04/19/2304/19/23

Product ManagementProduct Management

Charles A. Besio, Jr. Southern Methodist

University

04/19/2304/19/23

•Marketing ComponentsMarketing Components

Product Pricing Distribution Promotion (Marketing Communications)

04/19/2304/19/23

Overview - Product Overview - Product ManagementManagement

Product Manager-vs.-General Marketing ManagementMany Different titlesManage a Product or Group of Closely

Related ProductsFocus is Tactical-vs.-Strategic

04/19/2304/19/23

Product Manager’s Product Manager’s QualificationsQualifications

MBA - vs.-Non-MBA 1/2 requiredSeveral had internal trainingMBA -vs.- Non-MBA

Experience more importantConsumer Product CompaniesSmall Companies Industrial Sector From a Survey of Product Managers

(<$500 Million - 8; >$500 Million - 15)

04/19/2304/19/23

Product Manager’s Critical SkillsProduct Manager’s Critical Skills

From a Survey of Product Managers

(<$500 Million - 8; >$500 Million - 15)

OrganizedOrganized EfficientEfficient Excellent Interpersonal SkillsExcellent Interpersonal Skills PersuasivePersuasive Aware of Business EnvironmentAware of Business Environment

04/19/2304/19/23

Product Manager’s Product Manager’s ResponsibilitiesResponsibilities

General Mgr. Responsibilities for Their Products Profit & Loss Market Share & Volume Targets

Marketing Planning Planning Product Strategies Implementing Strategies From a Survey of Product Managers

(<$500 Million - 8; >$500 Million - 15)

04/19/2304/19/23

Marketing OrganizationMarketing Organization

Product-Focused Organizations Market-Focused Organizations Functionally Focused Organizations Marketing Organizations Implications

of Global Marketing

04/19/2304/19/23

Product-Focused OrganizationsProduct-Focused Organizations

Classic P&G Brand Structure (1930s) Product Manager = “Mini CEO”

Assistant Product ManagerAssociate Product Manager

04/19/2304/19/23

Market-Focused OrganizationsMarket-Focused Organizations

Segments IndustryChannels of DistributionGeographic Regions

Significant Buyer Behavior Differences

04/19/2304/19/23

Functionally Focused Functionally Focused OrganizationsOrganizations

Aligned By Function Most Marketing Orgs. Have Some Coordinated Implementation

04/19/2304/19/23

Role of Sales ForceRole of Sales Force

Part of the Marketing Mix Separate from Marketing Organization 3 Structures

Product/ProductProduct/MarketMarket/Market

04/19/2304/19/23

Marketing Organization Marketing Organization Implications of Global MarketingImplications of Global Marketing Facilitate within Existing Structure

Change TacticsOften Conflicts w/in Structure

Most Companies Evolve IntoBegin through ExportingStrong Local Organizations Develop

Few Strong Centralized PM Systems Exist

04/19/2304/19/23

Changes Affecting Product Changes Affecting Product ManagementManagement

New Ways to Reach Customers World Wide Web

Data Explosion Geographic/Demographic Purchase

Patterns Market Share, Sales, Distribution

Increased Brand Value 90s Sales Promo & Price DiscountsProduct Life Cycles Shortening

04/19/2304/19/23

Changes Affecting Product Changes Affecting Product ManagementManagement

Increased Power of Retailers Category -vs.-Brand Perspectivebusiness units retailers organized with category

mgrs. Significant Spending on Sales Promo

90s Sales Promo Passes Advertising Pricing and Value

04/19/2304/19/23

Impact of Change on Organizational Impact of Change on Organizational Structure: Category ManagementStructure: Category Management

Customer Retention More Important Focus on Lifetime Value of Customers

Increased Global Competition Asia, India, Latin America