product concpt n mangt

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Companies which are guided by the product concept philosophy believe that :

y == customers favors product that are highly engineered ==

y == customers favors products that are of the highest quality ==y == customers are interested in innovative products ==

Organization working with product concept fully concentrates on product quality, design andfeatures.Organization praise this concept believes that higher quality, maximum number of features and

best design will attract large number of customer to opt the product at best price.

Most of the time organization falls too much in love with their product that they forgot about other

product development, competition and other external factors result in marketing myopia.

The product concept includes everything from the decision to make a product to the final packaging and branding.

Under this concept, the first thing that is considered is the f unction that the product is going to

serve. It is also reviewed as to how many models or sizes or variants the product is going tohave. This product can be a physical good or a service.

After the product has been manufactured, the quality assurance is done and the packaging is

done. The warranty period is also determined and the repair and support system is alsoconsidered.

The above are all the components that formulate the product concept in mark et ing.

Product marketing deals with the first of the "4P"'s of marketing.

Product marketing, as opposed to product management, deals with more outbound marketing

tasks. For example, product management deals with the nuts and bolts of product developmentwithin a firm, whereas product marketing deals with marketing the product to prospects,

customers, and others. Product marketing, as a job function within a firm, also differs from other marketing jobs such as Marcom or marketing communications, online marketing, advertising,

marketing strategy, etc.

Role of Product Marketing

Product marketing in a business addresses four important strategic questions:[1]

y What products will be offered (i.e., the breadth and depth of the product line)?

y Who will be the target customers (i.e., the boundaries of the market segments to beserved)?

y How will the products reach those customers (i.e., the distribution channels to be used)?

y Why will customers prefer our products to those of competitors (i.e., the distinctiveattributes and value to be provided)?



6.2.1 The total product concept

An important product concept is, of course, that of the product itself. We already know from our

early definition of marketing that we are not in the business of selling products, but in the business of satisfying customers' needs and wants. We also know from our study of buying

behaviour and positioning that customers are interested in acquiring perceived benefits with their

purchases, rather than just the physical object itself. Thus, as defined by Boone and Kurtz (2005, p. 318) a product is:

...a bundle of physical, service,and symbolic attributes designed to satisfy a customer's wants andneeds.

This means that the same physical object may be several different products. The variance arises because of the different needs and wants of different customers, and because of their different

perceptions of the physical object. For example, WD-40 is a spray lubricant in a pressure pack.One person might see it as a product for degreasing their car engine; another might use it to

lubricate fishing gear; another might buy it to stop doors and windows from squeaking. Thus a

product can be more precisely referred to as the total product concept , and one that containsthree levels:

y the core product, that is the benefits which are being purchased

y the actual product, that is the tangible item(s)

y the augmented product, that is the service components and intangibles.

Figure 6.1 provides a diagrammatic representation of the total product concept and its threelevels using Close-Up toothpaste as the example. The diagram is particularly useful in its display

of the augmented product but ¾ be careful ¾ it might confuse you with its treatment of the coreand actual products. We are using the three levels of product described as core, actual and

augmented. The diagram presents these as the essential benefit, core and augmented respectively.So Figure 6.1 is using 'essential benefit' to refer to what we are calling 'core'; and they are using

'core' to refer to what we are calling 'actual.

Consider this

Do you think different authors' use of different terminology for the same thing might imply that

it is the concept that is more important than the terminology?



Figure 6.1 The total product concept and its three levelsSource: Zikmund and d'Amico (1995, p. 235)

As you can see, the benefits being purchased with the toothpaste are clean teeth and preventionof tooth decay, that is, the core product. The actual product is the toothpaste itself. However, the

augmented product is many additional things. The toothpaste comes in a flip-cap package so it provides the benefits of ease of use and convenient storage. The brand name is intended to

suggest social confidence, romance and white teeth. The flavour offers a pleasant taste and fresh-smelling breath, and so on. It is the augmented product that offers so many opportunities in

positioning a product.

6.2.2 Product classifications

One widely used way of classifying products is one based on the way consumers think about andsearch for products. This generates four main categories for consumer products, each of which

will be addressed in the next reading:

y convenience products

y shopping products

y speciality products

y unsought products.

