Product management is an organizational function within a company dealing with
new product development, business justification, planning, verification, forecasting,
pricing, product launch, and marketing of a product or products at all stages of
the product lifecycle.The product manager is often responsible for analyzing market conditions and defining features or
functions of a product and for overseeing the production of the product. The role of product
management spans many activities from strategic to tactical and varies based on the organizational
structure of the company. To maximize the impact and benefits to an organization, Product
management must be an independent function separate on its own.
new product development, business justification, planning, verification, forecasting,
pricing, product launch, and marketing of a product or products at all stages of
the product lifecycle.The product manager is often responsible for analyzing market conditions and defining features or
functions of a product and for overseeing the production of the product. The role of product
management spans many activities from strategic to tactical and varies based on the organizational
structure of the company. To maximize the impact and benefits to an organization, Product
management must be an independent function separate on its own.
While involved with the entire product lifecycle, the product management’s main focus is on driving
new product development. According to the Product Development and Management Association
(PDMA), superior and differentiated new products—ones that deliver unique benefits and superior
value to the customer—are the number one driver of success and product profitability.
Product Lifecycle
Product Management Overview
Product management is typically divided into three parts: strategic product management, technical product management and Go-To-Market (product. marketing), which is illustrated in the Open Product Management Workflow model. In addition to the three-part division, this model shows which
tasks and steps must be performed by product management in the course of a product cycle in order to produce an innovative and profitable product.
Strategic product management
Strategic product management encompasses all strategic aspects and tasks required to make an existing or future product successful. This includes,
among other things, the information analysis, the development of a concept as well as coordination and optimization measures.
Technical product management
Technical product management includes all aspects and tasks necessary to design a functional physical new product. There is a procedure for this like
in strategic product management:
Product marketing
Product marketing is a component of product management that is under the jurisdiction of a company’s product manager or product marketing .manager. The product marketing manager is primarily responsible for the profitability of the products, product launches, messaging and all
sales-supporting materials.
CHARACTERISTICS OF PLC STAGES
There are the following major product life cycle stages:
| Stage | Characteristics |
|---|---|
| Market introduction stage | This is the stage in which the product has been introduced first time in the market and the sales of the product starts to grow slowly and gradually and the profit received from the product is nominal and non-attained. The market for the product is not competitive initially and also the company spends initially on the advertisement and uses various other tools for promotion in order to motivate and produce awareness among the consumers, therefore generating discerning demands for particular brand. The products start to gain distribution as the product is initially new in the market and in this stage the quality of the product is not assured and the price of the product will also be determined as low or high.[2] 1.costs are very high
|
| Growth stage | In the growth stage, the product is visibly present in the market, the product has habitual consumers, and there is quick growth in product sales. More new customers are becoming aware of the product and trying it. The customers are becoming satisfied with the product and are buying it again and again. The ratio of the product repetition for the trial procurement has risen. Competitors have started to overflow the market with more appealing and attractive inventions. This helps in creating increased competition in the market and also results in decreasing the product price. 1.costs reduced due to economies of scale
|
| Maturity stage | In maturity stage, the cost of the product has been decreased because of the increased volume of the product and the product started to experience the curve effects. Also, more and more competitors have seen to be leaving the market. In this way very few buyers have been left for the product and this results in less sales of the product. The decline of the product and cost of attaining new buyers in this level is more as compare to the resulted profit. The brand or the product differentiation via rebating and discounts in price supports in recalling the outlet distribution. Also, there is a decline in the entire cost of marketing through enhancing the distribution and promotional efficiency with switching brand and segmentation. 1.costs are decreased as a result of production volumes increasing and experience curve effects
|
| Saturation and decline stage | In this stage, the profit as well as the sales of the product has started to decline because of the deletion of the product from the market. The market for the product in this stage started to show negative rate of growth and corroding cash flows. The product at this stage may be kept but there should be fewer adverts.[3] 1.costs become counter-optimal
Note: Product termination is usually not the end of the business cycle, only the end of a single entrant within the larger scope of an ongoing business program. |
A Product Decision Framework
can
be a strategic tool that helps you bridge the
gap between product strategy and product
planning.
When Can I Use This Framework?
- Creating new products
- Defining new features
- Considering a product line extension
- Evaluating potential partnerships
