Us

Module 1
Introduction to Product
Management

PMCM5
PRODUCT MANAGEMENT

to your first module!

This module is a combination of

Face to Face & Synchronous learning
and will last for two week

C_Overview

REYNALDO N. SALVADOR
Instructor

No part of this module may be

reproduced in any form without prior
permission in writing from the
Instructor.

Feb 20, 2023

Date Initiated
March 4 , 2023
Date of Completion
 MODULE1: INTRODUCTION TO PRODUCT MANAGEMENT

TABLE OF CONTENTS

MODULE OUTLINE

Overview 3
Module Duration 3
Learning Objectives 3
Input Information 3
Learning Activities 3
Assessment/Evaluation 3
Assignment 3
Learning Resources 4

MODULE PROPER

Introduction 4
Product Management
Responsibilities of Product Manager 4
Differences Between Product Manager and Marketing Manager 5
Changes Affecting Product Manager 6
Marketing Organization
Product Focused Organization 7
Market Focused Organization 8
Functionally Focused Organization 9

INTRODUCTION TO PRODUCT MANAGEMENT

MODULE 1 OUTLINE

OVERVIEW

Basic task of a company is the marketing of its products and services. Product manager is an individual who have the primary
responsibility for its market success. The product manager’s job is becoming increasingly complex. This module focuses primarily on the
products managers’ task and will discuss the principles / tactical tools that marketers use to implement their product strategy.

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MODULE DURATION

I. Feb 20 to March 4, 2023- Face to Face Meeting and Synchronous Learning

II. For Synchronous learning inquiries, you may reach me through messenger group/ email message every Synchronous meeting
class schedule

LEARNING OBJECTIVES

After completing this module, you are expected to:

I. describe the task of the typical product manager;

II. classify the three marketing organizational structures that affects the task of a product manager; and
III. appreciate the value of understanding the basic principles of “product’ as marketing mix variable to product management

INPUT INFORMATION

Module 1 Introduction to Product Management

LEARNING ACTIVITIES - Individual Assignments #1

Make an online research. Choose one company in the Philippine and explain (each) in not less than 100 words how do
they organized their organizational structures:
1. Lucio Tan’s Philip Morris Fortune Tobacco
2. Henry Sy Group of Companies.
3. Gokongwei Group of Companies
4. Ayala Group / Ayala Land
Deadline of submission: to be adviced

ASSESSMENT/EVALUATION

I. Face to Face Test with time limit.

Long test l will be provided through a face to face. This is a face to face test with a time limit.

II. Synchronous Learning ; Individual Activity Below

MODULE1 PROPER:
INTRODUCTION TO PRODUCT MANAGEMENT

INTRODUCTION: Basic task of a company is the marketing of its products and services. Product manager is an individual who have
the primary responsibility for its market success. The product manager’s job is becoming increasingly complex. This module focuses
primarily on the products managers’ task and will discuss the principles / tactical tools that marketers use to implement their product
strategy.

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 ..

PRODUCT
▪ A product is anything that can be offered to a market to satisfy the needs and wants .The concept of product is not limited to
physical objects and can be include experiences, persons, places, organizations, information and ideas.
▪ A product is anything that can be offered to a market attention, acquisition, and that might satisfy a need or wants. It includes
physical objects, services, persons, places, organizations, and ideas, or mixes of these identities.
Examples: Physical objects, services, events, persons

SERVICE
▪ Service is a form of a product that consist of activities, benefits or satisfaction for sale that are essentially intangible
and do not results in the ownership of anything Ex. Dermatologist , hotels ,banking , spa, resort, airline.

1.0 PRODUCT MANAGEMENT

a. Product Management is (the role and function within an organization) responsible for a product's overall success. Product
Managers work with groups inside and outside of the company to build and execute a plan to make sure the product
best meets its financial and strategic goals.
b. It focuses on the job of managing the product’s largely or existing product and nature of decision making is tactical.
c. The major tasks facing product managers
▪ Analyzing the market
▪ Developing objectives and strategies for the product or service in question
▪ Marketing decision about price , advertising, promotions, channels of distribution and service

1.1 Product Manager Responsibilities

The tasks of a typical product manager vary from organization to organization. The kinds of task product managers perform
are highly related to how marketing is organized. Products manager’s primary responsibility is a product or a closely related
product line. The product manager has two responsibilities;

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 ▪ First: The product manager is responsible for the planning activities related to the product line. The product
manager’s job involves analyzing the markets, including customer, competitors, and the external environment and
turning this information into marketing objectives and strategies for the product.
▪ Second: The product manager must get the organization’s support to the marketing programs recommended for the
plan. This may involve coordinating with other areas of the firm such as research and development for product line
extensions, manufacturing, marketing research and finance. It also involves internal marketing of the product to obtain
the assistance and support of more senior managers of the firms.

1.2 Product Manager’s Potential Interaction

▪ Advertising Agency, Media, Promotion Services, Purchasing, Publicity, Sales, Market Research, Legal, Research
and Development, Manufacturing and Distribution Services, Packaging.