Business (or industrial) products are based on how buyers think about products and how thesewill be used. Therefore, they are not classified the same way as consumer products. They are

commonly classified as:

y material and parts - raw materials, manufactured materials and parts

y capital items - installations, accessory equipment

y supplies and service - supplies, business services.



Turn now to the next reading to review some of the above material and cover the detail of theconsumer and business product classifications as well as other examples that do not fit neatly

into the preceding classification.

6.2.3 The service offering

There is some variation in the use of the term service offering , but we shall use it to refer to the

'bundle of activities that includes the core service, which is the most basic benefit the customer is buying, and a group of supplementary service that support or enhance the core service' (Lamb et

al. 2000, p. 378). The kinds of issues addressed within the service concept are what services to provide, when and how and where and by whom.

Various tangible and intangible elements comprise a service product . The difficulty is in

breaking down the service, as the tangible elements are much easier to identify than theintangible. For instance, does a passenger flight include the departure lounge experience?

That leads to the issue of controllable versus uncontrollable service elements, because some

elements are simply beyond the control of the service provider. For example, the service provider/marketer cannot know whether an inspection by customs will delay and possibly

damage the goods shipped half way across the world.

The service can be offered to the consumer in different forms. There are various ways the

elements of the service may be packaged. For instance, a shipper may offer a door -to-door service or an alongside-wharf service; he/she may offer service with or without insurance or send

cargo by express or ordinary speed.

Closely linked to the idea of offering any number of a variety of services, is the idea of offeringquality of service, on which the successful marketing of services hinges. Reliability, speed,

accuracy and safety are just some of the aspects of quality expected by buyers of port services.

Unlike a physical product, the manufacturing and marketing of a service are usually inseparable.It is at this stage that the additional Ps for services become necessary as a means of showing the

factors related to delivering the service product.

Consider this

What are the seven Ps of services? Can you write a short definition on each?

As you will begin to realise, due to the interactive real time experience of a service, the process,

physical evidence and participants are all vital to the success of the service offering.

A service delivery s ystem (process) both creates the service product and delivers it to the

consumer. The service delivery system is comprised of the physical evidence of the service andthe participant s , issues we will treat in greater detail in later chapters. The professionalism and

personal skills of service personnel are vital ingredients in assessments of the quality of service.This is especially true in liner shipping where homogeneity of the product is the norm.



The physical evidence of a service encompasses such things as buildings, equipment, vehicles,and documents. Items such as these form the technology that facilitates the performance of the

service.

In the case of terminal services, physical evidence would include the cranes, computer systems,warehouses, and containers, among other things. Other tangible aspects of a service delivery

system would be the ability of the computer system to produce accurate bills of loading, thecranes to load/unload rapidly or the warehouse to provide protection from weather and pilferage.

There are a few conceptual approaches to assist in understanding the service product and your

text offers the total product concept on pages 389-390 that we use to explain physical products.Although it is useful for you to study the model in Kotler et al. (2004) for a service perspective,

your next reading will direct you to a model by Grönroos (1990). The model is called the

augmented service offering and is part of four steps Grönroos (1990) suggests to managing the

service offering:

y develop the service concept

y develop a basic service package

y develop an augmented service offering

y manage image and communication.

The product mix

Most organisations offer more than one product to their customers. That complete range of

products which a company sells is called its product mix . There is an associated concept that isimportant for you also to understand, namely, the product line .

As your Kotler et al. (2004) text covers these concepts sufficiently, please turn to the reading

now.

Branding

One of marketing's objectives is to create a unique position for a given product in the minds of customers. One way organisations try to do this is by branding because brands are a means of

readily identifying products. Thus, shopping becomes easier and quicker for the customer. For example, consider the range of products represented by the brands on page 410 of your textbook.

How much longer would your shopping take if you had to make conscious choices between eachmanufacturer's product in each product type rather than choosing your preferred brand.

As you will find in your readings, branding in services is more likely to relate to the

organisation's image. We will cover this further in later chapters.

Consider this

Think about a maritime or logistics organisation you are familiar with and consider the image it

promotes. Why does the organisation promote that particular image?



Your next reading will discuss the decisions involved in marketing products. It introduces theterminology associated with branding, the types of brand strategies that can be used and the legal

difficulties faced by brands. The article by Fletcher (2001) is of interest because it questionswhat is meant by the term 'brand'.

