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© 1993-2004 Pragmatic Marketing, Inc.

10410

The Strategic Role of Product ManagementPDMA of Orange County November 16, 2004

www.PragmaticMarketing.com – about our seminarswww.ProductMarketing.com – resource sitewww.ProductMarketing.com/eb – today’s downloads

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About Pragmatic Marketing, Inc.

We are recognized experts in technology product management and product marketingWe specialize in training and consultingSince 1993, we have trained over 25,000 people at thousands of companiesPragmatic Marketing certification program available


3

What we hear from executives

We are missing our targetsDevelopment can’t ship on scheduleSales can’t sell profitablyMarketing can’t communicate our value

There is too much fighting among the groupsWhat value does Product Management deliver?

4

What we hear from product managers

Give me access to customersTell us the strategy so that we can focus on what is importantA clear understanding of the role of Product Management is sorely needed


5

These are symptoms of lack of…

FocusTrustClear roles and responsibilities

6

Peter Drucker

The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.


7

What is a product?

A combination ofExecutablesDevicesExpertise

that solves a problem for a market segment.

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Are product managers the janitor or CEO of the product?


9

Responsibilities

What are the lines between Product Management and…

Development & ServicesMarketing CommunicationsSales Channel

Dev Sales

Marcom

ProductMgmt

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The new P’s

Product Managementfinds and quantifies the problem

Development & Servicessolve the problem

Marketing Communicationscommunicates the solution

Sales Channelsells it profitably

Product

Promotion

Placement

Problem


11

If product managers don’t do their jobs, the

other departments will fill the void.

12


13

TacticalStrategic

14

Market Analysis

Product Strategy

Program Strategy

Product Planning

Quantitative Analysis

Channel Support

SalesReadiness

Stra

tegi

c Tactical

LessTechnical

MoreTechnical


15

Pricing

Buy, Build or Partner

Operational Metrics

BusinessCase

SalesProcess

Thought Leaders

Market Requirements

MarketSizing

MarketingPlan

Product Roadmap

Awareness Plan

Market Research

Market Problems

Distinctive Competence

Product Performance

Customer Acquisition

Positioning

Customer Retention

LaunchPlan

Product Contract

Innovation

Market Messages

Channel Training

Win/Loss Analysis

Competitive Write-Up

EventSupport

Collateral & Sales Tools

Presentations & Demos

WhitePapers

User Personas

“Special”Calls

Release Milestones

AnswerDesk

Technology Assessment

Competitive Analysis

Lead Generation

Buyer Personas

Pragmatic Marketing® Framework

A market-driven model for managing

and marketing technology products

Market Analysis

Product Strategy

Program Strategy

Product Planning


Channel Support

SalesReadiness

Stra

tegi

c Tactical

16

Pricing


Operational Metrics

BusinessCase

SalesProcess

Thought Leaders

Market Requirements

MarketSizing

MarketingPlan

Product Roadmap

Awareness Plan

Market Research

Market Problems


Product Performance


Positioning

Customer Retention

Channel Training


EventSupport



WhitePapers

“Special”Calls

AnswerDesk

LaunchPlan

Product Contract

Innovation

Market Messages

Win/Loss Analysis

User Personas

Release Milestones



Lead Generation

Buyer Personas

Market Analysis

Product Strategy

Program Strategy

Product Planning


Channel Support

SalesReadiness

Stra

tegi

c Tactical


17




WhitePapers

AnswerDesk

Channel Training

EventSupport

“Special”Calls

Typical approach

Market Analysis

Product Strategy

Program Strategy

Product Planning


Channel Support

SalesReadiness

Stra

tegi

c Tactical

Pricing


Operational Metrics

BusinessCase

SalesProcess

Thought Leaders

Market Requirements

MarketSizing

MarketingPlan

Product Roadmap

Awareness Plan

Market Research

Market Problems


Product Performance


Positioning

Customer Retention

LaunchPlan

Product Contract

Innovation

Market Messages

Win/Loss Analysis

User Personas

Release Milestones



Lead Generation

Buyer Personas

Pricing

Product Roadmap

Operational Metrics

Lead Generation


Release Milestones

Pricing


Operational Metrics

BusinessCase

SalesProcess

Thought Leaders

Market Requirements

MarketSizing

MarketingPlan

Product Roadmap

Awareness Plan

Market Research

Market Problems


Product Performance


Positioning

Customer Retention

LaunchPlan

Product Contract

Innovation

Market Messages

Channel Training

Win/Loss Analysis


EventSupport



WhitePapers

User Personas

“Special”Calls

Release Milestones

AnswerDesk



Lead Generation

Buyer Personas

Market Analysis

Product Strategy

Program Strategy

Product Planning


Channel Support

SalesReadiness

Stra

tegi

c Tactical

Typical approach

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Kristen Lippincott, Curator, National Maritime Museum, Greenwich, England

There's a difference between being busy and being productive.