1.3 What are the differences between a product manager and a general marketing manager?
General Marketing Manager
Marketing manager in charge of a division or strategic business unit have more concern about managing “portfolios” of
products and about the long-term strategic direction of their business groups.
a. Divisional marketing managers typically make strategic decisions about which product to add or drop and manage to
meet an overall divisional financial objective.
b. Marketing managers are also concerned with short-run targets, but they more often take a longer -term perspective
of where the business is going.
Product Manager
● Products managers in our sense are in charge of a single product or a closely related product line, they are not
concerned on a day-to-day basis about the health of the general business area on which they operate.
● Products manager are involved in developing marketing objectives and strategies of their products, their key
decision are tactical and revolve around marketing mix ; how much to spend on advertising; how to reacts on
competitors coupon promotion which channels of distribution are appropriate
● Product manager and Marketing managers face different time horizons. Product managers face substantial pressure
to attain and hence focus on short-run market share ,volume, or profit targets

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2.0 Marketing Organization
Companies have used a variety of organizational forms for their marketing function. The kinds of task product managers
perform are highly related to how marketing is organized. Marketing organizational structures impacts financial performance.
They can easily penetrate different markets both local and global. The three organizational structures for marketing have
been identified: organizing by product, by market and by function.
▪ Product focused Organization
▪ Market Focused Organization
▪ Functional Focused organization
2.1 Product Focused Organizations
It is most often found in packed good industries- classic brand management structure, but it also exists in other industries. It
is commonly used where different products are distributed. In this structure the product manager acts as “mini CEO” taking
responsibility of the brand
Example
#1.Procter and Gamble, General Foods Corporations is a product focused organization
#2.General Motors in a massive reorganization in the mid -1990’s had division marketing general manager (e.g.Cadillac) as
well as a brand teams (e. g De Ville).The job of the brand team was to pay special attention to particular model and attempt
to develop a unique positioning for that model among the myriad number of GM Brand

Figure 2.1 Product-Focused Structure

Head of
Company /Division

Corporate
Manufacturing Marketing Finance
Communication

Product
Marketing
Management Support
Research

Manager of Manager of Manager of

Product A Product B Product C

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2.2 Market Focused Organizations
This structure defines marketing authority by market segments. Segments can be defined by industry, channel regions of the
country or the world or customer size. The market-focused structure is clearly useful when there are significant differences in
buyer behavior among marketing segments that lead to differences in the marketing strategies and tactics use to appeal to
them.
Example
# 1 Banks often defines their activities in terms of corporates versus consumer business, and within the corporate business
they often define markets segments in terms of customer size.
# 2 Levi Strauss re-organized its marketing organization in 1998 in order to focus on customer segments (the former
organization was functional) As part of their reorganization, the company named marketing managers in-charge of 15-24 year
olds (all Levi brand products), and young adults, 24-35 year old (Dockers and Slates Brands)
Figure 2.2 Market-Focused Structures

Head of the
Company /Division

Corporate
Manufacturing Marketing Finance
Communication

Manager Market A Manager Market B Manager Market C

.

2.3 Functionally Focused Organization

As opposed to the product-focused and, market-focused organization, functionally focused organization aligned themselves
by marketing functions such as advertising and sales promotion
Example
#1 Sales and marketing research are separate function. No single person is responsible for the day-to-day health of a product.
Marketing strategies are designed and implemented through the coordinated activities

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 Figure 2.3 Functionally -Focused Structures

Head of Company / Division

Corporate
Manufacturing Marketing Finance
Communication

Marketing
Product Marketing Advertising Sales Promotion
Research

Functionally Focused Organization Structure includes a sales department: human resource department, information
technology department , marketing department and a legal department.

3.0 Challenges Affecting Product Management

Product managers face many challenges in adapting to the changes in the marketing environment. Some of the challenges are as
follows:
▪ The Web is a new channel of distribution, a new communication medium, and a new way of creating a community of brand. The
web is a part of brand building ,and it affects many other facets of a products managers job
▪ The data explosion – effective marketing today requires sophisticated information management. The use of laptop computers
and fax machines means quicker transmission of competitor information and sales calls report from the field.
▪ The increased emphasis on brands- a brand once associated with quality becomes associated with low price and discounting.
A key term used by product managers is Brand equity.
▪ Changes in the balance of market power-today improvements in information technology and partnership between
manufacturers and sellers in developing measurement system have given both parties equal access to sales and market share
data.
▪ Increased importance of customer retention programs- companies are becoming very attuned to the life-time-value-of-a
customer concept, whereby one measures the value of a customer by the discounted stream of income from future purchases.

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 ▪ Increase global competition-product managers have to be equipped to deal with worldwide competition-not only by having
appropriate organizational structures but also by obtaining experience and knowledge about how a variety of cultures conduct
business.
Summary:
We characterize the products managers’ job by three distinct activities:
▪ Collecting and analyzing background product category data
▪ Utilizing the background analysis for marketing strategy development
▪ Implementing the marketing strategy through marketing mix and related decisions

Doing an excellent job of these activities does not guarantee a successful career in product management. The interpersonal,
activities of leadership, coordination, team building, and communications are becoming increasingly critical aspects of the job
and often determine a person rate of advancement in the company.

LEARNING RESOURCES
Book/E-book:
▪ Product Management 4th Ed. Donald R Lehman and Russel S. Winner,Mc Graw Hill
▪ Principles of Marketing ,2009 Ed, maria Victoria M. Ac-Ac ,Anvil Publishing
▪ Fundamental Marketing in the Philippine Setting,2nd Ed .Josiah Go, Chiqui Escaller-Go.Mansmith
▪ Marketing Management an Asian Perspective , Philip Kotler and Kevin Keller et al ,2019 Ed. Pearson

Online resources:

END OF MODULE 1 Introduction to Product Management

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College of Business and Accountancy
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 San Mateo Municipal College
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College of Business and Accountancy
Prepared by Reynaldo N. Salvador