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Table of Contents

Chapter 1: What is Product Management

1.1. What are the major areas of product management?
1.2. Product management’s strategic function
1.3. What is the Product Management Process?
1.4. The People of Product Management
1.5. Product Management Jobs
1.6. Agile product managers
1.7. The Product Executive Track
1.8. What are the Most Important Product Management Skills?

Chapter 2: Team structure for Product Management

2.1. Introduction
2.2. Jack of All Roles, Master of
None 2.3.Breaking It Down
2.4. Product Management Team Model
2.5. Odd Couple(s)
2.6. Essential Product Team Roles and Activities

Chapter 3 - Product Definition Team

3.1 Introduction
3.2. Market Requirements
3.3. Product Frames Model
3.4. Product Definition Foundation Documents
3.5. Product Definition Team Model
3.6. Product Delivery Process
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Chapter 4: Product Market Requirements

4.1. Introduction
4.2. Customer Insights
4.3. Market Requirements Document
4.4. Procedural Requirements Management Model
4.5. Instructions or Directions
4.6. Limitations and Boundaries
4.7. Rationales and Origins
4.8. The Six C’s of a Market Requirement

Chapter 5: Financial understanding for Product

Management
5.1 Overview
5.2 Sales Analysis
5.3 Overview
5.4 The Value of Sales Analysis
5.4 Roadblocks
5.5 Profitability Analysis
5.6 Conventional Product Profit Accounting
5.7 Alternative Accounting Systems
5.8 Contribution-Oriented Systems
5.9 Using the Contribution Margin Rate
5.10 Fixed Costs
5.11 A Strategic Framework for Control
5.12 Price–Quantity Decomposition
5.13 Penetration–Market Size Decomposition
5.14 Summary
5.15 Capital Budgeting
5.16 Overview
5.17 The Basics

Chapter 6: Marketing Understanding for Product

Management
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6.1. Introduction
6.2. Business Domains
6.3. Marketing Domain
6.4. Marketing Domain Disciplines
6.5. Marketing Model
6.6. Product Marketing Methods
6.7 Corporate Marketing Methods
6.8. Marketing Communications Methods
6.9 Corporate Organizational Structures
6.10. Marketing and Strategies
6.11. Marketing and Plans

Chapter :7 Value concept

7.1. Introduction
7.2. Value Formula Scale
7.3. Value Concept Application
7.4. Internal Value Marketing Dynamics
7.5. External Value Marketing Dynamics
7.6. Creating Superior Perceived Value
7.7. Product Marketing Messages
7.8. Value Messages’ Foundational Knowledge
7.9. PMTK Market Messaging Model
7.10. PMTK Marketing Messages Model and Plan
7.11. Summary

Chapter 8: Product Life Cycle Stages

8.1 Introduction
8.2 Product Life Cycle Model Assumptions
8.3 Product Life Cycle Model Stages
8.4 Reasons for Extending the PLC
8.5 Strategies for Extending the PLC
8.6 Product Marketing Strategies for Extending the PLC
8.7 Strategy Application within the PLC Model
8.8 Limitations of the PLC Model
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PART II: Product Ideation, Designing and

Management

Chapter : 9 Create Product Vision

9.1. Introduction
9.2. Five Big Steps Towards A Product Vision
9.3. Product vision statement format
9.4. How your product vision statement fits into the larger
product strategy
9.5. What makes a great product vision?
9.6. How to create a meaningful product vision
9.7. Outline the product's unique value proposition
9.8. Empathize with your users
9.9. Review and update the product vision statement as needed
9.10. Product vision template
9.11. Effective team management

Chapter 10 - Goals, Objectives And Key Results

10.1. Introducing objectives and key results
10.2. What are OKRs in Product Management?
10.3. What are OKRs
10.5. How to Set OKRs
10.6. An example of OKRs for Product Teams
10.7. When to use OKRs in Product Management
10.8. OKRs in action

Chapter 11 - How to use Product Analytics

11.1. What Is Product Analytics?
11.2. Is Product Analytics The Same As Marketing Analytics?
11.3. Why Is Product Analytics Important?
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11.4 Builds Better Customer Relationships

11.5. Who Benefits Most From Product Analytics?
11.6. How To Take Advantage Of Product Analytics?
11.7. Types Of Product Analytics Metrics To Track

Chapter : 12 How to build Effective Product

Roadmaps
12.1 What is a product roadmap?
12.2 Why is a product roadmap important?
12.3 Who is responsible for the product roadmap?
12.4 How Your Roadmap Will Evolve as Your Product Matures
12.5 How to plan security and technical debt on your roadmap?
12.6 How do you prioritize features for the product roadmap?
12.7 How to create a product roadmap?
12.8. Best practices for the best roadmaps

Chapter 13 : Launching Product in the market

13.1. What is a Go-to-Market Strategy?
13.2. Why Should a Product Team Use the Go-to-Market
Strategy Framework?
13.3 What Details Should Be Included in a Go-to-Market Strategy?
13.4 Who is in Charge of a Company’s Go-to-Market Strategy?
13.5. 6 Key Factors Contributing to Your Products Success
13.6. Steps to Creating Your Go To Market Strategy

Chapter 14 : Good to Great Product Manager

14.1 Introduction
14.2 Product manager background
14.3 Product manager skills
14.4 Product manager’s skillset
14.5 What Makes a Great Product Manager?
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Chapter 15: Inbound and Outbound product

Management strategies
15.1 Inbound vs Outbound Product: Understanding the
Key Differences and Strategies
15.2 Inbound Product Marketing: The Basics
15.3 Outbound Product Marketing: The Basics
15.4 Strategies for Inbound Product Marketing Success
15.5 Strategies for Outbound Product Marketing Success
15.6 Inbound Product Management vs Outbound
Product Management
15.7 Conclusion

Chapter 16: Tools for Product Managers

16.1. Introduction
16.2. Why do we use product management tools
16.3. Product development tools and techniques
16.4. What tools should a product manager know
16.5. Agile product management tools
16.6. Conclusion
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Chapter 1: What is Product Management

Product management is the process of strategically directing and

planning every stage of the product lifecycle—from research and
development to testing and positioning—to build technically feasible
products that fulfill both user needs and business objectives.

A famous quote by PM guru Martin Eriksson, “product management is

what happens at the intersection between business, technology, and
user experience.”

In short: Product managers (PMs) serve as the bridge between the

market's needs and the teams that design, develop, and support the
product. They ensure that the product not only meets market
demands but also aligns with the company’s goals and resources.

Let’s break it down with a practical example: Imagine a company that

wants to develop a new personal finance app (fintech product). Here’s
how product management comes into play:

Market Research: Before any development starts, the PM would

conduct market research to identify potential users' needs, pain
points, and what features they might value in a personal finance app.
This could involve surveys, interviews, or analyzing data from
existing products.
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Product Strategy: Based on the research, the PM develops a product

strategy. This includes defining the target audience, setting product
goals, and deciding on key features that will differentiate the app from
competitors. The strategy will guide what the product should achieve
and how it will compete in the market.

Roadmap Planning: The PM then outlines a product roadmap, which

is a high-level, strategic visual summary that maps out the vision and
direction of the product offering over time. The roadmap will detail
what features will be developed and when they are expected to be
released.

Cross-functional Leadership: Throughout the development process,

the PM coordinates with engineering, design, marketing, sales, and
customer support teams. They ensure that everyone understands the
product vision and priorities, and they manage any changes in scope
or direction.

Launch and Beyond: When the product is ready, the PM oversees the
launch strategies and execution, working closely with marketing to
ensure the product reaches its target audience effectively. After
launch, they gather user feedback, monitor product performance, and
iterate on the product to improve it, add new features, or fix any
issues.

Product Management is about understanding what to build and why to

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build it. It requires a blend of business acumen, technical knowledge,

customer empathy, and leadership skills to guide the product to
success in the market.

1.1. Major areas of product management?

As you can see, product management covers a lot of ground, but

there are four main categories that can be used to break everything

down:
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● Customer-focused product management

This aspect of product management emphasizes the customer
experience and how the product best serves the customer.
Storytelling, marketing, customer support, and sales will be
especially important for managers in this area.
● Business-focused product management
With a focus on business, a product manager will also likely
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have a background in sales and understand the funding,

development, and improvement stages and their impact on
your business. They should know the market in and out,
understand competitors, and should specialize in product
positioning in their specific industry.
● Engineering/technology-focused product management
This side of product management is in the weeds with the
product, how itʼs developed, and how it runs. A manager that
focuses on these aspects will be more familiar with IT or
software engineering so that they better understand what it
does for the customers.
● Design-focused product management
These managers focus on the internal efforts of product
management by understanding the product's design and the
consumer's user experience. How easy it is to use, the
interface, and the functionality are the main priorities of this
type of product management.

1.2. Product management’s strategic function

Product management is a strategic function. Tasking product

managers with determining a productʼs overall reason for being—the
productʼs “Why?”

Theyʼre also responsible for communicating product objectives and

plans for the rest of the company. They must ensure everyone is
working toward a shared organizational goal.
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Product management encompasses a broad set of ongoing strategic

responsibilities. They shouldnʼt be responsible for the ground-level
details of the development process.

Innovative organizations separate this function and assign tactical

elements to project managers, such as scheduling and managing
workloads. This distinct division leaves the product manager free to
focus on the higher-level strategy.
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Let's consider a practical example involving the launch of an educational

technology (edtech) platform aimed at high school students:

Vision and Market Needs

A product manager at an edtech company identifies a gap in the market for
personalized learning experiences for high school students preparing for
college entrance exams. The strategic vision is to develop a platform that
not only offers practice tests but also uses AI to adapt to each student's
learning style and progress, providing personalized study plans and
recommendations.

Goal Setting
The product manager sets specific, measurable goals for the platform:

To onboard 100,000 users within the first year.

To achieve a user satisfaction rating of at least 4.5 out of 5.
To increase the average test scores of users by at least 15%.
Resource Allocation
To achieve these goals, the product manager must decide how to allocate
resources effectively:

Prioritizing the development of the AI personalization engine, recognizing

that this feature is a key differentiator from competitors.
Allocating budget towards marketing efforts that target both students and
their parents, using channels most likely to reach these demographics.
Deciding to initially launch in areas with a high concentration of high
school students preparing for college entrance exams to maximize impact
and feedback.

Cross-functional Leadership
The product manager collaborates with different teams across the company:

Working with the engineering team to define requirements for the AI

features and ensure they are feasible within the desired timeline.
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Coordinating with the marketing team to develop a go-to-market strategy

that includes educational content, social media campaigns, and
partnerships with schools.
Engaging with the customer support team to prepare them for the types of
questions and feedback they might receive from users, ensuring they can
provide effective support.

Measuring Success and Iterating

After the launch, the product manager monitors the platform's performance
against the set goals, using metrics such as user growth, satisfaction ratings,
and improvement in test scores. They also gather user feedback to identify
areas for improvement and new features to develop. Based on this data, the
product manager adjusts the strategy and roadmap as needed, such as by
enhancing the AI engine or introducing new study materials for subjects
where users are requesting more support.

This example illustrates how product management's strategic function is

essential for guiding a product from concept to launch and beyond. By
setting a clear vision, defining goals, allocating resources wisely, and
adapting based on performance and feedback, the product manager ensures
that the edtech platform not only meets the needs of its target market but
also contributes to the company's overall success.

1.3. What is the Product Management Process?

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There is no single “right” way to manage a product. Processes will

evolve and adapt to the organization, the product lifecycle stage, and
product team membersʼ and executivesʼ personal preferences.

But the discipline has developed some consensus regarding best

practices.

So while rigid adherence isnʼt required and there isnʼt the same level
of zealotry as one might find when discussing Agile, the basic tenets
are widely accepted.

Defining the problem

It all begins with identifying a high-value customer pain point, the

pain point which if your product solves will be highly valuable to the
customer. That can be, people or organizations are trying to do
something, and they canʼt. Or, if they can, itʼs expensive or
time-consuming or resource-intensive or inefficient, or just
unpleasant.

Whether itʼs moving a person or thing from Point A to Point B (Uber),

keeping people entertained(Netflix), or Helping organisation
management their customers (CRM), some other objective, whatʼs
currently available Product isnʼt doing. People want something better
or something they donʼt have at all.

Product management turns these abstract complaints, wants, and

wishes into a problem statement looking for a solution.
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Solving that problem and easing that pain is the key and motivation
for everything that comes next.

Quantifying the opportunity

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There are huge numbers of problems and pain points, but not all are
worth solving. This is when product managers change their
customer-centric perspective to a business one.

To justify investment in building a new product or solution, product

management must answer the following questions and be able to
build a business case based on the answers they find:

● What is the total addressable market?

● Is the problem or pain severe enough that people will consider
alternative solutions?
● Are they willing to pay for an alternative solution (or is there
another way to monetize the solution)?

Once product management has evaluated the potential market, they

can then try to address it if thereʼs a significant enough opportunity.

Researching potential solutions

With a target in mind, product management can now thoroughly

investigate how they might solve customer problems and pain points.
They should cast a large net of possible solutions and not rule
anything out too quickly. For example, suppose the organization
already has some proprietary technology or IP or a particular area of
expertise to give the company an advantage. In that case, those
potential solutions will likely leverage that somehow.
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However, this does not mean that product managers should start
drafting requirements and engaging the product development team.
Theyʼll first want to validate those candidates with the target market,
although it is wise to discuss some of the idea with the technical team
to ensure theyʼre at least feasible.

Product management will often develop personas to see whether the

solution will have much impacts on the user personas.

Skipping this step and jumping right into building something can be a
fatal flaw or cause severe delays. While there are no guarantees,
getting confirmation from potential customers that the idea is
something theyʼll want, use, and pay for is a critical gate in the overall
process and achieving product-market fit.

Building an MVP

After validating a particular solutionʼs appeal and viability, itʼs now

time to engage the product development team in earnest.

First, the bare minimum set of functionality should be defined, and

then the team can build a working version of the product that can be
field-tested with actual users.

Many features or functionality will intentionally be excluded from the

Minimum Viable Product, as the goal is to ensure the core
functionality meets the marketʼs needs.

Nice-to-haves features can wait for a later stage in the product

lifecycle once Product market fit is achieved.
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MVPs can test how the product works and the overall messaging and
positioning of the value proposition in conjunction with product
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marketing. The key is finding out whether this nascent product is

something the market( Sets of user personas) wants and if it
adequately meets its core requirements.

In the start your MVP should solve the very crucial problem for the
specific niche of the whole market. For example if you a launching a
fitness product, in the start you need to first decide which fitness
group you want to solve the problem for, suppose you decided body
builder, then your MVP should solve the most important problem
faced by bodybuilders.

Creating a feedback loop

While customer feedback is essential throughout a productʼs life,

thereʼs no time more critical than during the MVP introduction. This is
where the product management team can learn what customers think,
need, and dislike since theyʼre reacting to an actual product
experience and not just theoretical ideas tossed out in a conversation.

Product manager must make it easy for customers to provide

feedback. But, just as importantly, they must process, synthesize, and
react to this feedback, turning this input into actionable ideas that
make their way into the product roadmap or backlog.

And, not to be forgotten, product manager must also establish a

method for closing the loop with customers so they know their
complaints and suggestions were heard and, when applicable, have
been addressed.

This will create loyal user base which in time become advodates for
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the product.

Setting the strategy

Assuming the MVP is well received, itʼs time to invest in a product

strategy. The team now knows theyʼre onto something that can get
some traction, so goals and objectives must be established to improve
the product, bring it to market, expand its reach, and align with the
overall company strategy and desired outcomes.
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The strategy should be based on reasonable, incremental progress

toward achievable goals, with key performance indicators and other
metrics defined to evaluate success.

These measurables should track with the organizationʼs general

objectives and complement what the company already does well
(assuming itʼs not a startup still in its infancy).

More than anything else, the strategy is where product management

must secure stakeholder alignment and buy-in. If thereʼs no solid,
shared understanding of this fundamental element of the product,
then the groundwork is already being laid for future conflicts and
disagreements.

Imagine a company planning to launch a new project management tool

designed for remote teams. The product manager develops a strategy that
focuses on seamless integration with popular communication tools, robust
task management features, and advanced analytics to help team leaders
monitor progress.

Securing Stakeholder Alignment and Buy-in:

Engineering Team: The product manager needs to ensure that the

engineering team understands the technical requirements and priorities of
the new tool, especially the integrations with other platforms. Without their
buy-in, development might focus on less critical features, delaying the
launch or leading to a product that doesn't meet user expectations.
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Marketing and Sales Teams: These teams must be aligned with the
product's value proposition and target market. If the marketing team is not
on board with the strategy, they might target the wrong audience or
communicate benefits that don't resonate with potential customers,
affecting product adoption.

Senior Management: Securing buy-in from senior management is crucial

for ensuring the project receives the necessary resources and support. If
they do not agree with the product vision or strategic approach, they might
redirect resources to other projects, limiting the new tool's development and
growth potential.

Customer Support: This team needs to prepare for the types of inquiries
and issues that might arise with the new features. Without understanding
the product strategy, they might be ill-equipped to provide effective
support, affecting user satisfaction.

Example Scenario of Misalignment:

Suppose the engineering team prioritizes developing a sophisticated
analytics dashboard because they believe it's the most innovative feature,
while the market research indicated that the primary need was for better
task management and communication integration. Meanwhile, the
marketing team promotes the tool as the ultimate solution for analytics,
attracting customers with different needs than those the product primarily
serves. As a result, the product might face poor adoption rates and negative
feedback from users who find the task management features
underdeveloped.

This scenario highlights the importance of stakeholder alignment on the

product strategy. When everyone involved has a solid, shared
understanding of the product's fundamental elements, it sets a strong
foundation for development, launch, and growth, minimizing the risk of
conflicts and ensuring that efforts are focused on achieving the defined
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goals and meeting market needs.

Driving execution

With a viable product concept, a scalable feedback management

system, and a sound strategy, itʼs time to turn ideas into reality. This
means prioritizing potential development items and plotting out the
product roadmap.

Product management can utilize various prioritization frameworks to

decide which development activities will help the product meet its
most important goals quickly and efficiently, cueing things up for
near-term work.

Of course, everything canʼt be first, so basing these decisions on which

items have the greatest impact on critical objectives is key, including
representatives from across the
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organization. With the initial priorities set, product management can

then build out their product roadmap.

This powerful tool enables stakeholders to visualize whatʼs on the

horizon and why itʼs relevant to the strategy, particularly if structured
around themes and outcomes versus specific features and delivery
dates.

1.4. The People of Product Management

Product management doesnʼt have too many subspecialties, primarily

because product people are expected to do a little bit of everything.
However, this career has some variety, along with expected tiers of
seniority and additional responsibility.

First, some jobs often get lumped in with product that doesnʼt belong
there. This includes project management, program management,
product marketing, and scrum masters.

Each of those critical roles interfaces with the product management

team quite a bit. Some organizations may even arrange those jobs into
the same groups, such as making product management and product
marketing part of the overall marketing organization. But these
positions arenʼt product management jobs, as they donʼt actively
define what is in the product or report to the people who do.

1.5. Product Management Jobs

The ideal product management job is—unsurprisingly—being a

product manager. A product manager will usually own one or more
products or a horizontal function across multiple products, such as
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“user experience” or “e-commerce.”

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Associate product managers and junior product managers are

typically new to the domain and have more limited responsibilities. A
senior product manager will have a little more seasoning and a
broader scope of their role. But these are essentially slightly different
flavors of your basic product manager.

The scope of work for roles within the product management hierarchy
varies significantly, reflecting each position's responsibilities, strategic
oversight, and impact on the organization's product vision and execution.
Here's a breakdown of these roles with a practical example to illustrate their
different scopes of work within a company developing a new e-commerce
platform:

Associate Product Manager (APM)

Scope: APMs typically handle more granular tasks under the guidance of
more senior product managers. They might be responsible for conducting
user research, analyzing data to inform product decisions, and assisting
with the creation and maintenance of product backlogs.

Example: An APM might be tasked with gathering user feedback on the

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checkout process of the e-commerce platform to identify pain points and

opportunities for improvement.

Product Manager (PM)

Scope: PMs are responsible for the end-to-end management of a specific

product or feature set. They define the strategy and roadmap for their area,
work closely with engineering and design teams to develop and launch
features, and measure their success post-launch.

Example: A PM oversees the development of the mobile version of the

e-commerce platform, coordinating efforts between design, engineering,
and marketing to ensure a seamless shopping experience on mobile devices.

Senior Product Manager

Scope: Senior PMs typically manage larger or more complex product lines,
often overseeing multiple PMs or APMs. They have a deeper involvement in
setting strategic direction and might be involved in cross-functional
initiatives that span beyond their specific product area.

Example: A Senior PM might be responsible for the overall user experience

of the e-commerce platform, ensuring consistency and high-quality
interactions across all touchpoints, from browsing to checkout.

Director of Product

Scope: Directors of Product have a broader organizational role, overseeing

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multiple product lines or a significant segment of the company's product

portfolio. They are responsible for aligning product strategies with the
company's business objectives and often lead large teams of product
managers.

Example: The Director of Product oversees the entire consumer-facing side

of the e-commerce platform, including web, mobile, and any third-party
integrations, ensuring all product efforts support the company's growth
targets.

VP of Product

Scope: The VP of Product plays a strategic role at the executive level,

defining the product vision and strategy across the entire organization.
They ensure that the product strategy is aligned with the company's overall
strategy and objectives, and they are responsible for the product team's
performance and development.

Example: The VP of Product works on defining the long-term vision of the

e-commerce platform, including exploring new market opportunities,
overseeing competitive strategy, and ensuring that the platform meets the
evolving needs of consumers and the business.

Chief Product Officer (CPO)

Scope: The CPO is the top product executive, overseeing all product-related
activities in an organization. They are responsible for the overall product
vision, strategy, and innovation roadmap. The CPO ensures that the product
strategy aligns with the company's vision and financial goals and often
represents the product in discussions with the board and external
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stakeholders.

Example: The CPO leads the strategic direction for expanding the
e-commerce platform into new international markets, including product
localization, compliance with local regulations, and adaptation to local
consumer preferences.

CEO

Scope: The CEO is responsible for the overall success of the company,
setting the vision, strategy, and culture. While not involved in the day-to-day
details of product management, the CEO ensures that the product strategy
aligns with the company's mission and financial goals and supports the
company's overall strategy.

Example: The CEO evaluates the strategic plan to expand the e-commerce
platform into new markets, considering its impact on the company's overall
growth strategy, resource allocation, and long-term vision.

In summary, as we move up the hierarchy from APM to CEO, the focus shifts
from executing specific tasks and managing product features to setting
strategic direction, aligning product vision with business objectives, and
ensuring the product's success at an organizational level.
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Technical product managers are another critical variation of the role.

These individuals are often transitioning from a role in the
engineering or IT teams and tasked with managing aspects of one or
more products requiring a deeper understanding of technical issues,
such as infrastructure and APIs

Understanding the roles of Product Manager, Program Manager,

Project Manager, and Product Owner can be quite nuanced as they
each have distinct responsibilities that sometimes overlap in practice.
Here’s an example that illustrates the differences among these roles,
using the development of a new feature for an existing e-commerce
platform as the context.

Scenario: Launching a New Payment Integration Feature on an

E-commerce Platform.

Product Manager (PM)

Role: Focuses on the 'what' and 'why' of the product. Determines the
need for a new payment integration based on market demand,
competitive analysis, and user feedback.
Example Activity: Defines the vision and strategy for the new payment
feature, ensuring it aligns with the overall product roadmap and
business objectives. Collaborates with stakeholders to prioritize this
feature based on its potential to enhance user experience and drive
revenue.

Program Manager
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Role: Oversees multiple related projects (or programs) to ensure they

align with the organization's goals. Manages dependencies and
coordinates efforts across projects to achieve strategic objectives.
Example Activity: Ensures the new payment integration project aligns
with other ongoing projects, such as a user interface overhaul and a
marketing campaign for new market penetration. Coordinates
resources and timelines to ensure cohesive progress across these
initiatives.

Project Manager (PM)

Role: Focuses on the 'how' and 'when'. Manages the specifics of how
the project is executed, including planning, scheduling, resource
allocation, and risk management.
Example Activity: Develops a detailed project plan for the payment
integration feature, including timelines, milestones, resource
assignments, and risk mitigation strategies. Manages the day-to-day
activities to ensure the project stays on track and within budget.

Product Owner (PO)

Role: Primarily found in Agile development environments. Represents

the customer's interests in the development process and makes
decisions regarding the feature backlog.
Example Activity: Works closely with the development team to refine
the requirements for the payment feature, prioritize the feature
backlog, and make decisions on feature scope and delivery iterations.
Ensures the development work aligns with user needs and product
goals.
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Unified Example Across Roles:

The e-commerce company decides to integrate a new cryptocurrency

payment option to attract tech-savvy shoppers.

The Product Manager identifies this opportunity by analyzing market

trends and competitor offerings, deciding that this feature could
significantly differentiate their platform.

The Program Manager coordinates this feature's development with

other related projects, such as enhancing site security and launching a
marketing campaign to promote the new payment method.

The Project Manager creates a plan for the development team,

schedules the work, allocates the necessary resources, and monitors
progress to ensure timely completion.

The Product Owner works directly with the development team to

detail the feature's requirements, prioritize the work in the sprint
backlog, and make adjustments based on feedback and testing results.

This example illustrates how each role contributes to the successful

launch of the new feature from strategic planning, coordination
across projects, detailed project execution, and ensuring the
development aligns with customer needs and product strategy.

1.6. Agile product managers

In an Agile organization, product owners also may be part of the

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puzzle. While thereʼs some debate, product owners are often

considered part of product management. However, they are distinct
from product managers. A product owner is embedded in one or more
scrum teams, but their focus is mainly tactical, helping ensure the
strategy laid out by product managers is appropriately executed.
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As one moves up through the ranks, more senior product management

roles have more significant distinctions. For example, a product line
manager will own multiple products that are typically related to each
other, sometimes overseeing individual contributor product managers
that manage a single product or sub-component.

1.7. The Product Executive Track

The executive track begins with Director and Senior Director roles.
Depending on the companyʼs size, this may be a loftier title for a “lone
wolf” product management professional. But, on the other hand, it
may indicate an even broader portfolio of products and the
corresponding direct reports to support that.

Vice President and Senior Vice President are similar escalations up the
corporate ladder. Those holding these jobs may see more diversity on
their staff as they may also end up owning business analysts, UX,
product marketing, or other related functions. The apex of a product
management career is Chief Product Officer. Although not as common,
this increasingly seen role elevates product management to the
C-suite. It gives the product the same political weight as Engineering
or Marketing, which often indicates an organization is committed to
product-led growth. A CPO is typically supported by a larger team and
provides directional guidance and coaching rather than diving into
the nitty-gritty details of particular products.
 37

Product Management Organizational

Chart
 38

1.8. What are the Most Important Product Management Skills?

With a shared understanding of product managementʼs scope, we can

dig into what it takes to be a product manager. Product managers find
their way by following the paths of those who came before them. And
those more experienced in the profession have plenty of lessons to
offer their peers and newcomers.

You canʼt get a degree in product management. Thereʼs no single

career path to get there. Itʼs more about the skills required to do the
job well than a particular pedigree. Here are some of the key hard
skills in product management
39
 40

Communication

Communication skills leap to the top of the list when considering

what it takes to be a successful product manager. So many aspects of
the job rely on prowess in this domain.

To solicit and gather feedback, product managers need to be great

listeners. They must also know how to work those relationships and
exhibit significant customer empathy.

Of course, customers arenʼt the only source of input to the

prioritization process. Product managers must also work with various
stakeholders to understand their goals and needs.

After that, product managers must succinctly convey the productʼs

mission. It should be a synthesis of all those inputs turned into
something easily consumable that others can be inspired by.
 41

Evangelizing and alignment

With vision, goals, and the roadmap defined, product managers must
socialize and evangelize these pillars of the product to the entire
organization. Itʼs all about creating alignment, generating buy-in, and
getting the whole company on the same page, including leveraging
public forums such as all-hands meetings, as well as smaller forums
and one-on-one sessions.

