Introduction to Product

Management

Dr. Tapan K. Panda

At the end of this chapter you will be able to understand:

 The Characteristics of Products and their Classifications

 Methods of Differentiating the Product Offer

 Role of Product Manager in an Organization

 Various Classifications of Products

 Constituents of Product Mix

 Various Product Mix Decisions

 Building and Managing Product Mix and Product Lines

 Meaning of Product Positioning

Structure of the Chapter
 Introduction
 What is a product
 Product Management
 Role of a Product Manager in the Organization
 Product Management Approaches
 Value of a Product
 Layers of the Product
 Essential Features of Products and Services
 Product Management Decisions
 Classification of Products
 Product Mix Decisions
 Organizational Goals and Product Mix
 Constituents of Product Mix
 Product Line Decisions
 Product Line Strategies
 Product Positioning
 Positioning and Differentiation Strategy
 Conclusion
 Questions
Introduction:
What is a product:
Product Management:
 Role of a Product Manager in the Organization:
Function Task Activity Role
Ideate Capture and prioritize ideas and features Responsible
Shared
Market Analysis (Competitors, Trends, Supplier Information etc. Responsibility
Innovation Explore Market Strategy Responsible
External Customer Research Responsible
Opportunity Assessment Contributor
Focus Business Case /Investment Justification Responsible
User Insights Responsible

Immerse Persona Development Responsible

Market Requirements / Customer Stories Responsible
Design
Business Requirements Contributor
Responsible /
Define Contributor
Product Requirements
Prototype Development Contributor
Supplier Engagement Contributor
Managing Project Contributor
Build
Implementation Subject Matter Expertise Responsible
Testing Contributor
Launch Internal Training Contributor
Product Strategy Responsible
Product Road Map Responsible
Day to Day Product
Management Reporting & Analysis Responsible
Ongoing market insight Responsible
Sales support Contributor
 Role of a Product Manager in the Organization:

Product Development Function Product Marketing Function

Identifies new product candidates Analyzes product life cycle consideration
Gathers voice of customers Plans product differentiation in market
Defines product requirements Product naming and branding

Scoping and defining a new product at higher level Product positioning and outbound messaging

Promoting the product externally with integrated

Defines customer base and feasibility
marketing communication activities

Evangelizing new product within the company Conducting customer feedback

Evaluating consumer response to product and

Building a road map for the product
marketing efforts
Ensuring products are within optimal price margin Launching modified/new products into the market and
and up to specifications mapping competition
Product Management Approaches:

Individual Product Manager

Several Product Managers

The Product Group Coordinator

Value of a Product:
T
O Customer Value T
T Emotional/ Self-Expressive O
A Benefits Cost of Disposing Product T
L A
L
C Service Benefits Cost of Maintaining
U & C
S Repairing Product U
T S
O Cost Associated with T
Performance Benefits O
M Using the Product
E M
R Cost of acquiring E
& Inventorying the R
B Brand/Company Benefits Product
E
N
C
E Purchase Price O
F
I Product Benefits Channel Margin S
T Firm Profit T
S Firm Cost S

Customer Value
Value of a Product:

Augmented Benefits

Tangible Benefits

Core
Benefits
Layers of the Product:
Potential Product

Core Layer
Augmented Product
Basic Product Layer
Expected Product
Expected Product Layer
Basic Product
Augmented Product Layer
Core Product
Potential Product Layer
Essential Features of Products and Services:
Product Management Decisions:
What do we want out of product management?
What do we want our product managers to do?
When do we want our product managers to do their jobs?
How do we want them to do the jobs assigned to them?
What operational guidelines will we establish?
What expectations do we have for the specific contribution of product managers and product
management?
What price are we willing to pay?
What general and what specific duties and responsibilities will be assigned to product
management?
What authorities will be assigned to product managers?
What are the number and nature of products and brands?
What are our product objectives?
How will we measure the effectiveness of our product management
Classification of Products:

Durable Goods

Non Durable Goods

Services
Classification of Products :
Consumer Goods Classifications:
Convenience Goods
 Staple Goods
 Impulse Goods
 Emergency Goods
Shopping Goods
 Homogeneous Shopping Goods Industrial Goods Classification
 Heterogeneous Shopping Goods
Specialty Goods
Unsought Goods

Industrial Goods Classification

Materials & Parts
Capital items
Supplies & Business Services
Product Mix Decisions:

Product
Item

Product Product
Mix Lines
Organization Goals and Product Mix:

Sales Growth Market Penetration

Stability in Sales
Market Development
Profits

Product Development

Diversification
Constituents of a Product Mix:
Product Line Decisions:
Changes in
Market
Demand

Competitive
Financial
Action and
Influences
Reaction

Product Marketing
Influences Influences
Product Line Strategies:
Product Mix Expansion

Product Mix Contraction

Product Mix Alteration

Development of New Uses for Existing Product

Trading-up and Trading-Down

Product Differentiation and Market Segmentation

Product Positioning:
Component of Product Positioning
Perceptual Mapping
Product Benefits
Segmentation
Product Categories
Product Positioning as Differentiation Strategy:
Product Differentiation Strategies used by Some Premium Brands

Product Attribute Examples

Product Design Braun Shaver, Harpic Lotion

Product Style Titan Watches, Woodland Shoes

Product Range Revlon Cosmetics, Bata Shoes

Service Quality Dell Computers, Eureka Forbes Vacuum Cleaners

Packaging Tata Tea, Colgate Toothpaste

Product Features Sony Television, Hero Splendor

Performance Quality Whisper Sanitary Napkins, Ujala, Eveready

Conclusion
Questions
Explain different layers of a product with suitable examples. How
relevant are these layers in the context of product decisions?

In order to survive long run in the market, companies need to discover

the winning formula in their product design. Identify five brands and
explain how they have developed unique product feature for surviving
long run in the market?

Identify five products which are no more available in the market?

Identify the reasons for their death in Indian market.