PRODUCT MANAGEMENT AND

ITS INTERFACE WITH OTHER

ORGANIZATIONAL FUNCTIONS
PRODUCT MANAGEMENT INTERFACES WITH
OTHER FUNCTIONS IN THE FOLLOWING
MANNER:

1. IT IDENTIFIES A MARKET PROBLEM/ CUSTOMER NEEDS

• THIS MEANS THAT THE PRODUCT MANAGEMENT TEAM USES
METHODS AND TECHNIQUES THAT HELP IT TO IDENTIFY THE
PROBLEMS THAT THE CUSTOMER WOULD LIKE TO HAVE A
SOLUTION FOR. ONCE THEY IDENTIFY THIS, THEY CREATE A
PRODUCT THAT WILL RESOLVE THE PROBLEM OR SATISFY THAT
PARTICULAR CUSTOMER NEED.
PRODUCT MANAGEMENT INTERFACES WITH
OTHER FUNCTIONS IN THE FOLLOWING
MANNER:
2 . IT QUANTIFIES THE OPPORTUNITY
• ANY NEW PRODUCT DEVELOPMENT THAT WILL RESOLVE A
CUSTOMER PROBLEM WILL NEED A COMPANY‘S RESOURCES IN
TERMS OF TIME, PEOPLE AND MONEY. THE COMPANY‘S DECISION
TO INVEST IN THESE COSTS WILL DEPEND ON THE BUSINESS
OPPORTUNITY THAT COULD BE CREATED BY THIS PRODUCT. THE
RETURN ON INVESTMENT (ROI) MUST BE LARGE ENOUGH FOR
THEM TO MAKE SUFFICIENT PROFITS IN ORDER TO RECOVER THE
INITIAL INVESTMENT COSTS WITHIN THE BREAK- EVEN PERIOD
AND THEN CONVERT IT INTO A PROFIT MAKING PROPOSITION.
•  
PRODUCT MANAGEMENT INTERFACES WITH
OTHER FUNCTIONS IN THE FOLLOWING
MANNER:
3. IT COMMUNICATES THE MARKET OPPORTUNITY TO THE TOP
MANAGEMENT  
• SINCE ONLY THE TOP MANAGEMENT CAN COMMIT RESOURCES
FOR NEW PRODUCT DEVELOPMENT, THE PRODUCT MANAGEMENT
TEAM MUST PROVIDE THEM WITH THE BUSINESS RATIONALE FOR
FOLLOWING THE OPPORTUNITY AND GIVE THEM A BUSINESS PLAN
TO CONVINCE THEM TO COMMIT RESOURCES FOR RESEARCH AND
DEVELOPMENT.
PRODUCT MANAGEMENT INTERFACES WITH
OTHER FUNCTIONS IN THE FOLLOWING
MANNER:
4. IT COMMUNICATES WITH THE PRODUCT
DEVELOPMENT TEAM
• ONCE THE TOP MANAGEMENT HAS GIVEN THEIR APPROVAL
FOR DEVELOPMENT, THE PRODUCT DEVELOPMENT TEAM
MUST BE EXPLAINED WHAT THE MARKET REQUIREMENTS OF
THE FINISHED PRODUCT ARE SO THAT THEY ARE CLEAR
ABOUT WHAT THEY NEED TO DEVELOP.
 PRODUCT MANAGEMENT INTERFACES WITH
OTHER FUNCTIONS IN THE FOLLOWING
MANNER:
5 . IT COMMUNICATES TO ADVERTISING/ PROMOTION TEAM
• EACH PRODUCT IS POSITIONED FOR A SPECIFIC CATEGORY
OF CUSTOMERS. THE PROJECT MANAGEMENT TEAM SHARES
ITS VISION WITH THE PUBLICITY / SALES PROMOTION TEAM
GIVING THEM THE POSITIONING OF THE PRODUCT. E.G.: A
MARUTI 800 IS POSITIONED FOR A MIDDLE CLASS
CUSTOMER WHILE A HONDA ACCORD IS POSITIONED FOR
THE HIGH INCOME CUSTOMER. THEY TYPE OF ADVERTISING
COMMUNICATION FOR EACH TYPE OF CUSTOMER IS
DIFFERENT AND HENCE THE PRODUCT MANAGEMENT TEAM
MUST EXPLAIN THE POSITIONING TO THE ADVERTISING
TEAM SO THAT THE RIGHT COMMUNICATION CAN BE
GENERATED.
 PRODUCT MANAGEMENT INTERFACES WITH
OTHER FUNCTIONS IN THE FOLLOWING
6. IT EMPOWERS THE SALES TEAM
MANNER:
• THE SALES TEAM ALSO NEEDS TO
UNDERSTAND THE PRODUCT SO THAT THEY
CAN EFFECTIVELY SELL THE PRODUCT TO THE
CUSTOMER. THAT IS AGAIN THE
RESPONSIBILITY OF THE PROJECT
MANAGEMENT TEAM – TO DEFINE THE
SALES PROCESS AND IDENTIFY THE
NECESSARY SALES TOOLS TO SELL TO THE
CUSTOMER. A MARUTI 800 CUSTOMER WILL
FOCUS MOSTLY ON PRICE AND MAY
• NOT BE SO FEATURE CONSCIOUS WHILE THE
HONDA ACCORD CUSTOMER WILL FOCUS
MORE ON FEATURES, STYLING, AND
COMFORT. HENCE THE SELLING TOOLS FOR
LEARNING ACTIVITY:

1. HOW DOES PRODUCT MANAGEMENT FUNCTION

IMPACT MARKETING OF A PRODUCT?
2. HOW DOES THE TOP MANAGEMENT BENEFIT FROM A
SEPARATE PRODUCT MANAGEMENT TEAM?