Once the product plans begin taking shape, product managers must
work extensively with the product development organization. This
collaboration includes engineers along well with product managers,
architects, and quality assurance teams.
 42

Collaboration

To create a fantastic user experience, product managers must also

collaborate with UX designers. Nurturing a true partnership and not
being merely transactional is key to delivering exceptional products.
Finally, as the product gets ready to launch, thereʼs another round of
communication and coordination. Product management must educate
and edit marketing plans for the product. They also must provide the
sales team with the necessary training and talking points theyʼll need.

Technical skills

There may be no debate quite as polarizing in the product

management community as this subject. Just how technical must a
product manager be? Will non-technical product managers become
extinct?
 43

Thereʼs no debating that a product manager must have some level of

technical understanding. Luddites donʼt make great product
managers, at least not for software products.

Product managers must be conversant enough in the fundamentals for

meaningful dialogue with engineering. They must understand if
theyʼre creating a massive amount of technical debt with their
decisions and managing down existing debt. And they should
probably be knowledgeable enough to use their product and relate to
the customers itʼs intended to serve.

However, thereʼs no rule that product managers must know how to

code or run an SQL query on a database. While those might be
practical skills, a product manager wonʼt be doing those things daily.
 44

And in organizations where there is an actual need for product

managers with in-depth technical know-how, they can always hire a
technical product manager to fill that role.

Business savvy

When product managers dub themselves the “CEO of the product,”

theyʼre generally referring to this category of skills. Product managers
may or may not carry responsibility for a productʼs revenue. But
theyʼre integral to making sure the product is financially and
strategically successful.

It starts by defining a vision and goals for the product. While these
may come from the founder or executive team, product management
must own them once established. Then, translating those abstract
ideas into the tactics required to make them a reality is all part of the
job.

Other duties, such as finding product-market fit and assessing

requests from customers and prospects, also require keen business
smarts.

To do so, product managers must think strategically, even when

dealing with minutiae. No choice is inconsequential. They must
dynamically consider all possible repercussions to avoid negative
impacts on the customer experience or sales
 45

And then there are the numbers. Product managers must be conversant
in the metrics that matter. They must use data-driven decision-making
to propel the product forward. Growth, revenue, and profitability all
fall under product managementʼs purview, even if theyʼre not directly
responsible for them.

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 46

Chapter 2: Team structure for Product Management

2.1. Introduction

Product managers have difficult, intricate jobs that are frequently

misinterpreted.

The term "product manager" is used in a variety of ways in the

high-tech sector to refer to radically different tasks and
responsibilities. Some product managers find themselves in an
unendurable scenario where they are unable to define their role due
to varying interpretations of the role.

Properly defining and structuring the duties and responsibilities of

the product management team will enable the team members to be
more efficient and productive; resulting in better revenues and
higher-quality goods that match consumer expectations.

This chapter examines the difficulties that today's high-tech product

managers encounter and recommends methods to structure and
formalize the roles and composition of the team responsible for
product management.

2.2. Jack of All Roles, Master of None

Multitasking is challenging for humans, who prefer to focus on

performing one task or sequentially performing a few select tasks.
 47

The inherent difficulty of multitasking hinges principally on humans'

limited ability to maintain a high level of intellectual focus when
confronted with a multitude of dynamic issues. To a lesser degree,
fatigue and a lack of resources (primarily time) are also contributing
factors.

Performing the diverse product management activities outlined above

is the epitome of multitasking. Product management assignments are
particularly challenging because they require a multitude of
complementary or differing skills. In addition, when product
managers have several products to manage, multitasking becomes
profoundly more complex.

Such a broad definition of the product management profession is the

culmination of individual and industry interpretations. They, in turn,
have invariably led to the ever-familiar challenges that the majority of
product managers now encounter daily, caused by ambiguous role
definitions, imbalanced relationships with other departments, an
overwhelming volume of activities, a lack of or poorly defined
processes, no definitive methodology and a shortage of uniform work
tools in the profession.
 48

The overall perceived obstacle that the typical product manager

encounters is the pervasive lack of professional focus. One can be
adequate at many things, but it is difficult to excel at many. Many
product managers therefore view themselves as trapped in a
never-ending juggling routine. Having too many tasks to juggle
eventually leads to tasks being dropped; the outcome is poor overall
performance by the product manager, which is detrimental to the
company.

The title of a product manager has proven more harmful than helpful.
Other official and unofficial product management title variations
(such as Product CEO or Product Champion or Product Executive)
have failed. The reason is that they are often accompanied by a
blurred, wide-scoped job description that defines or implies the
product manager as owner—and, as a result, responsible for the
product's commercial success. Being labeled or treated as a "Product
CEO" can be daunting, since it nearly always means operating without
the authority and resources available to an actual CEO.

When a job title has an overly broad set of diverse activities (roles and
responsibilities) associated with it, there is a high probability that the
attempt to perform to the expectations of that job title will fail.

A semantic change is needed, and this change is based on the

definition of professional—i.e., focused on a particular domain or
discipline.
 49

2.3. Breaking It Down

The two main disciplines residing in the product management domain

are product planning and product marketing, which are very different
from each other. But due to the collaboration between these two
disciplines, some companies erroneously perceive them as one
discipline—which they call product management.

If done carefully, it is possible to functionally divide the product

management domain into product planning and product marketing,
yet retain the required synergy between the two.
Product planning is the ongoing process of identifying and
articulating market requirements that define a product's feature set.
Product marketing is an outbound activity aimed at generating
product awareness, differentiation and demand.

Product planning and product marketing are different and distinct

professional disciplines because they foster different roles and
different quality goals.

With such a conceptualization, it is easy to address the respective

tasks of product planning and product marketing as belonging to the
roles of a product planner and a product marketer.

Whether these two roles are handled by two individuals or performed

by one person is irrelevant. Indeed, there are cases where both
disciplines are assumed by one person, or by two people sitting in one
room, or by different departments that collaborate.
 50

The point is that there must be an unambiguous link between the job
title and the job responsibilities.

It should also be clear that the disciplines of product planning and

product marketing are inextricably linked because companies design
product functionality for the user and market the product's value to
the buyer.

To clarify: an intuitive example of this is a child's toy. The parent is the

buyer and has an interest in whether the toy is safe to use, will help
the child grow smarter, will keep the child occupied and is reasonably
priced. Product value is therefore marketed to the buyer, the parent.

The child cares only about product functionality, such as whether the
toy is fun, engaging and visually pleasing, and whether it will do what
he/she wants. The toy's functionality is designed for the user—the
child—and not for the buyer.

The same approach is necessary with high-tech products, where

buyers are often not the users; and this approach means distinct
product management roles that separately analyze and address buyer
and user needs.

The recent fast-paced growth of high-tech industries and the shifting

interpretations of product management created skewed responsibility
sets for product managers. The already problematic, broad definition
of product management was further complicated when tactical
activities were added to a product manager's job definition.
 51

Tactical activities are assignments, usually self-contained and specific,

that fulfill short-term business needs. Those assignments—such as
delivering a presentation, writing collateral material or assisting a
salesperson—are time-consuming and demand a disproportionate
allocation of individual resources (mental focus, time and physical
effort) about their overall importance.

By monopolizing the scope of work, tactical activities detract from the

product managers' ability to fulfill the strategic responsibilities
assigned to them.
A strategy aims to establish and plan the overall and long-term course
of action a company should engage in to achieve corporate objectives.

The strategic mission for the product marketer would primarily

involve evaluating market opportunities and writing marketing
plans/programs that address those opportunities. For the product
planner, the mission is to identify market needs to deliver winning
products that help a company become a market leader, market
follower or innovator.

2.4. Product Management Team Model

The product management team is a task group that organizationally

resides in the Product Management department and has four distinct
roles: product planner, product marketer, sales engineer and
marketing communications (marcom) manager.
 52

These four roles are the basic providers of the planning, deliverables
and actions that guide the inbound-oriented product definition and
the outbound marketing efforts:

1. The primary responsibility of the product planner is to

constantly research the market and identify market needs,
which are later translated into market requirements that will
foster new products or new features to existing products. The
product planner prepares the documents that profoundly impact
the product's success. These documents include the Market
Requirements Document (MRD), product use cases, product road
map and the pricing model.

2. The primary responsibility of the product marketer is to analyze

product-oriented business opportunities, formulate plans that
evaluate those business opportunities, and plan and guide
subsequent marketing efforts. For example, the product
marketer prepares the product business case and following
approval, writes the marketing plan, launch plan and
communications plan.

3. The sales engineer is primarily responsible for outbound

product-centric activities, such as presale support and product
demonstrations. Relying on their technical skills, sales engineers
help customers understand how the product delivers the
necessary value and functionality that address the customers'
business or consumer problems. The sales engineer's other
objective is to provide critical input to product planners on
customer needs and problems.
 53

Sales engineers often operate under titles such as product

evangelist, technical evangelist, technical sales support, presale
engineer, outbound product manager or technical product
manager; yet, regardless of title, all perform a relatively similar
set of tasks.

4. The marcom manager is primarily responsible for creating

interest and demand for products through the conception and
copywriting of all collateral material, advertising, direct
response mail, Web and other types of communications media.
This person is also tasked with maintaining a consistent
company image and positioning in the marketplace, according to
messages and directives provided by the product marketer.

The product management team is managed by the director of product

management, or vice president of product management, who provides
overall product vision, product line strategy and team management.
Other titles are sometimes used to designate this leadership position,
such as director of products or vice-president of products, to indicate
the encompassing nature of this role.

This person guides team members and is responsible for furnishing

them with resources, tools and uniform processes to do their jobs. On
the strategic level, this role is responsible for formulating the
company's product line strategy and driving its implementation, while
balancing corporate goals with long-term market trends and
opportunities.
 54

Role Responsibility Goal Skills Expertise

Product Identify and Solve market Intelligence, Market

Planner articulate problems superb Expert
(Strategic market linguistics
Role) requirements

Product Generate Attain Abstract Marketing

Marketer awareness, Superior thinking, Expert
(Strategic differentiation, Perceived psycho-social
Role) and demand Value comprehensio
n

Sales Outbound Customer Rapport Advocacy

Engineer product-centric knowledge of building, Expert
(Tactical activities, i.e., product value public
Role) pre-sales and addressing
support and functionality
product demos

MarCom Conception and Consistent Creative, Media

Manager copywriting of company artistic Expert
(Tactical all collateral image and
Role) material positioning in
the
marketplace

Director of Balancing Successful Thinker, Strategy

Products corporate goals formulation influencer, Expert
(Strategic with long-term and execution leader
Role) market trends of market and
and product
opportunities strategies

2.5. Odd Couple(s)

In startups, it's common to see a single individual performing all four

 55

roles listed in the product management team model.

 56

However, as the company grows, these roles are delegated to other

individuals who specialize in the assigned role. Failure to do so may
impede the product's chances of marketplace success. While the title
of "Product Manager" is typically assigned to an individual performing
a single role or a combination of the four roles listed in the product
management team model, two roles are often combined and entrusted
to one person. Combining the product planner and sales engineer
roles can be effective, as the person can deliver product
demonstrations and presale support, while also defining the product
with more in-depth knowledge than the average salesperson. Another
possibility is the combination of the product marketer and marcom
manager roles, where one individual handles all tasks perceived as
"marketing" by upper management, including market planning,
copywriting, and advertising management.

The problem is that both of these roles (or capabilities) are strategic
and demand expertise that can only be achieved by professional
focus.

In addition, people come from different educational or professional

backgrounds and therefore naturally gravitate toward their "comfort
zone," eventually causing one of two roles to receive more attention
than the other. Underperforming, or in the worst case, not performing
some of the product management team roles, may dramatically
impede the product's chances of marketplace success.

2.6. Essential Product Team Roles and Activities

Effective product management is all about how well a cross-functional

product team can collaborate.
 57

In a small startup, a product manager might oversee everything. In a

large corporate firm, there might be many specialists (i.e., a dedicated
growth product manager alongside a core product manager or
technical product manager) reporting to a chief product officer.

The specific structure of a product team will vary depending on size,

industry, stage, and more. Letʼs check out a few common roles
occupying a product team.

2.6.1. Product Manager

Agile product managers are responsible for building a product that

solves user problems throughout the product lifecycle, from strategy
creation to discovery to launch.
 58

Key responsibilities:

● Defining product strategy and vision

● Articulating a roadmap of valuable initiatives that realize the
productʼs vision
● Generating new product ideas
● Performing competitive analysis
● Helping define product requirements

2.6.2. Product Marketing Manager

A PMMʼs main focus is making sure a product lands well with users
while nailing the marketing and product positioning.

Key responsibilities:
● Develop and implement the go-to-market strategy
● Work with product managers on positioning and product-market
fit
● Execute product marketing campaigns and product launches
(i.e., formulating a product launch plan)
● Work with the customer support teams to use valuable insights
gathered from user feedback
● Work closely with the sales team for a better market
understanding
 59

2.6.3. Product owner

A product owner is a role in the Scrum framework responsible for

maximizing the value of the product. They work closely with the
development team and product manager to ensure that the product is
developed and delivered according to plan.

Key responsibilities:

● Running a range of day-to-day responsibilities within the Scrum

team
● Organizing a prioritized backlog of tickets tackling user
problems
● Product planning and collaborating with the engineering team to
work out possible solutions

2.6.4. Product developer

Development teams are responsible for the product development

process itself. Engineering teams write the code and build the product
from the bottom up.
Key responsibilities:

● Write code, define unit tests, and deploy into different

environments
● Build features prioritized by the PM
● Share technical knowledge with the rest of the team
● Maintain technical services and support the companyʼs products
● Get the feature development working process right
 60

2.6.5. Product designer

A Product is a professional responsible for the user experience of a

product or service. They work with a cross-functional team to
understand the needs of users and create products that are easy to
use, efficient, and enjoyable.

Key responsibilities:

● Gather feedback, understand user behaviour and expectations,

conduct user interviews with potential customers, and map out
where to tweak things to improve the user journey
● Optimize the customer experience to boost user engagement
● Conduct usability testing
● Create user personas

2.6.6. Data analyst

A data analyst is a professional who collects, cleans, and analyzes data

to extract insights that can be used to improve business decisions.
 61

Key responsibilities:

● Collect data (including identification, gathering, and cleaning to

remove errors and personal information)
● Data analysis and synthesis: investigating trends and extracting
insights
● De-risk: use insights from data to gather competitive intelligence
and inform decision-making before new features are built
● Communicating insights with the product team and stakeholders
clearly and concisely

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 62

Chapter 3 - Product Definition Team

3.1 Introduction

The delivery of any new product must begin with careful

consideration of both product planning and product definition. A
clear understanding of a product definition team and a product
planning process is sometimes lacking in organizations that have
established product development teams and processes.

Product definition is a critical starting point in the development of any

new product. Yet for its importance, there are many common
shortcomings to the process of product definition in many companies:

● No defined product strategy or product plan

● Lack of formal requirements as a basis for initiating product
development
● Product requirements developed without true customer input
● A marketing requirement specification (MRS) that is completed
late – after development is underway
● Engineering having little or no involvement in development of
MRS, thereby lacking a true understanding of requirements
● An incomplete, ambiguous, or overly ambitious MRS Creeping
elegance or a constantly evolving specification that requires
increasing development scope and redesign iteration.
 63

A company doesnʼt blindly respond to customer needs and

opportunities. A business strategy which defines customers and
markets to be served, competitors, and competitive strengths provides
a framework from which to evaluate potential opportunities. The
result of this evaluation of opportunities is expressed in a product
plan.

Product planning helps resolve issues related to the markets, the types
of products, the opportunities that the company will invest in and the
resources required to support product development. More specifically,
the product plan is used to:

● Define an overall strategy for products to guide the selection of

development projects;
● Define target markets, customers, competitive strengths, and a
competition strategy (e.g., competing head-on or finding a
market niche);
● Position planned products relative to competitive products and
identify what will differentiate or distinguish these products
from the competition;
● Rationalize these competing development projects and establish
priorities for development projects;
● Provide a high-level schedule of various development projects;
and
● Estimate development resources and balance project resource
requirements with a budget in the overall business plan.
 64

Few companies have a formal product planning process, let alone a

rigorous process. While a product plan is generally prepared on an
annual basis, it should be reviewed and updated at least quarterly, if
not monthly. Market conditions will change, new product
opportunities will be identified, and new product technology will
emerge all causing a potential impact on the product plan. These
opportunities need to be evaluated and the product plan changed if
needed. These changes may result in re-prioritizing development
projects or making a decision to hire additional development
personnel to undertake a new development opportunity.

To help products thrive in the marketplace, this chapter explains a

market-focused product planning process for high-tech businesses
and offers a way to formalize and structure the roles and composition
of the product definition team.

3.2. Market Requirements

Market concerns can either be basic or complicated. The majority of

market issues are multiple, which means they reflect and represent a
variety of client wants. A detailed description of a market problem is
necessary to comprehend how to fix it. The best product development
teams are always tracking market trends, identifying new
opportunities, and planning for risks. This type of market analysis
combined with customer knowledge gives you valuable insight into
how to build a product that meets existing needs. Listing every
requirement that is important to that particular market problem that
customers and buyers possess can help define the problem.
 65

Requirements are words used to describe these needs. We refer to the

needs of users and buyers for a specific solution to a specific market
problem as "Market Requirements" because both categories are
members of customer domains, which in turn make up a market.

A “Market Requirement” is properly defined as an aggregate unit of

information which represents with sufficient detail the functionality
that is sought to address a specific facet of a particular market
problem.

A market requirements document (MRD) can be a useful tool for

consolidating your high-level research. It includes key data points on
market size, target customer characteristics, and the competitive
landscape. Many product teams use some version of an MRD to
validate and align what is happening in the market — so you can gain
an advantage over other solutions and deliver on your customers'
needs.

3.3. Product Frames Model

Product planning is the ongoing process of identifying and

articulating market requirements from which the product's feature set
is ultimately defined. The Product Frames Model is a descriptive
model that demonstrates how product functionality is built and how,
in total, the product solves the market problem. This model serves
several objectives: to validate the product's functional completeness
concerning the market problem; to synchronize user/buyer needs
with product features; and to provide a backbone for a product
definition process.
 66

The inner workings of a single product frame show how a certain

product feature addresses a particular facet of the market problem.
The sum of all of the product frames defines a product that has overall
functionality that solves the entire scope of issues presented by a
market problem.

A product frame is comprised of four elements: market requirement,

product feature, product attribute, and technical specification.

Product Frame Description

Element

Market A user/buyer need.

Requirement

Product Feature Something the product does or has.

Product Attribute An actual trait of the product.

Technical The attribute's implementation.

Specification
 67

Table 3.1: Product Frame Model

Fig: 3.1

1. Market requirements describe a user/buyer's need.

2. Market requirements foster “Product
Features” – a product capability that
satisfies a specific user/buyer need.
3. Product features generate “Product Attributes” – a real
characteristic or property
of the product.
4. Product attributes are built via a “Technical Specification” – a
precise description of an attributeʼs implementation details.
 68

3.4. Product Definition Foundation Documents

During the product planning phase, several important foundational

documents are created.

These reports are known as the "Market Requirements Document"

(MRD), and they include a description of the market opportunity,
market challenges, and set of needs that come from them. Product
objectives are defined by the MRD with consideration for user needs
and viewpoints. This is the solution as seen by the user.

The MRD serves as the basis for the "Product Requirements

Document" (PRD), which offers a high-level overview of the solution,
its intended application, and its feature set. The PRD provides a
solution that meets needs and solves the market issue. The PRD
outlines the features and functionality of the product from the
viewpoint of the solution.

This is the solution's product view. The "Technical Specification"

(Tech. Spec.) serves as a construction manual and provides an
extremely thorough explanation of the solution's features, standards,
and design.

Particularly for complicated systems, it is important to split up the

information required to define the product over multiple papers and
to be clear about what is and is not accurate at each level. This is
because the product delivery process is phase-based, and merging
data from several classes into a single document will cause the
writer's and the document's focus to become confused.
 69

This information merging happens in product planning when the

MRD is combined with market, business, and product data. It is
frequently easier for the writer to define a solution than to pinpoint
the underlying market need, and the result is typically a document
that is dense with product requirements that are probably
disconnected from market demands.

3.5. Product Definition Team Model

Any new product delivery must begin with an in-depth analysis of the
product. Although there are established product development teams
and procedures in many organizations, a need for a defined concept
and the formation of a team and process for product definition
frequently exists.

The lack of a cross-departmental product definition team and a

market-driven product definition process to match may lead to
misconceived products with lower success rates. Without a clear guide
on how to build, define and structure the individual roles in a product
definition team, coupled with a structured and documented process to
follow; there is a very strong chance of a highly inefficient product
definition process taking place.

This inefficiency can be successfully countered with the concept of a

well-defined team of individuals (belonging to both the product
management and engineering departments) that have different roles
and different domains of expertise, which follow a structured,
repeatable product definition process.
 70

The three key roles that all product definition teams have are,

Fig 3.2

1. “Product Planner” – a market expert who can articulate the

market problem and needs.
2. “Product Architect” – a product expert who can create a
high-level design for the solution.
3. “Lead Developer” – a technology expert who can describe how to
build and implement the solutionʼs design.
 71

Role Responsib Product Deliverable Expertise

ility Frame

Product Articulate Market MRD ("What Market

Planner market Require to solve?") Expert
(Strategic problem ments
Role)

Product Devise Product PRD ("How to Produc

Architect functional Require solve?") t
(Tactical solution ments Expert
Role)

Lead Design Product Tech. Spec. Technology

Developer product Attribute ("How to Expert
(Technical implementa s and build?")
Role) tion Specifica
tions

Table 3.2: Product Definition Model

3.6. Product Delivery Process

A company-wide initiative called the "Product Delivery Process" aims

to guarantee deliverables from all relevant corporate functions to
launch a product. Three essential corporate sub-processes are
included in the product delivery process, which is also known as a
product program and is overseen by a program manager. These are
the product planning, product definition, and product development
processes.

The product team responsible for product definition collaborates to

develop a solution that addresses the market issue. Every member
 72

carries out a specific role that is centred around a certain step in the
product delivery process.

Each participant in the product delivery process is in charge of a

particular product framework document during each phase. In
addition to their obligations, the team members have shared
responsibilities. Throughout the product delivery process, every team
member assumes a leadership position and provides assistance where
and when needed to deliverables that belong to other team members.

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 73

Chapter 4: Product Market Requirements

4.1. Introduction

Creating market requirements is widely considered a crucial step in

the product planning process, particularly after identifying the
market problem. The responsibility of identifying and clearly
expressing these requirements falls on the product planner, who
documents them in a document referred to as the "Market
Requirements Document" (MRD).

The process of writing market requirements involves a degree of

artistry, and this chapter aims to simplify the task by introducing a
comprehensive and structured methodology known as the
“Procedural Requirements Management Model."

4.2. Customer Insights

The "Voice of the Customer" (VOC) is a systematic approach aimed at

uncovering customer needs. This method embraces a market-driven
strategy, involving engaging with both current and prospective
customers to identify challenges they have faced in the past, are
currently facing, and anticipate in the future. The goal is to
understand the market problems customers encounter while striving
to achieve their business goals.
 74

The VOC process primarily relies on in-depth interviews, guiding

respondents through various situations where they have encountered
and potentially discovered solutions to the market problems under
investigation. Leading this process are members of the product
definition team, consisting of individuals with diverse roles and
responsibilities. The key contributors to the VOC process are
primarily the product planner and product architect within the
product definition team. Their collective efforts aim to deliver a
product that aligns with and satisfies customer needs and
expectations.

Following the completion of the VOC process, the subsequent phase

involves creating the "Market Requirements Document," which
functions as the foundational guide for shaping the product concept
and defining its features.

4.3. Market Requirements Document

A Market Requirements Document (MRD) serves as a comprehensive

guide that delineates customer needs and facilitates the formulation
of a strategy to address those requirements. The process of developing
an MRD entails gathering information to establish the background of a
particular issue, identifying the individuals affected by the problem,
and determining the specific circumstances under which the issue
arises. The MRD consists of three crucial elements: context, which
provides a thorough understanding of the problem; and a concluding
statement articulating the customer's essential demand, often referred
to as their "market need."
 75

● (Context) Personas, problem scenarios,

Customer journey/workflows
● (Need) Market needs statements

The product planner serves as the in-house market expert, possessing

an in-depth understanding of the primary market challenges faced by
the company. Collaborating with the product management team and
leveraging external research and consulting resources, the product
planner plays a pivotal role in creating a crucial product management
reference document known as the "Market Requirements Document"
(MRD).

The MRD serves as a written representation of the comprehensive

functionality required by users to address specific market problems.
Essentially, it encapsulates the user perspective on a solution to the
identified market problem. Given the dynamic nature of the market,
which undergoes constant changes and evolution, the product planner
continually updates their understanding of existing market problems.
Consequently, the MRD evolves into a dynamic and living document,
capturing market changes through the revised functionality necessary
for the solution.

The MRD exclusively outlines the desired functionality without

detailing the specific features and attributes necessary to address a
particular market problem. This information is reserved for a
subsequent document known as the "Product Requirements
Document" or PRD. The MRD is designed for both internal and
external stakeholders involved in the product delivery program,
encompassing executive management, usability specialists, product
marketers, documentation writers, engineers, and testers.
 76

The purpose of the MRD is to capture essential information required

to devise a functional solution to a specific market problem. When
crafting an MRD, the aim is to present comprehensive information in a
clear and concise manner within a consistently organized format. This
allows engineers to initially assess the feasibility of developing a
product concept and subsequently outline a suggested solution
(product) along with its features.

4.4. Procedural Requirements Management Model

A market requirement is an aggregate unit of information, which

represents with sufficient detail, the functionality sought by users to
address a specific facet of a particular market problem.

The Procedural Requirements Management™ Model (PRM Model),

offers a thorough and complete definition of market requirements.
This methodology is designed to facilitate the creation of high-quality
and user-friendly market and product requirements.

This model serves several objectives:

● Provide a structured approach to crafting market and product

requirements.
● Establish a market and product requirement's internal structure.
● Validate a market and product requirement's integrity.
 77

By understanding the overall functionally that is described by the

sum of market requirements, it is possible to construe the scope of the
market problem. The market problem is essentially outlined through
the amalgamation of market requirements, and the extent of the
market problem is delineated by the comprehensive functionality
encapsulated within these market requirements. These requirements
are formulated using four key elements: directives, constraints,
rationales, and sources. The essential component of a market
requirement, that must be present in any market requirement, is the
directive.
 78

PRM Model Description

Element

Directive Instruction that guides what is to be

accomplished.

Constraints Limitations imposed on the solution.

Rationales Reasoning that support a claim.

Sources Information that validate a claim.

4.5. Instructions or Directions

As previously explained, the market requirement hinges on a crucial

element known as the "directive." This directive functions as a guiding
instruction, shaping the sought-after functionality as desired by the
user. Its formulation holds paramount importance, as it delineates the
objectives to be achieved.

The directive stands out as the pivotal component within the market
requirement, and the manner in which it is articulated and
substantiated with data significantly influences the overall quality of
the requirement. Moreover, it plays a pivotal role in shaping the
nature and quality of the proposed solution.
 79

Market requirements essentially outline the sought-after functionality,

representing the solution to a specific problem within a defined
market. At its core, all market requirement directives share a
consistent structure, phrased in a manner that revolves around the
user. For instance: "User [persona] <shall/should> have the ability to
<functionality>."

The directive statement employs specific conventions:

● Optional arguments are indicated by square brackets "[ ]"

● Mandatory arguments are represented by pointed brackets "<>"
● The "OR" logical operator is denoted by the slash symbol "/"

It is important to emphasize directive conditioning, which determines

the relative priority of market requirements.

The directive statement employs specific conventions for clarity:

Optional arguments are enclosed in square brackets "[ ]".

Mandatory arguments are indicated by pointed brackets "<>".
The forward slash symbol "/" represents the logical operator "OR."
Emphasis is placed on directive conditioning, which determines the
relative priority of market requirements.

