Topic 1

Introduction to
Product Management
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Topic Overview
What does a product manager do?
Product management skills
Changes affecting product management

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 What is a product?
Levels of a product (Lehmann & Winer, 2010)
Core The benefits the customer gets from the consumption of the product

Actual The characteristics of the product that carries the core benefits when
consumed by consumers
• Product attributes (quality, features, style, design)
• Branding (attractive names, image)
• Packaging and labeling
Augmented Supporting product or services that enhances the usage of the actual
product

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 Source: Kotler & Armstrong, 2016;
Types of End Products Lehmann & Winer, 2010

Convenience Shopping Specialty Unsought

Price Relatively affordable Relatively Expensive Varies
expensive
Distribution Intensively distributed Selectively Exclusively distributed per Varies
distributed market area
Promotion Mass promotion Brand comparison Focusing on brand equity Focusing on extensive
selling effort
Purchasing Frequently purchased Occasionally Seldom purchase, strong brand Will not purchase unless
Behavior purchased preference and loyalty, special attracted by extensive
purchase efforts, little selling efforts
comparison of brands, will pay
effort to get

Examples Groceries Electrical Limited edition luxury goods, Blood donations,

appliances, special function camera, limited insurance policy,
apparel production of wine memorial services

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 Stages of Individual Product Decision

Product Support
Branding Packaging Labeling
Attributes Services

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 What is Product Management?
Product Management General Marketing
Management
Scope of Responsibilities Narrow : single product or Broad: Portfolio of products
product line
Nature of Decision Making Time Mainly tactical Mainly strategic long run
Horizon Short-run ( often annually or
shorter)

Source: Lehmann & Winer, 2010

How shall we define Product Management?

Product Management can be defined as the management of specific product or service to increase
the product’s contribution from current & potential markets. (Lehman & Winer, 2010)

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Source: Lehmann & Winer,
7 2010
How Business Organizations Handle Product
Management
1. Product-Focused structure
2. Market-Focused organization
3. Functionally-Focused organization

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1. Product-Focused Structure

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Example: Adobe Systems Marketing
Organization

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Source: Lehmann et al., 2005
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2. Market-Focused Organization

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Example: Marketing Organization – Regional
Bell Operating Company

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3. Functionally-Focused Organization

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 Changes Affecting Product Management
(1/4)
• The Web/Social Media/Mobile app
new channel of distribution
new communication medium
new way to create community around a brand
new way of brand building that affect PM’s job
integrating internet/mobile app and social media in the marketing plan
focus on users’ experience on product(s)
micro-moments/hyper local marketing

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 Changes Affecting Product Management
(2/4)
• Data explosion and data analytics
• sophisticated data management system, timely information needed, better
way of analyze customers' data to capture and to understand and retain
customers.

• Increased emphasis of brands

• the value of brand (equity) requires consistent investment for maintenance
and enhancement on product attributes
• brand image and continuously investment to engage customers. Need to have
presence in social media such as Facebook, Tik Tok and others where the
target segments are
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 Changes Affecting Product Management
(3/4)
• Changes in the balance of market power
 manufacturer and retailers’ relationships; retailers are also a customer to
manufacturers
 retailers having better information on end-consumers
E.g : Walmart pricing power pressures on manufacturers

• Increased importance of customer retention programs

 lifetime-value-of-a-customer concept
more attention to customer satisfaction and service
reducing switching behaviors and retaining is cheaper than acquired new
customer (x5)
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 Changes Affecting Product Management
(4/4)
• Increased global and local small business competition
a variety of purchasing behaviors, trade blocks, cheaper costs
• Mobile app and shopping
need to consider mobile app has the search and purchase over mobile devices
have been growing up
investment and skills to identify what’s best to keep customers happy and stay
• Need to continuously explore better target mobile customers with tools
such as QR code and mobile payments that are favored by target
customers

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 Product Marketing Plan
• Product manager’s key responsibility is to develop marketing plan
• 90% of marketing activities engage in planning

Two major parts of a product marketing plan:

 Situation analysis
Action Plan

“A marketing plan is a written document containing the guidelines for the

business center’s marketing programs and allocations over the planning
period.” - Lehmann & Winer, 2010
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Time Horizons for Marketing Plans

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 Objectives of A Product Marketing Plan
Define the current business Pinpoint responsibility for
situation. achieving product objectives.
Define problems and Encourage careful and disciplined
opportunities facing the business. thinking.
Establish objectives. Establish a customer/competitor
Define the strategies and orientation
programs necessary to achieve
the objectives.

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 Frequent Mistakes in the Planning Process
• The speed of the process • Not using the plan as a sales
• The amount of data collected document
• Who does the planning? • Insufficient senior management
leadership
• The structure
• Not tying compensation to
• Length of the plan successful planning efforts
• Number of courses of action • Frequency of planning
considered
• Who sees the plan?

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 Contents of a Product Marketing Plan
I. Executive summary III. Objectives
II. Situation analysis IV. Product/brand strategy
A. Category/competitor V. Supporting marketing programs
definition
VI. Financial documents
B. Category analysis
VII. Monitors and controls
C. Company and competitor
analysis VIII. Contingency plans
D. Customer analysis
E. Planning assumptions

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24
Topic Overview
What does a product manager do?
Product management skills
Changes affecting product management

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 Tutorial 1 (1of2)
1. Define product and its scope. Cite the source of definition.
2. Define Product Line and illustrate your answer with an example.
3. Give an example of a product and product line for each of the following and
justify your answer.
i) Electronic industry
ii) FMCG (fast moving consumer goods)
iii) Education products: course offered by a private university
4. Distinguish between product and brand.
5. Discuss the challenges facing by a product manager.
6. Discuss how a product manager capitalizes social media and mobile apps in
product management.
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 Tutorial 1 (2of2)
7. Given the fact that a product manager of a company needs to deal with a lot
of people of various expertise within company and outside company, suggest
the skills a product manager should have.
8. PM is an important role. Discuss the key components of a product manager.

9. As a PM who is assigned to market a new shampoo in Malaysia, what are your

key responsibilities?
10: Identify the levels of product for the following:
• 2-in-1 Nescafe instant coffee powder
• Himalaya anti-dandruff shampoo
• Sunlight dishwashing liquid
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