Packaging

Both branding and packaging are part of the augmented product, which in turn provides positioning opportunities for the product, that is, it is more than just protection for the product.

As you probably already realise there is also a linkage between promotion and packaging as the package can convey messages of quality, the overall image and the appeal of the product.

Turn now to the next reading to cover what your text has to say about packaging and labelling.

The reading also includes an interesting item on the role of packaging in attracting customers to purchase pet products, in this situation, milk and yoghurt for dogs!

Product life-cycle

As we now understand what a product is, we are able to move on to the realisation that products

do in fact have life-cycles with distinct stages. Somewhat like every person experiences a life-

cycle between birth and death, so do products experience a life-cycle from introduction into themarket to decline and withdrawal. You need to be aware of the characteristics of each stage, but,

remember, the length of each stage varies from product to product, and from market to market.

The product life-cycle can be considered at two levels, at the industry level and at the level of individual products. Therefore there is a life-cycle for a product in general in an industry and

life-cycles of the same products as marketed by different companies.

Besides the initial product development, your text indicates four stages in the product life-cycle:

y market introduction

y market growth

y market maturity

y sales decline.

Table 6.1 identifies typical characteristics of these different stages for you.

Consider this

Consider for example, the various types of cargo vessels that have been developed this century.Which of them are still in the growth stage and which are in maturity or decline?

Table 6.1 Summary of product life-cycle characteristics, objectives and strategies

Introduction Growth Maturity Decline



CharacteristicSales

CostsProfits

CustomersCompetitors

Low salesHigh cost per

customer Negative

InnovatorsFew

Rapidly risingsales

Average cost per customer

Rising profitsEarly adopters

Growingnumber

Peak salesLow cost per

customer High profits

Middlemajority

Stable number beginning to

decline

Declining salesLow cost per

customer Declining

profitsLaggards

Decliningnumber

Marketing

Objectives

Create product

awareness andtrial

Maximize

market share

Maximize

profit whiledefending

market share

Reduce

expenditureand milk the

brandStrategies

Product

Offer a basic

product

Offer product,

extensions,service,

warranty

Diversify

brand andmodels

Phase out weak

items

Price Use cost- plus Price to

penetratemarket

Price to match

or bestcompetitors

Cut price

Distribution Build selectivedistribution

Build intensivedistribution

Build moreintensive

distribution

Go selective: phase out

unprofitableoutlets

Advertising Build productawareness

among early

adopters anddealers

Buildawareness and

interest in the

mass market

Stress branddifferences and

benefits

Reduce to levelneeded to

retain hard-

core loyals

Sales

Promotion

Use heavy

sales promotion to

entice trial

Reduce to take

advantage of heavy

consumer demand

Increase to

encourage brand

switching

Reduce to

minimal level

Source: Kotler et al. (2004, p. 468)

The product life-cycle can also be presented graphically to help understand the four stages and

the impact of sales over time. Figure 6.3 does this, starting with the traditional shape of the life-cycle in the graph in the top left-hand corner. The remaining graphs remind us that the productlife-cycle varies a lot in terms of how long the life-cycle lasts and the shape it takes.



F

igure 6.3D

ifferent product life-

cycle patternsSource: based on Quester et al.(2004, p. 302)

Product development

Every firm needs to periodically examine the number and diversity of products in its stable.

P roduct development does not just mean creating new products. It can also mean revitalising and

repositioning present products. This has happened with passenger ships, which no longer serveas a major means of transporting people, but of entertaining them.

However, if organisations are developing new products they must keep in mind that many do notsucceed and there are many reasons for that. Table 6.2 summarises some of these reasons for

you.

No firm can depend on its current products indefinitely for growth and profitability. So, eventhough it is high-risk and high-cost over the long haul, firms have to be involved in new product

development. In Figure 12.4 in Kotler et al. (2004, p. 447) you are given a graphic illustration of the steps in the development process.

Consider this

D

o you feel that such a process is in existence in your organisation or an organisation you arefamiliar with?

Table 6.3 Why new products fail

1. Bad concept : The product does not meet a consumer need or does not offer a good value.

2. I nsignificant difference: A difference exists but isn't significant enough to warrant changing

from a current brand; many failures here are 'me-too' products.

