Chapter 9 Flashcards
Product management
Product management is defined as the organisational structure within a business that manages the development, marketing and sale of a product throughout the product life cycle.
- Product Manager
We can infer from this definition that it is the responsibility of a product manager to oversee the conception of a product idea, ensure that the product is available for the market and provide support activities for the product, namely pre- and post sales services.
- As a function
Product management is an organisational function in a company dealing with the planning, forecasting and marketing of a product during all stages of the PLC.
The key to product management is to understand the product characteristics, their impact on developing product strategies, forecasting sales and marketing the product.
Product management regarding the seven Ps (place, price, promotion, product, process, people and physical evidence)
- Planning and marketing
There are key decisions relating to product management regarding the seven Ps (place, price, promotion, product, process, people and physical evidence).
These key decision areas are important in managing a product effectively.
Planning and marketing are involved in each of these decision areas.
PLACE
Planning and marketing decisions on place concern the area in which the products will be offered (eg as part of product management). The place where a product is sold should communicate the quality offered. For example, if you were to buy a Dolce & Gabbana perfume in a shop in Marabastad, you would probably question whether it is an original product.
PRICE
The price of the product should be determined and should account for all expenses from manufacturing to packaging the product.
PRODUCT
Product in terms of size, packaging and channel members to carry the product.
PROMOTION
Promotion is also a factor to consider when
making decisions in terms of advertising the product
PEOPLE
The concept of people refers to the employees of the intermediaries – for example, Edgars staff selling Clinique products
PROCESSES
Physical evidence would refer to the display layout in Edgars.
The product planning aspect
The product planning aspect of product management is characterised by identifying new product target markets and conducting marketing research to determine the features to use on the product and determine whether or not it is feasible from a business perspective
Implementation
Implementation, however, involves operationalising the actual production of the product, working towards achieving the set objectives according to the timeframe set for each stage of development. It is during this stage that the actual product is manufactured
The control phase
The control phase is characterised by evaluating whether the objectives set have been achieved such as having manufactured the specific package shape for the product to see if there is any need for changes (eg redesigning the packaging).
Product manager
A product manager serves as the leader of a cross-functional team.
We mentioned in the introduction to product development that product management is performed by a multi-disciplinary team.
The crucial role that the product manager fulfils is to lead, coordinate and supervise production to achieve the goal.
He or she is accountable for everything, from launching the product to managing it throughout its life cycle.
The role of the product manager involves
defining and planning product lines and product enhancements
managing product contracts and sales
setting strategic direction on the basis of customer needs and business goals
translating strategic goals into operational tasks
making proposals to senior management about implications of proposed plans
proposing contingency plans
serving as a representative to internal and external clients
branding the product and defining its features
working with graphic designers to create product aesthetics
developing and implementing administrative and operational matter to ensure the
achievement of objectives and proposing contingency plans
Skills of a product manager
An effective product manager should have marketing and communication skills. Another vital skill is time management and sense of what tasks are important, because certain tasks are critical to product success. An efficient product manager should have analytical skills, initiative and the ability to synthesise information.
Importance of a product manger
Take note of the position of a product manager in an organogram indicating his or her position. The responsibility of a product manager in an organisation is to manage a team and also be part of it.
A product manager establishes appropriate goals which he or she plans and manages the team towards achieving the goals.
The product manager also anticipates problems and issues and proactively drives the process of resolving them.
As mentioned earlier, the product manager is initiator of and driving force behind the success of a product launch.
Developments in the evolution of product
management
Product management is rapidly evolving because of advancements in technology.
These technological changes warrant continual improvement in the management of products. This means that the product manager can use some of the technologies that already exist such as bar coding, which makes it easier to monitor the quantity of products supplied to intermediaries.
Technological advancement also has implications for the management of the various phases of a product’s life span.
Trends in product management
In the last decade, product life cycle management (PLM) has become one of the key technological and organisational approaches and enablers for the effective management of product development and product creation processes.
The trend in product management is to develop quality and better products that meet consumer needs, including improvements in the quality of their lifestyle.
