1. Introduction to Product
Management

2. Definition
Product refers to all kinds of physical
goods & intangible services that a
company offers to its customers

3. Product Levels
Core
product
Expected product
Augmented product
Potential Product

4. What’s a Product?
 Good
 Service
 Idea

5. Classifying Products
Consumer
vs.
Business

6. Categories of Products
Consumer Business/Industrial
 Convenience  Raw Materials
 Shopping  Processed Materials
 Specialty  Advanced
 Unsought Components
 Emergency  Product Components
 Maintenance, Repair
& Operating (MRO)
Products

7. Consumer Products
 Convenience
 Staples
 Impulse
 Emergency

8. Convenience Products
 Appeal to a very large market
segment
 Low involvement
 Consumed regularly
 Purchased frequently
 Examples -food, cleaning products,
personal care products, groceries etc.

9. Consumer Products
Shopping
Homogenous
Heterogeneous

10. Shopping Products
 Purchase & consume less frequently
than convenience products.
 Relatively more expensive than
convenience products
 High Involvement -spend more time
locating them
 Possess additional psychological benefits
– raise perceived status level
 Examples - apparels, personal services,
electronics & furnishings

11. Consumer Products
 Specialty

12. Specialty Products
 High price tag relative to
convenience & shopping products
 Consumption at the same rate as
shopping products but consumers
are much more selective

13. Consumer Products
 Unsought
 Emergency

14. Unsought Products
 Purchase is unplanned -result of
marketer’s actions.
 Purchase decisions occur when customer
is exposed to promotional activity, like
salesperson’s persuasion or incentives
like special discounts
 Promotional activities result in Impulse
Purchasing

15. Emergency Products
 Customer seeks these due to sudden
events
 Pre-purchase planning is not considered.
 Often the decision is one of convenience
(e.g., whatever works to fix a problem)
or personal fulfilment (e.g., perceived to
improve purchaser’s image)

16. Business Products
 Raw Materials
 Component Parts

17. Industrial Products –
Advanced Components
 Use basic components to produce
products that offer a significant function
needed within a larger product
 By itself an advanced component does
not stand alone as a final product
 Motherboard without memory chips,
microprocessor would have little value.

18. Product Component
 Products used in assembly of a
final product
 These can also function as stand
alone products.
 Dice included as part of a children’s
board game

19. Business Products
 Installations
 Accessory Equipment

20. Business Products
 Process Materials
 Supplies

21. Business Products
 Business Services

22. Maintenance, Repair & Operating
Products
 Products used to assist with the
operation of the organization but
are not directly used in producing
goods or services
 Office supplies, parts for a truck
fleet, natural gas to heat a factory

23. 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

24. Skills of a Product Manager
 Negotiation
 Team- work
 Communication
 Analytical Abilities

25. Responsibilities
 Planning activities related to the
product/product line
 Get organization support for the
marketing plans & co-ordinate with
R&D, Market Research, finance etc.

26. Challenges of Product Management
 Internet - Data Explosion
 Increased focus on building brands
 Changes in balance of market power
– from the manufacturer to product
to consumer being king
 Increased focus on customer
retention programs and customer life-
time value
 Increased global competition

27. Marketing Planning
A marketing plan is a written document
containing the guidelines for the
business center’s marketing plan &
allocations over the planning period

28. Objectives
 Define current situation and how we got
there
 Define Problems & Opportunities facing the
business
 Establish objectives
 Define strategies & programs necessary to
achieve these objectives
 Pinpoint responsibility for achieving
objectives
 Establish customer- competitor orientation

29. Types of Organizations
 Product Focused
 Market Focused
 Functionally Focused

30. 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

31. Product Focused
 Head of a Division – a profit center
 Product Managers report to Marketing
Managers
 Each Product Manager responsible for
a single product

32. Product Focused
 Advantages –
 Clarity of role & responsibility
 Responsible for success/failure
 Disadvantages-
 Narrow focus on product & bottom lines,
rather than customer needs
 Overlap calls to same customers for
different of responsibilities- sales force
duplicate products

33. 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

34. Market-Focused Organization
Head of the
company/division
Corporate
Manufacturing Marketing Finance
communications
Manager, Manager, Manager,
market A market B market C

35. Market Focused
 Market can be clearly segmented by
channel, industry, buyer behavior,
region, customer size
 Hierarchy - VP Marketing – Assistant
VP – Consumer marketing, AVP-
Business Marketing

36. Market Focused
 Advantages –
 Focus on Customer
 Managers have better knowledge of
company’s product lines
 Disadvantages-
• Profit focus is lost
• Financial responsibilities not clear
• Conflict between Product Managers

37. 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

38. Functionally-Focused Organization
Head of the
company/division
Corporate
Manufacturing Marketing Finance
communications
Product Sales Marketing
Advertising
marketing promotion research

39. Functionally Focused
 Head of Company/Division has the
Manufacturing, Marketing, Finance &
Corporate Communications reporting
in to him
 Marketing managers responsible for
Product, Advertising, Sales
Promotions & Market Research

40. Functionally Focused
 Advantages –
 Administratively simple
 Managers have better knowledge of their
functional areas
 Disadvantages-
• As company adds products –
increased co-ordination difficult
• Profit Focus is lost

41. Marketing Organization: Toy Manufacturer
Vice president,
marketing
Marketing
support
Advertising and
public relations
Publications
Consumer
administration
Merchandising

42. 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 Asset Customer Service Marketing Customer
Management Systems Delivery Systems Database

43. GM’s New Organizational Structure
Ron Zarrella
VP & group executive, North American Operations
John Middlebrook Phil Guarascio Roy Roberts
John Middlebrook William Lovejoy
VP & GM, vehicle VP & GM, advertis- VP & GM, field
Support staff group VP & GM, service
brand marketing ing & corp. mktg. sales service &
directors parts operations
parts
Division marketing
Regional general Service parts
general managers
manager(s) organization
(6)
Brand services Regional Regional
Regional Regional
Brand teams divisional
managers support service parts
manager marketing
manager manager
manager
Marketing area
managers
Area sales Area service Area parts
manager manager manager