.