Product

Anything that can be offered to a market to

satisfy a want or need.

1-1
 Five Product Levels
• Core benefit
• Basic product
• Expected product
• Augmented product
• Potential product

1-2
 Product Line Analysis
• Sales and profit analysis
• Market profile

1-3
 Product Line Strategies
• LINE STRECHING
• Down Market Stretch
• Up-Market Stretch
• Two-Way Stretch
• LINE FILLING
• LINE MODERNIZATION , FEATURING
• LINE PRUNING

1-4
 1

Introduction
To
Product Management

McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
A Product Manager’s Potential Interactions
Agency media department
Company media department
Suppliers Media sales reps
Advertis-
Trade Manufactur ing
-ing and agency Media
Suppliers Premium
distribution suppliers
Research Premium
and Promotion screening Store
development services testing Sampling
Couponing

Product Packagin
Legal
manager g

Designers
Purchasin Researchers
Fiscal g

Market Publicity Suppliers

research
Sales
Research
suppliers Trade

1-6
 Product-Focused Structure
Head of
company/division

Manufacturing Marketing Corporate

Finance
communications

Marketing Product
Support
Research management

Manager of Manager of Manager of

product A product B product C

1-7
 Adobe Systems Marketing Organization
Product
Sales Corporate
Development
Communications
& Marketing

Product Channel Public Trade

Marketing
Marketing Merchandising Relations Shows

- Specification
- Cross Product Programs - Channel Promotions - Organize Press Tours - Trade Shows
- Positioning
- Road Shows - Channel Advertising - Press Communications
- Pricing - Seminars - Coop Advertising - Editorial Opportunities
- Spokesperson - Third Party promotions
Internal & External - Events
- Promotions - Creative Services
- Advertising
- Product Strategy
- Product Analysis
- Anything Cross
Functional
- Keep communication
flow going

1-8
 GM’s New Organizational Structure
Ron Zarrella
VP & group executive, North American Operations

John Middlebrook Phil Guarascio Roy Roberts John Middlebrook William Lovejoy VP
VP & GM, vehicle VP & GM, advertis- VP & GM, field sales Support staff group & GM, service parts
brand marketing ing & corp. mktg. service & parts directors operations

Division marketing Regional general Service parts

general managers (6) manager(s) organization

Regional Regional
Brand services Regional Regional
Brand teams support divisional
managers service parts
manager marketing
manager manager
manager

Marketing area
managers

Area sales Area parts

Area service manager
manager manager

1-9
 Market-Focused Organization

Head of the
company/division

Corporate
Manufacturing Marketing Finance
communications

Manager, Manager, Manager,

market A market B market C

1-10
Marketing Organization: Regional Bell
Operating Company
Vice president, marketing

Assistant vice president, Assistant vice president, Assistant vice president,

consumer marketing business marketing interindustry marketing

Marketing planning and

Product management Carrier marketing
product development

Operations and sales Product management Operator services

Customer billing Operations

Revenue and
Directory products
market forecasting

1-11
Functionally-Focused Organization

Head of the
company/division

Corporate
Manufacturing Marketing Finance
communications

Product Sales Marketing

Advertising
marketing promotion research

1-12
Marketing Organization: Toy Manufacturer
Vice president,
marketing

Marketing
support

Advertising and
public relations

Publications

Consumer
administration

Merchandising

1-13
 Restructuring the Adaptive
Marketing Organization
Chief Marketing Officer

VP, Customer VP, Marketing VP, Experience

Management Technology Design

Director, Director,
Director, Director, Director, Creative Multimedia
Research Cohort 1 Cohort 2 Development Production

Director, Director, Director,

Director, Marketing
Customer Service Marketing Delivery Customer
Asset Management
Systems Systems Database

1-14
Changes Affecting Product Management

• The Web
• Data explosion
• Increased emphasis of brands
• Changes in the balance of market power
• Increased importance of customer retention
programs
• Increased global competition

1-15