3. P oor execution : The product never actually duplicates the original, proven concept.



4. I nadequate budget : Underestimating the investment needs to launch a new product and move

it into profitability can adversely limit development at every step, from initial R&D through

promotion.

5. I nsufficient market size: The market may not be big enough to generate volume necessary to

produce a profit.

6. Bad timing: The product may be tested or introduced at the wrong time of year or in the wrong

cultural or economic environment.

7. M istargeting : A good product may be offered to a group that doesn't want or need it.8. M ispositioning:A product designed to do one thing may be positioned as something different

or marketing communications explaining the product may be unclear.

9. M isjudging the competition : A company may fail to read the exact nature of the competitive

situation and lack adequate planning for competitive counter-strikes.

10. M isestimating: Forecast sales may be overstated or costs may be underestimated.

11. M arket changes: The market environment may change between testing and launch.

12. W earing blinders: A company may become so committed to making a concept come alive that it

subconsciously overlooks or downplays all 'bad news' as it goes through the developmental

steps.

Source: Keegan et al. (1995, p. 409)

Bear in mind, however, that having a systematic new product development process does noteliminate the risk of a marketing disaster; it only lessens it. One of the exciting aspects of

marketing is that a new product can pleasantly surprise you by being a runaway success!

However, in reality, there are seldom true innovations like the aeroplane, computers, DVDs or

ball- point pens that revolutionise our lives and are outstanding marketing successes. Often it isonly the larger firms that have the financial resources, research facilities and plant capacity to

produce innovations. Yet, since they are also rather bureaucratic, they tend to stifle creativity.

Hence there is a trend towards giving small, unstructured project teams within the firm thefreedom to innovate and to act in an entrepreneurial role.

You can read all about the new product development process in your textbook, and an examplein the first article of how the process could be applied to developing a new butter product. Now

is also a good time to read how Branch (1998) applies the 7P marketing mix to ports andshipping. By working through this reading you will not only gain a broad perspective of each of

the extended marketing mix elements but also understand how they relate to the maritime sector.This is a useful reading to keep referring back to as you progress through the chapters. Note

however that Branch (1998) mistakenly refers to the 7P marketing mix as the internationalmarketing mix. Please now turn to the next readings.

Summary

You should by now have a good idea of what is mean by product in marketing terms, and it is

probably quite different to your use of the term previously. We have seen in this chapter that

while services share some characteristics with physical products, in other ways they are quitedifferent. Although some sectors of the maritime industry, such as shipbuilding, are involved in



the production of physical products, other sectors, such as ports, are involved with the provisionof service products.

The Discipline of

Product Management

Phillip J. Windley, Ph.D.

Chief Information Officer

Office of the Governor

State of Utah

Product development is the process of designing, building, operating, and

maintaining a good or service

1

Software and Internet companies use a product .

development process to ensure that they are not just manufacturing a

technology, but creating a product that people will want to buy and continue to

use. To be sure, a base technology is at the heart of the product, but product

development ensures that the customer¶s voice is not lost in the rush to an

exciting technology. Product development adds things like pricing, marketing,

and customer support to the technology to create a complete product.

Without a product management philosophy and discipline, an IT organization

becomes focused on the technology instead of the customers and is often

organized along technology lines rather than in ways that benefit the customer.

Ultimately, an IT organization must serve its customers or it will go out of

business, either because the customers go away or because they complain to



executive management until the organization is changed.

This paper discusses the product management discipline and how it can be

applied to creating a customer driven IT organization.

Product Development

Product development is performed by a multi-disciplinary team whose goal is

building, operating, and maintaining the product. Team members may include

product managers, software developers, project managers, product operations

engineers, customer support managers, software quality assurance engineers,

user interface design engineers, marketers, financial personnel, and graphic

artists.

The product manager serves as the leader of this cross functional team. While

the product manager does not necessarily function as the operational manager

for these people, she does lead, coordinate, and supervise their work toward the

end goal of making the product a reality, launching it, operating it, and managing

it throughout its life cycle.

Copyright 2002, Phillip J. Windley. All rights reserved. Reproduction of all or part of this

work is

permitted for educational or research use provided that this copyright notice is included in anycopy.

