Product Management

Product ManagementNimish DMarket PotentialA Precursor to Product StrategiesMarket PotentialPotentialThe maximum sales reasonably attainable under a given set of conditions within a specified period

ForecastAmount of sales expected to be achieved under a set of conditions within a specified period of time

QuotaSales expected to be achieved form an individual under a set of conditions within a specified period of timeRelated TermsArea PotentialDerived by breaking down sales in that area

Sales PotentialFirm Level Analogy for Market Potential. Most obvious approach to calculating sales potential is to multiply estimated potential of the market by market share.Market PotentialCan be used To make Entry Exit DecisionsTo Make Resource Level DecisionsTo Make location and other Resource Allocation DecisionsTo Set Objectives and Evaluate performanceAs an input for forecastDeriving Market Potential EstimatesCalculationSecondary DataSurveys /Primary DataPast Sales DataModel / Statistical MethodPotential EstimateJudgmentMethods of Estimating PotentialDetermine the potential buyers / users of the productDetermine how many are in each potential group of buyers defined by step1Estimate purchase or usage rateProduct StrategyBenefits of Product StrategyEnhances co-ordination among functional areas of the organizationDefines how resources will be allocatedLeads to superior market positionCharacteristics of Competitively sensitive StrategyIt is something a competitor cannot doIt is something a competitor will choose not to do Competitors will be at a disadvantage when they do it It causes us to gain if the competitor does it elements of Product StrategyStatement of Objectives

Selection of Strategic Alternatives

Selection of customer targets

Choice of competitor targets

Statement of Core strategy

Description of supporting marketing mix

Description of supporting functional programs Hierarchy of ObjectivesStrategic AlternativesIncreasing ProfitabilityDecreasing Inputs

Increasing OutputsPositioningSize/growth of the segmentOpportunities for obtaining competitive advantageResources available

Choice competitor targetSteps involved in PositioningIdentify alternate positioning themes by consulting the advertising account team

Screen alternatives according to- Relevance to customers- Feasibility for the firm- Competitively Sensitive- Helpful for meeting objectives

Select the position that best satisfies these criteria

ImplementationAssignment5 Groups Develop a product Strategy based on abovementioned methodTo be presented and analyzed by the classReferences Product Management Lehmann & Winer