Crucial market requirement directives must consistently use the verb

"shall." Functionality governed by the "shall" directive is mandatory
and forms the essential backbone of the product. No prioritization is
needed for "shall" directives, as this functionality is inherently
considered the most essential.
 80

Desirable market requirement directives, representing features

beneficial but not critical to the core product, should use the verb
"should" for appropriate prioritization. Functionality governed by
"should" directives is optional but adds value to the core functionality.
Prioritization levels for "should" directives include:

● Should (high): Include if possible.

● Should (medium): Desirable feature.
● Should (low): Include only if resources permit.

The enhanced and more sophisticated syntax for expressing a

market requirement's directive is as follows:

"User [persona] <shall/should[(high/medium/low)]> be able to

<functionality>".

The directive stands out as the crucial element within a market

requirement, possessing its own foundational components and
structure. Each directive must encompass all directive elements to
maintain its validity. These elements include:

● "Event" – the trigger initiating the requirement.

● "Entity" – the persona to which it applies.
● "Action" – a strong verb (shall/should).
● "Criteria" – pass/fail metric(s).
 81

For instance, dissecting the directive "User Bob shall be able to find a
dropped flashlight" verifies the presence of all required elements: the
event is the "dropped flashlight," the entity/persona is "User Bob," the
action is "shall," and the criteria is "find."

Ultimately, the structure of a valuable market requirement enables

easy modification and comprehension by both technical and
non-technical individuals who may act upon it in the future. This
adaptability is crucial, especially when the original authors are
unavailable to continue working on the Market Requirement
Document (MRD). Therefore, market requirements must be
self-sufficient and capable of standing alone for future reference.

It's worth noting that while people often consider the market
requirement directive synonymous with the entire market
requirement, the two are distinct. The directive holds prominence
within a market requirement, but they are not identical.

4.6. Limitations and Boundaries

Crafting market requirements involves defining the features and

specifications of a product or service based on the needs and
preferences of the target market. However, this process has its
limitations and boundaries that need to be considered. Consider the
following important points:
 82

1. Understanding of Customer Needs:

Limitation: It may be challenging to accurately understand and

interpret customer needs. Sometimes, customers themselves
may not be fully aware of their requirements, or their needs may
change over time.

Boundary: Continuous market research and feedback loops can

help mitigate this limitation. Regularly engaging with customers
and staying informed about market trends can enhance
understanding.

2. Technological Constraints:

Limitation: Technological limitations may impact the feasibility

of certain features or functionalities. It's essential to be aware of
the current technological landscape and the constraints it
imposes.

Boundary: Collaborating with engineering and technology teams

early in the process helps identify potential constraints. Regular
updates on technological advancements should be considered to
stay ahead.
 83

3. Budget and Resource Constraints:

Limitation: Unrealistic market requirements may exceed

budgetary or resource limitations. It's crucial to balance
customer expectations with the available resources.

Boundary: Clearly defining project scope, prioritizing features,

and conducting cost-benefit analyses help in managing budget
and resource constraints effectively.

4. Regulatory and Compliance Considerations:

Limitation: Regulatory requirements may limit the

implementation of certain features. Non-compliance can lead to
legal issues and damage the reputation of the product or
company.

Boundary: Regularly monitoring and staying informed about

industry regulations is essential. Involving legal and compliance
experts in the process helps navigate and adhere to necessary
guidelines.

5. Competitive Landscape:

Limitation: The competitive landscape may change rapidly,

impacting the relevance of certain market requirements.
Focusing too much on current competitors may lead to
overlooking emerging players or disruptive technologies.
 84

Boundary: Conducting regular competitive analyses and keeping

an eye on industry trends and emerging technologies can help
anticipate changes in the competitive landscape.

6. Cultural and Regional Differences:

Limitation: Cultural and regional differences may result in

varying customer preferences and needs. Strategies effective in
one market may not necessarily yield the same results in
another.

Boundary: Conducting thorough market research in different

regions and considering cultural nuances help in tailoring
market requirements to specific audiences.

7. User Experience and Usability:

Limitation: Crafting market requirements doesn't always

guarantee a seamless user experience. User interface design,
accessibility, and usability may require additional attention.

Boundary: Collaboration between product managers, designers,

and user experience experts is essential. Regular usability
testing and feedback loops with users help refine and improve
the user experience.
 85

8. Environmental and Ethical Considerations:

Limitation: Ignoring environmental and ethical considerations

can result in negative public perception and impact brand
reputation.

Boundary: Integrating sustainable and ethical practices into

market requirements and product development ensures
alignment with evolving societal expectations.

4.7. Rationales and Origins

The process of delivering a product often encounters challenges due to

its lengthy nature, prompting the product planner to explain the
reasons behind specific directives or constraints to other stakeholders.
This is particularly crucial for intricate products with extended
development cycles, where documenting the rationale for requested
functionalities proves beneficial for future reevaluation and
marketing endeavors.

Within this context, "rationales" and "sources" play vital roles in

supporting directives. Rationales elucidate the logic and justification
behind a directive or constraint, while sources lend credibility to the
rationale by drawing on data or respected opinions. Constraints,
intentionally restricting the choices available to solution architects,
require thorough documentation, including a rationale and a credible
source. These sources can originate from diverse channels such as
customers, customer support, development teams, research findings,
sales channels, research papers, or consulting firms.
 86

Rationales play a crucial role in elucidating the basis behind a given

market requirement, enabling subsequent readers of the Market
Requirements Document (MRD), particularly the product architect
and developers, to fully comprehend the requirement without
additional clarification. Understanding why a specific directive or
constraint was introduced is essential for readers, and rationales serve
as the elucidation. They offer justification and supporting evidence for
a directive or constraint, allowing readers to assess the value of that
particular component more comprehensively.

Sources hold significant importance, as they enable the validation of

any rationale or constraint through documentation, surveys,
statistics, or insights from market analysts. Sources complement
rationales by demonstrating that the justifications are not mere
subjective opinions but are substantiated by factual evidence.

The combination of rationales and sources provides valuable insights

for those tasked with crafting the Product Requirements Document
(PRD), the subsequent key document in the product development
cycle. Ideally, assigning rationales and their corresponding sources to
all directives and constraints across all market requirements
enhances the overall effectiveness of the document.
 87

4.8. The Six C’s of a Market Requirement

The 6Cs of motivation serve as a recognized tool in higher education,

focusing on enhancing classroom motivation and student
engagement. In 2004, Dave Chaffey introduced the 6Cs of customer
motivation as a valuable framework during the evolving landscape of
online offerings. The intention was to create a model of customer
motivation that could effectively define the Online Value Proposition.
 88

The 6Cs serve as a valuable framework for creating or enhancing a

website. Utilize the provided template to evaluate the advantages that
a website and its online services provide to audiences, as well as to
analyze the offerings of your competitors.
 89

What are the 6Cs?

1. Content

Ensure the presence of "appropriate content," which encompasses

comprehensive product or service details, or content that adds value.
Additionally, establish the "correct context" for the content during site
visits. Lastly, incorporate the "appropriate media," such as interactive
services, tools, and videos.

2. Customisation

Personalisation of content or products to individuals or groups

3. Community

Customer forums such as for troubleshooting or exchanging tips

4. Convenience

24/7 availability Turnaround time After sales service Refund

Guarantee

5. Cost Reduction

Informed perception of lower-cost - no middle man Online exclusive

pricing
 90

6. Choice

Broader range of products / services Additional methods of payment

Flexible delivery including ʻon-demandʼ options for digital content
Ease of return.

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 91

Chapter 5: Financial understanding for Product

Management

5.1 Introduction

In todayʼs business environment, product managers need to be

knowledgeable about the financial dimensions of their jobs as well as
the marketing portion. As we noted in Chapter 1, in many companies
product managers assume the role of mini-CEOs in that they have
complete profit and loss responsibility for their products. In such
cases, the product manager must be familiar with all aspects of
business, including operations management, human resources, and so
on. However, besides the analyses marketing managers perform to
better understand customers, competitors, and the rest of the external
market environment, several other analyses related to the financial
aspects of the productʼs performance are also necessary. As a result, to
be part of a firmʼs overall decision making, product managers must
understand the financial implications of their decisions.

Financial decision making is closely related to product strategy. The

top part of Figure 8.2 shows that the ultimate objective of product
managers is profitability, whether or not the short-term objective in
the marketing plan is oriented toward share or profits. The left-hand
side of the diagram includes marketing-oriented activities, such as the
decision of whether to seek new segments or to pursue existing
customers. However, the right side of the figure includes activities that
are primarily financial, including decisions about cost cutting,
 92

improving the sales mix to emphasize products with higher margins,

and the like.

Two key kinds of information are important to marketing decision

making and strategy development. First, if the product manager is to
have profit and loss responsibility or set short- and long-term profit
objectives, he or she must have a good understanding of how profits
are computed. As any financially oriented manager knows, computing
profits is not a straightforward issue. Later in this chapter, we show
that there is no such concept as the bottom line; in fact, there are at
least three ways to calculate the “profitability” of a product. The
second kind of information that is critical to a product managerʼs
understanding of financial performance is relevant if there is a
product line or many product variants (e.g., different sizes, colors)
because it analyzes the performance of different product variants.
This is called a sales analysis and is also discussed later in this
chapter.

The financial analyses described in this chapter can be used in a

variety of ways. One way to use either profitability or sales analyses is
for planning purposes. As noted in the outline in the appendix to
Chapter 2, budgeted, or ex ante, profitability needs to be reported in a
marketing plan. In addition, analysis of the relative sales
performances of different product variants can lead to a new
marketing strategy or the pruning of a product line.

These analyses can also be used ex post, or after the planning period,
and at specific intervals within the planning period. Such a use of
financial analyses would be for control purposes. Obviously, it is
 93

important to measure how the company has done or how it is doing,

the latter being particularly important for making adjustments during
the execution of the plan.

In this chapter, we take a detailed look at several kinds of financial

analyses that are important for product management. Besides the
sales and profitability analyses just mentioned, we describe a strategic
approach to control that explicitly links financial to marketing
analysis. We also discuss capital budgeting from a marketing
perspective.

5.2 SALES ANALYSIS

Overview

Consider the advertisement shown in Figure. Although it undoubtedly

overstates the case just a bit, the point made by the graph and the text
is clear: In many cases, it is impossible to determine how successful a
product or service really is without digging deeper into its sales
records. The overall picture can be quite rosy while some real
problems can exist in certain channels, regions of the world, sizes,
and so on.

This realization leads to the iceberg principle.1 Many of the real

problems facing a product manager lie “beneath the water.” Like the
tip of an iceberg, total sales or profits are the small amount of the
mass that is readily visible. However, if the product manager wishes to
avoid the fate of many passengers of the Titanic, the large amount of
mass that is invisible should also be taken into account.
 94

A simple example illustrates the iceberg principle. Suppose the

planning horizon coincides with the calendar year and for control
purposes, the product manager analyzes her productʼs sales
performance for the first six months, January through June. She finds
that sales are $400,000 below objective. Now suppose further that the
product is sold in four sizes, and after digging a bit deeper, you find
that sales versus objective vary by size:

Thus, the $400,000 figure is a net figure that combines $380,000 over
objective with $780,000 below objective. Clearly, the problem is severe
for size 4. Taking the analysis one step further by decomposing the
sales for size 4 into different geographic regions produces the
following:

Again, the problem has now grown into a much bigger one than the
initial $400,000 below objective indicated.

This simple analysis provides two clear benefits. First, the product
manager better understands the true magnitude of any problems that
exist. Second, potential problem areas are identified. For example, the
 95

product manager should focus efforts on size 4 and the East region to
attempt to understand why the product is unsuccessful in that size
and region and not the others. This evaluation could lead to
eliminating the size, the region, or both, or to revamping the
marketing strategy in those product and geographic segments.
However, sales analysis does not explain why there are problems; it
only pinpoints their location.

5.3 The Value of Sales

Analysis In general, sales analysis can be defined as “the gathering,

classifying, comparing, and studying of company sales data”
(Wotruba, 1971). Obviously, all firms do the gathering part as a way to
measure the performance of their products. However, most
companies do not study their sales records systematically. In fact, the
advertisement in Figure illustrates a common belief that companies
fail to analyze their own sales records. As the simple analysis above
shows, when compared to some standard of performance (in this case,
the stated objective), sales analysis can be a powerful tool in the hands
of a product manager.

Figure shows the major components of a sales analysis. The four

major parts correspond to the following questions.

1. How are sales defined? As noted in Figure, sales can be defined

in terms of orders, shipments, or cash receipts. The definition can
matter a great deal, particularly for manufactured products. Some
companies book sales when the product is shipped, for example, prior
to receiving payment for them. Overly zealous managers who are
short
 96

of sales goals have been known to ship product to themselves to achieve

quotas!

2. In what units can sales be analyzed? Sales can be measured in

terms of currency, units, or percentage of company sales, among other
measures. Currency is useful, particularly when the product can be
purchased in a large number of sizes. However, increases in sales in
currency terms mask price increases. (Units do not have that
problem.) Even when the product is available in different forms (e.g., a
cold remedy that is available in both tablet and liquid forms) or sizes,
the industry can develop norms of measurement (such as a standard
dosage size).

3. In what categories or classifications can the sales data be placed?

There are many possibilities here. In the example above, we used
geographical area and product size. Figure shows some other
categories. Other common bases of classification are product types,
customer types, markets or channels, order sizes, and time periods.
Order size is a particularly useful way to break down sales, as shown
in Figure. A situation in which 20 percent of the orders constitute over
80 percent of the sales dollars is not uncommon. In that case, a
profitability analysis would show that the small orders not only
produce a small percentage of total sales but are also unprofitable to
fill.

4. What are the appropriate standards against which the sales can
be compared? As Figure shows, some of these standards include
historical results, current results from another category in the same
time period, some predetermined standard such as an objective or
 97

quota, averages across the company or some other business unit, and
sales relative to market share (such as the share of voice concept
discussed in Chapter 11).

Each kind of sales analysis can be denoted by using Figure and

drawing a line beneath the construct used. As shown, one such
analysis could compare historical cash receipts from geographical
areas. Naturally, the particular analysis used should be consistent
with company record keeping, the particular product being analyzed,
and the markets in which it is sold.
 98

A good example of the value of sales analysis is Reebokʼs experience in

the late 1990s (Lefton, 1999). The brand had fallen from the success it
had in the 1980s, and one of the areas that senior managers felt needed
improvement was a reduction in the number of stock-keeping units
(SKUs) generated by the large number of model/color/size
combinations, what the company refers to as styles. An analysis of the
sales by style found that of the 2,200 existing styles, 1,000 of them
generated only .003 percent of Reebokʼs volume. An immediate action
was to reduce the number of styles to the 600 generating most of the
sales volume, which permitted a greater ability to focus marketing
dollars where they counted.

5.4 Roadblocks

If this analysis is so simple yet so valuable, why is it not used more by

companies and their product managers? We have identified three
reasons.

First, information systems often are not designed with product

management in mind. Finance, accounting, manufacturing,
operations, and human resource personnel are often key informants
about the development of an information system. However, to be
useful to a product manager, the system must collect the detailed
receipt information and make it available for analysis. If marketing
personnel are not queried for their needs when developing the
system, the system is not likely to have the characteristics necessary
for performing sales analyses.
 99

Second, and related to the first point, financial or accounting

personnel have quite different mindsets and perspectives than
marketing personnel. Their information needs, training, and
background are quite different. The differences can lead to inadequate
information and a less-than-helpful perspective on the value of the
information to the company.

Finally, one reason for failing to conduct sales analysis is a lack of

internal marketing on the part of product management. A strong
internal marketing program is necessary to induce any kind of change
within an organization. It is important that marketing personnel be
proactive in convincing senior managers who influence information
system design that the detailed sales data are important and have
value. Otherwise, the different mindsets and backgrounds will
continue to dominate the way such systems are designed.

In retailing environments, these kinds of barriers are being broken

down with the increasing penetration of optical scanners,
point-of-sale (POS) systems, and other technology-based systems that
generate detailed sales data. Because each product variant is labeled
with a different code, excellent data for sales analyses are being
produced for products sold through food, drug, and many discount
stores. However, many consumer products and almost all
business-to-business products do not benefit from such technology at
the present time.
 100

5.5 PROFITABILITY ANALYSIS

Conventional Product Profit Accounting

A good way to begin this discussion is to use an illustration of an

actual financial statement. Figure shows an income statement for a
hypothetical telecommunications service, referred to as NewCall. The
top line indicates that 2 million units of the service were sold during
the fiscal year at $5 each for total revenues of $10 million. Subtracted
from

this revenue figure are expenses related directly to operations such as

labor, materials, and certain kinds of operations overhead (utilities,
for example). This gives a gross or operating margin of $5.9 million.
Finally, all other expenses are subtracted, giving a total profit (loss) of
($100,000).
 101

This approach to computing profits is called a full-costing approach,

in which all costs associated with a product or service, including
corporate overhead, are subtracted from revenues. This is the most
popular approach to product profitability accounting. The strength of
the full-costing approach is that it guarantees that all the costs of the
corporation are covered by the products. Another way to say this is
that the corporation will be profitable by ensuring that each product
is profitable.

However, this approach has some weaknesses that will become

apparent as we work through the example. First, given that the
product is losing money, is the company better off by dropping
NewCall? At first glance, it appears the company would be $100,000
more profitable by eliminating the product. In reality, this turns out
not to be the case; the company could actually be worse off.2 Second,
it is difficult to use the full-costing approach to obtain answers to
relatively straightforward questions. For example, if revenues
increase by 10 percent, what happens to profitability? We develop the
ability to address these questions later in the chapter.

5.6 Alternative Accounting Systems

We can classify accounting reporting systems into three groups. First,

one kind of system is referred to as “financial” or “custodial.” Figure
shows an example of such a system. These systems are good for
looking at historical financial results—“how we did.” In addition, they
are useful for external constituents, such as investors, who may care
only about the aggregate or overall financial performance of a
company.
 102

Financial reporting systems based on full costing have several

problems. First, full-costing methods are inherently unable to link
costs, volumes, and profits because different kinds of costs, some of
which affect a productʼs true profitability and some of which do not,
are not categorized. The full-cost approach also tends to allocate fixed
costs arbitrarily. For example, a common way to allocate overhead
costs such as electricity is by sales volume. Clearly, such costs become
difficult to plan for because they are almost always variable (as sales
volume changes, so do the charges for power). In addition, this
approach gives managers a disincentive to raise sales levels because
more and more costs are piled on, making the product look less
profitable. Finally, these custodial systems fail to draw a distinction
between costs that are under the control of the product manager and
those that are not. From the product managerʼs perspective, it is
entirely fair to be required to generate more revenues than costs
directly attributable to his or her product. However, should a
productʼs profitability, and therefore the managerʼs evaluation, be a
function of how many corporate jets are in the hangar?

A second type of system is performance based. This kind of system is

primarily control oriented: It looks at todayʼs performance based on
variances from budgets. These variances are useful to pinpoint
problems but, like sales analysis, do not provide any answers. A third
kind of system is contribution based. As we show in the next section,
its emphasis is on costs the product manager can control, and it makes
a clear distinction between fixed and variable costs.

Contribution-based systems are designed for operating managers, and

are decision oriented. They permit the manager to look toward the
 103

future by being able to generate answers to “what if ” kinds of

questions.

Our point is not that one system should be used to the exclusion of
another but that several kinds of reporting systems are important to
provide full information to all levels of management. Corporate jets
may be necessary to conduct business, and their costs must be
covered by the firmʼs products. However, should the health of an
individual product be damaged by being saddled with a high overhead
charge? Another kind of profitability thus indicates how much
revenue is generated in excess of costs directly related to marketing
an individual product. The more a product manager knows about how
profits are calculated, the better equipped she or he is to battle with
more senior managers over resource allocation decisions.

5.7 Contribution-Oriented Systems

The earlier discussion of Figure illustrates one of the “bottom lines”

that provides useful information (although with some important
limitations) to product managers. A second notion of profitability is
called contribution margin. Basically, contribution margin is the
amount of money left over after accounting for variable costs that goes
toward covering fixed costs. At this point, it is critical to be clear on
the different categories of costs.
 104

Figure categorizes different kinds of costs that will be useful in our

discussion. Variable costs are those that vary directly with total
volume of sales or production. Such costs normally include materials
(for manufactured products) and direct labor (hourly), but they can
also include supplies such as packaging. We assume the variable cost
per unit remains constant as volume changes.

Fixed costs are more complicated. In general, a cost is fixed if it does

not vary in amount with the volume of sales or production. Fixed costs
tend to be items such as advertising, customer service, corporate jets,
and the like. However, at some level of sales, all costs become
variable. That is, rather than being level for any amount of sales, fixed
costs often follow a step pattern: They can increase with a large jump
in sales but remain level at this new plateau. For example, if the
product sells better than expected, additional customer service
representatives may have to be hired. Fixed costs can be direct, that is,
directly associated with a given product (e.g., advertising), or indirect
(e.g., the corporate jet). In addition, programmed fixed costs are
 105

highly flexible because they can be increased or decreased at will.

Standby fixed costs are difficult to adjust in the short run.

Using these definitions, one can take the numbers in Figure and
classify them into variable and fixed categories (we will be concerned
later with the different categories of

fixed costs). Figure shows a suggested classification scheme.

Examining the operating expenses first (the top part of Figure), direct
labor, Social Security (a fixed percentage of direct labor), and
materials are clearly variable because they depend on sales volume.
We assume operations overhead has fixed and variable components.
For example, utility bills can vary with production volume and hence
may be variable, whereas depreciation of plant and equipment is
fixed. Much of the nonoperating expense is fixed except for field sales,
which have some commission (fixed percentage of sales) and
customer service (on-site service expense is a percentage of the
number of units sold).

These newly classified costs can be assembled into a new financial

statement, shown in Figure , called a contribution margin statement.
The revenues remain the same at $10 million. However, we first
 106

subtract the variable costs of $3.9 million, leaving $6.1 million in

contribution margin. This is the amount of money left after direct
costs of making the product or delivering the service that will go
toward covering fixed costs. What is called the contribution or
variable margin rate is the contribution margin divided by the total
sales revenue—in this case, $6.1 million divided by $10 million, or 61
percent. Another way to look at this number is that 61 cents of every
dollar of sales goes to covering fixed costs. On a per-unit basis, this
translates to $3.05 (61 percent times $5). These are important numbers
for answering some key questions.

All we have done is reallocate the costs into categories different from
those used in the income statement shown in Figure. Although we
have not shown yet how this new scheme helps make better decisions,
it should already be clear that Figure is somewhat easier to interpret.
In fact, now we can easily answer the question posed earlier
concerning the profit impact of a 10 percent increase in revenues. If
revenues increase to $11 million, variable costs also increase by 10
percent to $4.29 million. Since fixed costs remain the same at $6.2
million, the new profit figure would be $510,000, or an increase of
$610,000. This would not have been easy to calculate from the
statement shown in Figure.
 107

5.8 Using the Contribution Margin Rate

Three basic calculations make use of the contribution margin concept.

First, most product managers need to know their break-even volume
in both units and dollars. This is the amount they need to sell to cover
fixed costs. The formulae are:

One other important concept is the safety factor, which is the amount
over (or under) the break-even volume currently being sold:
 108

Using the information from Figure, the break-even volume in units is

the fixedcost figure of $6.2 million divided by $3.05 (the contribution
margin per unit), or 2,032,787 units. The break-even volume in dollars
is $6.2 million divided by 61 percent, or $10,163,934. Clearly, NewCall
is operating below its break-even level. As a result, the safety factor is
negative: 21.6 percent.

A word of warning about break-even analyses is that they are very

short-run oriented because the calculations are based on only one
yearʼs results. Even though NewCall is below breakeven, it may be a
new product and therefore need additional time to establish itself in
the marketplace. Overreliance on break-even analyses can result in
the company making myopic decisions on products that have
considerable promise. However, they are useful benchmarks when
used conservatively.

Break-even analysis can also be applied to any incremental change in

fixed costs. Suppose the NewCall product manager wishes to hire two
additional salespeople at a total cost of $200,000 per year. The sales
volume that would have to be generated to cover their salaries
(assuming no commission) would be $200,000 divided by .61, or
$327,869. Alternatively, if the product manager wishes to spend an
additional $100,000 on advertising, $163,934 will have to be generated
to break even, assuming no long-term effects of the advertising.

An additional use of the contribution margin information is in profit

planning. Suppose the NewCall product manager was given a target of
$500,000 profit. The dollar revenues needed would be computed using
the following formula:
 109

Thus, the target profit acts as an additional hurdle to overcome in

addition to fixed costs. In dollars, the necessary revenue would be
($500,000 $6.2 million) .61, or $10,983,607. In units, the break-even
amount would be $6.7 million $3.05, or 2,196,721 units.

As noted earlier, it is relatively straightforward to calculate the profit

impact of increases or decreases in revenues. An increase in revenues
of 10 percent increased profits by $610,000. However, the reverse is
also true: A decrease in revenues of 10 percent increases the loss by
$610,000. It turns out that more fixed cost–intensive businesses suffer
when sales drop because there is less revenue to cover the fixed costs.
A good example of this problem is the airline industry (and most
service businesses in general). The airline industry is characterized by
low variable costs (e.g., fuel, food) and extremely high fixed costs (e.g.,
flight attendants, interest payments on airplanes). This results in price
wars for passengers because any empty seats mean lost revenue that
can cover fixed costs. Although revenues per passenger drop, the drop
can hopefully be offset by greater total revenues per flight.
Recessionary periods and products with inherently slow growth rates
exacerbate the problem.

In general, products characterized by different variable margin rates

have quite different strategic problems. When variable costs are high
(contribution margin rates are low), it is important to keep prices high
because profit is made on each item sold. That is, with relatively low
fixed costs to cover, profitability is determined by the profit margin on
each unit. When fixed costs are high and variable costs are low, sales
 110

volume to generate contribution margin to cover the fixed costs

becomes critical.

This conclusion is borne out by the figures shown in Figure. The

horizontal dimension is the variable margin rate. Fixed costs increase
from left to right. The vertical dimension reflects alternative price
changes. The entries in the table are the percentage of new-unit sales
to old-unit sales required to break even for a given price change and
associated contribution margin rate. Thus, if a product has a 35
percent margin rate and the product manager is thinking of cutting
price by 10 percent, sales would have to increase by 40 percent to
break even. This occurs because if the price drops, the variable
margin rate also drops and less money is left to cover fixed costs. What
is alarming is the

amount of additional sales needed to break even for even relatively

modest price cuts for any contribution margin rate! You can see that
the airlines benefit to some extent by having contribution margin
rates to the right end (or even off ) the scale because the higher the
margin rate, the less a price cut hurts contribution margin and the
 111

lower the incremental volume that has to be generated to break even

for any price cut.

5.9 Fixed Costs

As we noted earlier, there are different kinds of fixed costs.

Programmed direct fixed costs are the kind product managers control
and are usually expended for a specific planning period. In other
words, they are discretionary. Examples of this kind of costs are
advertising, promotion, and the like. Programmed indirect fixed costs
are controlled by management but cover several products. Corporate
umbrella advertising would fall into this category. Standby direct
fixed costs do not change significantly without a major change in
operations and are generally not controlled by the product manager in
the short run. An example would be costs associated with a
production facility that is dedicated to a specific product. Standby
indirect fixed costs are typically corporate overhead—the jet, the
CEOʼs salary, and so on. They are not directly related to any specific
product, nor are they controlled by the product manager.

The reason for making these distinctions goes back to the notion of
profitability and the evaluation of the product manager. For what
costs should the manager be responsible? We could argue that the
product manager has a primary responsibility to make a profit by
generating revenues in excess of variable costs that cover the fixed
costs attributable to his or her product—the direct costs, both standby
and programmed. In other words, the product manager should be
responsible for making a profit based on costs that would exist only if
 112

the product existed. Any costs that would not disappear if the product
were

dropped are not the responsibility of the product manager. This is, in
fact, a conservative approach because some of the direct standby costs
might not disappear at all if the product were dropped. A
manufacturing plant, for example, could be adapted for producing
another product made by the company.

