evolution of product management

7/26/2019 Evolution of Product Management

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Product Management

Evolution of Product Management


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What do we mean by a Product?

Is the meaning evolving with time?


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A Product is any offering

to a market

(for attention, acuisition, use, or consum!tion"

that aims to meet some #customer as!irations$


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%fferings could be &&&

'oods

)angible ob*ects (that can be felt, tasted, heard, smelled or seen"

eg+ motorcycles, cell !hones, and soa!s etc&

ervices

%btained through the machines, work or labour of others +

May result in creation of some goods, but service is a key to solution

-ariation in out!ut normal

Ideas

Intention to alter !erce!tion, attitude or behaviour

%ften associated with !ublic service, social attitudes, ideologies&&&


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Anything Else?

Events

Persons

Places

%rgani.ations

/once!ts

E0!eriences

/ombination of the above


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Mechanics does not buy a drill,he actually buys its ability

to make holes of the same size

)heodore 1evitt


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Product 2)he /ustomer olution Pers!ective


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#A Product is an %ffering

that serves certain/ustomer 3eeds 4 Wants,

i&e& !rovides /ustomer -alue$


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5ocus on /ustomers,6elivering -alue to them


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Who 6etermines -alue?


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What do customersreally want or need

(and hence value"?


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6on7t sell me Insurance8


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6on7t sell me Insurance8

9el! me gain !eace of mind,and a great future

for my family and me:


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6on7t sell me a /amera8


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6on7t sell me a /amera8

9el! me ca!ture and relivethe most memorable

moments of my life:


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6on7t sell me a 9ouse8


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6on7t sell me a 9ouse8

5ulfill my dream of a home,with security, comfort,

a good investment and

!ride of ownershi!:


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6on7t sell me /lothes8


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6on7t sell me /lothes8

'ive me a desirable a!!earance,style and attractiveness:


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6on7t sell me )oys8


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6on7t sell me )oys8

9el! me to give my child(ren"ha!!y moments:


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6on7t sell me )hings8


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6on7t sell me )hings8

5ulfill my need forcomfort, security, !ride,

good feelings, ha!!y memories8


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Product 2)he /ustomer -alue Pers!ective


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Marketing 4 /ustomer -alue

Understanding

Customer

Value

Creating

Customer

Value

)he Process -iew

Capturing

Customer

Value

Delivering

Customer

Value

Sustaining

Customer

Value


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;nderstanding /ustomer -alue

Psychological

5unctional Economic


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;nderstanding /ustomer -alue

-alue is defined as the !erceived worth

in monetary units of the of the set of

economic, functional, technical and !sychological benefitsreceived by the customer in e0change for

the !rice !aid for a !roduct offering,

taking into consideration all the available offerings and !rices&

Anderson, Jain and Chintagunta(199!


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Product 1evels


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5ive Product 1evels=

Potential product

Augmented product

Expected product

Basic product

Core benefit

=Increasing /ustomer -alue


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1evels< /om!onents of a Product

Core Benefit > )he basic need 4 core benefit that the customer is

really buying Basic or Actual Product > )he basic form of what you really buy 4

what hel!s fulfil basic need

Expected Product > )he offering that most customers e0!ect or

are used to& )he set of attributes that the consumers e0!ect asobvious along with the !roduct (otherwise dissatisfaction"

Augmented Product > Attributes < features that e0ceed consumer

e0!ectation All !ossible augmentation, value addition 4

transformation that the !roduct may go through in future 2 the

best or most a !roduct can be


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ome Areas of -alue Addition

'uarantee

Warranty

e!lacement


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)he conce!t of /ustomer 6elight

E0ceeding /ustomer -alue E0!ectations,

again 4 again8

(A forever moving goal!ost:"


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Product 2)he -alue @undle Pers!ective


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/om!onents of the Product %ffering

Pricing

ervice mi0Product features


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Product 2

)he ervice 6ifferentiation

Pers!ective


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)he /once!t of Prodice7


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Product 2)he E0!erience Pers!ective


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Product 2)he elationshi! Pers!ective


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Product 2)he @rand Pers!ective


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5rom Product Managementto @rand Management


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Product vs& @rand %rientation

Product

Product comes first

5ocus on !roduct7s visible

4 differentiatingcharacteristics

earch for best !roduct7

/an we have !roduct

without branding?

