Introduction to Product

Management
Today’s Agenda

 Role of the Product Management

 Organizational Structures
 Critical Skills of the Product Manager
 Changes affecting Product Mgmt.
 Overview of the Marketing Planning
Process
 Marketing Plan Assignment
Role of the PM
What Does A Product Manager
Do?
 JUGGLES
 Must manage agendas of all functional
groups while staying focused on key
brand/corporate objectives
 Marketer’s Job
Simplified

Planning

Internal Selling
Planning Activities

 Annual Business Plans

• Collect & Analyze product & category
data
• Use analysis to develop marketing
strategies
Internal Selling

 Coordinating with other areas of the

corporation to execute programs (ie
R&D, Graphics & Promotion, Research
etc)

 Keeping Senior Management informed

and supportive
 “The product manager has
broad/heavy responsibility but
virtually no authority per se (except
the “authority” that is derived from
the plans which have received
approval by senior management)
Organizational
Structures
Organizational Structures

 PM’s Job depends on how the

organization is structured
 We will explore 3 Organizational
structures;
1. Product-Focused Organizations
2. Market-Focused Organizations
3. Functionally Focused
Product-Focused Structure

 Product Manager Acts as a “mini-CEO”

 Takes responsibility for overall health of
a brand
 Well Defined Hierarchy exists (ie Group
product Manager, Brand manager, Assistant Brand
Manager)
Product-Focused Organization
 Advantages  Disadvantages
 Locus of  Inability to ask
responsibility is fundamental questions
clear (directly (too close)
accountable for  PM is may become
brand) somewhat removed
 Invaluable training & from the action in the
field
experience for PM
 Short-term focused
Market-Focused Organization

 Defines authority by Market segment

 Segments can be industry, channel,
regions of the country or customer size
 Useful when there are significant
differences in buyer behaviour among
the market segments
Market-Focused Organizations
 Advantages  Disadvantages
 Strong Customer  Does not give
Focus managers full
 Easier to get responsibility for
Product Managers products services
to ‘pull together’ (more coordination)
 Better knowledge of
 Lose ‘mini-CEO
company’s line of
products training’
Functionally-Focused
Organizations
 Align themselves by functions (ie Advertising,
Sales, merchandising)
 No Single person is responsible for the day-
to-day health of a brand
 CEO & Vice Presidents (VP’s) make
marketing strategy decisions
 Strategies are implemented through
discussion & coordination among functional
groups
Functionally-Focused
Organizations
 Advantages  Disadvantages
 Limited responsibility for
 Administratively
specific products
simple
 Conflicts b/w strategies
 Functional training is can only be resolved
strong through discussion –
 CEO & VP’s make time consuming
important strategy  Narrow scope of

decisions managers – limits

development
More Variables:
Industry & Size of Company
 High-tech Companies
– New Products
– Feedback via web
 Smaller Companies
– more execution
 Consumer Products Companies
– more research
– Evaluations on Profit & Loss
Product Management: Critical
Skills
 Teamwork
 Communication Skills
 Analytical Ability
Discussion Topic

What market trends are

impacting the role of the
Product Manger?
Category Management

 Driven by increased power by retailer

 Analysis of category to optimize product
mix
 Product are business units customized
on a store-by-store basis
 Impact on marketing organization
Marketing Planning

Process Overview
Exercise

 Get into groups of 4-5 people and

complete the 2 pages on Marketing
Plans handout
 Be prepared to share your answers with
the class