NEW PRODUCT DEVELOPMENT & ROLE NEW PRODUCT DEVELOPMENT & ROLE OF OF PRODUCT

PRODUCT MANAGER MANAGER

Need

for a product management

skills and duties of a product manager

Qualities,

Tools for the Product Manager

NEED FOR A PRODUCT MANAGEMENT

Need to focus on various customer segment Easier targeting Enabling innovation Communication through Multi-channels Managing the product life cycle

PRODUCT MANAGER
Qualities & Skills

Duties & responsibilities

Excellent communication skills

1. 2. 3.

Adjusting the Marketing Mix Customer & the company Dealing with uncertainty Various dept. within the company Boundary spanning Product Manager

The company & the customers

Ability to manage Product Portfolio Ability to manage cross-functional coordination Persistent Learning Passionate about the Product

TOOLS FOR PRODUCT MANAGER

Customer interactions: 1. Listening to customers 2. Interaction with advanced users Access to knowledge regarding emerging trends: 1. Demographic & psychographic profiles 2. Political, social and technological changes 3. Changes in consumer behavior 4. Variations in competitive structure 5. Changes in distribution systems Product portfolio analysis models (like BCG Matrix, GEs nine cell model etc.) SWOT and Benchmarking

NEW PRODUCT STRATEGY

It requires careful analysis of various impact INDUSTRY ANALYSIS PORTER S 5 Ffactors ORCES that MODEL the industry. The factors are as follows:
Threat of new entrant

Bargaining power of suppliers

Competitors within Industry

Bargaining power of buyers

Threat of substitute products

OPTIONS FOR NEW PRODUCTS

Creating a new market New product in the existing market New product in new market Me-too product in the existing market

CONCEPTUALIZATION Procedure for conceptualizing new products

Idea generation process: - Brainstorming sessions - Interactive exercises Vetting procedure : In some org, top management takes high interest in it. (e.g.. E-choupal initiative) whereas some org. have a committee to vet the ideas.( Google follows similar method for new product ideas from its employees) Creating the culture: conceptualization never takes place until a suitable environment is created inside the org. Important issues regarding this are as follows: 1. Openness to new ideas 2. Fancies to be avoided by top management 3. Healthy inter-departmental interactions 4. Supportive environment

TESTING OF NEW PRODUCT

Sales force opinion Customer focus group interviews Surveys Experimental Methods 1. Test Marketing 2. Simulated Test Marketing Delphi Techniques

DEVELOPING NEW PRODUCT Following issues must be considered while developing new products
Customer

Engagement: collaborating customer in developing product.

Supportive Culture: financial and emotional commitment from top mngt. And support from all levels.

Collaborations: support and help across dept.

Progress: as product is developed for the 1st time so may face obstacles. Also some strategic decisions may be made during development phase may involve changes in original design requires monitoring mechanism
Monitoring