Figure illustrates (based on some assumptions) how these fixed-cost

categories can affect the profit picture for a product. The fully
 113

allocated cost bottom line is the same, of course (a loss of $100,000), as

is the contribution margin bottom line of $6.1 million. However, look
at the third “bottom line,” that is, the profit picture after subtracting
all direct fixed costs. After conservatively subtracting both
programmed and standby direct fixed costs, NewCall shows a “profit”
of $1.835 million! Only after subtracting costs over which the product
manager has no control does the product show a loss. We can now
answer a question stated earlier in this chapter: In fact, the company
would be worse off by dropping this money-“losing” product because
it is generating $1.835 million that is going toward covering indirect
fixed costs.5 Thus, it is not always clear what profits and losses mean.
In sum, each of the three notions of profit developed in this chapter
have pluses and minuses. The full-costing statement (Figure) is of
most interest to top management and
external constituents. In addition, ultimately all costs of the
business must be covered. The contribution margin statement
(Figure) is easy to read and gives a quick idea of how much money is
being generated to cover fixed costs. However, it does not make a
distinction between indirect and direct fixed costs. Finally, the
statement breaking down fixed costs (Figure) is the most relevant for
product management because it clearly states how the product is
performing. It also reflects that it is becoming more important to
relate product costs to actual activity as opposed to arbitrary
allocation methods (Cooper and Kaplan, 1991). However, it is also true
that all products sold by a company could be profitable by this
measure, but the company would go out of business because the
excess funds generated beyond direct costs do not cover indirect
costs. To repeat a point we made earlier, product managers must equip
themselves with information about the different kinds of profit
 114

concepts discussed here to make a better case for an increased share

of corporate resources.

5.10 A STRATEGIC FRAMEWORK FOR CONTROL

The two financial analyses described thus far can be used both for ex
ante budgeting (while the plan is being developed) and for ex post (or
after the planning period) control purposes. However, a specific kind
of analysis called variance analysis is used for control only. In this
context, a variance is a discrepancy between a planned figure or
objective and the actual outcome. Typically, control in a marketing
planning context is limited to some simple variances such as
comparing actual advertising expenditures to historical averages or
market share (using advertising share) or expected versus actual
levels of profit or sales. Variance analysis was developed to integrate
accounting with concepts from marketing strategy and planning
(Hulbert and Toy, 1977). Like the sales analysis presented earlier, the
major benefit of variance analysis is identification of potential
problem areas, not diagnosing the causes of the problems.

Figure presents possible market results for a hypothetical product,

Alpha. As is typical with a variance analysis, the three columns refer
to the planned amount, the
 115

actual amount, and the difference or variance. The rows describe

different quantities of interest. Of particular note are market size and
share that link to well-known models of strategic marketing planning,
such as the Boston Consulting Groupʼs growth-share matrix.

Figure shows an unfavorable contribution variance of $100,000.

Assuming the variances are due to marketing-related activities alone,
the $100,000 variance could be due to volume variance, that is, selling
a different amount than that planned, or a contribution variance. The
volume variance is due to variances between planned and actual
figures for market size and market share, the two key strategic
variables. By decomposing the results in this way, the product
manager has a more complete view of where the problems in the
productʼs performance may lie.

5.11 Price–Quantity Decomposition

The following terms are used below:
 116

5.12 Penetration–Market Size Decomposition

 117

5.13 Summary
Who has responsibility for these variances? The market size variance
is due to underforecasting the size of the market. In some companies,
this is the responsibility of the product manager. However, there are
numerous explanations for why the forecast is low. One explanation
could be that insufficient exogenous factors, such as population
growth, government spending, interest rates, and the like, were
considered. Many times, the forecast is off due to unexpected changes
in competitive strategy. In this case, product Alphaʼs price was lower
than planned. The low price can be due to increased price
competition, which, if total market demand is price elastic, can cause
the market size to increase. This would be difficult to forecast. No
matter what the source of the error was, the underforecast resulted in
a $1 million favorable variance. However, this is not entirely positive.
Market growth greater than expected may have contributed to a set of
actions by the product manager that led to loss of competitive
position. As the (former) market leader in a fast-growing market, this
is a serious loss.

In addition, market share was substantially lower than planned. This

also can be due to a large number of factors, but it is usually due less
to forecasting errors than to actions by the relevant product
managers. In the case of product Alpha, it is possible that the product
manager reacted late with a price cut, enabling competitors to gain
share. Alternatively, a competitor may have launched a particularly
creative advertising campaign. In other words, the market share
variance is due more to operational problems than to poor
forecasting. This error was particularly damaging, however, costing
$600,000 in lost profits.
 118

Clearly, decomposing the $400,000 volume variance into the two

components, share and market size, provides more information to the
product manager. Like the sales analysis, the $400,000 figure is
aggregate and masks substantial underlying numbers. Understanding
how market share and size variances contribute to the overall volume
variance pinpoints areas for further examination, perhaps
organizationally (How do we do our forecasting?) and operationally
(How should we react to a competitorʼs price cut?).

The price cost variance of $500,000 is also quite large. However, this
variance, although calculated separately, is clearly not independent of
the volume variance and its decomposition. The drop in price may
well have led to the increased market size. Perhaps the drop in share
to 44 percent would have been greater without the lower contribution
achieved.

Finally, while the example illustrates the use of this strategic

framework for control of a product after the end of the planning
period, one major potential application of the approach is for control
during the execution of the plan. It would clearly be better to
understand the variances after 6 months than after 12. Appropriate
corrective action could take place and reduce some of the negative
variances before the end of the year.

5.14 CAPITAL BUDGETING

Overview
Product managers often have to weigh alternatives when making
incremental changes in a product or deciding whether or not to
 119

introduce a new variant. For example, a workstation product manager

may have several options for making product improvements, such as a
larger hard disk, a new configuration of the case for a smaller
“footprint” on a managerʼs desk, a better monitor, and so on. These
alternative projects have different degrees of potential for expanding
sales, market share, or both and thus have different potential financial
impacts.

The same kind of reasoning can be applied to other kinds of

investments made by the product manager. For example, marketing
mix expenditures, such as advertising, promotion, sales force, and so
on, can be viewed as projects in the sense that they are investments
intended to produce some future cash flow to the firm. Thus, an
increase of $1 million in advertising must be weighed against
expanding the sales force or adopting product improvements.

The same mechanism operates at the firm level. Different new product
ideas come from research and development, each with alternative
degrees of potential financial success. Like the product manager,
senior managers must develop an approach to prioritize investments
in new products or major reformulations.

Capital budgeting is an area of finance that deals with this

prioritization of projects within a firm.6 Many readers will already be
familiar with the basics of capital budgeting. However, there is rarely
any link between what transpires in finance courses and what actually
happens in marketing on this topic. For example:
 120

Marketers and finance people seldom see eye to eye. The marketers
say, “This product will open up a whole new market segment.” Finance
people respond, “Itʼs a bad investment. The IRR (internal rate of
return) is only 8%.” Why are they so often in opposition?7

This section briefly describes the main approaches to rationing

resources among a set of risky projects and discusses how marketing
issues are heavily related to capital budgeting.

The Basics

Capital budgeting involves five discrete steps:

1. Generating investment proposals.
2. Estimating cash flows for the proposals.
3. Evaluating the cash flows.
4. Selecting projects based on an acceptance criterion.
5. Reevaluating the projects after their acceptance.

We focus on the first three steps in this chapter.

Although a detailed discussion is outside the scope of this book, it is

clear that marketing management has great influence on alternative
investment proposals (Crawford and DiBenedetto, 2000). New product
concepts come from contacts with customers such as focus groups,
internally from product management, and from a large variety of
other sources besides research and development.

Marketing management also generates estimates of cash flows.

Product managers or staff personnel develop sales forecasts. They
obtain estimates of penetration rates over time from simulated test
 121

marketing laboratories, intention-to-buy surveys, and other

marketing research sources

Given that cash flows (after tax) have been estimated, the third step is
to evaluate the attractiveness of the different proposals. Again, these
could be new products, refinements, or even investments in
advertising. The five major methods used to perform this evaluation
are

1. Average rate of return.

2. Payback.
3. Internal rate of return.
4. Present value.
5. Economic value added

Average Rate of Return

This accounting method takes the ratio of the average annual profits
after taxes to the average investment in the project. For example, if the
average annual profits are $5,000 and the average investment per year
in the project is $20,000, the average rate of return is 25 percent. A
variant of this method divides the average annual profits by the
original investment rather than by the average. The return rate can be
compared to hurdles used by the firm or other standards. The obvious
advantage of this method is that it is simple. However, it ignores the
timing of the profits since it values the income from the last year as
much as income from the first year.

Payback
 122

This method calculates the number of years it will take to recover the
initial investment in the project. It is the ratio of the initial investment
over the annual cash flows (not profits as in the average rate of return
method). Thus, if the initial investment is $100,000 and the annual
cash flow is $20,000, the payback period is five years. If the annual
cash flows are not equal, you can still easily calculate the payback
period by simply adding the yearly flows up to the point where the
initial investment is recovered. The calculated payback period is then
compared to a threshold level; if it is less, it is accepted. A major
problem with this method is that it ignores cash flows after the
payback period. It also does not account for the timing of the cash
flows.

Internal Rate of Return (IRR)

Most analysts use some kind of discounted cash flow analysis to
evaluate projects. The key point is that an equivalent amount of
money in the future is not worth as much as it is today. This method
and the present value method take account both the size and the
timing of the cash flows returned by a project. Let r be a rate of
interest. Assuming the initial investment in the project occurs at time
0 and n is the last period when cash flows (A) can be expected, the
internal rate of return is calculated from the following formula:

Therefore, r is the rate that discounts the future cash flows from the
project to equal the initial investment (r is the number that equates
the right side of the equation with the initial investment, A0 ). As with
the other methods, r must be compared to an internal hurdle rate or
requirement set by management for a project to be accepted.
 123

Obviously, this rate should be higher than what is called the risk-free
rate, the rate the company could get by putting the money in the
bank.8 Unfortunately, in many cases companies probably could do
better by doing just that!

Present Value
The net present value of a proposal is

where k is the rate of return the company requires. This is often

referred to as the discount rate or the firmʼs opportunity cost of
capital. Note that when t 0, A is the initial investment and is thus a
large negative number. The present value method states that if NPV is
greater than 0, the project should be accepted. In other words, you
should accept the project if the present value of cash received from it
is greater than the present value of cash spent. As might be expected,
the internal rate of return and present value methods usually lead to
the same decision. However, the NPV method is often favored from a
theoretical perspective.
Economic Value Added (EVA)

EVA is a financial performance measure based on operating income

after taxes, the investment in assets required to generate that income,
and the cost of the investments in those assets (cost of capital)
(Ehrbar, 1998). It has become a very popular financial metric since the
mid-1990s when it was popularized by the consulting firm Stern
Stewart & Company.

The EVA formula is the following:

 124

EVA is thus a monetary amount. If the amount is positive, the

company has earned more after-tax operating income than the cost of
the assets employed to generate that income. In other words, the
company has created wealth. If EVA is negative, the company is
consuming capital. In a capital budgeting context, the manager would
therefore accept any project that had a positive EVA.

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 125

Chapter 6: Concept of Marketing

6.1. Introduction

The marketing concept comprises a series of strategies embraced by

firms to assess customer needs and execute plans to meet those
requirements, leading to heightened sales, profit maximization, and a
competitive edge. Companies globally now extensively employ the
marketing concept, although this wasn't the case in earlier times.

As per this concept, it is said that for an organisation to satisfy the

objectives of the organisation, the needs and wants of the customer
should be satisfied. This theory was first mentioned in Adam Smithʼs
book “The Wealth of Nations” in 1776 but came into widespread use
only 200 years later.

Hence, marketing can be defined as the systematic procedure of

obtaining customers, fostering relationships with them, and
concurrently aligning their needs and desires with the offered
products or services. offered by the organisation, which ensures that
the organisation will become profitable.

What are Needs, Wants and Demand

The marketing concept revolves around understanding and

addressing the distinct elements of customers' requirements. Let's
delve into them briefly:
 126

1. Needs:

These are fundamental necessities essential for a healthy and

active life. Failure to fulfill needs can lead to system dysfunction,
potentially resulting in disability or even death. Needs
encompass both objective and physical aspects, such as the
requirement for food, water, and shelter.

2. Wants:

Desires that individuals harbor, but are not essential for daily
functioning, fall into the category of wants. Unlike needs, wants
are not imperative for basic survival and are often influenced by
cultural factors.

3. Demands:

When the ability to pay accompanies needs and wants, they

transform into demands. Demands represent a more actionable
and market-oriented aspect, as they involve the financial
capacity to acquire the desired products or services.

Types of Marketing Concept

 127

Six types of marketing concepts are as follows:

1. Production Concept
2. Product Concept
3. Selling concept
4. Marketing concept
5. Societal marketing concept

1. Production Concept

This concept was based on the assumption that customers are

primarily interested in products which are accessible and
affordable. This concept was introduced at a time when business
was focused mainly on production. It says that a business will be
able to lower costs by producing more quantity or mass
production of goods.

Solely focusing on producing goods may lead to the firm

deviating from its objective.

2. Product Concept

The underlying idea of this product concept revolves around the

belief that customers are likely to favor products that prioritize
superior quality, innovative features, and exceptional
performance. In adhering to this marketing approach, the
business dedicates its efforts to crafting high-quality products,
consistently refining them to achieve continuous improvement
and deliver enhanced offerings.
 128

3. Selling Concept

Unlike the preceding two concepts which centered around

production, the selling concept places its emphasis on the act of
selling itself. This perspective posits that customers will only
make purchases if the product is actively promoted by the
company. Building customer relationships and ensuring
satisfaction are not considered essential in this approach.

4. Marketing Concept

The customer-centric marketing concept prioritizes the

customer as the central focus of all organizational activities.
Organizations prioritize customer needs, emphasizing the
creation of unique value propositions to set themselves apart
from competitors.

5. Societal Marketing Concept.

This represents the pinnacle and most sophisticated iteration of

the marketing concept. Emphasizing the satisfaction of customer
needs and desires, it also prioritizes the safety of both customers
and society. This approach is rooted in the commitment to
contribute positively to society, aiming to create a better world
for all individuals.
 129

6.2. Business Domains

A "Domain" denotes a specialized field of expertise. In the context of

business, a "Business Domain" pertains to a fundamental corporate
activity crucial for the company's operation or existence. These
domains encompass a range of functions such as business
management, operations, engineering, manufacturing, product
management, and marketing. Business domains are expansive,
intricate, and comprised of diverse elements. The elements within
business domains are built upon a shared foundation of knowledge
areas and processes.

A business domain comprises defined "Disciplines," representing

distinct knowledge areas or activities governed by processes.

Each discipline is executed through "Methods," which consist of

organized plans and actions implemented through "Modes." A "Mode"
refers to a specific manner in which a method is applied or enacted,
facilitated by the use of "Techniques." A "Technique" is a procedural
approach employed to accomplish a particular activity or task.

The layers of a business domain are organized and sequenced in the

following hierarchical manner:

Business Domain > Disciplines > Methods > Modes > Techniques
 130

Most companies implement the elements in the business domain by

using a conjoint approach. Without attesting to its merit, a
characterization of this very commonplace implementation is as
follows:

1. In a specific field, most or nearly all fields of study are

consistently in progress.
2. In each field of study, multiple approaches are simultaneously
employed, with one specific approach usually taking
precedence.
3. In each approach, various modes are employed interchangeably.
4. Within each mode, a variety of techniques are utilized
concurrently or interchangeably.

By employing the concept of the business domain, it becomes feasible

to elucidate the internal framework and interconnections within the
marketing domain.

6.3. Marketing Domain

Marketing is an informative field of business aimed at enlightening

and educating target audiences about a company and its products'
value and competitive edge. "Value" refers to the benefit customers
derive from owning and using the product, while "Competitive
Advantage" signifies that the company or its products excel in certain
aspects compared to their competitors, providing advantages that
could benefit the customers (see Figure 5.1).
 131

Marketing is focused on the task of conveying pertinent company and

product related information to specific customers, and there are a
multitude of decisions

(strategies) to be made within the realm of marketing, crucial

decisions revolve around the content, quantity, target audience,
delivery method, timing, and location of information dissemination.
Once these decisions are finalized, a multitude of tactics and
processes can be employed to support the chosen strategies.

The objective of marketing is to establish and sustain a preference for

a company and its products among target markets. Every business
aims to cultivate mutually beneficial and enduring relationships with
its customers. Although all business sectors share the responsibility of
achieving this goal, the marketing domain plays a substantial role in
its accomplishment.
 132

Within the larger scope of its definition, marketing is performed

through the actions of three coordinated disciplines named: “Product
Marketing”, “Corporate Marketing”, and “Marketing Communications”.

6.4. Marketing Domain Disciplines

Product Marketing is an outward-focused function designed to create

awareness, distinguish products, and stimulate demand. The
Corporate Marketing discipline is an outbound activity aimed at
generating awareness and differentiation to the company. The
Marketing Communications discipline is the employment of a mix of
media vehicles that support marketing objectives.

Table 6.2 Marketing Model—Marketing Domain Concept Definitions

(Summary Table)

Term Description

(Marketing Instructive business domain that serves to

Domain) inform and educate target markets about
Definition the value and competitive advantage of a
company and its products
 133

(Marketing Convey pertinent company and

Domain) Task product-related information to specific
customers

(Marketing Build and maintain a preference for a

Domain) Goal company and its products within the target
markets

(Marketing Product Marketing, Corporate Marketing,

Domain) and Marketing Communications
Disciplines

Value Worth derived by the customer from

owning and using the product

Competitive Depiction that the company or its products

Advantage are each doing something better than their
competition in a way that could benefit the
customer
 134

Product Outbound activity aimed at generating

Marketing product awareness, differentiation, and
demand

Corporate Outbound activity aimed at generating

Marketing awareness and differentiation to the
company

Marketing Employment of a mix of media vehicles that

support marketing objectives
Communications

6.5. Marketing Model

Marketing is an educational field of business that aims to enlighten

and inform target markets regarding the worth and competitive edge
of a company and its offerings. The objective of marketing is to
establish and sustain a preference for a company and its products
among the target markets.

Volumes have been written about the marketing domain and what it
entails, but little has been noted about how it is ordered and
organized. The Marketing Model to elucidate the core aspects of the
marketing domain. This model maps the marketing activities within
the marketing domain, presents the division and location of
 135

departments identified with marketing in the corporate

organizational hierarchy, and describes the types of strategies and
plans related to the marketing domain.

Marketing Model – Marketing Domain Elements (Tabular

Form) [Graphic]

Marketing Marketi Marketing Marketing

Disciplines ng Modes Techniques
Methods

Product Value Messaging Market research, value

Marketing Emphasi Model and positioning
s messages, messaging
plan…

Feature Feature Competitor analysis,

Emphasi Compariso product comparison…
s n

Price Cost-Plus, Skimming,

Emphasi Going-Rate penetration,
s diversification,
discrimination…

Product Uniqueness Loyalty programs,

Brandin , Labeling community relations,
g alliances, symbols,
ideas…
 136

Corporate Corpora Personifica Loyalty programs,

Marketing te tion community relations,
Brandin alliances, symbols,
g ideas…

Analyst Engagemen Knowledge databases,

Relation ts, briefing sessions,
s Resources demos, visits…

Marketing Advertis Entertainm Copyrighting,

Communicati ing ent, budgeting, creative,
ons Informatio Internet, print, radio,
n TV…

Graphic Signals, Presentations, sales

Arts Imagery, tools, stationery,
Perception colors, logos,
packaging…

Public Relationshi Press Releases, events,

Relation p, Media lobbying…
s Coverage
 137

Marketing Model – Corporate Organizational Structure

(Tabular Form) [Graphic]

Product Marketing Operatio Engineeri Business

Manageme ns ng Manageme
nt nt

"Product "Corporate Business Developm Accountin

Marketing" Marketing" Developm ent g
ent

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 138

6.6. Product Marketing Methods

The objective of the "Product Marketing" field is to create awareness,

distinguish the product, and stimulate demand. This goal is pursued
through three primary methods, each focusing on distinct aspects of
the product: price, features, or value. The method that centers around
price is termed "Price Competition," while the features-oriented
approach is known as "Comparative Marketing." Lastly, the strategy
that highlights value is referred to as "Value Marketing."

The price emphasis method in product marketing aims to achieve its

objectives by highlighting and communicating the product's price as a
key marketing signal. For instance, promoting a high price may
indicate a premium product, intending to positively influence the
perceived quality through inference. The primary aim of this method
is to create a scenario where customers predominantly base their
buying decisions on the product's price.

Conversely, the feature emphasis method in product marketing seeks

to attain its goals by underscoring and communicating the existence
or advantages of the product's features compared to those of
competing products. The objective of this method is to establish a
situation where customers primarily consider the product's feature set
as the main factor influencing their purchasing decisions.
 139

In the value emphasis method, the focus of product marketing is on

accentuating and communicating the value that the product offers
relative to the customer and in comparison to competing products.
The ultimate aim of this method is to establish both superior
perceived value and actual value. "Superior Perceived Value" refers to
customers perceiving the product from a particular company as
providing a more positive net value than its alternatives. "Superior
Actual Value" signifies a situation where the product indeed delivers a
more positive net value to customers than its alternatives. The
outcome of these states is a scenario where customers primarily
consider the product's value as the key factor in their purchasing
decisions.

The implementation of price emphasis and feature emphasis methods

in marketing, involving price competition and comparative
marketing, is generally considered more straightforward compared to
the value emphasis method (value marketing). This is due to the fact
that price and feature emphasis methods convey easily
understandable quantitative concepts, requiring minimal
interpretation by customers. In contrast, the value emphasis method
involves conveying abstract and qualitative concepts, which can
involve conjecture and argumentation, making it more challenging
for customers to grasp.
 140

Another approach within the realm of product marketing is product

branding. Product branding is the process of establishing and
maintaining a brand specifically at the product level. A "brand" is an
identity composed of symbols and ideas that represents a specific
offering from a known source. Product branding is typically carried
out in conjunction with one or more of the primary methods in
product marketing.

Creating a product brand and the associated brand identity typically

involves a purposeful and mindful strategy employed by a company.
However, it can also unintentionally emerge as a byproduct of
implementing any of the three main approaches to product
marketing. Consequently, product branding is not deemed a
standalone principal method, as the development of a brand may
result from the application of any of the three primary methods in
product marketing.

6.7 Corporate Marketing Methods

The primary methods supporting the objectives of the corporate

marketing discipline are corporate branding and analyst relations.

Corporate branding involves the ongoing process of establishing and

upholding a brand at the institutional level. The main aim of
corporate branding is to cultivate a positive image and identity for the
company among its target market's existing and potential customers.
The ultimate goal is to harness the equity of the corporate brand to
bolster the equity of the individual products.
 141

Analyst relations entail a two-way exchange of information with

financial analysts and industry analysts to both inform and positively
influence them. Financial analysts, typically employed by investment
banks, offer valuable insights to private and institutional investors for
their market-related investment decisions. Meanwhile, industry
analysts, often affiliated with research firms, provide companies with
knowledge and perspectives specific to their industry, aiding in
strategic decision-making. The objective of analyst relations is to
indirectly impact customers by influencing analysts. The overarching
goal is to sway analysts so that their recommendations have a positive
impact on potential investors and customers.

6.8. Marketing Communications Methods

In terms of domain perspective, marketing communications is

perceived as an executing function in relation to product marketing
and corporate marketing disciplines. Its role involves managing
various media channels to disseminate information about the
company and its products to the intended audience. Product
marketing and corporate marketing provide the information to
marketing communications, shaping messages that align with the
interests of these respective disciplines. The primary and critical form
of information supplied to marketing communications is termed
"Messages," representing ideas about the company and its products
intended for communication to target markets.
 142

The objectives of the marketing communications discipline are

achieved through three main methods: advertising, graphic arts, and
public relations. Advertising, a non-personal communication from a
identified sponsor through mass media, serves to convey messages
about the company and its products to the target audience. Graphic
arts involve the conception and copywriting of collateral material,
ensuring a consistent image and visual positioning in the target
market. Public relations activities revolve around promoting and
disseminating information for the company, with a focus on
encouraging media coverage and fostering a virtual relationship
between the company and its target audience.

6.9 Corporate Organizational Structures

The marketing domain encompasses various disciplines, each

typically managed by corporate departments sharing similar names.
These departments are responsible for guiding and executing specific
methods, modes, and techniques related to their respective
disciplines, aiming to achieve business goals as depicted in Figure 5.2.
The organizational structure of these corporate departments lacks
consistency and uniform allocation due to diverse interpretations and
views of the marketing domain. The three marketing disciplines may
be represented by separate corporate divisions, consolidated into a
unified Marketing division, grouped with disciplines from other
domains, or distributed across different corporate divisions.
 143

The "Marketing Model" incorporates a systematic depiction of

corporate organizational structures, illustrating the arrangement and
placement of marketing-related departments within the corporate
hierarchy. Similar to the approach used for representing the
marketing domain, the model employs a layered description method
presented through both graphics and tables. Table 5.1 provides a
summary of the corporate organizational structure. Occasionally,
certain disciplines from other business domains are grouped with
marketing disciplines and integrated into the Marketing corporate
division. Notably, sales and business development disciplines, which
technically belong to the operations domain, are commonly included
within the Marketing corporate division.

The field of "Sales" focuses on engaging with and convincing potential

customers to purchase a product through personal interactions. On
the other hand, "Business Development" involves activities aimed at
enhancing the overall performance of the enterprise. This includes
improving market access, competitiveness, and establishing strategic
partnerships with logistical, content, and technological allies. It's
important to note that both sales and business development are
integral components of the supportive operations business domain,
and as such, they do not fall within the marketing domain.
 144

Table 6.1- Corporate Organizational Structure

6.10. Marketing and Strategies

In a general business context, "Strategy" refers to a cohesive set of

long-term decisions aimed at accomplishing corporate objectives.
Every strategy is designed with two primary objectives: surpassing
competitors in delivering value and establishing a sustainable
competitive advantage. Within the realm of marketing, two essential
decision-making areas contribute to the formulation of
marketing-related strategies: market strategy and marketing strategy.

"Market Strategy" encompasses decisions that delineate target

markets, establish marketing objectives, and detail the approach to
cultivating a corporate competitive advantage. This strategy is shaped
by the roles of both product marketing and product planning
departments, with inputs from various corporate departments, most
notably the executive management department.
 145

The concept of "Marketing Strategy" encompasses decisions aimed at

achieving the overarching goal of marketing, which is to establish and
sustain a preference for a company and its products within a specific
target market. This is accomplished through the careful selection and
implementation of various elements collectively known as the
"Marketing Mix" or the original "Four Ps," which include product,
price, place (distribution), and promotion activities. The fundamental
idea is to blend these variables in a way that generates an optimal,
positive, and desired response from the target market. There exists a
wide array of marketing methods, modes, and techniques that can be
combined and applied to create a tailored marketing mix. Typically,
the determination of the marketing strategy is led by individuals in
the marketing communications department, with a particular focus
on the promotional aspect, while also involving contributions from
other corporate departments, notably the product marketing
department.

While not directly related to marketing, the "Product Strategy"

significantly impacts marketing efforts. This strategy involves making
decisions to develop and improve products, aligning them with
market demands, and outlining methods to establish a competitive
edge for the product. The product strategy falls under the purview of
product management within the business domain and is shaped by
the responsibilities of the product planning department.
 146

6.11. Marketing and Plans.

Decisions made at the strategic level serve as directives for

formulating plans that guide marketing activities. Within the
marketing domain, two distinct plan types exist: the market plan and
the marketing plan.

The "Market Plan" outlines long-term goals and messages aimed at the
target market concerning a specific company or product. This plan
details market strategy and, when supporting product marketing,
includes elements of the product strategy essential for establishing a
competitive advantage. Roles in both the product marketing and
corporate marketing departments contribute to the creation of market
plans.