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LaunchPlan

Product Contract

Innovation

Market Messages

Channel Training

Win/Loss Analysis


EventSupport



WhitePapers

User Personas

“Special”Calls

Release Milestones

AnswerDesk



Lead Generation

Buyer Personas

Pricing


Operational Metrics

BusinessCase

SalesProcess

Thought Leaders

Market Requirements

MarketSizing

MarketingPlan

Product Roadmap

Awareness Plan

Market Research

Market Problems


Product Performance


Positioning

Customer Retention

BusinessCase

Market Problems


Market Analysis

Product Strategy

Program Strategy

Product Planning


Channel Support

SalesReadiness

Stra

tegi

c Tactical

20

LaunchPlan

Product Contract

Innovation

Market Messages

Channel Training

Win/Loss Analysis


EventSupport



WhitePapers

User Personas

“Special”Calls

Release Milestones

AnswerDesk



Lead Generation

Buyer Personas

PreferredApproach

Pricing


Operational Metrics

BusinessCase

SalesProcess

Thought Leaders

Market Requirements

MarketSizing

MarketingPlan

Product Roadmap

Awareness Plan

Market Research

Market Problems


Product Performance


Positioning

Customer Retention

Market Analysis

Product Strategy

Program Strategy

Product Planning


Channel Support

SalesReadiness

Stra

tegi

c Tactical


21

Pricing9,7


9,7Operational

Metrics8,1

BusinessCase8,5

SalesProcess

5,4

ThoughtLeaders

7,3

Market Requirements

9,1

MarketSizing

8,3

MarketingPlan7, 2

ProductRoadmap

9,5

AwarenessPlan4,1

MarketResearch

9,2Market

Problems10,1


10,1Product

Performance8,3


7,1

Positioning10,4

Customer Retention

7,3

LaunchPlan6,4

ProductContract

8,4

Innovation8,3

MarketMessages

6,3

ChannelTraining

5,4

Win/Loss Analysis

10,1


6,4

EventSupport

3,7


5,6Presentations

& Demos8,5

WhitePapers

6,6

User Personas

9,1“Special”

Calls3,6

Release Milestones

7,5Answer

Desk3,7


9,1Competitive

Analysis8,2

LeadGeneration

3,1

BuyerPersonas

6,1

Market Analysis

Product Strategy

Program Strategy

Product Planning


Channel Support

SalesReadiness

Stra

tegi

c Tactical

Gap analysis example

How important is the activity?

How well are you doing it?

22

Listen to the market


23

Your opinion, although interesting, is irrelevant.

24

Yogi Berra, American PhilosopherYou can observe a lot just by watching.

Adrian Slywotsky, “The Art of Profitability”

You’ll learn more by meeting a real, live customer and spending an hour with him than you can learn from fifty research studies or analysts’ reports.


25

Total addressable market

Product managers must know who is not shopping and why

Customers

Potentials

Evaluators

Ours Competitor1

Competitor2

Competitor3

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Market-driven prioritization

Quantified problemsto solve

GoalsPersonasMarket SegmentsDistinctive Competence

By listening to customers, evaluators, and potentials


27

The building is full of product experts.

Your company needs a market expert.

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CEO of the product


29

What the role is not…

Demo boyCopy writerSecretary to development

30

The role of Product Management

As companies grow, executives don’t have the bandwidth to manage the details of every productA market-driven product manager is the messenger for the marketIf you’re not going to be market-driven, you don’t need product managers. You merely need project managers and sales engineers


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Define profitable products

Understand company’s distinctive competence Know what is possible with technologyCollect and quantify market problems

Know your market better than they know themselvesCommunicate market problems to the organization

…using the grid

32

Requirements

Development

Positioning

Marcom

Product Manager

Sales Process

Sales

Messenger for the market

BusinessCase

Executives

Architect PMM SE


33

Action Plan

Do a gap analysis of product management at your companyAssess your own product management skills Sign up for the Pragmatic Marketing seminars

34

A market-driven model for managing

and marketing technology products

Market Requirements

Product Roadmap

Product Contract

User Personas

Release Milestones

Pricing


Operational Metrics

BusinessCase

SalesProcess

Thought Leaders

MarketSizing

Market Research

Market Problems


Product Performance

Positioning

InnovationWin/Loss Analysis



MarketingPlan

Awareness Plan


Customer Retention

LaunchPlan

Market Messages

Channel Training


EventSupport



WhitePapers

“Special”Calls

AnswerDesk

Lead Generation

Buyer Personas

Market Analysis

Product Strategy

Program Strategy

Product Planning


Channel Support

SalesReadiness

Stra

tegi

c Tactical

Effective Marketing Programs

Pragmatic Marketing® Seminars

Practical Product Management

Requirements That Work

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