Dr.

Rohit Vishal Kumar

Associate Professor

INTRODUCTION TO
PRODUCT
MANAGEMENT
What does a Product Manager do?
 The product manager is responsible for the planning
activities related to the product or the product line
◦ Analyse the market, customers, competitors, and external environment
◦ Convert these information into marketing objectives for the product

 Product manager must get the organisation to support the

marketing program recommended in the plan
◦ Internal marketing & coordinating with other areas of the firm for
support in meeting marketing objectives for the product
Difference from Marketing Management
Area Product Marketing
Management Management
Scope of Responsibility Narrow Broad
No of products handled Single product or product Multiple products or
line portfolio of products
Nature of Decision Making Mostly Tactical Mostly Strategic
Time Horizon Short Term Long Term
(often annual or shorter)
Focus on Market Share Where the business is
Volume / Profit going
TYPES OF MARKETING
ORGANISATION
Product Focussed Organisation
Head of Company / Division

Manufacturing Marketing Finance Corporate Communications

Marketing Research Product Management Support

Manager of Product A Manager of Product B Manager of Product C

Product Focussed Organisations
 Mostly found in packaged goods industries
◦ Common when different products use same channel of distribution
 Product manager is the “mini-CEO”
◦ Takes responsibility for the overall health of the product
◦ Locus of responsibility is clear
◦ Product manager coordinates with other areas of the organisation
◦ Provides overall competency in managing business

 Can lead to product myopia

◦ Inability to step back and focus on customer needs
◦ Focus on quarterly / annual sales results
◦ Excessive use of short term tools like sales promotion
◦ Customer irritation (too many sales-person from the same company
approaching customer for sales)
Market Focussed Organisation
Head of Company / Division

Manufacturing Marketing Finance Corporate Communications

Manager Manager Manager

Market - A Market - B Market - C
Market Focussed Organisations
 Used when market segments can be sharply defined
◦ Common in banks (Retail / Corporate), electronics etc
 Focus is on the customers
◦ Difference in buyer characteristics clearly understood
◦ Difference in marketing strategies and tactics segment-wise
◦ Provides agility to modify / change / eliminate offerings based on
changing customer needs

 Managers are mostly coordinators

◦ Low stake of managers in planning for the market
◦ Lack of ownership and empathy
Functionally Focussed Organisation
Head of Company / Division

Manufacturing Marketing Finance Corporate Communications

Product Marketing Advertising Sales Promotion Research

Functionally Focussed Organisations
 Usually found in small / start-up companies
 Strategies implemented through discussion and coordination
◦ Works well as long as the number of products are few (2-3)
◦ As the number of products increases, coordination falls and confusion
increases
 The structure is simple to administer
 Who is responsible for the product?
PRODUCT
MANAGEMENT: THEN
AND NOW
Skills needed for Product Management
 Negotiation Skills
 Teamwork
Always needed
 Communication
 Analytical Skills

 Understanding of the Internet

 Manage the explosive growth of data
 Increased emphasis on brands
 Change in market power Due to Changes in
the Marketplace
◦ Previously manufacturer had the upper hand
◦ Now retailers (and consumers) have the upper hand
 Customer retention skills
Market Development Organisations
 “Market Development” Organisation
◦ Pioneered by P&G in 1999
◦ Brands / Products are organised into geographically / ethnically based
consumer business
◦ To allow sales teams to develop co-marketing program with retailers,
banks, etc for increased sales
◦ Example: In Philippines P&G ventured with banks to give low interest
credit cards to customers

 Disadvantages:
◦ Leads to extreme fragmentation of marketing programs
◦ Ill suited for internet marketing environment
Category Management
 Category Management
◦ “A process that considers product categories to be business units that
should be customised on a store by store basis in a way that satisfies
customers needs”
◦ Category Managers are normally empowered to operate their
categories as separate business.

 Changes in outlook:
◦ Traditionally a product manager developed marketing strategies for
his/her own product but with the development of “Category
Management” they have to look at retailers as key success partners
◦ Dual Objectives: Self as well as the retailers
◦ Sales force has to understand the customer as well as the retailer
(CMAR: Consumer Marketing at Retail)
THANK YOU

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