The "Marketing Plan" builds upon the guidelines set by the market
plan and details the selection and application of marketing mixes in
the target market. It encompasses the marketing strategy and is
crafted by roles in the marketing communications department, with
contributions from both the corporate marketing and product
marketing departments.

The marketing strategy undergoes continuous influence from various

marketing activities, and specific measures taken in the market are
articulated in the "Marketing Program." This program describes
short-term marketplace efforts designed to achieve specific marketing
goals, such as events, advertising campaigns, and limited-time
discount promotions.
 147

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 148

Chapter 7: Value concept

7.1. Introduction

When making purchasing decisions, customers may look at the value

a product can provide to help them face certain challenges in their
lives. This value can take different forms, from practical solutions for
specific problems, to more intangible, personal benefits.
Understanding the different types of values and how to use them
when engaging with customers are valuable tools for professionals
with an interest in marketing. In this article, we explore what value
marketing is, the specific types of values you may wish to promote
and some of their benefits.

Value marketing aims to build a relationship between consumers and

the company and its brand. The company studies the consumers'
needs, wants and challenges and focuses its marketing strategy on
satisfying them. The company informs customers on how it can help
them meet their needs and overcome their challenges. This marketing
approach puts the customers first and promotes the value to them of
engaging with the company's brand. Rather than marketing a
gimmick or feature of a product, it goes deeper and promotes the idea
of a partnership or relationship between the consumer and the
company.
 149

Effective execution of this marketing approach can build brand

loyalty. Focusing the marketing on the issues customers face shows
that the company understands them. If the product or service the
company sells does what it promises and helps customers face their
issues effectively, then it encourages customer trust. If the customers
trust the brand, they are more likely to engage with it and recommend
it to others. This trust and loyalty is extremely valuable, as loyal
customers are more likely to look to the brand when buying products
suited to different situations and challenges.

Different types of value marketing

Customers may have different views on what constitutes value, and

companies may have different quantitative or qualitative values they

can offer customers. When studying consumers and how the company

can market its brand most effectively, there are four main types of

values to consider:

1. Functional value

This relates to the ability of the product to help the customer

overcome a particular challenge. It's quantitative and relates to the

usefulness of the solution the company offers the customer.

Functional-focused marketing material may concentrate on what a

product, service or offer provides and may present a practical solution

for a consumer facing a particular problem.

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Functional value in marketing may focus on the physical performance

or other utilitarian aspects of the product. For instance, a car

manufacturer may base the marketing of its car on the problems

consumers face when trying to reduce their carbon footprint. The

company may market the functional value of its car by comparing its

fuel efficiency with that of its competitors or by showing how a hybrid

engine can reduce emissions.

2. Economic value

The economic value is also a qualitative metric, and it looks at the

price a customer pays for a product or service relative to the perceived

value it provides. It studies the trade-off between the types of values

the product may give the customer and the monetary cost of the

product. It's usually the value for money customers get from

purchasing the product. Economic value is not simply offering a

cheaper alternative than that of competitors. Its value is relative to the

monetary price and there are a number of elements customers may

define as being of value.

For example, an electronics supplier offers goods at a higher price

than its competitors, but its brand name is synonymous with

high-quality, long-lasting products. Customers may look at the

product as being of greater economic value even though its price is

 151

higher. The company's brand identity and reputation from its previous

products creates a value relative to the cost. Customers may recognise

this value and decide to make a higher initial investment in the brand

as they obtain a product that performs better and is typically replaced

less often than a cheaper alternative.

3. Social value

Social value describes the extent to which customers who buy the

product or service can engage and connect with others. This value is

partly qualitative and describes the emotional benefit of feeling

connected with other people and the good this can do for a customer.

There is also usually a qualitative aspect to social value.

For example, a company offers a networking tool and markets a

platform that provides the value of allowing colleagues to remain

easily connected, even if they're miles apart. This can have intangible

positives related to people being in touch and feeling less isolated.

There are also measurable metrics related to productivity and

workload management in a business setting. Marketing social values

can help build brand awareness as having this social element

associated with the brand may encourage consumers to recommend it

to others in a social context, organically growing the brand.

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4. Psychological value

This value centres around qualitative benefits. The psychological

value refers to the capacity for customers to feel good and express

themselves if they choose to use the product. Effectively marketing

this value requires a good understanding of customers. Only by

clearly defining their wants, needs, desires and aspirations can the

company leverage its brand and give customers the personal and

psychological boost they're looking for. When this happens, it can

provide an interesting competitive advantage. In a possibly crowded

marketplace with functionally similar competitors, this personal,

feeling-driven value may encourage customers to choose the

company's brand.

Subtly guiding consumers to make purchasing decisions based on

personal feelings is one of the keys to effectively marketing

psychological value. Because this decision is potentially personal to

the consumer, it can establish strong brand loyalty. Many businesses

invest a great deal of time and resources in researching and

understanding their consumers to build this brand relationship. This

may involve psychological and analytical research to explore the

reasons for certain cognitive biases, define trends in spending and

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customers' price sensitivity or explain the reactions to scarcity.

Marketing strategies then put the theories into practice.

What are the benefits of value marketing?

Certain traditional marketing tactics are becoming less effective.

Customers are more aware of the manipulative tactics that marketers'

may have used in the past, such as making empty product claims and

ultimately not delivering. Consumers may also identify invasive sales

tactics that push unsolicited products on them. These tactics may

actively put a customer off a product. Customers respond better to

products and brands that they can relate to. This desire for personal

connections with brands seems to have developed with the growth of

digital and social media.

This form of marketing is used to effectively create this relationship,

engage with the customers and generate sales. As marketplaces

become more competitive, the importance of building and nurturing

this relationship increases. Focusing on the value of a product when

marketing it to customers can make them view it as a solution to their

problems, and they may be more likely to engage with the brand.

Below are the more specific benefits of using this method of

marketing:
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Building a loyal consumer base

Customer loyalty involves fostering a long-term, sustainable

relationship between the company and its clients. The company can

create brand trust and genuine excitement and interest in what it can

offer by focusing on its value to customers. To build a positive link

with customers, the company typically avoids simply pushing the

product and instead uses marketing materials to focus on ideas, such

as sharing experiences, knowledge or expertise through

conversational interactions. Customer service is also important, as

ensuring that consumers feel the company listens to, respects and

implements their input is essential.

Retaining customers

If customers feel comfortable and confident that their satisfaction is

the company's priority and that its main concern is providing them

with value, they're more likely to return rather than look to

competitors. Building a relationship with customers based on this

value-focused approach is a way to differentiate the company from its

competitors and stand out. If customers stay engaged with the brand

through the company's effective communication and good service,

they may feel like they're in a community that they wish to remain

part of, and the company typically retains a base of loyal customers.
 155

Creating brand advocates

Customers often like to feel part of a community, and they value any

social aspects a brand may offer. Not only is this a way for the

company to demonstrate its value when marketing to people, but it

can help attract new customers through its existing clients. Customers

may wish to share their positive experiences, invest in the brand and

be keen to see it grow and succeed. They may become brand

advocates, promoting the company to those around them, which helps

the company's customer base grow organically.

7.2. Value Formula Scale

The value formula comprises three elements: value, benefits, and

costs, each measured on distinct scales. However, these scales can be
normalized for intuitive comparison.

Costs are primarily quantified in monetary terms but can also be

articulated in non-monetary terms. Benefits are loosely defined as the
practicality or usefulness of a product's features. Consequently, value
can be presented on either a monetary or utility (non-monetary) scale,
or potentially both.
 156

The comparison of variables with different scales is typically carried

out by customers through an informal and intuitive process. This
involves converting measurements from one scale to another, often by
assigning monetary values to the utility of a product or transforming
an amount of money into utility units. Both of these transformations
are influenced by the perceived utility of alternative products for the
given cost.

In various situations, value can be expressed as a combination of

monetary and non-monetary units, and these evaluations may be
entirely subjective. Monetary units are generally considered more
straightforward to measure and justify compared to non-monetary
units of value. Value, in essence, can be real or perceived, tangible or
intangible, and may encompass monetary, non-monetary, or a blend
of both.

In a "Business to Consumer" (B2C) scenario, particularly with

consumer products used for personal gain, the logical application of
the value formula involves converting the cost element into utility
units that can be compared to the benefits utility units. The resulting
value is therefore expressed subjectively and wholly in utility units.

In a "Business to Business" (B2B) scenario, especially with products

aiding business tasks and profit generation, the more logical use of the
value formula is to convert the benefits element into monetary units
for direct comparison with the cost element. The resulting value is
subjectively expressed in monetary units.
 157

Many products possess both utility and monetary value, influencing

customers to make purchases and continue usage. However, it is often
challenging for customers to simultaneously consider these distinct
value scales. Consequently, customers tend to focus on one scale as
the key factor, viewing the other as an advantageous or positive
attribute. Regardless, customers are willing to pay for value,
regardless of how it is expressed.

7.3. Value Concept Application

Customers often find it challenging to quantify the monetary or

non-monetary value associated with a product. In such instances, they
often rely on intuition to gauge the product's perceived value. Initially,
customers intuitively assess the value of a product in relation to how
well it addresses their specific market needs. This assessment is
focused on determining the product's "Resultant Value Proposition,"
an implicit commitment from the product to deliver a specific
combination of advantages in terms of time, cost, and status.

The Resultant Value Proposition represents the primary and relevant

benefit that the product is expected to provide to the customer in
absolute terms. Common business-oriented resultant value
propositions are often based on the benefits derived from product
features, including cost savings, enhanced usability, streamlined
business processes, the ability to perform new tasks, task automation,
improved productivity, reduced rework, or compliance with standards
and regulations.
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Companies aim to communicate this Resultant Value Proposition to

customers, emphasizing that their products offer "Actual Resultant
Value," representing the factual delivery of gains in time, cost, and
status to customers. Customers then seek to determine the type,
relevance, and magnitude of the resultant value proposition and
verify this with available information, either public knowledge or
their own experiences, regarding the actual value proposition.

Once customers understand the type, relevance, and magnitude of the

resultant value proposition a product offers, they must comprehend
and compare the value received relative to the costs. The concept of
"Relative Value Proposition" comes into play here, representing an
implicit assurance that a product will provide a desired ratio of
benefits to costs. This notion is crucial for customers when
distinguishing between products that may seem similar in value, even
if their absolute benefits and costs differ.

Common relative value propositions, which are based on the ratio

between
benefits (features) and costs (TCO), include:

l Much more features for more TCO.

l More features for the same TCO.
l More features for less TCO.
l Same features for less TCO.
l Lessfeaturesfor much less TCO.
 159

Companies try to communicate to customers the relative value

proposition of their products and demonstrate that their products
hold “Actual Relative Value”, which is a ratio of benefits and
costs[customer] the product factually delivers to customers.
Customers try to determine whether the type of relative value
proposition the product holds corresponds to their perception of
quality, and corroborate the relative value proposition with the actual
relative value.

The precise factors influencing customers' psychological approach to

choosing a relative value proposition are not fully understood, with

financial viability being a prominent but not exclusive consideration.

While companies aim to influence customers' preferences, the

ultimate decision rests with the customer in determining the most

suitable relative value proposition. Nonetheless, if a company

identifies a target market with a distinct inclination toward a specific

relative value proposition, it can tailor its product to align with that

sought-after proposition.

Traditionally, European products from highly developed countries like

Switzerland or Germany were perceived as offering "more features for

a higher total cost of ownership (TCO)." Conversely, goods from

various developing Asian countries were often associated with a

 160

relative value proposition of "fewer features for a significantly lower

TCO." However, this perception is evolving as these developing

countries undergo changes and advancements.

Perceived value is therefore the summation of the resultant value

proposition and
the relative value proposition. Accordingly, actual value is the
summation of the actual
resultant value and the actual relative value. These formulas can be
expressed as:

Perceived Value = Resultant Value Proposition + Relative Value

Proposition
Actual Value = Actual Resultant Value + Actual Relative Value

7.4. Internal Value Marketing Dynamics

The primary objective of the value marketing method is to attain

"Superior Perceived Value," wherein customers perceive a product as
providing a net value that surpasses that of its alternatives. Achieving
superior perceived value involves customers believing in a compelling
resultant value proposition, coupled with the assumption that the
product's relative value proposition aligns with their desired criteria.

Companies aim to establish both superior perceived value and

demonstrate "Superior Actual Value," wherein the product objectively
delivers a net value exceeding that of its alternatives. In a
market-driven organization, the role of the "Product Planner" involves
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defining the product's value, while the "Product Marketer" is

responsible for effectively communicating this value to the market to
achieve superior perceived value.

From a holistic standpoint, companies follow a sequential process.

Initially, they seek to identify a market problem and then validate the
presence of a market opportunity. Subsequently, they engage in
developing a product to address the identified market problem,
encompassing activities such as product planning, definition, and
development. Following this, they focus on creating superior
perceived value and ultimately proving superior actual value.

The latter part of the process involves executing value marketing

activities, constituting product marketing efforts. When executed
correctly, this entire process enables companies to realize the
financial potential within the identified market opportunity.

In essence, the value marketing approach in product marketing aims

to establish a perception of superior value while substantiating
superior tangible benefits.

7.5. External Value Marketing Dynamics

In the process of assessing customer value, the initial step involves

using a value formula to determine if the perceived value of a product
is positive, indicating explicit worth to the customer. During this
stage, customers also consider tangible factors like cost-savings and
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intangible aspects such as morale, reputation, or image improvement.

This part of the process relies on intuition.

Once customers establish that the product holds positive perceived

value, they proceed to understand and validate the type, relevance,
and magnitude of the product's resulting value proposition.
Simultaneously, they aim to grasp the product's relative value
proposition.

The next phase involves attempting to quantitatively and qualitatively

measure the specific type of value the product offers. Customers seek
factual information to support the product's actual value, allowing
them to infer its worth with some confidence.

Customers survey the industry for competing products, using market

information to potentially conclude that the product has superior
perceived value, leading to a purchase decision. If the customer
determines that the product lacks superior perceived value, it is
deemed unsuitable, prompting a restart of the value estimation
process for a different product.

After purchasing the product, customers independently measure its

actual value through usage and ongoing tracking, evaluating both the
actual resultant value and actual relative value. Drawing from their
experience and market data about others' experiences, customers can
determine whether the product genuinely possesses superior actual
value.
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7.6. Creating Superior Perceived Value

The primary objective of product marketing is to generate awareness,

differentiation, and demand for a product. The value marketing
approach is instrumental in achieving this objective by focusing on
creating superior perceived value, as it plays a crucial role in
influencing customers' purchasing decisions.

The process of creating superior perceived value follows a top-down

logic and is guided by documented strategies within the marketing
domain. In a broader business context, a "Strategy" encompasses a
coordinated set of long-term decisions aimed at achieving corporate
objectives, with two key goals: providing more value than competitors
and building a sustainable competitive advantage.

Competitive advantage is a straightforward concept, indicating that a

company or its products outperform competitors in a way that
benefits customers. In the context of value marketing, the market plan
is a pivotal document that outlines long-term goals and messages
delivered to the target market, incorporating elements of both market
and product strategy to build a competitive advantage.

The "Market Strategy" involves decisions defining target markets,

setting marketing objectives, and outlining how to build a corporate
competitive advantage. Simultaneously, the "Product Strategy" entails
decisions that enhance products to meet market needs and build a
product competitive advantage.

Quality is a critical factor in building a competitive advantage, with

"Quality" being the market's perception of a company or product
 164

consistently meeting or exceeding customer expectations. Managing

"Customers' Expectations" involves delivering benefits from the
product and establishing a rewarding relationship with the vendor.

Exceeding customer expectations in deriving benefits from the

product contributes to a product competitive advantage, while
exceeding expectations in establishing a rewarding relationship with
the vendor leads to a corporate competitive advantage. Customer
expectations management revolves around the promise of quality,
conveyed primarily through corporate and product marketing
activities.

The overall competitive advantage formula is represented as the

summation of quality values: Competitive Advantage = Corporate
Quality + Product Quality. The achievement of superior perceived
value is crucial, and it is attained by distilling information about
overall competitive advantage and product value into messages
communicated to the target market. Superior perceived value is
reached when customers form an opinion that the product provides a
net value more positive than its alternatives.

In summary, the process of creating superior perceived value involves

strategic decision-making, a focus on quality, and effective
communication of value propositions to influence customers
positively.
 165

7.7. Product Marketing Messages

Product marketing aims to create awareness, differentiation, and

demand for a specific product. The process of differentiation involves
conveying positioning messages to shape how customers perceive a
product compared to its competitors. "Positioning" refers to the
unique psychological placement of a product or company in the
customer's mind.

Generating demand is achieved through value messages that

communicate the product's value propositions – the benefits derived
from owning and using the product. Establishing product awareness
naturally follows the communication of positioning and value
messages.

Messages are ideas supported by facts, and formulating them requires

a solid foundation of knowledge. For positioning messages, this
foundational knowledge includes the crafted positioning statement for
the product and its sales axioms. Preparing value messages demands a
more extensive foundational knowledge.
 166

7.8. Value Messages’ Foundational Knowledge

Creating effective value messages for a product relies on

understanding its various value propositions, quality factors, and
unique selling proposition (USP). The USP is a crucial statement that
articulates the distinctive and compelling value offered by the
product, distinguishing it from competitors. This concept ties into the
product's unique value asset, serving as both a competitive
differentiator and a source of significance for customers. The idea of
USP extends to companies, known as distinctive competency or "Core
Competency," representing a company's distinct ability to provide
value and stand out from rivals.

Regarding quality factors, customers often consider the following

elements as a
signal that depicts corporate quality:

l Honesty – fair pricing.

l Facilitation – attention to convenience.
l Assistance – dedication to customer service.
l Caring – dedication to customer
satisfaction.

Customers often consider the following elements as a signal that depicts

prod-
uct quality:

l Usability – ease of operation.

l Productivity – scope of useful features.
 167

l Longevity – how long a product lasts.

l Reliability – how long before breakdowns.
l Durability – how long without degradation.

Customers often consider the following elements as a signal that

depictsservice
quality:

l Tangibles – equipment, facilities, and people.

l Responsiveness – promptness in helping.
l Reliability – promising and delivering.
l Assurance and empathy – caring attitude.

Based on the above, the following are the six “Value and Quality Factors”
which
build superior perceived value and which will beused as foundational
knowledge to

create value messages:

1. Promise of Corporate Quality.

2. Promise of Product Quality.
3. Company Core Competency.
4. Resultant Value Proposition.
 168

5. Relative Value Proposition.

7. Unique Selling Proposition.

Logically, the “Promise of Corporate Quality” and the “Company Core

Compe-tency” factors are foundational knowledge elements that are
used for corporate

branding via corporate marketing activities. These corporate-related

value and quality factors are listed so they can be referenced, and care
taken to ensure they are synchronized (and do not contradict) with the
other product-related value and quality factors.

The foundational knowledge, once established, will be used to aid

creating marketing messages. These messages will be communicated
to the target market via a messaging model and plan.

7.9. PMTK Market Messaging Model

The PMTK Market Messaging Model is a collective name for three

sub-model components:

1. PMTK Product Positioning Messages Model

2. PMTK Product Value Messages Model
3. PMTK Marketing Messages Model and Plan

The product positioning messages must reflect a product feature or

capability and the derived benefit to the customer, relative to the
market problem. Building product positioning messages is done by
first establishing a product positioning statement (such as Regis
McKennaʼs two-sentence positioning statement), defining three to four
key marketing messages that reinforce the product positioning
 169

statement, and providing two to three data points that validate each
key marketing message. Each data point must be based on
measurable, objective, factual, provable information, and each
message must be supported with data points the customer can
actually verify.

The product value messages must reflect a perceived monetary or

material or psycho-social worth that the customers shall gain from
owning and using the product. Crafting messages to communicate the
value of a product begins by identifying the productʼs six value and
quality factors.

Fig. 7.2. PMTK product positioning messages model

 170

Fig. 7.3 PMTK product value messages model

Subsequently, articulate three to four key marketing messages that

effectively convey these factors. Additionally, support each key
message with two to three data points for validation. Figure 8.4
illustrates the PMTK product value messages model in a schematic
representation.

7.10. PMTK Marketing Messages Model and Plan

The PMTK marketing messages model and plan provide guidance for
the manner in which the marketing messages will be introduced to
the target market.
 171

Once determined, the elements of the PMTK marketing messages

model form a plan that guides the marketing activities. Table 8.7
presents an example of a PMTK marketing messages plan.

The PMTK marketing messages plan is the last step in implementing

the value marketing method. It contains all the high-level content that
is necessary to perform any type of promotional activities on behalf of
the product.

The marketing messages plan is provided to all relevant internal

departments and external partners who will operationally
communicate the marketing messages to the target market. These
partners specifically include: marketing communications, corporate
marketing, analyst relations, investor relations, public relations, and
advertising firms.

Table 7.1. Value-Marketing Model—PMTK Marketing Messages Model

Messages Ideas to be communicated

Media Selection of media vehicles that will be employed

to communicate the messages, including: public
relations, advertising, sales, electronic marketing,
direct marketing, telemarketing (key selection
factors: reach, frequency, and impact)
 172

Schedule The marketing messages frequency of appearance

along a timeline. Common schedules include:
continuous (ongoing and uninterrupted marketing
messages exposures), intervals (periods of
marketing messages exposures that are regularly
interspaced), and blink (very brief marketing
messages exposures that are irregularly
interspaced)

Sequencin Order and pattern of presenting the marketing

g messages

Proof Rotation of data point inclusion

Support

Table 7.2. Value-Marketing Model—PMTK Marketing Messages Plan

(Example)

Messages Message_A, Message_B, Message_C

Media Print advertising and telemarketing

 173

Schedule Continuous/70 days, intervals (on/12 days-off/7

days)

Sequencing Order (Message_C, Message_A, Message_B)

Pattern (2* Message_C, 1* Message_A, 3*

Message_B)

Proof Rotate data point every third exposure

Support

The messages in the PMTK marketing messages plan will be wrapped

and embedded into media vehicles such as advertisements. The
messages will also be conceptually reflected in all possible visual and
written elements of the product such as packaging, logo, tagline, user
manual, and tutorials.

7.11. Summary

This chapter described, +9the underlying concepts of the value

marketing method, a part of the product marketing discipline of the
marketing domain, and outlined how to perform value marketing
through the use of marketing messages.

As with any marketing method, results are not guaranteed. This is

because marketing methods attempt to foretell and alter human
 174

behavior, and therefore their outcome is most challenging and least

predictable. Marketing is an inexact science and, since humans are
considered emotional and irrational by their own fabric, the results of
all marketing activities are probabilistic and unpredictable, and
typically there are no definitive best practices.

By understanding the concepts, definitions, and structures introduced

in this chapter, those responsible for marketing now have a complete
and clear framework for creating marketing messages that pertain to
the productʼs positioning and value propositions.

Carefully formed clear and targeted marketing messages are the basis
for virtually all promotions, communications, advertising, sales, and
other marketing activities. These messages will help promote a more
efficient use and management of the companyʼs marketing function
with the aim of properly appealing to potential customers. The
outcome will be marketplace success.

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 175

Chapter 8: Product Life Cycle Stages

8.1 Introduction

All products go through distinct phases or stages. Together these are

known as the product life cycle.

The number of sales and the length of a product life cycle might be
different for different products but all products share a general
pattern of growth and decline. This cycle can be shown on a graph of
sales over time.

Many businesses record and track sales information like this to help
them know when to adjust costs and price, to boost sales and to
extend the life of the product.
 176

● Development– Product is not on the market yet. Research and

development and testing take place. Prototypes are built and
modified before a product is ready for launch. No sales are made.
Development costs will need to be recovered later.

● Introduction– Product is launched on the market. Advertising

costs will be high in order for the product to get noticed
.
● Growth– Sales begin to rise. Advertising costs are still high. A
profit may be made, if all research and development and
advertising costs have been recouped.

● Maturity– Sales are at their peak. Advertising can be reduced as

product is now well known.

● Decline– Sales begin to fall.

8.2 Product Life Cycle Model Assumptions

The Product Life Cycle (PLC) model is a conceptual framework that

describes the stages a product typically goes through from its
introduction to eventual decline in the market. Several assumptions
underpin this model, guiding its application in marketing and product
management. First and foremost, the PLC model assumes that a
product has a finite life span and will follow a predictable trajectory. It
suggests that products have distinct phases—introduction, growth,
maturity, and decline—each characterized by unique challenges and
opportunities. Another assumption is that the rate of product
adoption and market demand will vary during these stages,
 177

influencing the marketing strategies employed. Additionally, the

model assumes that innovation and technological advancements
continually drive product evolution, necessitating adaptation to stay
competitive. While the PLC model provides valuable insights for
strategic planning, it's important to note that real-world scenarios
may deviate, and external factors can impact a product's life cycle in
unexpected ways.

The product life cycle is based on the following assumptions:

1. Every product has a limited life

Every product has a limited life span. Different products have

different life span. Some die within a month and some other live for
hundreds of years. Products have limited life because of changes in
consumers' tastes and preferences and change in technology.

2. Product life cycle analysis is conducted for a product category

Although the consumer need, technology, and brands also have their
own life cycle, the product life cycle analysis is conducted at the level
of a product category such as automobiles, personal computers,
radios, television etc.

3. Different buyer groups buy products during different phases

The product life cycle concept is based on the theory of diffusion of

innovation. When a new product is introduced into a market, initially
a very small group of consumers tries the product, while other
consumer groups adopt the product in later stages. This provides
 178

different sales volumes during different periods of time in a product's

life time.

4. The shape of the product life cycle differs for different types of
products

Some products linger in the introduction stage for a long time before
they enter the growth stage. Other products like tea, coffee, and hoe
beverages have undergone long maturity period. A fad related
products such as hip-pop and rap music showed sleep growth and
sleep decline without any maturity period. Fashion and style related
products usually show a cycle-recycle pattern.

5. The product life cycle stages require different marketing strategy

Change in the sales and profitability during the four stages of the
product life cycle pose different challenges, problems and
opportunities to the organization. In order to face the challenges and
problems and to take benefit of the opportunities, the organization
needs to implement separate marketing strategies in the four phase of
the product life cycle.

8.3 Product Life Cycle Model Stages

Product life cycle comprises of four steps/stages. Each stage of product

life cycle can be characterized in terms of at least four aspects – sales
volume, amount of profits, level of promotional efforts and expenses,
and degree of competition. Each stage demands the unique marketing
strategy. Let us briefly describe each of the stages of the PLC.
 179

Introduction Stage:

Introduction stage starts when a new product is, for the very first

time, made available for purchase. Consumers are not aware of

product, or they may not have general opinion and experience

regarding product. Moreover, a new product has to face the existing

products. So, the sales remain limited.

In the very initial stage, there is loss or negligible profit. During this
period, the direct competition is almost absent. Company has not
mastered production and selling problems. Price is normally high to
recover/offset costs of development, production, and marketing with
minimum sales. So, sales rise at gradually.

Characteristics of introduction stage include:

(i) Huge selling and promotional costs are required to increase

awareness of customers.

(ii) Price is kept high to recover high development, production,

and marketing costs.

(iii) Marketer has to tackle technical and production problems.

(iv) Sale is low and increasing at a lower rate.

 180

(v) There is loss or negligible profit.

(vi) There is no competition

Growth Stage:

This is the stage of a rapid market acceptance. Due to increased

awareness, the product gets positive repose from market. This stage is

marked by a rapid climb in sales. Sales rise at the increasing rate.

Profits follow the sales. Seller shifts his promotional attempts from

“try-my-brand” to “buy-my-brand.”

Company tries to develop effective distribution network. Here, the

most of production and marketing problems are mastered. Due to rise

in profits, competitors are attracted. At a right time, price may be

reduced to attract the price-sensitive buyers.

Company continues, even increases, its selling and promotional

efforts to educate and convince the market and meet competition. At

the end of growth stage, sales start increasing at decelerated rate,

consequently, profits starts to decline.

 181

Characteristics of growth stage include:

(i) Sales increase rapidly (or at increasing rate) as a result of

consumer acceptance of the products.

(ii) Company can earn maximum profits.