Unconditional use is granted to the State of Utah.

1

For purposes of this document we will refer to all services, goods, or other things offered for sale by an

organization to be a ³product.´ Product management as a discipline is about what the productshould be.



Product managers are advocates for the customer¶s needs and desires. A large

product might have numerous product managers working towards its success at

a variety of levels, all the way from the junior product manager writing

specifications about single feature sets to a product strategy director who has

overall responsibility to executive management for the product direction. A

product manager¶s responsibilities include the following:

Defining and planning product lines and product enhancements

Managing product contracts and sales

Setting strategic direction based on customer needs and business goals

Interpreting strategic goals into operational tasks

Making proposals to senior management regarding implications of

proposed plans

Serving as a representative to internal and external clients.Taking the lead

in establishing tactical plans and objectives

Developing and implementing administrative and operational matters

ensuring achievement of objectives

Evaluating risks and trade-offs

Proposing contingency plans

Analyzing business processes and creating applications to improve or

support those processes

Branding

Working with graphic designers to create look and feel

Defining navigational flow and user experience

Defining feature sets and scooping releases



People not familiar with the discipline of product management frequently get a

product manager confused with other players. Its useful to look at what a

product manager is not. A product manager is not:

A developer ± Developers are focused on the technology and not the overall

product. Some great product managers are former developers, but it is difficult to

do both at once. There is a natural tension between developers and product

managers that should be maintained to create a balanced product.

A software manager ± the software manager is a functional manager and

usually not focused on the product or the customers.

A project manager ± project managers are about how and when, while the

product manager is about what. Project managers work closely with product

managers to ensure successful completion of different phases in the product life

cycle.

A marketer ± while product management is usually seen as a marketing

discipline, marketers are focused on the marketing plan and are usually not

driving the overall product direction. Product managers are accountable to executive

management for overall product

direction, key decisions, product budget (and sometimes even the complete

product P&L), ensuring that final product meets specifications, and evangelizing

product to internal and external stakeholders. Product managers also have

accountability to users for feature sets, navigation, quality, and overall

experience.

Before we can discuss product management as a discipline and how it functions

in the organization we must consider two important life cycles: In the next



section, we¶ll talk about the product life cycle; in the following section we¶ll

discuss the customer life cycle.

Product Life Cycle

In its simplest form, the product life cycle consists of three phases:

1. Develop the product

2. Operate the product

3. Decommission the product

Obviously this simplistic model leaves a number of questions about changes,

procedures, etc. Figure 1 gives a more complete view of the product life cycle.

Product

Initiation

Feasibility

Design and

Plan

Development Testing

Launch Operation

Decommissioning

Figure 1: Product Life Cycle

Product Initiation Phase: In the Initiation Phase, Product Management,

Engineering, or Operations submits a request for a new service or modification to

an existing service. These requests are received and prioritized by the Program ManagementOffice

(PMO). Once prioritized, the requests are reviewed by various management

teams to assess the impact and viability of the request in the context of business



needs and the organization¶s strategy. If approved, the request is given

necessary funding and resources in order to proceed to the Feasibility Phase.

Feasibility Phase: The Feasibility Phase is where an idea is explored in more

depth in order to determine the feasibility of engineering the requested service

within the scope of the business needs. The request that has been approved

during the initiation phase by the Governing Committee is evaluated at the

engineering and product management level. From an engineering perspective,

the service is evaluated for technical feasibility. The preliminary Technical

Service Description outlines the general architecture of the proposed service.

The Feasibility Analysis and stable Business Case are also developed during this

phase. These documents summarize time and cost estimates and other

investment information necessary for deciding whether to continue the product

development process or not.

Design and Plan Phase: In the Design & Plan Phase, the cross-functional team

documents all detail pertaining to the development of the service. While core

documents, such as the Marketing Service Description, Technical Service

Description, and Design Specifications, are stabilized, other groups, including

Operations, QA, and Customer Care begin to specify their requirements for

supporting the service. All of these documents are approved and signed off by

the project team and the Design & Plan Checklist is presented to the Governing

Committee for final approval before moving into the Development Phase.

