Product management
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Product management is an organisational function within a company dealing with new product development, business justification, planning, verification, forecasting, pricing, product launch, and marketing of a product or products at all stages of the product lifecycle. Similarly, product lifecycle management (PLM)[1] integrates people, data, processes, and business systems. It provides product information for companies and their extended supply chain enterprise.
Overview[edit]
Product managers are responsible for managing a company's product line on a day-to-day basis. As a result, they are critical in both driving the firm's performance, and producing financial gains. They are in-charge of conceptualizing, planning, creating, advertising, and delivering products to their target market.
The role may consist of product development and product marketing, which are different (yet complementary) efforts, with the objective of maximizing sales revenues, market share, and profit margins. Product management is an active part of the initiation of a new product concept through to the readiness and commercial launch and sales of new products.
Product management drives the business case and justification to start new product development and has an active role throughout the steps, and or stages to develop, test, and launch a new product. Product management is also involved in product change and lifecycle decisions and planning. Product elimination can begin with the identification of candidates for a change in the lifecycle (in some cases due to a new product launch and therefore replacement; a lack of sales of a product and therefore a phase-out plan; or obsolescence in technology and therefore an immediate removal from sale).
This process then proceeds with a cross-functional plan to remove the product from active sale. The obsolescence plan will include a comprehensive view of the impact on the organization (inventory associated with the product, assets, and manufacturing/assembly resources associated with producing the products, active commercial agreements, service and support requirements, and marketing assets and areas to update and update).[2]
Tasks[edit]
The product manager is often responsible for analyzing market conditions and defining features or functions of a product and for overseeing the production of the product. The role of product management spans many activities from strategic to tactical, and varies based on the organizational structure of the company. To maximize the impact and benefits to an organization, Product Management must be an independent function separate on its own.[citation needed]
While involved with the entire product lifecycle, the product management's main focus is on driving new product development. According to the Product Development and Management Association (PDMA), superior and differentiated new products—ones that deliver unique benefits and superior value to the customer—are the number one driver of success and product profitability.[3]
Role of a product manager[edit]
Depending on the company size and history, product management has a variety of functions and roles. Sometimes there is a product manager, and sometimes the role of product manager is shared by other roles. Frequently there is Profit and Loss (P&L) responsibility as a key metric for evaluating product manager performance. In some companies, the product management function is the hub of many other activities around the product. In others, it is one of many things that need to happen to bring a product to market and actively monitor and manage it in-market. In very large companies, the product manager may have effective control over shipment decisions to customers, when system specifications are not being met.[4][5]
Product management in companies[edit]
Product management is typically divided into three parts: strategic product management, technical product management, and Go-To-Market (product marketing), which is illustrated in the Open Product Management Workflow model. In addition to the three-part division, this model shows which tasks and steps must be performed by product management in the course of a product cycle in order to produce an innovative and profitable product.
Inbound and outbound[edit]
The terms inbound (product marketing) and outbound (product marketing) functions are sometimes used.[6]
Inbound product management (also called inbound marketing) is the "radar" of the organization and involves absorbing information like customer research, competitive intelligence, industry analysis, trends, economic signals and competitive activity[7] as well as documenting requirements and setting product strategy.[8] In comparison, outbound activities are focused on distributing or pushing messages, training salespeople, go to market strategies and communicating messages through channels like advertising, PR and events.[7][8] In many organizations, the inbound and outbound functions are performed by the same person.[9]
Another way of looking at these activities is upstream and downstream product management, where "upstream" is referring to any activity that helps to define, create, or improve the product, while "downstream" refers to any activity that promotes the product.[10] This avoids the confusion with the term "inbound marketing" which nowadays clearly refers to a way of doing downstream product management, "making the product accessible", that is, making sure it can be found by suspects and prospects (compared to "outbound marketing", where the product is "pushed" in front of the suspect or prospect). The confusion stems mainly from the mix-up between the term "marketing" as a discipline, comprising Product Management, Marketing Communications, etc. and using the same term "marketing" as a synonym for "promotion" or "advertising", i.e. taking a product to the market (i.e. 'downstream').[citation needed]
See also[edit]
- Aggregate project plan
- Brand management
- Customer experience
- Marketing management
- Mass customization
- Product (business)
- Product lifecycle
- Product manager
- Product marketing
- Product planning
- Product differentiation
- Project management
- Requirements management
- Software product management
- Service product management
- Technology roadmap
- User experience
References[edit]
- ^ Kurkin, O.; Januška, M. (2010). Product Life Cycle in Digital factory [In Knowledge management and innovation: A business competitive edge perspective]. Cairo: International Business Information Management Association (IBIMA). pp. 1881–1886. ISBN 9780982148945.
- ^ Argouslidis, P.; Baltas, G. (2007). "Structure in product line management: The role of formalization in service elimination decisions". Journal of the Academy of Marketing Science. 35 (4): 475–491. doi:10.1007/s11747-006-0004-2. S2CID 167507527.
- ^ Kahn, Kenneth B. (Editor). The PDMA Handbook of New Product Development. Second Edition. Hoboken, NJ: John Wiley & Sons, 2005. ISBN 0-471-48524-1
- ^ Bavaro, Jackie; McDowell, Gayle Laakmann (2021). Cracking the PM career. Palo Alto, CA. ISBN 0984782893. OCLC 1239322919. foreword by Marissa Mayer
- ^ McDowell, Gayle Laakmann; Bavaro, Jackie (2013). Cracking the PM interview : how to land a product manager job in technology. Palo Alto, CA. ISBN 978-0-9847828-1-9. OCLC 866799668.
- ^ By Robert, Michael on Product Management and Marketing. Product Management & Product Marketing - A Definition Archived 2012-02-10 at the Wayback Machine." April 7, 2006. Retrieved March 1, 2012
- ^ a b By Steven Haines. "The Product Manager's Desk Reference." Published by McGraw Hill. Page 390.
- ^ a b By Scott Sehlhorst, Tyner Blain. "Foundation Series: Inbound and Outbound Product Management." January 18, 2007. Retrieved March 1, 2012.
- ^ By Tarquin Clark, Toolbox. "Which is more important, inbound or outbound product management?" September 12, 2011. Retrieved March 1, 2012.
- ^ Gorchels, Linda (2012). The Product Manager's Handbook. United States: McGraw-Hill. pp. 8–10. ISBN 978-0-07-177298-3.
External links[edit]
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The Wikibook Marketing has a page on the topic of: Product_Development |
- Wiki dedicated to Product Management Processes
Media related to Product management at Wikimedia Commons
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