(iii) Competitors enter the market due to attractive profits.

(iv) Price is reduced to attract more consumers.

(v) Distribution network is widened and improved.

(vi) Necessary primary changes are made in product to remove

defects.

(vii) Company enters the new segments and new channels are

selected.

Maturity Stage:

This stage is marked with slow down of sales growth. Sales continue to

rise but at decreasing rate. Competitors have entered the market and

existing products face severe competition. Sales curve is pushed

downward. It is just like an inverse “U.”

 182

During this stage, for certain period of time, sales remain stable. This

level is called the Saturation. Profits also decline. Normally, this stage

lasts longer and marketers face formidable challenges.

The stages may be divided into three phases:

i. Growth Maturity:

Sales-growth rate starts to decline.

ii. Stable Maturity:

Sales remain stable (i.e., saturation stage).

iii. Decline Maturity:

Sales now start to decline.

Marginal producers are forced to drop out the products. Those who

operate formulate various strategies to extend the stage. Market,

products, and marketing programme are to be modified to sustain the

stage.
 183

Characteristics of maturity stage include:

i. Sales increase at decreasing rate.

ii. Profits start to decline.

iii. Marginal competitors leave the market.

iv. Customer retention is given more emphasis.

v. Product, market, and marketing

mix modifications are undertaken.

Decline Stage:

This is the last stage of product life cycle. Here, sales stat declining

rapidly. Profits also start erasing. There is a minimum profit or even a

little loss. Advertising and selling expenses are reduced to realize

some profits. This stage is faced by only those who survived in

maturity stage.

Most products obsolete as new products enter the market. All products

have to face the stage earlier or later. New products start their own life

cycle and replace old ones. A number of competitors withdraw from

the market. Those who remain in the market prefer to drop smaller
 184

segments, make minor changes in products, and continue selling the

products in profitable segments and channels.

Here, logic has its own role. Management continues with the same

product with expectation that sales improve when economy improves;

marketing strategy is revised expecting that competitors will leave the

market; or product is improved to attract new market segments.

However, unless a strong reason exists, it is costly and risky to

continue with the same products. Later on it is difficult of manage

selling and promotional efforts. Marketer must check every possibility

before dropping the product completely.

Characteristics of decline stage include:

i. Sales fall rapidly.

ii. Profits fall more rapidly than sales.

iii. Product modification is adopted.

iv. Gradually, the company prefers to shift resources to new

products.
 185

v. Most of sellers withdraw from the market.

vi. Promotional expenses are reduced to realize a little profit.

8.4 Reasons for Extending the PLC

Extending the product life cycle can be a strategic move for

businesses to maximize the value and profitability of a product. There
are several reasons why a company might choose to extend the life
cycle of a product:

● Market Saturation: If the market for a particular product is

saturated, extending the product life cycle allows the company
to continue generating revenue from existing customers.

● Brand Loyalty: If the product has a strong brand and a loyal

customer base, extending its life cycle can help maintain and
capitalize on that brand loyalty.

● Economies of Scale: Continuing production of an established

product may lead to economies of scale, reducing production
costs and improving overall profitability.

● Technological Enhancements: Introducing new features,

improvements, or upgrades to the existing product can breathe
new life into it and attract both existing and new customers.
 186

● Market Demand: If there is still a demand for the product, even if

it's declining, companies may choose to meet that demand
rather than abandoning the product altogether.

● Complementary Products: If the product works in conjunction

with other products or services within the company's portfolio,
extending its life cycle can contribute to the overall ecosystem
and customer satisfaction.

● Regulatory Compliance: If the product meets specific regulatory

standards and requirements, extending its life cycle can be more
cost-effective than developing an entirely new product.

● Low Competition: If there is minimal competition in the market

for a particular product, a company may choose to extend its life
cycle to maintain a dominant position.

● Historical Significance: Some products may have historical or

sentimental value, and companies may choose to keep them in
the market for cultural or sentimental reasons.

● Transition Period: While developing a new product or

transitioning to a different strategy, a company may extend the
life cycle of an existing product to bridge the gap and maintain
cash flow.

● Global Expansion: The product may still have potential in new or

emerging markets, providing an opportunity for the company to
extend its life cycle by entering new geographic regions.
 187

● Environmental Considerations: Extending the life cycle can align

with sustainability goals by promoting the reuse and longevity
of products, reducing waste and the environmental impact of
production.

● Customer Education: If the product requires a significant level of

customer education or has a learning curve, extending its life
cycle allows the company to capitalize on the investment made
in educating the market.

Ultimately, the decision to extend a product's life cycle should align

with the company's overall strategic objectives and market conditions.
It requires a careful assessment of the product's performance, market
dynamics, and potential for continued profitability.

8.5 Strategies for Extending the PLC

A product life cycle extension strategy is a high-level plan for

extending the life of a product that has reached maturity. The goal of
the strategy is to increase market share and keep the product
generating income without letting it fall into decline.

The purpose of a product life cycle extension strategy

The research and design of new products take time and are expensive

processes. This is why most companies try to extend the life of a

product for as long as it is profitable.

 188

A product life cycle extension strategy aims to continuously support

and preserve a product throughout the product life cycle.

An extension strategy is implemented to maintain a product in the

maturity stage of its life cycle, increase its market share and avoid the

product entering the decline phase.

For this, the extension strategy needs to create ways to keep

consumers interested in the product to drive more sales.

Here are some extension strategies:

1. Differentiate your product

The aim of implementing a differentiation strategy is to accentuate

the distinctive qualities and features of your product that distinguish
it from competitors in the market.

Emphasize the unique selling points that set your product apart,
highlighting its functionality and benefits, including ease of use,
safety features, reliability, and performance. By focusing on these
qualities or a combination thereof, you effectively differentiate your
product and underscore its exceptional attributes compared to others
in the market.
 189

2. Repackage and refresh

The role of packaging in influencing consumer purchasing decisions

is substantial. Refreshing or altering the style of product packaging
can effectively expand its appeal. The introduction of new packaging
has the potential to attract a fresh customer base and create the
perception of improvement for existing customers.

Studies indicate that packaging has a significant impact on about

one-third of buying decisions. Research suggests that 40% of
purchasers are likely to share images of a product featuring appealing
packaging on social media platforms. Additionally, over 50% of
consumers in the United States express a willingness to purchase
more products if they are packaged sustainably without incurring
additional costs.

3. Introduce new sizing options

Introducing new sizes or altering existing ones can serve as a strategic

expansion tactic, capturing fresh interest in your product. While the
visual appeal of a product is crucial for grabbing consumer attention,
the diversity of product offerings holds significant advantages for
retailers.

For B2B organizations, providing a range of sizes proves

advantageous. Offering your product in various sizes can be appealing
to both new and established customers. For instance, compact,
travel-sized coffee products cater to consumers on the go, with easy
packing, carrying, and storage.
 190

Different sizes cater to distinct target markets. Larger sizes may attract
consumers who prefer bulk purchases or operate on monthly budgets.
For example, a six-pack may appeal to Australasian beer drinkers,
while Asian consumers might favor larger beer bottles for communal
gatherings. In essence, diversifying product sizes aligns with varied
consumer preferences and enhances market appeal.

4. Product improvement

Over time, products can lose their appeal in the market as consumers
easily grow weary of the familiar. Enhancing an established product
with new features not only revitalizes its familiarity but also
introduces a fresh perspective.

These improvements can extend beyond tangible additions,

encompassing intangible aspects like adopting sustainable materials
and ensuring a 100% ethical supply chain. Various strategies exist for
incorporating novel features into existing products; for instance, bike
manufacturers may introduce a range of accessories like lighter
frames or tubeless tires.

5. Identify new markets

Globalization and eCommerce have opened up the world, providing

your business with access to international markets 24/8, allowing you
to sell your products in different states or countries.

Finding new markets is an easy way to extend the life cycle of your
product.
 191

However, it is still important to focus your efforts on your target

customer when expanding online or into new markets. The core
difference here is that those target customers constitute a much larger
group.

6. Bundle products

Combining or pairing products into bundles can enhance sales and

boost the profitability of individual items over time. Identifying
opportunities to group specific products and offering them at a
slightly discounted price encourages customers to make multiple
purchases in a single transaction, ultimately increasing the average
order value.

Bundling not only extends the lifespan of a particular product but also
provides a platform to introduce complementary items. This strategy
allows consumers to explore new products alongside their favorite
ones, presenting them with the opportunity to try something new.

The act of bundling different products together is often perceived by

consumers as receiving greater value for their money. Additionally,
bundling enables businesses to sell more while benefiting from lower
marketing and distribution costs.
 192

7. Reduce product prices

In the maturity phase of a product lifecycle, where competition is

intense with several similar offerings at lower prices, a prevalent
strategy is for companies to decrease their product prices. This tactic
involves sacrificing profit margins to stimulate sales, fostering brand
loyalty, expanding market share, and prolonging the product's life
cycle. A reduction in price often encourages existing customers to
remain loyal while enticing new consumers to switch from rival
products. Additionally, during the maturity phase, there is typically a
decrease in production and marketing costs as a result of increased
economies of scale.

8. Increase your marketing

Your provided text is grammatically correct. However, I made a few

minor adjustments for better flow:

Companies can often increase sales and extend the product life cycle
purely through advertising and promotions. Distinctive advertising
and promotional activities can give your product a new image,
differentiate it from competitor products, and prolong its life. You can
switch up the marketing mix, giving an old product a fresh image to
increase awareness and create greater demand.
 193

Growing product and brand awareness through consumer

engagement campaigns and promotions improves its popularity,
helping to extend the life cycle of the product. By running fresh
advertising campaigns, you can drive higher demand while retaining
existing customers. Invest in marketing campaigns that aim to achieve
higher brand recall and maintain brand loyalty.

9. Reposition

Consumer preferences and demand patterns are in a constant state of

flux, prompting marketers to periodically reassess their positioning

strategies to sustain sales and foster growth. It's important to note that

brand repositioning isn't a complete overhaul of your company's

identity; rather, it involves a purposeful and measured adjustment.

When repositioning a product, the focus extends beyond geographical

shifts. It entails introducing the same product to a new target market

or enhancing its value proposition to resonate with a different

audience. The objective of a repositioning strategy is to modernize the

brand's personality, associations, and reputation while preserving a

consistent and recognizable brand identity.

 194

For instance, Old Spice, originally perceived as a product for the

elderly, successfully transformed its image to become a favored choice

among a younger demographic in the men's grooming products

market. This strategic shift resulted in a remarkable doubling of sales

within a few months of launching the campaign.

10. Rebrand the business

Your passage is generally well-written, but there are a few

grammatical and stylistic suggestions to enhance clarity and flow.
Here is a revised version:

"Good products, designed to meet consumer needs, may enjoy long

life cycles; however, over time, interest in the product can wane.
Customers may be put off by boring packaging and branding, and
they might be attracted to substitute products due to increased
competition.

While repackaging is one strategy to attract new customers and

convince long-standing customers to continue using the same
product, rebranding is a more comprehensive approach. A rebranding
effort could involve many of the strategies already mentioned,
including changing your brand name, logo, core product, and entire
business model.
 195

Businesses generally opt to rebrand to get a fresh start. Often, the only
thing marketers need to do to increase the product life cycle is to
reignite peopleʼs interest in the product.

11. Run a relaunch

If all else fails, change the product sufficiently enough to release it as a

new and improved version. With new formulas and new features, you

can extend the product lifecycle by releasing the product as version

2.0 (and subsequently, version 3.0).

8.6 Product Marketing Strategies for Extending the PLC

Extending the Product Life Cycle (PLC) is crucial for maintaining

profitability and market relevance. Here are some product marketing
strategies to help prolong the life cycle of a product:

Market Expansion:

● Geographical Expansion: Identify new markets or regions

where the product hasn't reached its full potential. Tailor
marketing campaigns to address the needs and preferences
of these new demographics.
● Segmentation: Explore different customer segments that
might benefit from the product. Create targeted marketing
messages to appeal to these specific segments.
 196

Product Enhancements:

● Continuous Improvement: Regularly update and enhance

the product based on customer feedback and technological
advancements. Highlight these improvements in marketing
materials to entice existing and new customers.
● Feature Additions: Introduce new features or
functionalities to make the product more appealing and
competitive in the market.

Rebranding and Repositioning:

● Rebrand the Product: Give the product a fresh look and feel
through rebranding. This can involve updating the logo,
packaging, or overall visual identity to attract new
customers.
● Repositioning: Modify the product positioning to appeal to
a different target audience or address a new need in the
market.

Promotional Campaigns:

● Promotions and Discounts: Offer special promotions,

discounts, or bundles to stimulate sales and attract new
customers.
 197

● Loyalty Programs: Implement loyalty programs to retain

existing customers and encourage repeat purchases.

Diversification:

● Product Line Extensions: Introduce new variations or

complementary products to the existing line to cater to
different customer needs.
● Brand Extensions: Extend the product into related
categories under the same brand name.

Partnerships and Collaborations:

● Strategic Partnerships: Form alliances with other

companies to leverage their customer base and distribution
channels.
● Collaborations: Collaborate with influencers or other
brands to create buzz and reach new audiences.

Digital Marketing:

● Online Presence: Strengthen the product's online presence

through digital marketing channels such as social media,
content marketing, and search engine optimization.
● E-commerce Initiatives: If applicable, enhance e-commerce
capabilities and explore new online sales channels.
 198

Customer Education:

● Training Programs: Provide training programs or

workshops to educate customers on the value and benefits
of the product.
● Content Marketing: Develop informative content such as
blog posts, videos, and tutorials to showcase the product's
uses and advantages.

After-Sales Support:

● Customer Service: Improve customer service and support

to enhance customer satisfaction and loyalty.
● Warranty and Maintenance Programs: Introduce or
improve warranty and maintenance programs to prolong
the product's lifespan and build trust with customers.

Sustainability Initiatives:

● Green Marketing: Highlight the product's environmental

benefits and sustainable features to appeal to eco-conscious
consumers.
● Recycling Programs: Implement recycling programs for the
product to address environmental concerns and enhance
the brand's image.
 199

8.7 Strategy Application within the PLC Model

Planning which product planning and product marketing strategies to

apply, and when, should be part of any long-term approach. Since
there are so many diverse products, markets, and companies, it is
difficult to provide a definitive, single method for strategy selection
and application.

However, some general guidelines can be followed to help ensure

marketing mix effectiveness in promoting a PLC stage extension. Once
a decision to extend a PLC stage has been made, the following
elements must be factored into the planning:

• The companyʼs product lineʼs business strategy—leader,

follower, innovator.
• The companyʼs marketing policies—soft or hard product
launches, traditional choice of media vehicles, pricing policies,
sales channels selection, etc.
• External constraints—government regulations, distribution
networks, cultural barriers, politics, tariffs, and taxes, etc.
 200

Sometimes a certain strategy may seem applicable to all PLC stages.

Price manipulation is an example of something that can be used at all
stages of the PLC to help influence sales and serve as a flexible way to
rapidly react to

Fig. 8.2 Strategy application within the PLC model

competition. The drawback of repeatedly applying a certain strategy

or using several strategies at once is that it may confuse the
consumers. Exercising any such combined approach should be well
justified.

8.8 Limitations of the PLC Model

It is difficult to foresee transitions in PLC stages since the key

indicators are sales which are always calculated with some lag.
Therefore, the realization that a stage transition has occurred is nearly
always in retrospect. In addition, fluctuations in sales will produce
erroneous conclusions. Therefore, declining sales do not necessarily
mean the product has reached the decline phase, and the resulting
conclusion to retire the product and divert resources is wrong.
 201

Products, companies, and markets are different; therefore not all

products or services go through every stage of the PLC. There have
been many cases where products have gone straight from introduction
to decline, usually because of bad marketing, misconceived features,
lack of value to the consumer, or simply a lack of need for such a
product. However, even if products were to go through every stage of
the PLC, not all products and services spend the same length of time at
each stage. This adds another level of complexity in determining
which PLC stage the product is in and, consequently, which strategy to
apply.

Finally, the PLC Model is inefficient when dealing with brands or

services. A Brand is an identity, made of symbols and ideas, which
portrays a specific offering from a known source. Brands apply to both
companies and products. Brands have a life cycle of their own, and
products belonging to a certain brand will experience a very different
life cycle than the brand itself. For example, Dell and Mercedes-Benz
are very strong brands whose life cycle is marginally affected by the
failure of any of the products they hold. Apple Computerʼs Lisa,
Newton (market failures), iMac, and iPhone (market successes) are
proof that brands and products have different PLCs although they are
closely related.
Check out Product Management Cohort Program by Grow Juntion in
which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 202

Chapter : 9 Create Product Vision

9.1. Introduction
The goal of a product vision is to provide a clear and compelling
picture of the future state of the product, including its purpose, value
proposition, and long-term goals, that guides the team's efforts and
decision-making.

In this Chapter, we'll look at how your team can collaborate to create a
clear, concise product vision. Then, we'll walk through some examples
of effective product vision statements and a template you can use to
create your own.

What is a product vision statement?

Product vision statements define why a product exists, what problems

it solves, who it serves, and how it's different. Product visions serve as
a framework for product teams to understand what they are working
on and why it matters.

Consider your product vision your North Star, guiding your product
team as they ideate, prioritize, design, develop, test, and iterate. It's
the overarching, future-facing mission that everyone — the product
owner, product managers, designers, engineers, and beyond — is on
together.
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9.2. Five Big Steps Towards A Product Vision

Alright, enough said about product vision. Hopefully, you are

convinced by now that having a clear and compelling (product) vision
is valuable. So, letʼs dive into the process of creating a product vision.
The process and five big steps I use to create a compelling product
vision are inspired by Kelsey Shanahanʼs Product Vision Sprint
concept. The five steps are:

● Explore the Now

● Imagine the Future
● Craft the Story
● Test with Stakeholders
● Polish & Share

Letʼs dive into each step in more details below.

Our Getting to a Product Vision Process

Preparations

As mentioned earlier, a great product vision is Aligned and Inclusive.

It must fit within the organization and its people, culture, and history.
It should be aligned with the company vision, and company strategy,
it should have a clear problem to be solved, and be focused on a clear
target audience/market.
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Before you start working on your product vision, make sure to collect
some useful input in the organization. What I found to be useful input
to have available before working on the product vision is:

1. The Company (or Tribe, Area, Cluster, Domain) Vision;

2. The Company (or Tribe, Area, Cluster, Domain) Strategy (the
strategic goals and objectives to be achieved);
3. The main customer, user, or market problem(s) to be solved;
4. The main customer/ user target audience(s) to be served.

Gathering such inputs into one place is often very helpful.

Step 1: Explore the Now

Using the inputs and information from your preparations, you can
move forward to step 1: Explore the Now. In this step, your main focus
is to identify the current situation in the marketplace. You will
identify the current product, market and company context. This step
helps everyone (Product Owner/Manager, Product Team, Product
Developers, Stakeholders, and Customers or Users) to get on the same
page about where we are today.

It is recommended to Explore the Now in a workshop-setting. This

workshop usually takes around 3-4 hours to complete. So, invite your
product team, relevant stakeholders, (potential) customers or users,
and perhaps fellow Product Owners/Managers. The exact attendees
depends on your context of course, but youʼll figure that out for sure.
Usually, there is some finetuning work to be done after the workshop,
but that is not always required to be done with the entire group.
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Exploring Now

During this workshop, you will collaborate with your attendees, and
together you will explore:

1. Context Map — A snapshot of the current environment, helping

each other to understand the environmental factors, trends and
forces impacting the product (area). Current industry and
market conditions, incl. external factors, such as political,
economic, and technological trends.
2. Job Map Canvas — A clarification of the customer problems to be
solved, by creating a Job Map Canvas. This canvas helps you to
identify and solve the right jobs to be done by your customers.
3. SWOT Analysis Canvas — Presenting the case for change. We
survey the productʼs strengths and problems in relation to the
major opportunities and threats it faces. The strenghts,
weaknesses, opportunities and threads for your product.

Step 2: Imagine the Future

Now that you have created more clarity about the current situation,
you can move forward to Step 2: Imagine the Future. In this session
you will be identifying what product qualities, feelings, and
experiences your customers/user desire from the product.

Understanding well what kind of value your product needs to offer

your customers, will greatly help to shape a clear and compelling
vision. You will also work on identifying what your product does, how
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it is better than others, and why people should care about it. The why,
how, and what form a strong foundation for a compelling vision
statement. Finally, you will bundle the artifacts you have created in a
simple one-pager, like a vision statement, or a product vision canvas.
Like with the first step, it is highly recommended to develop the
product vision in a collaborative effort. So, invite some peer Product
Owners/ Managers, invite your product team(s), and invite some
stakeholders to craft the product vision together. During this
workshop, you will collaborate with your attendees, and together you
will explore:

1. Product Experience Canvas — Itʼs time to get the ideas flowing.

Using a simple technique, you will imagine being a user of the
product/service, listing the qualities that matter most and the
feelings associated with these qualities.
2. Golden Circle Canvas — Coming up with a vision statement and
ʻrallying cryʼ is often the hardest part of defining your vision. To
do it, start with the following exercise, using the Golden Circle
Canvas based on Simon Sinekʼs Golden Circle.
3. Product Vision Canvas — The Product Vision Canvas helps
summarize your product vision and core product aspects in one
overview. Even without the final vision, the contents of this
template are valuable. Itʼs worth experimenting with the
elements you put in this template.

Step 3: Craft the Story

Storytelling is ingrained in our DNA. Ever since we started hunting

mammoths, living in caves, and avoiding sabre tooth tigers, weʼve
been communicating through stories and visuals. Stories have the
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ability to change the way people think and feel — which can be very
powerful. Storytelling is becoming more and more popular, and is
becoming a common way for (product) leaders to communicate their
vision and ideas. A great benefit of storytelling is that you can talk
about your product (with customers for example) without making it
sound like a sales pitch. The message you want to communicate will
very likely resonate and stick more with your audience. Storytelling is
a powerful tool to align people, and bring them together around a
vision, and an experience. Stories allow you to inform, persuade, and
inspire people.

The activity of creating stories to communicate your product vision is

an effort that can again be completed in a workshop setting. You can
create various stories through collaboration with other people. It is
very interesting to hear what stories other people can share about the
future of your product, and the experiences (stories) they had.

Alternatively, you can design some stories on your own if you want. In
order to develop your vision story, there are a couple of activities to be
done:

Story Design and Story Telling in Five Simple Steps

1. Select the type of story — First you need to identify the type of
story you want to tell. Is the story intended to inform people? Is
it to inspire people? Or is it to persuade people? The type of story
to tell influences the storiesʼ design and how to communicate it.
2. Perform an audience analysis — Next, you need to perform an
audience analysis. The intended target audience to whom to tell
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the story, has a big impact on the storiesʼ design. So, who are you
creating this story for? What is the skill and knowledge level of
your audience? What are they looking for?
3. Create a story design — The step that follows is to design your
story. Itʼs best to first highlight the important aspects of your
story. You donʼt need a complete beginning to end story right
away.
4. Write the story — Now that you have a Story Design, itʼs time to
turn that into an appealing story that will move your
stakeholders. In this step youʼll explore the art of storytelling in
practice.
5. Communicate the story — Finally, itʼs time to share, to inspire,
and move your audience. Practice your stories, and share them
often.

Example Miro Canvas to Support Activity 2: Performing an Audience

Analysis

Step 4: Test with Stakeholders

Congratulations, most of the hard and time consuming work is over!

Oh wait, maybe it isnʼt… You have done a ton of work though by now,
and most of the actual “work” is now over. However, it is now time to
start testing your vision and stories with other people. Here are a
couple of questions that we found very helpful in this fourth step of
testing with stakeholders:

1. Does it help you identify priorities for the product?

2. Does it help you understand how your activities add value?
3. Does it create a clear picture of what you intend to accomplish?
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4. Is it clear how you can make a contribution?

Step 5: Polish and Share

In this fifth step, you will work on communicating your vision with
your team(s), peers, and stakeholders, in order to test it, obtain
feedback, and then to further polish your vision and stories. Always
keep refining and communicating your vision and stories with the
people around you. Communicating vision never stops!

We recommend testing and validating the vision and stories in a small

setting first. So, find a peer Product Owner/Manager that you trust and
feel comfortable with, then pitch your vision. Ask them how it makes
them feel, what it makes them think, and if they have any feedback for
improvement. Then move on to an important stakeholder. Someone
you want to get on board with your vision. Someone who matters in
the future of this product. Pitch your vision/story again, and get
feedback. Move on to someone outside your company, a customer
perhaps…

Another very helpful tool is to record yourself. It may feel a bit

awkward at first, but record yourself while pitching your vision/story.
Then watch the recording and see how you are presenting. How does
this pitch make you feel? What do you feel you that can improve about
your pitch? Also consider your non-verbal communication, itʼs not
just about what you say, but also how you say it. Essentially, keep
testing and learning. Remember, donʼt limit yourself to pitching to
people you know well. Friends and family will always tell you how
amazing it is, so use other people for feedback! People you donʼt know
very well perhaps, or that you donʼt work with very closely…
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9.3. Product vision statement format

This is a classic, fill-in-the-blank format you can use to guide your

thinking:

[Product] is for [Target Customer] who [statement or need of

opportunity]. The [product name] is a [product category] that [key
benefit, reason to buy]. Unlike [primary competitive alternative], our
product [statement of primary differentiation].

9.4. How your product vision statement fits into the larger product
strategy

Your vision also serves as the cornerstone of your product strategy.

But while your product strategy should be resilient, adapting to the
market and your customers' needs, your product vision will remain
relatively static to keep your team oriented in the right direction.

9.5. What makes a great product vision?

Purposeful

A purposeful and aligned product vision statement helps to ensure

that the product team is working towards a meaningful and valuable
goal, that the product is well-integrated with the company's overall
strategy, and that the product is positioned for long-term success.

Aspirational

It orients your team to the future and paints a picture of what your
product aims to achieve. It should articulate the product's mission and
how it will change the lives of its users. When the vision is
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aspirational, it energizes the team to push beyond their comfort zone

and pursue bold ideas.

Achievable

Making your product vision statement achievable is critical for

ensuring that the team stays motivated and focused, building
credibility with stakeholders, and ensuring the long-term
sustainability of the product.

While it is important to have a bold and ambitious vision, it is equally

important to ensure that the vision is grounded in reality and
achievable given the resources and constraints of the team and the
market.

Customer-focused

A customer-focused product vision statement helps to ensure that the

product team is always thinking about the customer first, that
decision-making is guided by a clear understanding of customer
needs and desires, and that the product is positioned for success in the
market.

Concise

Writing a concise product vision makes it easier to remember and

communicate, helps to focus the product team's efforts, and prevents
any confusion or misinterpretation.

Well-documented
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Creating your vision is step one, but documenting it and weaving it

into the fabric of your product team is critical for making it a reality.
Write it down, share it out, and make sure everyone working on the
product knows it like the back of their hand.

It can be tough to finalize a perfect product vision, especially when

you're starting from square one. As the product owner, you also own
the product vision, but that doesn't mean you should define it on your
own. The best visions are created in collaboration with product
stakeholders and pressure tested by the leadership team.

Before you can craft your vision, make sure you have the right data
and resources on hand. Typically, that means gathering your company
vision statement, nailing down your product purpose, and completing
an empathy map to deeply understand your customers. Let's take a
closer look at how these components — in particular, your product
purpose and empathy map — feed into an effective product vision

9.6. How to create a meaningful product vision

Define the product purpose

Creating your product story starts with understanding the purpose of
your product. This ultimately boils down to three questions.

❖ Why does your product exist?

❖ How will you achieve your why?
❖ What is your product?
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It sounds easy enough, but this is really an exercise in specificity. You

could probably list out dozens of reasons why your product exists, and
you could describe it in myriad different ways. But for the purpose of
this exercise, make sure you collaborate with product stakeholders to
boil it down to its core, to what really matters.

Below is a simple framework that can help your team. We recommend

spending about 15 minutes workshopping your product purpose with
your team. It can be tempting to spend days poring over various
iterations, but try to time-box yourselves in order to work quickly and
efficiently.