Development Phase: In the Development Phase, the actual engineering of the

service is completed. As the service is being developed, other functional groups

continue preparatory work for the Testing and Introduction Phases. Much of the



documentation to support Customer Care, Training, Vendors, and Clients is

created during this phase. Also, the Quality Assurance Group prepares for the

testing handoff by documenting Test Plans and Test Specifications, and

configuring the test environment.

In this phase, a decision gate ensures that all pieces required for testing have

been completed. The following are requirements to pass through the decision

gate:

Ready for Testing Phase from a System Integration Test perspective

Documentation Complete

Test Environment Complete

Code Complete

Vendor Requirements met

Integration Testing & Results Complete Once the Project Team has approved the readiness of the service, the

Development Checklist is compiled and presented to the Governing Committee

for approval to move the service into the Testing Phase.

Testing Phase: The majority of the Testing Phase is spent certifying the

hardware and software changes involved in the service. The service will undergo

a number of readiness tests in a Lab Environment. Operations also performs

necessary system and network tests to ensure operational readiness prior to

deployment. Once QA Test Results and Operations Readiness Test Results are

completed, the service may under go field trials as directed by product

management. The Testing Phase Decision Gate is based on the QA Test

Results, Operations Test Results, Field Verification, Change Requests, and



Business Needs. A 'go' decision at the gate authorizes the launch of the service.

Product Launch Phase: The Product Launch Phase coordinates the

deployment of the new or modified service. As the service is enabled by

Operations, the supporting organizations initiate support processes to maintain

the service. Once deployed a service check is made by the Project Team and

Program Management Organization to ensure that the Service is available. If the

service is found to be unsuccessful, a predetermined un-launch process will be

executed. If the service is launched without incident, the Project Team then

evaluates the stability of the release and the service is transitioned to the Life

Cycle Management Process.

Operation Phase: The Operation Phase is typically the longest of the phases

since once a product is developed, it may be operated for quite some time before

it is updated or decommissioned. The operation phase requires an organization

that can manage the product, track problems and bugs, and respond to customer

issues regarding the product in a timely and cost effective manner. A multi-tiered

product support model is used to ensure that products are operated in a way that

leads to RASM (reliability, availability, security, and manageability).

Decommissioning Phase: The Decommissioning Phase occurs at the end of

the product life cycle. While it may seem like the decommissioning phase is

something that can be safely ignored since there will likely be larger problems if

the product is decommissioned, the truth is that many products are taken out of

service. Even when a company is in bankruptcy, the rational, orderly closing

down of a product or service is important to managing the company¶s assets.

Customer Life Cycle



Just as products have life cycle, customers also have a life cycle. In its most

simple forms the customer life cycle consists of two phases:

1. Customer buys the product

2. Customer uses product In many cases, however, particularly when a product is a service or a

good that

needs to be periodically replenished, the life cycle is slightly more complicated.

Figure 2 gives a more complete view of the customer life cycle

Customer

Acquisition

Initial

Customer

Contact

Product

Use

Periodic

Contact

Product

Upgrade

Deprovisioning

Figure 2: Customer Life Cycle

Even this model is overly simplified compared to what one might see in a sales

textbook, but it is sufficient for our purposes.

Initial Customer Contact: The initial customer contact phase collapses all of

the marketing, advertising, and initial sales calls into one tidy box.



Customer Acquisition: The customer acquisition phase is the first point where a

person or organization becomes a customer. Abstractly, the process consists of

an agreement between the customer and the organization to exchange money

for the product. From the product manager¶s perspective, however, the process

is much more complicated:

How will the customer request service? The customer may request

service by phone, email, web page, or in person.

How will payment be received?

How will the product be delivered? In the case of a service, the process

of delivering the product is called provisioning and may consist of

touching a number of unrelated systems and configuring myriad devices

and systems.

Product Use: Every product is designed to ultimately be used by a customer.

The customer may use a product and have to repurchase before another use or

the product may be such that the customer uses it over and over after purchase.

The payment may be made once or on a recurring basis.