Production, )echnology,

46 are the key !rocesses

Brand

@rand is more im!ortant 5ocus on brand7s intangible

values 4 imagery

5itting the !roduct to thebrand

earch for the right!roduct7 category

@rand needs at least one

flagshi! !roduct


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)he @rand Management Paradigm

The ld Paradigm

Product Management focus

Individual !roduct brands

@rand managed by ad de!t4 agency

@rand strategy subset ofmarketing, involving onede!artment

Inward focus, functionalde!artmental silos7

@randing done throughidentity and ads

The !e" Paradigm

@rand Management focus

/or!orate or Master brand

/E% ownershi!7, cross2functional management7 of

@rand !riority for wholeorganisation, involving allde!artments

Integrated market2drivenorganisation

@randing done through allcustomer2facing touch !oints(communication 4e0!erience"


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)he @rand Management Paradigm

The ld Paradigm

@usiness defined by !roductcategory

'rowth driven by !roductdevelo!ment, 46 4acuisition

5irst !roduct, thenconsumer, then brand

@rand marketing treated asoverhead7 4 e0!ense7

@rand e0!enses managedfor short2term !rofits

The !e" Paradigm

@usiness defined by brandessence

5uture growth driven byo!!ortunities from brandessence 4 !romise

5irst consumer, then brand,the !roducts 4 services

@rand marketing treated asinvestment7

@rand treated as long2termfinancial asset


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Product Management

vs&

/ategory Managementvs&

@rand Management


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/hanges Affecting Product Management

/hanging consumer needs 4 e0!ectations

/hanges in the balance of market !ower

Increased im!ortance of customer retention

)echnology change 2 6ata e0!losion )echnology change > Internet Mass /ustomi.ation

Increased global com!etition

Proliferation of brands in any Product /ategory


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)he Market Partici!antsB )he C/s

Company

Consumer Channels

Competitors

The Market

Participants


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)he Dth/ 2 /ollaborators

Increasingly, source of differentiation 4 com!etitive

advantage

hared -ision /ollaborators > )ata Ace 4 3ano

Partnershi!s (3ike 4 A!!le" > 3ike

%!en ource < /ommon Platforms > 1inu0 4 Android

evenue2sharing Platforms > A!!le A!!s, Ama.on

"hat are the im#lications of Collaboration for $roduct Management%


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)he Fth/ > 1arger /onte0tB

Macro Environment

)he PE)E15ramework

Political /onte0t

Economic /onte0t

ocial 4 /ultural /onte0t

)echnological /onte0t

Ecological /onte0t

1egal 4 Gudicial /onte0t

"hat are im#lications of these for $roduct Management%


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Managing any Product means

#C Anal$sis

/ustomer

/om!any

/om!etitors

(u!!ly /hain"

/ollaborators

/onte0t

S%T%P &ar'eting

egmentation

)argeting

Positioning

(P &ar'eting Plan

Product

Price

Promotion

Place

)he 5unctional -iew

)he 5our PsB


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)he 5our PsB)he Marketing )ools

Marketing

Mix

Product

PricePromotion

Place

CustomerSolution

Customer Cost Communication

Convenience

3 t /l


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3e0t /lass

)o!ics )ndian &ar'et* An vervie" of its

Diversit$

&acro Trends

Consumer Behaviour Trends noticed in

an$ particular Product +roup or

Categor$

Assessing !e" Competition , Strategic

-esponse


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)hank Hou

evolution of product management

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