Fig: Golden Circle/Bulls-Eye

A bulls-eye diagram with the labels "what", "how", and "why" to help
with determining a product's positioning.

9.7. Outline the product's unique value proposition

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Determine what sets the product apart from others in the market, and
how it will create a competitive advantage.

● Identify the target customers

Determine who the product is designed for and what their needs and
pain points are. This can help to inform how the product will provide
value to its users.

● Analyze the competition

Understand what other products are currently available in the market,

and identify their strengths and weaknesses. This can help to identify
gaps in the market that the product can fill, or opportunities to
differentiate the product from its competitors.

● Determine the product's key features and benefits

Identify the specific features and benefits of the product that will
provide value to its users, and how these features and benefits
compare to those of other products in the market. This can help to
articulate the product's unique value proposition.

● Consider the product's design and user experience

Consider how the product's design and user experience will set it
apart from its competitors, and how it will create a positive and
memorable experience for its users.
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● Align the product vision to broader company goals

Confirming that the product vision aligns with the company's broader
vision and strategy is critical for ensuring the long-term success and
sustainability of the product.

● Consider the company's strategic goals

Review the company's strategic plan and goals, and identify how the
product vision can contribute to these goals. This can help to ensure
that the product supports the company's long-term growth and
success.

● Collaborate with cross-functional teams to improve alignment

Engage with other teams in the company, such as marketing, sales,

and engineering, to ensure that the product vision is aligned with
their needs and priorities. This can help to ensure that the product is
well-integrated into the company's broader operations and goals.

9.8. Empathize with your users

Next, complete an empathy map to develop a deep, shared

understanding of your users. If it's been a while since you've done this,
do it again! Before you can write a successful product vision, everyone
should have an intimate knowledge of their needs, their pain points,
and their motivations.
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First things first, you need to have a clear view of your target persona.
Who are you creating this product for? From there, your team can
spend 30 minutes completing an empathy map that organizes and
refines your collective knowledge about your persona. This empathy
map template can guide you through the process. The completed
empathy map will serve as a valuable tool when you actually sit down
to create your product vision.

With these resources in hand, your team can define your product
vision. You can use this simple, concise format to tell a compelling
product story that resonates with your audience.

9.9. Review and update the product vision statement as needed

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Regularly revisit the product vision and making adjustments as

needed based on new insights, feedback, and changing market
conditions. Here are some specific actions that can help to ensure that
the product vision is iterated and refined over time:

1. Solicit feedback from stakeholders

2. Stay up-to-date on changes in the market
3. Revisit the product roadmap
4. Be willing to pivot the product vision if necessary

Iteratively refining the product vision over time can help ensure that
the product is well-aligned with changing market conditions, evolving
customer needs, and emerging technologies.

9.10. Product vision template

There's no one-size-fits-all format for a product vision, but there are

tried-and-true templates you can use as a jumping-off point. This is a
classic, fill-in-the-blank format you can use to guide your thinking.
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This template, which is adapted from Crossing the Chasm by Geoffrey

Moore, was originally intended for creating product positioning
statements. While positioning refers to the space your product
occupies in the market, your product vision should be more
aspirational and ambitious.

9.11. Effective team management

Product vision statements allow a given team to communicate more

effectively with one another, such as explaining, in a short and concise
way, what your product is inherently and what you intend to do with
your product. Effective team management will reflect a level of mutual
understanding and clarity regarding a given product vision. If there is
good team management, the presentation of your product vision
statement will be more effective, which focus on the preparation and
organization of your product.
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Presentation matters

Product vision statements prepare your team to express the intentions

behind your product, and better presentation of your product will
allow your goals to be clear and planned beforehand to avoid
roadblocks along the way.

In addition, the presentation of your product is more clear and

concise because of planning beforehand and creating a product vision
statement, resulting in the ability to communicate your product as
clearly as possible with your team.

Now, let's take a look at some real-world examples of product visions

that tell a meaningful story.

Product vision statement examples

Need a little inspiration before you get started? These real product
visions from notable companies can help. They don't strictly follow
Geoffrey Moore's format, but they're all aspirational, and they all
address what their product is, who it's for, and how it's different.

Tesco

The British grocery chain Tesco has a team focused entirely on loss
prevention science. This is how they describe their vision:
"Our product vision is to provide a single source of decision making
for loss prevention within Tesco, across any channel or market. We
operate at the point of transaction, so Tesco chooses which
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transactions to allow, block or intervene in, to grow sales and manage

losses."

GitLab

GitLab is an open-source DevOps platform that allows teams to deliver

software faster and more efficiently. This is their vision for GitLab
Runner:

"Our vision for GitLab Runner is to offer DevOps teams a build agent
that works seamlessly on tomorrow's market-leading computing
platforms and the tools to eliminate CI build fleet operational
complexity at enterprise scale."

Fender

The iconic musical instrument company Fender describes their

product vision for their electric guitars and basses like this:
"Our product vision is to accompany each player at every stage with
products and brand experiences that fuel the pursuit of musical
expression for players at every level."

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
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Chapter 10 - Goals, Objectives And Key Results

10.1. Introducing objectives and key results

Indeed, only a well-maintained system can fend off the feature

factory. For many organizations, thatʼs come in the form of objectives
and key results (OKRs). Itʼs credited for the rise and dominance of
companies like Intel and Google, where it has helped them move
mountains while maintaining alignment and agility at scale. And itʼs
been employed by thousands of smaller organizations that are plenty
agile, yet looking to focus their scattershot efforts on one clear
strategy.

If youʼve heard of OKRs but wrote them off as a passing fad or a

daunting management methodology (as I once did!), youʼll be
pleasantly surprised. The logic behind them is intuitive, time-tested,
and universal to defining good objectives in general. The system itself
can be explained in less than five minutes.

10.2. What are OKRs in Product Management?

OKRs are a goal-setting framework Product Managers use to stay

focused on what matters, measure results, and set clear expectations
within the Product Team.

10.3. What are OKRs

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OKR stands for Objectives and Key Results. This goal-setting

framework keeps both teams and organizations focused on what
matters while tracking progress towards an inspiring destination.

OKRs can be thought of as the bridge between the high-level outcomes

a company seeks and the on-the-ground work that is being done to
achieve this.

10.4. Why Implement OKRs

OKRs are a goal-setting framework popularized by Google in the early

2000s. Google still uses this framework today, and it has proven to be
successful at keeping both teams and organizations results-focused,
increasing transparency, and driving alignment.

By helping a team connect their work with the strategy or outcome a

company seeks, OKRs allows teams to feel autonomous while
empowering leaders to keep track of progress.
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10.5. How to Set OKRs

OKRs will typically be set both at the team level and at the company
level. OKRs for a Product organization or Product Team are set by a
cross-functional group that delivers Product, sometimes referred to as
the ʻtriadʼ or ʻtrio,ʼ which includes Engineering, Product Management
and Product Design.

The Objective should be a ʻreach goalʼ that is inspirational,

aspirational, something worth getting excited about and perhaps a
little scary. The Key Results should be measurable so the team can
track and report on progress towards the Objective in a robust way.

10.6. An example of OKRs for Product Teams

Because Product Teams are cross-functional in nature, the Objectives

a Product Team aspires to will be broad and inspirational.A
Product-Management focused Objective could be around the impact a
product will make, the problems it will solve, or how loved the
product will become as a result of this.

The Key Results will be measurable milestones that can be used to

report in a concrete way on progress towards this goal, and ensure all
the teamʼs efforts are focused on this.

An example of an Objective for a Product Team could be to ʻBuild in

the best user experience in the financial services industry.ʼ Key
Results could be usage metrics such as engagement, referrals, user
retention, and NPS.
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10.7. When to use OKRs in Product Management

Because of the cross-functional nature of the OKR framework, itʼs

most effective when the entire organization takes the framework, not
just the Product Team. Having an organization aligned under an OKR
framework can drive cross-functional partnership, foster Product-Led
Growth, and increase efficiency through team cohesion.

10.8. OKRs in action

“When I joined the Product Team, the CPO updated me about the
organizationʼs OKRs, and we brainstormed a team-level OKR to keep
Product inspired and on-track towards what matters.”

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 225

Chapter 11 - How to use Product Analytics

Product analytics is integral for your productʼs success. It can provide

you with all the information you need to ensure your product
resonates with your customers, including insights into how customers
interact with your product, what features they like, what obstacles
they run into, and when they turn away.

By analyzing data gathered this way, you can see what works for your
customers and what doesnʼt. Proper use of this data can help inform
every part of your product management cycle.

Product analytics is vital in todayʼs marketing-heavy world to ensure

that your product is as attractive as possible. You need to understand
how product analytics works to know what you can do with it. From
there, the tools product analytics provides can turn your product into
a huge success.

Successful companies are turning to product analytics software to

understand how their current and potential customers are interacting
with their products and services. This guide will help you answer
some of the leading questions in the product analytics area.

11.1. What Is Product Analytics?

Product analytics is the process of understanding and answering

questions related to customers' behaviors when they interact with
your products. For the product manager and their team, product
analytics provides useful data from which insights can be made.
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Product analytics software tools use embedded sensors within digital

products to track user actions, whether it features users spend the
most time with, how often they return to your product, or the paths
they take to conversion. Information gathered about user behavior is
then used to identify shortcomings, optimize the product, and
improve the user experience.

Product analytics is user-centric. Rather than focusing on what a

product was designed to do, it is concerned with how users interact
with the product. This helps the product manager to draw precise
insights on what aspects of the product need improvement, rather
than relying on guesswork and instinct alone.

Traditionally, product managers relied on questionnaires and

customer interviews to determine the perceptions of customers and
users of their products. Even though these methods allowed brands to
understand how users interacted with their products, these
techniques were expensive and time-consuming. Today, companies
can discern these user interactions using a range of product analytics
software tools available in the market.

11.2. Is Product Analytics The Same As Marketing Analytics?

Even though the phrases ʻproduct analyticsʼ and ʻmarketing analyticsʼ

are sometimes used as synonyms, this is not always the case.
However, the two concepts are closely interlinked. Below are the main
differences between the two concepts:
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Ultimately, marketing analytics focuses on how to turn visitors into

paying customers, while product analytics seeks ways for these
customers to be engaged so that they will keep coming back to the
product.

11.3. Why Is Product Analytics Important?

Product marketing has always had a luck element to it. No matter how
many times you ask a customer what they like, what they want, and
what they canʼt stand, thereʼs always the chance theyʼll turn around
and do exactly what you donʼt expect.
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Gives Direction To Product Development And Design

Product analytics helps in product design abstraction. With the level

of insight brought about by tracking user events, it is easier to know
what customers use, and what they donʼt. Your product can be made
leaner, lighter, and faster by removing features that no one is using
while retaining its most relevant ones.

Data analytics gives you hard data without emotional bias. You donʼt
have to spend your budget on advertising that you hope will work.
Instead, use your insights to create better customer experiences and
guide your users to the products you know to do well.

11.4 Builds Better Customer Relationships

As we progress in the digital age, people increasingly want a digital

product experience. A personalized experience is not only
appreciated—itʼs expected.

The best way to give people what they want is through the use of
product analytics. After all, how can you personalize an experience if
you donʼt know what your customers like?

When you listen to the data, your products become increasingly

attractive to your customers. This is a stellar way of building customer
loyalty by making a product that users simply canʼt get enough of.
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11.5. Who Benefits Most From Product Analytics?

Everybody involved in the creation process, marketing, and use of

products, benefits from product analytics.

● The Product Manager: Uses data produced by product analytics

to evaluate the experience of the users when using the product.
Product managers also identify the product's weaknesses, and
determine what needs to be done to improve the user
experience.
● Developers and UX Designers: Are better able to find and resolve
design and implementation flaws when they are aware of usersʼ
experiences with the product. Designers can also learn which
features confuse users and address them accordingly.
● Marketers: Are better able to sell a product to users if they know
exactly what the users are doing with the product. Added to this,
they can also determine what the users do with the marketing
information they receive.
● Customers: Are always looking for products that are easy to use
as it may not always be possible for customers to get their views
across in the way their actions do. Thus, by knowing what
behaviors customers exhibit when dealing with products, brands
can discern what customers are looking for. This improves the
customer experience.
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11.6. How To Take Advantage Of Product Analytics?

Using product metrics to boost your sales and forge a more

meaningful product experience might seem complicated, but the
process is actually quite simple.

● Define your goals: Without a plan in mind, how can you know
what data to collect? Start with an explicit action you can take
with product analytics, such as lengthening user engagement or
getting more people to register.
● Create a plan to track: Create a list of every event you need to
follow thatʼs related to your goal. These events include leaving
your page, signing in, or deleting an item from a cart.
● Choose the right product: There are several product analytics
software options out there, and they all perform different tasks.
Ideally, youʼd have multiple platforms. However, if you can only
use one, make sure you do your research and pick the right one.

Predictive Analytics

Predictive analytics uses real-time data to predict what a user will do.
There are many ways to use predictive analytics.

● Predict interactions: You can use your collected data to predict

your traffic for a specific day. For example, airlines use
predictive analytics to set ticket prices.
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● Reduce fraud: By detecting suspicious activity as itʼs happening,

predictive analytics can alert you to possible fraud or tell you
when other cybersecurity issues arise.
● Risk mitigation: Predictive analytics can suggest when a
customer might not meet their financial promises by assessing
their creditworthiness.

A/B Testing

A/B testing is a method of evaluating what works on sites. Two options

are created for a product or service. Then data is collected. Whichever
performs better is the one the company goes with.

This is a simple yet effective way of using a data analytics tool to better
understand how users work. Itʼs also a classic method of analytics
thatʼs been used for decades.

11.7. Types Of Product Analytics Metrics To Track

Thereʼs no reason to gather and analyze every scrap of data you can
get your hands on. Doing that only places tremendous pressure on
your analytics team to make sense of it all.

Instead, pick the metrics that matter to you. Save yourself time and
effort by narrowing down what you look at based on what your goals
are. If youʼre not sure where to start, here are some of the top metrics
a product analyst looks at.
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● Engagement: Think of the engagement metric as a map of a

customer journey. You gather data about how customers got to
you, what they did before signing up, which features they
engaged with the most (and least), and what ultimately brings
them back. This information allows you to tweak your product to
optimize the customer journey for as many new customers as
possible.
● Customer churn: Tracking this will tell you when a customer
decided to stop using your product.
● Retention: With this metric, you can see how many customers
return, on what days, and how many times. You can see what
those high-retention customers do, then make those products
easier for others to access.
● Cost of new customers: Analyzing this metric can show you
exactly how much money you spend before a visitor becomes a
customer. By tweaking your product, you can track if this
number goes up or down.
● Customer lifetime value: This is more than just how much
money customers spend on your product. Tracking this allows
you to analyze the behaviors of your most valuable customers
and try to encourage others to act the same way.

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 233

Chapter 12: How to build Effective Product

Roadmaps
12.1 What is a product roadmap?

A product roadmap is a high-level visual summary that maps out the

vision and direction of your product offering over time. A product
roadmap communicates the why and what behind what youʼre
building. A roadmap is a guiding strategic document as well as a plan
for executing the product strategy.

For examples and inspiration on building your first roadmap, browse

our library of product roadmap templates.

The product roadmap has several ultimate goals:

● Describe the vision and strategy

● Provide a guiding document for executing the strategy
● Get internal stakeholders in alignment
● Facilitate discussion of options and scenario planning
● Help communicate with external stakeholders, including
customers

Ideally, your product roadmap should convey the strategic direction

for your product. And it should also tie back to the strategy for the
company. Within that framework, of course, is the general order of
what youʼll be building.

Clearly articulating the product vision and strategy can make it easier
to secure executive buy-in. It also ensures that everyone is working
toward a common goal.
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Note that roadmaps arenʼt limited to products. Instead, these

objectives are similar to other types of roadmaps, such as marketing
roadmaps and IT roadmaps.

12.2 Why is a product roadmap important?

Product roadmaps encapsulate how the product strategy becomes a

reality. They take many competing priorities and boil them down to
whatʼs most important, leaving shiny objects by the wayside in favor
of work that moves the needles stakeholders really care about.
 235

Theyʼre also a source of inspiration, motivation, and shared

ownership of the product and its successes. All the work individual
contributors do often only make sense within the context of the
product roadmap and knowing that plan and what the organization
hopes it will bring can get naysayers onboard.

Product roadmaps are one of the few things almost everyone in the
organization will be exposed to, as sales pitches, marketing plans, and
financials are usually held closer to the vest. For many workers, itʼs
their only glimpse of where the product and organization are heading
and why certain decisions were made. They provide a shared,
common understanding of the vision, goals, and objectives for
everyone in the company.

Product roadmaps also help organizations avoid chaos from reigning,

pet projects from sliding into the implementation queue, and wasting
resources on less important tasks. They are the beacon, the focal
point, and the guideposts for everyone bringing the product to
market.

12.3 Who is responsible for the product roadmap?

Product roadmap creation should be a group effort, but the product

management team should ultimately be responsible for their creation
and maintenance. This combination of collaboration and discrete
ownership gets stakeholders onboard while maintaining
informational integrity and avoiding a free-for-all atmosphere.
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Product management should begin with a clear understanding of both

the productʼs and the overall organizationʼs strategic objectives, which
comes from the executive team. Then, with the desired outcomes in
mind, product management can create the key themes for this portion
of the productʼs lifecycle.

12.4 How Your Roadmap Will Evolve as Your Product Matures

As products evolve, they inevitably become more complex. Theyʼre

expected to do more, to serve additional cohorts, to integrate with
other products and services.

Product roadmaps also go through an evolution of their own. A

roadmap for a freshly-minted MVP differs significantly from a mature
product on many fronts:

● Horizon: Startups have a much harder time predicting future

requirements and opportunities for the products. Therefore their
roadmaps probably wonʼt go too far in the future (or if they do itʼs
with some very large asterisks). Established products can make
firmer longer-term plans. They have a better understanding of
their customers and the market.
● Frequency: When youʼre young and scrappy, you need to “always
be shipping.” More mature products can space out their releases
with less urgency.
● Dependencies: Startups can move quickly and break stuff.
Mature products have a legacy to worry about, third-party
integrations to maintain, and regression issues to contend with.
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● Goals: A startupʼs goals are very different from an enterprise

product. The first is just trying to prove its viability, gain some
traction, and grow. The latter will have more nuanced strategic
objectives and more diverse targets.

How do you plan what goes on a product roadmap?

A great roadmap has a tough bouncer working the door. To maintain

credibility with stakeholders, the riff-raff needs to be kept at bay while
only items deserving of a slot can make the cut. So keep the roadmap
clear of any undeserving inclusions by applying a few filters:

● Does it have actual value to users? If not, then save that space for
something that does.
● Is there evidence of that value? Gut feelings and hunches are for
amateurs. Well-documented facts should support this claim, and
metrics should be driving feature decisions.
● Is there an owner? Every request needs a champion who
understands the nuances and will continue to fight for it.
● Does it fit? There are lots of great ideas. But roadmaps are the
culmination of prioritization and scheduling realities.
Cramming in an extra one isnʼt a viable option.
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12.5 How to plan security and technical debt on your roadmap?

Every roadmap should include things that get the audience excited,
such as new functionality and integrations. But there must always be a
place for the less exciting need-to-do items as well.

Ignoring key topics such as scalability, cybersecurity, and technical

debt is pennywise and pounds foolish. The product will eventually
have to address those topics. If time isnʼt allocated in the roadmap
upfront for these things, it will feel more like an unexpected delay,
slip, or poor planning than simply acknowledging upfront that youʼve
got to eat your vegetables.

12.6 How do you prioritize features for the product roadmap?

Roadmaps are the result of lengthy analysis, consideration, and

deliberations. Once you set strategies and goals, it comes down to
prioritizing features and enhancements based on a variety of criteria.

There are multitudes of methods for prioritizing potential roadmap

items. There are dozens of frameworks to choose from, from using
OKRs, to MoSCow, to the RICE Scoring Model. Regardless of which
approach is ultimately selected, proper prioritization requires product
teams to do their homework. Assess each item under consideration for
value, level of effort, and opportunity costs.
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Teams must also weigh the benefits of short-term wins versus making
progress toward long-term goals. Any good roadmap will include a
combination of both items. This ensures incremental gains are being
seen regularly without pushing out the hard work required to advance
the overall product strategy.

12.7 How to create a product roadmap?

To build a roadmap, product owners should evaluate ideas based on

key criteria, such as market trajectories, customer insights and
feedback, company goals, and effort constraints. Once these factors
are understood, product teams can work together to start prioritizing
initiatives on the roadmap.
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The content of a roadmap will depend on its audience - a roadmap for

the development team may cover only one product, while a roadmap
for executives can cover multiple products. Depending on the size and
structure of an organization, a single roadmap may span multiple
teams working on the same product. An external roadmap will often
cover multiple products aligned with one point of emphasis or
customer need.

The most important takeaway: create a roadmap that your audience

can easily understand. Providing too much or too little detail on the
roadmap can make it easy to gloss over, or worse, to too intimidating
to read. A roadmap with just the right amount of detail and some
visual appeal can earn the buy-in you need from key stakeholders.

● Presenting the product roadmap

The product roadmap needs buy-in from two key groups: leadership
and the agile development team. Presenting the roadmap is a great
opportunity to demonstrate to key stakeholders that you understand
the companyʼs strategic objectives, the needs of your customer, and
have a plan to meet them both.

As you move through the project, make sure to link your delivery
teamʼs work back to the product roadmap for context and visibility
into progress for your team and stakeholders. A tried-and-true
method: map out the ideas you're committing to on your product
roadmap, then break down those ideas into epics, requirements, and
user stories on your delivery roadmap. Often times, each initiative will
have a corresponding epic that needs to be broken down into smaller
tasks to complete. Establishing this hierarchy makes it easier for
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product and development teams to make decisions together, and

understand how their work fits into the bigger picture.

● Using and updating the roadmap

Roadmapping doesnʼt end once youʼve reached your final state. As the
competitive landscape shifts, customers' preferences adjust, or
planned features are modified, itʼs important to take any learnings or
insights, feed them back into your teamʼs discovery process and
ensure the product roadmap continues to reflect the status of current
work as well as long-term goals.

The roadmap should be updated as often as necessary - this could be

every week or fortnightly - so that it can remain an accurate source of
truth. As weʼve all experienced at one time or another, a roadmap is
counter-productive if it isnʼt up to date. Youʼll know if your roadmap
needs to be updated more frequently because your stakeholders will
start calling you for updates instead of consulting your roadmap.
These one-off requests reflect a distrust in your roadmap, and a huge
potential time suck.

However, on the flip side, you donʼt want to spend more time updating
the roadmap than is necessary to achieve alignment between
stakeholders and within your team. Remember, the roadmap is a
planning tool to think through how to build great products that will
make an impact on your customers and on your business. If youʼre
spending time updating your roadmap that you could (and should) be
spending on execution, re-think the cadence and how you take in
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inputs, feedback, and data from across the business to prioritize your
initiatives.

12.8. Best practices for the best roadmaps

Building and maintaining product roadmaps is as much an ongoing

process as it is a cultural practice to embark upon with your product
team. There are a few simple ways to set yourself up for success:

1. Only include as much detail as necessary for your audience

2. Keep the roadmap evenly focused on short-term tactics and how
these relate to long-term goals
3. Review roadmaps on a regular basis and make adjustments
when plans change
4. Make sure everyone has access to the roadmap (and checks it on
a regular basis)
5. Stay connected with stakeholders at all levels to ensure
alignment.

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 243

Chapter 13 : Launching Product in the market

13.1. What is a Go-to-Market Strategy?

A go-to-market strategy is a tactical plan detailing how a company

plans to execute a successful product release and promotion, and
ultimately its sale to customers. Common elements of a productʼs
go-to-market strategy include:

● Pricing strategy
● Sales tactics and channels
● A planned customer journey map
● Marketing tactics and campaigns
● Budget for product launch and marketing
● Plans for training the sales and customer support teams

13.2. Why Should a Product Team Use the Go-to-Market Strategy

Framework?

Go-to-market planning can give a product team a tactical blueprint to

help ensure theyʼre addressing all of the external-facing steps theyʼll
need to take to introduce their new product to the public.

With the right strategy template, a cross-functional product team can

make sure it makes the most of its product launch and does not leave
any key components of its sales, marketing, or support efforts
unaddressed.
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13.3 What Details Should Be Included in a Go-to-Market Strategy?

An organization might ask itself questions such as:

● What email campaigns will we develop to inform prospects

about our new product?
● Which pieces of marketing collateral should we create for this
product launch?
○ How and when will we train our sales force on selling the
new product?
■ Should we create limited-time promotions to boost
early purchases?
■ What PR campaigns will we roll out to increase
industry awareness prior to launch?

When they have developed this checklist of questions, the

organization can then use this as their go-to-market strategy template
for future product launches.

13.4 Who is in Charge of a Company’s Go-to-Market Strategy?

Because the tactics used to support a productʼs launch are primarily

marketing functions — lead generation, brand awareness, promotions,
customer outreach, public relations — the go-to-market strategy
typically falls under the marketing department.
 245

But that is not to say that the product team should take a passive role
when it comes to go-to-market planning. Product management is
ultimately responsible for the productʼs success or failure in the
market, after all, and therefore the product team should work directly
with marketing to craft and execute a strategically sound go-to-market
strategy for their products.

In fact, if the marketing team does not prioritize go-to-market

planning to the degree the product management group believes they
should, then the product team itself should take the lead. And if the
product team needs a tool to capture and share the high-level details
of its go-to-market strategy, the team can even use an app built for
product roadmaps.

13.5. 6 Key Factors Contributing to Your Products Success

Various elements influence the journey and reach of a product, and

understanding these elements tends to be highly crucial for attaining
success. Some of the key factors include:
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1. Effective Story-Telling Approach:

Developing a strong story tends to be highly significant in making the

products desirable to consumers. Every successful product, such as
Apple products, doesnʼt stand out from the competition merely
because of their technical specifications, but because they excel at
weaving a compelling narrative around the product, hence fostering a
strong consumer connection. Companies can easily drive sales and
establish themselves as successful product-based companies by
highlighting the benefits of the product and its impact on the
consumerʼs life.

2. Understanding the Target Audience:

Understanding the requirements and issues faced by the target

audience and the problem the product can solve tend to be one of the
key pillars of product success. By defining the ideal customer profile,
companies can tailor their products to meet specific needs and
preferences. This understanding enables organizations to develop
effective marketing campaigns that resonate with their target
customers. It is crucial to remember that the target audience is not
necessarily the same as the internal team; companies must step
outside their own perspectives and view the product through the lens
of the consumer.
 247

3. Identifying Key Opportunities:

Identifying the right opportunities is vital for the success of any

product. Organizations can pinpoint the optimal moments to engage
with customers which will drive product adoption by analyzing the
buying behavior and preferences of the audience. Previous research
and articles proved that when a new offering is promoted at the right
moment, there is a higher probability for moment users to upgrade to
a new smartphone. Understanding these key moments help
companies better align their go-to-market strategies and target the
users effectively during critical decision-making periods.

4. User Onboarding and Information Overload:

User onboarding impacts customer behavior significantly. Users must

be provided with clear guidance and support, especially those who are
new to the product. A seamless and intuitive onboarding experience
can help users navigate the productʼs features and maximize its
benefits. Furthermore, addressing information overload, particularly
in digital products is also very important. Companies must try their
level best to streamline the user interface by focusing on the most
relevant information, hence ensuring that users can quickly grasp the
productʼs value proposition and engage with it effectively.
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5. Segment-Specific Propositions and Targeted Marketing:

Segmenting the target audience and tailoring propositions to specific

customer segments is another key aspect of successful product
marketing. You must identify the unique needs or preferences of the
customers, and understand that a one-size-fits-all approach may not
yield optimal results. Hence, develop targeted marketing campaigns
and value propositions that resonate with each group in order to
address the specific pain points and aspirations of different customer
segments. This approach will increase the likelihood of product
adoption and success manifold.