Periodic Contact: Throughout the product use phase, the customer may have

periodic contact with the company. These interactions take the form of

Customer service Technical support

Billing

Sales calls

In each of these events, the company has an opportunity to make a positive or

negative impression on the customer. These periodic contacts are usuallymanaged using some sort of Customer Relationship Management (CRM)

system that tracks all interactions with a customer from all channels. The CRMsystem thus allows the product manager (and others) to capture vital information



about missed sales opportunities, customer complaints, common problems, etc.Using this data the product manager can mold a product so that it better meets

customer needs and reduces customer support costs.Product Upgrade: When a customer is finished using a product, the things can

happen: the customer can be upgraded to a follow on product that meets their needs or deprovisioned. The product upgrade path is desirable because it

keeps the customer and reduces customer reacquisition costs. Customer frequently outgrow products or their needs change. If a company has a well

managed product portfolio, a product more suited for the customer¶s currentsituation will be waiting for them.

Deprovisioning: Deprovisioning a customer may seem like an issue that neednot be dealt with: the customer stops using the product and nothing more need

be done. However, in many cases, particularly where service with a recurring billing has been provided, if the customer is not properly deprovisioned, there will

be future costs resulting from either providing service that is not being paid for or from billing a customer who is not receiving service. In either case there are

likely to be costly customer support calls and an unhappy customer. Customer deprovisioning, where appropriate, should be planned for and built into the

product from the beginning.The Discipline of Product Management

As a members of a discipline, product managers work at all levels of a company

in the product development process. For our purposes, we will discuss only

three levels: product manager, lead product manager, and product strategy

director. Of course, these might have different names and be shared among

multiple people in any real installation.

Role Driver Work Product

Product Strategy

Director

Business Strategy Product Portfolio

Lead Product Manager Product Life Cycle Product Roadmap

Product Manager Customer Life Cycle Product Table 1: Product Management RolesTable 1 shows the three roles of product management, gives the driver for therole and the work product that the role produces.

Product Manager: The product manager is driven by the customer life cycle and produces a product. Any large product may have multiple product managers

assigned to it, especially during Design and Plan, Development, and Testing, portions of the product life cycle. A product manager must be concerned with

every aspect of the customer life cycle and every way that the customer might



touch the product or the company about the product. They are primarilyconcerned with the customer experience in every dimension that it might take.

The end result of all of this is the product itself.

Lead Product Manager: The lead product manager is responsible for a productthroughout its entire life cycle. Every product will have a product manager

assigned to it from inception to decommissioning, guiding the product from birththrough death. This guidance is called a ³product roadmap´ and is the detailed

plan for the product lifecycle. The lead product manager manages a crossfunctional team of people who are responsible for the development and operation

of the product. This team may grow and diminish during different phases of the product life cycle, but generally includes:

Software developers

Project managers

Product operations engineers

Software quality assurance engineers

User interface design engineers

Marketers

Financial personnel

Graphic artists

Customer support

The lead product manager does not necessarily function as the operational

manager for these people, but leads, coordinates, and supervises their work toward the end goal of making the product a reality, launching it, operating it, and

managing it throughout its life cycle.The product managers who manage the customer life cycle report to the lead

product manager during times that they are assigned to the team. In manycases, the product manager will have P&L responsibility for the product and thus

manage everything about the product including sales, marketing, and advertising.Product Strategy Director: The product strategy director is a member of the

executive management team and is responsible for creating a portfolio of

products that are aligned with the business strategy of the company. A smallcompany might have a small product portfolio. A large company might havemultiple portfolios organized along lines of business. A product strategy director has the

following responsibilities: Define and plan product lines and product enhancements

Management of product contracts and sales Strategic direction based on customer needs and business goals

Interpret strategic goals into operational tasks



Make proposals to senior management regarding implications of proposed plans

Serves as representative to internal and external clients. Manages external vendors and deliverables

Takes lead in establishing tactical plans and objectives Develops and implements administrative and operational matters ensuring

achievement of objectives Establishes business plan and operational goals

Evaluates risks and trade-offs; proposes contingency plansThe product strategy director is accountable in the following areas:

Accountable for overall product direction. Make key decisions based on risk management and trade-off

assessments. Act as product evangelist

Manage product budget Anticipate and develop strategies and tactics to meet client business

needs Participate in strategic decisions that will have long term impact on

product success Provide business leadership to members of team including developers,

contractors, and othersThe product strategy director is gives leadership in the following ways:

Provide tactical leadership and general direction to managers and teammembers.