6. Leveraging Insights and A/B Testing:

To get your product the required success, organizations must leverage

insights derived from data analysis and user feedback. A/B testing and
robust analytics can be effective strategies for gaining valuable
insights into user behavior, preferences, and patterns. These insights
help organizations make informed decisions enabling them to refine
their marketing strategies, product features, and user experiences.
Furthermore, with continuous analysis of data and different testing
approaches, companies can optimize their products for maximum
market acceptance.
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13.6. Steps to Creating Your Go To Market Strategy

Thereʼs more than one way to go about building a GTM strategy, and a
lot of it will depend on your company, product, industry, budget,
resources…thereʼs a lot that goes into it!

So keep that in mind when you start building your strategy. If the
situation changes, your strategy needs to be flexible enough to adapt.
With that in mind, weʼve created a basic template that should guide
you towards building a winning strategy.

Step 1: Identify your Launch Owner

This is the person who will be the main point of contact for the
product launch. Theyʼll take the lead on building the GTM action plan
and making sure it is communicated across the entire team.

Sometimes this person is the Product Manager, but that may not be
the case if theyʼre too busy getting the product itself ready for launch.
It may also be the Product Marketing Manager, who will often liaise
with the Product Manager.
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The launch owner will also be in charge of creating a Launch Tracker.

This is an important document which tracks potential pain points,
who raised them, and whether or not they were resolved. It also tracks
which important decisions were made by who, and when.

Step 2: Know who youʼre trying to reach

Somewhere during product development, you identified your target

audience and potential customers. You may have done this by
building user personas (or your UX designer built your user personas).
Part of this is also knowing what the competition is like. How many
people in your target market are probably already using your
competitorʼs product?

At this point you should also be thinking about your use cases. You
know who youʼre users are, but you need to be able to demonstrate
how theyʼll use your product, and how itʼs going to benefit them in the
long run.

Step 3: Determine your pricing and sales strategies

This step will be much simpler if youʼre releasing a new feature or a

rebrand for an existing product, but what happens if youʼre launching
something brand new? You need to figure out how to monetize it. This
will go hand in hand with your sales strategy, so be sure to work
closely with your sales teams on that. If you work in a larger company
there likely will already be plans and protocols in place.
 251

Step 4: Build your marketing strategy

This is easier for existing products and services, because you

hopefully already have a platform and or/a community. Your
marketing team will know some very specific things like, ʻwhatʼs the
average price per click on our ad campaigns?ʼ or ʻhow many email
subscribers do we have, and in which segments?ʼ If youʼre launching
something new, you have to start from scratch.

If you donʼt come from a marketing background, then this is a great

learning opportunity. Youʼll be working very closely with your
Product Marketing Manager, who should already have some great
ideas for ad, email, and content marketing campaigns.

Step 5: Identify your metrics

This is all part of being a data-driven Product Manager. You need to

know if your campaigns are working, and if theyʼre cost-effective. You
donʼt want your customers to cost more money to acquire than theyʼre
going to spend on your product. We call this metric your Customer
Acquisition Cost (CAC). This number will frequently change, as itʼs
calculated by adding the total expense of your marketing and
customer support strategies, and dividing it by the number of
customers acquired.

(Itʼs helpful to do this within a specific time period of time, and use
them to track your progress. When you see that your CAC is going up,
itʼs time to rethink your marketing strategies.)
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Step 6: Make a plan for customer support

New tech adoption is a pretty hot topic, alongside discoverability.

While you want people to easily discover your new feature or take to
your new product, you have to be prepared for those customers who
will struggle.

Great customer support can make or break a product, so make a plan

and have it factored into your CAC calculations.

Step 7: Consolidate your post-launch resources

Ask yourself what youʼre going to need once the product has launched.
Will you need the same level of customer support, and will you want
to maintain the same marketing campaigns?

Part of getting your product to market is to understand how youʼre

going to keep it there. If you burn through all of your marketing
resources at launch, how are you planning on reaching new
customers? A GTM strategy is as much a long-term plan as it is a
pre-launch blueprint.

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 253

Chapter 14 : Good to Great Product Manager

14.1 Introduction

A product manager frequently doesnʼt have a degree in product

management. Often, itʼs someone with a background in marketing,
user experience design, or software engineering. The main element
here is not the experience per se but the domain knowledge—the more
you know about a particular market and its customers, the better you
can lead your product to success.

14.2 Product manager background

Here are our recommendations for people of different backgrounds to

help you close the gap and get into product management.

If youʼre a techie. A product manager is a leadership position, so to

become one, you should lead and engage in fateful decisions about a
product. Suggest new features and the means to implement them.
Support your ideas with research using focus groups. Start your side
project or startup. Besides, any project can be a case study to show
your future employees or current managers.

If youʼre coming from marketing. Although the activities of product

and marketing managers often coincide, note this big difference—a
product manager is heavily involved in product development. Your
main objectives will be learning to understand development
workflows, technology and successful communication with the
engineering team.
 254

Since, on many projects, marketing professionals arenʼt expected to

engage directly with the tech side, youʼll have to initiate conversations
and apply the skills you already have. Knowing the issues that
customers face every day, you can offer your solutions and estimate
how much time and engineering effort solving their problems will
take.

If youʼre a designer. Besides acquiring the necessary technical and

marketing skills, you would probably experience a notable change in
your daily schedule, diversity of tasks, and overall work rhythm.
Suelyn Yu, a UX designer who became a product manager, notes that
as a designer, she had a “makerʼs schedule”—most of her work was
unscheduled, and she was free to plan her tasks independently.

If youʼre in a similar position, use this opportunity to understand the

decisions behind the changes youʼre asked to create. Ask questions
and request access to client feedback and user interviews if you donʼt
already have it.

14.3 Product manager skills

Product managers need a mix of hard and soft skills to excel in their
positions. Let's recap the primary hard skills that were mentioned
earlier:
 255

1. vision and strategy development,

2. team and stakeholder management,
3. resource allocation,
4. market research,
5. domain expertise,
6. understanding UX,
7. analyzing customer feedback, and
8. tracking product metrics.

Ultimately, product managers need to be business savvy, have

technical knowledge, and be proficient in marketing. However, not
everybody realizes the importance of soft skills and emotional
intelligence for this position.

14.4 Product manager’s skillset

A big part of a product managerʼs responsibilities is related to

communication, i.e., coordinating the development team,
interviewing customers, informing executives, connecting with
stakeholders, etc. So, excellent relationship management skills are a
must-have for this role. Product managers should inspire people,
resolve inevitable conflicts, and balance the interests and demands of
all stakeholders, keeping everyone motivated and satisfied.
 256

Some specific character traits that make the best product managers
are:

1. empathy—to understand customers and team members better;

2. self-awareness—to stay objective and avoid involving their own
interests in business;
3. self-management—to be disciplined and organized and organize
others; and
4. stress tolerance—to manage emotions and stay calm under
constant pressure.

Besides all that, a product manager is expected to have a strong

“intelligence and problem-solving ability,” as noted in a classic essay
by Ken Norton, How to Hire a Product Manager. He emphasizes that
he would prefer a “wickedly smart, inexperienced PM over one of
average intellect and years of experience.” He also mentions technical
skills, strong intuition and creativity, leadership skills, and the ability
to channel multiple points of view as the most important
characteristics.

14.5 What Makes a Great Product Manager?

“What makes a great product manager?” — would be a list of skills. A

long list that would include: subject matter expertise, outstanding
communication skills, market knowledge, leadership ability,
innovativeness, strong researching skills, the ability to think
strategically, etc.
 257

Indeed, a comprehensive list of the skills needed to be a great product

manager might be so long that it would intimidate a newbie into
thinking that neither she nor any mere mortal was cut out for this
profession.

But if we had to distill what it takes to be a great product manager into

a single concept, a single theme, it would be balanced. Product
management is the organizational equivalent of walking a tight rope
every day — and if your skills or focus are overdeveloped in one area
and underdeveloped in another, you risk setbacks for both your
product and your career.

The balance will play an essential role across all of your areas of
responsibility as a product manager. Here are a few of the most
important examples.

1. Balance between the tactical and the strategic.

Some product managers prefer to spend most if not all of their time
thinking, brainstorming, and pontificating on the big-picture aspects
of their products. Others feel more comfortable diving straight and
deep into the weeds of the backlog, budget and resource details, etc.
 258

But as we heard in a recent ProductPlan interview with a Dell software

product manager, a PM can become great only after sheʼs learned to
work comfortably and proficiently in both the tactical and the
strategic aspects of driving her product. Thatʼs because when you
spend all of your time up at the 30,000-foot strategic level, you risk
missing many of the details that need to be taken care of for a
successful product.

Likewise, when you jump straight into the ground-level details like
features and to-do lists, you can lose that all-important big-picture
understanding of why youʼre developing the product the way you are.

— which can lead to an unfocused, unremarkable product.

2. Balance between being a likable team player and holding firm

when necessary.

Product managers are ultimately accountable for the success or

failure of their products — the “one throat to choke” at the company
for a botched release or a product that falls short of revenue
expectations. That often means PMs have no choice but to push their
teams to work harder or faster and to say no when their colleagues
make requests relating to the productʼs development — even
reasonable requests.
 259

Handling this component of his role effectively can make a product

manager unpopular with his colleagues. This is why a great product
manager learns how to temper this part of the job — demanding more,
saying no, etc. — with being a well-liked and respected part of the
team.

Remember, as a product manager, youʼre placed in the tricky position

of having to lead teams across many departments but without any
organizational authority over those people. The only way to do this
successfully, repeatedly, is to earn the respect, trust, and affection of
your team.

Be firm and say no when itʼs necessary to protect your product and
your company — even if doing so will make your team unhappy. But
take every opportunity to build and strengthen the bonds with your
team — to say yes to them. Find the balance.

3. Balance between trusting your own knowledge (and your gut)

and following where the evidence leads you.

Should a product manager be more focused on developing an

unparalleled level of data-driven knowledge about her companyʼs
products, market, and customers — or developing a killer gut instinct
that guides her strategic thinking and leads to innovative and
industry-leading breakthroughs?
 260

The answer, of course, is yes. A great PM will develop both a highly

intuitive sense of what her product and her market needs and an
ability to gather, analyze and apply real-world data and evidence to
support (or even contradict) her ideas and intuitions.

This might be the most important skill set balancing act for a product
manager.

It will be the intuition she develops from a deep understanding of her

market and her user persona, after all, that will help this product
manager produce those inspirational ideas that can create a
game-changing product.

But it will be her ability to compile and make sense of real evidence —
user feedback, industry data, etc. — that will help shape the PMʼs ideas
and help her earn the stakeholder buy-in she will need to bring those
ideas to fruition.

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
 261

Chapter 15: Inbound and Outbound product

Management strategies

15.1 Inbound vs Outbound Product: Understanding the

Key Differences and Strategies

When it comes to product marketing, the terms \"inbound\" and

\"outbound\" are often thrown around, but what do they really mean?
In this in-depth guide, we will explore the key differences between
inbound and outbound product marketing, as well as provide insights
and strategies to help you succeed in both areas. We've gathered
insights from industry experts to help you understand these concepts
and apply them in your marketing efforts.

15.2 Inbound Product Marketing: The Basics

Inbound product marketing focuses on attracting potential customers

to your product by creating and sharing valuable content, engaging
with them through various channels, and addressing their needs and
pain points. It's about establishing a relationship with your audience
and providing them with the information they need to make an
informed decision about your product or service. Inbound marketing
strategies typically include content marketing, search engine
optimization (SEO), social media marketing, and email marketing.

As Ivan Dwyer, Product Marketing at Okta, puts it: \"Inbound

marketing is about telling a narrative from top to bottom – anchor to
'the what,' hook with 'the why,' and win over with 'the how.'\"
Some key elements of inbound product marketing include:
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● Creating valuable content that addresses your target audience's

pain points and needs.
● Optimizing your content and website for search engines to
increase visibility and drive organic traffic.
● Engaging with your audience through social media, forums, and
other online communities.
● Building trust and credibility by sharing insightful and helpful
information.

15.3 Outbound Product Marketing: The Basics

Outbound product marketing, on the other hand, involves reaching

out to potential customers through various channels to promote your
product or service. This often includes traditional advertising
methods, such as print ads, TV commercials, and billboards, as well as
digital marketing tactics like pay-per-click (PPC) advertising, display
ads, and sponsored content. Outbound marketing is often referred to
as \"interruption marketing,\" as it interrupts the user's experience to
deliver a promotional message.

Dana Barrett, Head of Global Inbound Marketing at Asana, explains

that outbound product marketing works more closely with sales,
focusing on go-to-market (GTM) strategies and supporting the
competitive needs of sales or marketing teams.
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Some key elements of outbound product marketing include:

● Creating targeted advertising campaigns that reach your desired
audience.
● Developing promotional materials, such as sales brochures and
product demos.
● Participating in trade shows, conferences, and other events to
showcase your product.
● Collaborating with sales teams to develop and execute effective
sales strategies.

15.4 Strategies for Inbound Product Marketing Success

To excel in inbound product marketing, consider implementing the

following strategies:

1. Develop a deep understanding of your target audience: Research

your audience's needs, pain points, and preferences to create
content that is relevant and valuable to them.
2. Create high-quality content: Produce informative and engaging
content that showcases your expertise and provides solutions to
your audience's challenges.
3. Optimize for SEO: Leverage keyword research, on-page
optimization, and link building techniques to improve your
search engine rankings and drive organic traffic to your website.
4. Engage with your audience on social media: Share your content,
participate in conversations, and build relationships with your
target audience on the platforms they frequent.
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5. Monitor and analyze your efforts: Track your inbound marketing

performance using analytics tools, and adjust your strategies as
needed to improve results.

15.5 Strategies for Outbound Product Marketing Success

To excel in outbound product marketing, consider implementing the

following strategies:

1. Target the right audience: Develop a clear understanding of your

ideal customer profile and target your advertising efforts
accordingly.
2. Create compelling advertising campaigns: Develop creative and
engaging ads that capture your audience's attention and
communicate the benefits of your product or service.
3. Choose the right channels: Research and select the most effective
advertising channels, both online and offline, to reach your
target audience.
4. Collaborate with sales teams: Work closely with sales teams to
ensure alignment between your outbound marketing efforts and
their sales strategies.
5. Measure and optimize your efforts: Track the performance of
your outbound marketing campaigns, and adjust your strategies
as needed to improve results.
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15.6 Inbound Product Management vs Outbound

Product Management :

Have been witnessing a lot of questions from the PM community on

this differentiation in a few enterprises.

Product Management is an ever-evolving role that requires one to be

adept at the changes in the larger business landscape.
Enterprise Product Management is these days divided into two
buckets:

1. Outbound PM &
2. Inbound PM

Outbound Product Manager's main focus area is on

a. Go-To-Market Strategy (Roadmap against market competition)

b. Competitive Analysis
c. Research Analysis
d. Identifying Customers needs
e. Assist Sales, Marketing Teams

The main goal of an Outbound PM is to increase the top line of an

enterprise by driving sales.
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On the other hand, the Inbound Product manager's area of focus is on

a. Execution (Roadmap against Tech capabilities & Constraints)

b. Design
c. Customer loyalty
d. Customer feedback
e. Stay close to the Dev team and work with them
f. Reduce spillover costs (Tech Debt reduction etc)

This list should not restrict the Inbound PM into venturing into
customer need analysis, defining problem statements or competitive
analysis etc that an Outbound PM is expected to do.
For starters, Inbound PM is a good way to learn and closely work in
tandem with Outbound PMʼs to learn and grow.
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Stages of Product Life Cycle and type of PMs involved:

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Fig. Inbound Vs Outbound PM

Product Initiation Phase — Outbound (Work with research teams)

1. Identify Customer Problems (Focused Group Discussions,

Surveys, Observations etc)
2. Build Hypothesis
3. Market Research
4. Competitive Analysis
5. Define Problem, Define Success Criteria (North Star metrics)

Product Development Phase — Inbound (Work with Dev

Team, Designers and Architects)

1. Create Roadmaps
2. Milestones
3. Epics → Features — -> User Stories
4. Work with Tech Architects, Engineers, and other stakeholders
like legal, compliance, privacy etc
5. UAT and Deployment — Beta testing in real-time

Product Growth Phase — Outbound (Work with Sales and Marketing)

1. User behavior studies (through defined metrics)

2. Interviews or observations of the Product in real-time
3. Work on feedback loops (Surveys, customer support inputs etc)
4. Plan to scale the Product to the next level
5. Identify next-phase Product Enhancements
6. Validate the growth into different marketplaces, geographies
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Product Maturity Phase — Inbound (Work on feedback & retention)

1. Make sure user retention and usage does not fall off track
2. ROI on the product is

maintained Product Decline Phase —

Both

1. How to sunset the product

2. Make sure all info is sent across to stakeholders and road

ahead So which one to choose?

The differentiation one can draw from above:

1. Outbound is more leaning towards the business side of things and

2. Inbound is more towards the Tech side of things for better
execution.

For becoming an effective PM in the due course of time — you have no

option but to become an enterprise PM who has the skillset and
knowledge of both.

It is not an Either/Or question but a balancing act of PMs to focus on a

given area based on oneʼs product maturity and organizational goals.
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15.7 Conclusion

In conclusion, inbound and outbound product marketing serve

different purposes within your overall marketing strategy. Inbound
marketing focuses on attracting and engaging potential customers
through valuable content and interactions, while outbound marketing
involves promoting your product or service through targeted
advertising and sales efforts. By understanding the key differences
between these approaches and implementing the strategies outlined
above, you can successfully grow your product marketing efforts and
achieve your business goals.

Check out Product Management Cohort Program by Grow Juntion in

which you will learn directly from Product Leaders from Microsoft,
Adobe and Amazon.
Link
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Chapter 16 : Tools for Product Managers

16.1. Introduction

Product Management tools are software that makes a product

managerʼs work easier. Right from planning to the final product
launch, a product manager is responsible for the seamless delivery of
goods. To do these tasks effectively Product managers rely on a bunch
of tools.

16.2. Why do we use product management tools

Can you think of a product that was developed without the software?

Do not say anything random like a comb because it was also made in
3000 BC in Persia. We are not saying itʼs impossible to develop
products without product management tools, but itʼs a little difficult.
Given the time we live in now, where every second corresponds to a
new product in the market, we do not have the time to return to
black-and-white TV sets when we can use smart home appliances.

What is Product Management Software?

Product management software is used to develop and improve a

businessʼ software products quickly and efficiently. These solutions
enable product managers and their teams to collect new ideas and
user feedback, analyze product performance, and execute specific
plans to create and improve products and features. While these tools
are primarily used by product managers and product teams, they also
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provide increased transparency and insight into product development

for other departments, including marketing and sales.

Product management tools offer a number of features to organize and

execute informed product plans. Roadmap features break down
workflows from ideation to product launch, continuously tracking a
product teamʼs progress and allowing for adjustments to timelines.

User feedback management features and analytics allow product

teams to prioritize the most critical tasks or backlog them to revisit in
a future sprint. Product management solutions also provide tools for
resource allocation, product portfolio management, and agile
workflows, such as sprint planning, user testing, and bug tracking,
for development teams. Some product management software may
offer collaboration features, including chat or comment threads.

Product management software has some similar principles to the road

mapping features offered by project management software; however,
its differentiating features improve software product development
cycles specifically by incorporating user feedback management and
product analytics.

To qualify for inclusion in the Product Management category, a

product must:
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Provide idea management for software product creation and

improvement

Allow users to prioritize and backlog development tasks for increased

organization

Offer roadmapping to track product development progress

Allocate resources to specific tasks based on employee strengths,

skills, and availability

Natively provide or integrate with user feedback analytics and bug

tracking tools

Natively provide product release analytics

Specifically enable the creation and development of software products

and features

16.3. Product development tools and techniques

A productʼs life cycle consists of several stages. From ideation, product

roadmap, user journey mapping, prototyping, managing sprints,
customer research to learning launch and delivery, the process of
creating a product is very layered. To simplify this task, traditional
product managers used tools like road mapping software and
development tracking tools.
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However, as software became a crucial part of product development,

from developing and designing consumer goods to food delivery apps,
this trend changed management practices forever.

As newer software and technologies emerge, product management

tools also undergo serious changes and become more nuanced. If you
have the FOMO as a product manager, here is a list of tools you should
check out before developing that next product idea of yours also if you
are an aspiring product manager check out our Free Product
Management Course.

16.4. What tools should a product manager know

Coda: Best for all-in-one documentation management

Coda is one of the best product management tools for integrations. It

can provide data access in whatever way you wish to see, like graphs,
charts, infographics, etc. Below are some salient features of Coda.io:

● Coda is used by giants like The New York Times and Spotify to
promote all-in-one documentation for product and planning.
● Coda offers an API system that can be used to integrate with
third-party apps.
● It also offers real-time collaboration, document sharing, revision
history, and editing features like document locking, etc.

Balsamiq: Holy Grail of Product Management Tools

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A user-interface design tool, Balsamiq, is used for developing

wireframes( also called mockups or low-fidelity prototypes). One can
use Balsamiq wireframes to create digital sketches of ideas for an
application or website before writing any code.

Such prototypical wireframes can be used for user testing, getting

feedback from stakeholders, or refining the idea of a product before
moving on to development.

Balsamiq also offers a free trial period of 30 days before buying the
product.

Bitrix 24: Best free CRM tool

Bitrix is great for communicating/collaborating within the team and

external parties. It is an all-in-one free product management tool that
lets product teams work on multiple product dimensions on one
platform.

What does Bitrix have to offer?

● Bitrix 24 offers CRM dashboards, lets users build free websites

and landing pages.
● It provides a platform to create an online sales and marketing
platform for your product.
● Helps with team communication and workload management.

Taskade: Best for startups

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Taskade is beneficial in setting up meetings and has in-built seamless

communication tools. The software is compatible with all operating
systems like iOS, Android, Windows, and Linux. The primary features
of Taskade include:

● Startup-related literature along with business pitch ideas and

investor tracklists
● Works along with design thinking processes like mind mapping

One setback with Taskade is that it does not offer Reporting and
Analytics. It is also one reason why Trello is a more recognized task
management tool. However, Taskade offers a better user rating.

Asana: Best for facilitating Team Management

Asana is a general product management tool, unlike being a dedicated

product development app. According to Getapp, more than 100,000
organizations in 190 countries across the world use Asana. Various
features of the software include:

● Roadmapping templates, easy attachment and sharing of files,

and seamless communication between team members.
● Asana can do it all; digital transformation, marketing campaigns,
and a product launch.

While its free version is available to 16 users (and thus,

startup-friendly), you can opt for a premium version for more features
like detailed task management, etc.
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Backlog: Offers not just code management but also Product

Management
Backlog is popularly used for code management but also works well
with project and product management. The app is easy to use and is
compatible with all operating systems. Backlog is useful in

● Bug tracking besides offering features like Task management,

Gantt charts, boards, and Git graphs.
● Has activity feed and watchlists to manage tasks and keep track
of deadlines.

16.5. Agile product management tools

Before proceeding to the product management tools used in Agile, letʼs

understand what Agile is.

Agile or Agile Methodology is a kind of project management process,

mainly used in the IT sector for software development.

The methodology divides work into smaller tasks that need to be

completed in a set period called sprints.

Jira: A must in your resume if you are a Product Manager

Yes, we know you get the reference. Many recruiters ask a Product
Manager if she/he is well versed in Jira before considering their
candidature. Thatʼs how necessary Jira is.
 278

Jira is a product management tool that has been operating

successfully for 16 years now. Used by the PepsiCo employees, the
application management tool was initially developed to check for bugs
in the program code. It is also used for many aspects of product
management, including:

● Scrum boards to manage workflow

● Data visualization
● Delegating tasks
● Customizable templates for product planning

Monday.com: If you use Facebook with ease, you can use

Monday.com conveniently

This agile product management tool is becoming increasingly popular

with product managers of all generations because of its easy-to-use
interface. Some of its features are:

● Helps with assigning tasks with add-on features like

milestones, Gantt and Kanban charts, automated processes,
etc.
● Time tracking, reporting, integration with third-party apps,
and task delegation.
● Integrates easily with other project management tools like
G Suite, HubSpot, Teams, etc.

Wrike: Real-time project management Tool

Wrike works well with mid-size and big projects. It is compatible with
all operating systems and integrates with over 400 third-party apps. Its
 279

free version is also compatible with the likes of G Suite and other task
management tools online. Self-built project templates and Wrike-
designed project templates are favorite features among many.

Tableau: Biggest Data Visualization Tool

Easy to learn for beginners, Tableau as a product management tool is

used by millions of people across the globe. Its interactive reports
have made static PDFʼs an outdated feature. Tableau can however get a
bit pricey for those in the startup stage, however, most big leagues use
this product management tool because of its proficiency in data
analytics.

Tableau also has an online analytics platform fully hosted on cloud

that is easily accessible on both desktop and mobile.

ClickUp: Best Task Management Tool

The software partially uses AI to turn email conversations into in-app

tasks and lists out the best from conversations and meetings to
develop ideas that can be worked upon. Clickup is used by the likes of
Google, Airbnb, and Nike. Some of its features include:

● Customizable templates, task visualization charts,

dashboards, flow diagrams, and time tracking.
● Integrates with all primary project management tools
besides offering a public API to develop your integrations.

Smartsheet: Named a Leader in Collaborative Work Management by

Forrester Research in 2018
 280

According to Getapp, this online product management tool is used by

80,000 businesses in over 175 countries. A cloud SaaS application,
Smartsheet is famous for project management, collaboration, and
communication. It is suitable for all enterprises. Getapp provides its
users with features that include:

● Workflow management, content collaboration, data

tracking, and so much more
● Integrates with leading product management tools

● Its API allows developers to integrate Smartsheet with their

existing workflows

These lists are not conclusive. Some of the products listed here are
well-regarded and rank high on multiple software assessment
websites. And others have been mentioned because of their
popularity, easy-to-use interfaces, and many other reasons.

Since there are thousands of product management tools in the market,

it is entirely oneʼs call to choose which one works best for you or your
organization.

16.6. Conclusion

At the conclusion, I'm excited to introduce an exclusive

opportunity that extends beyond the pages of this book.

Let me introduce to you our comprehensive Product Management

Cohort Program is designed to
 281

empower aspiring product managers with a unique blend of

knowledge, hands-on experience, and a

direct pathway into the field.

Program Highlights:

1. Learn from Industry Leaders:

Immerse yourself in a 3-month intensive program where you'll learn

directly from Senior Product

Managers at Microsoft, Adobe, and Amazon. Benefit from their wealth

of experience, gaining insights

into real-world scenarios and best practices.

2. Concepts to Portfolio:

Our program covers all the fundamental concepts a product manager

should master. Engage in live

projects guided by seasoned professionals, applying concepts in

real-time. This not only deepens your

understanding but also builds a robust product portfolio—a key asset

in the eyes of recruiters.

3. JobSupport Channels:

● Weunderstand the importance of securing a role after completing

the program. Our
 282

three-pronged job support approach ensures you're well-connected

and prepared for your next

career move.

● CompanyTie-Ups: Benefit from our network of 200+ companies,

including industry giants

like Swiggy, Jio, Zomato, and Paytm. We connect our trained cohorts
directly with these

companies' recruiters.

● ProductManager Connects: Leverage our relationships with 500+

Product Managers.

Through referrals and mentorship, tap into an extensive professional

network that can open

doors to exciting opportunities.

● Exclusive Job Portal: Access our dedicated job portal tailored for
Product Management

roles. Stay updated on the latest opportunities and ensure you don't
miss out on any openings

in the dynamic product management landscape.

Interview Preparation:

Our program doesn't just end with learning; we prepare you for
 283

success. Receive comprehensive

interview preparation to ensure you enter job interviews with

confidence and expertise.

Your Path to Product Management:

This cohort program isn't just about education; it's a strategic step
toward your dream role. With a

blend of theoretical knowledge, hands-on experience, and

unparalleled job support, we're committed

to your success. Join us in transforming aspirations into

achievements and unlocking the door to a

fulfilling career in Product Management.

Your journey doesn’t end with the book; it begins with the cohort
program. Let’s build, launch,

and succeed together.

To register for this program click on this: Link