Regularly interact with executive management Handle controversial and sensitive situations with diplomacy

Negotiate with clients and customers as well as executives and other directors

Provide supervisory guidance and mentoring to more junior product

managers

Product management is an organizational lifecycle function within a company dealing with the

planning or forecasting or marketing of a product or products at all stages of theproduct lifecycle.

Product management (inbound focused) and product marketing (outbound focused) are different yet

complementary efforts with the objective of maximizing sales revenues, market share, and profit margins.

The role of product management spans many activities from strategic to tactical and varies based on theorganizational structure of the company. Product management can be a function separate on its own and

a member of marketing or engineering.

While involved with the entire product lifecycle, product management's main focus is on drivingnew

product development. According to the Product Development and Management Association (PDMA),



superior and differentiated new products ² ones that deliver unique benefits and superior value to the

customer ² is the number one driver of success and product profitability.

Aspects of product management

Depending on the company size and history, product management has a variety of functions and roles.

Sometimes there is a product manager, and sometimes the role of product manager is held by others.

Frequently there is Profit and Loss (P&L) responsibility as a key metric for evaluating product manager

performance. In some companies, the product management function is the hub of many other activities

around the product. In others, it is one of many things that need to happen to bring a product to market.

Product management often serves an inter-disciplinary role, bridging gaps within the company between

teams of different expertise, most notably between engineering-oriented teams and business-oriented

teams. For example product managers often translate business objectives set for a product by Marketing

or Sales into engineering requirements. Conversely they may work to explain the capabilities and

limitations of the finished product back to Marketing and Sales. Product Managers may also have one or

more direct reports such as a Product Executive who can manage operational tasks or a Change

Manager who can oversee new initiatives.

[edit]Product planning

Identifying new product candidates

Gathering market requirements

Defining product requirements

Determine business-case and feasibility

Scoping and defining new products at high level

Evangelizing new products within the company

Building product roadmaps, particularlyTechnology roadmaps

Working to a critical path and ensuring all products are produced on schedule

Ensuring products are within optimal price margins and up to specifications

Product Life Cycle considerations

Product differentiation

Detailed Product planning

7 functions of marketing

[edit]Product marketing

Product positioning and outbound messaging

Promoting the product externally with press, customers, and partners



Conduct customer feedback and enabling (pre-production, beta software)

Bringing new products to market

Monitoring the competition

more detail on Product marketing

Financial services refer to services provided by the finance industry. The finance industry encompasses a

broad range of organizations that deal with the management of money. Among these organizations are

banks, credit card companies, insurance companies, consumer finance companies, stock brokerages,

investment funds and some government sponsored enterprises.

I n l ast f ew year s, I ndia has emerged as t he one of t he most rapid l y gr ow ing ec onomi es in the world. India has beencategorized with nations like Brazil, Russia and China (BRIC Nations) who are going to be the primedrivers of world economy in next few decades. Since the time, India first opened its gates to foreigninvestment (FDI & FII), there has been a complete turnaround. Now the traditional Hindu rate of growth is a thing of past and clocking 8%-9% GDP growth rate is the common norm. India along withother Asian powerhouse China makes for the fastest growing nations in the entire world.

Even if we take the case of ongoing global recession, India has managed to perform far better thanother nations. Right from banking system to financial regularities, the country has thrived on disciplineand out-performance. The booming Indian economy resulted in widespread growth and arrival of newindustries. The most sparkling phenomenon is in form of financial market of India.

Financial services in India has taken a giant leap from the days of standing in banks queue for severalhours for opening a saving acc ount or trying to get some fixed deposits (FD) done. The financial

ervices have increased manifold and now people have the choice to choose the one that most suitablyfits the bill.

There are several services like broking firms, investment services, financial consulting, evergreennational banks, numerous private banks, mutual fund s, car and home loans, equity market and other

banking services. Services are many and offered by blue chip names of the industry. Most of thecompanies in financial segment offer taxation services, pr oj ec t consultancy services and all the servicesof wide financial gamut.

Whether it¶s taking a car loan or booking your favorite house, going for pension plan or getting yourchild insured, numerous attractive financial services are available at affordable c osts. Personal banking

services have acquired an altogether new meaning. Now customers have multiple choices to choosefrom. One can find all the financial services on the internet that are just a call away.

product concpt n mangt

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