The Pragmatic Marketer: Volume 6, Issue 1

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The Pragmatic Marketer magazine. The journal for technology product management and marketing professionals.

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<ul><li> 1. Lead on Purpose: How Product Managers Lead Teams to Success What are Patents?Patents and the Product Manager Agile Market RequirementsProblem Solving: Its All About Smart(er) QuestionsP r a g m a t i c M a r k e t i n g s 2007 Annual Product Management and Marketing Survey </li></ul><p> 2. Viral Marketing? Search Engines? Blogs?his duct to co np anyct us t r co m Conta sit e at you p cominga r o n ove r fo r u . semin c sb a ck cationo r s e e t es a n d l o da Create a Strategy to Reach Buyers DirectlyThe New Rules of Marketing seminar shows youhow to leverage the potential that web-basedcommunication offers your business: Establish a personal link with your current and prospectivecustomers. Reach niche buyers with targeted messagesunlike old-school advertising theyll likely ignore. Learn to publish content that people want to read andsearch engines reward with high rankings. Understand howtools like blogs, podcasts, webcasts and social networkingenhance your online presence. Learn a step-by-step, practical framework for building anonline marketing strategy and an action-plan to createonline thought leadership for your organization. Based on the best-selling book, The New Rules ofMarketing &amp; PR: How to use news releases, blogs,podcasting, viral marketing &amp; online media to reachbuyers directly by David Meerman Scott, the New Rulesof Marketing seminar will show you how to reach buyersdirectly with information they want to hear. New Rules of MarketingCreate a strategy to reach buyers directlyVisit www.pragmaticmarketing.com/newrules or call (800) 816-7861 to registerT h e I n d u s t r y S t a n d a r d f o r Te c h n o l o g y P r o d u c t M a n a g e m e n t a n d M a r k e t i n g 3. The Pragmatic Marketer 8910 E. Raintree DriveScottsdale, AZ 85260Inside this issue: Volume 6Issue 1 2008 Pragmatic Marketing, Inc.CEOCraig Stull4Pragmatic Marketings 2007 Annual PresidentProduct Management and Marketing SurveyPhil MyersSteve JohnsonEditor-in-Chief Each year Pragmatic Marketing conducts a Kristyn Benmoussasurvey of product managers and marketing Editor professionals. Where do you stand with Linda Sowers the national averages? Interested in contributing an article?10 Lead on Purpose:How Product Managers Lead Teams to SuccessVisit www.TPMmag.com/submitMichael Ray Hopkin No part of this publication may be reproduced, stored in any retrieval system, or transmitted, in There is pressure on the product manager to inspire others any form or by any means, electronic, mechanical to do great workeven though he or she cannot hold others photocopying, recording or otherwise, without theaccountable. As a result, product managers must be persuasive, prior written permission of the publisher.flexible, persistent, and optimistic; they must lead on purpose. The Pragmatic Marketer is available free of charge to qualified subscribers. For subscription or back issues call (480) 515-1411; or visit pragmaticmarketing.com/subscribe 16What are Patents? To be removed from the mail list, visitTod DeBie pragmaticmarketing.com/unsubscribe or send an email to info@pragmaticmarketing.comFor technology product managers, just about any new For advertising rates, call (480) 515-1411. product or feature is patentable: hardware, software, Other product and/or company names mentionedbusiness methods, etc. Every new feature and product in this journal may be trademarks or registered you create should be examined for patentability. trademarks of their respective companies and areHere is a quick overview about the rules, kinds and the sole property of their respective owners. The Pragmatic Marketer, a Pragmatic Marketing, Inc.restrictions of patents. publication, shall not be liable regardless of the cause, for any errors, inaccuracies, omissions, or other defects in, or untimeliness or unauthenticity20 Patents and the Product Manager of, the information contained within this magazine.Tod DeBie Pragmatic Marketing makes no representations, warranties, or guarantees as to the results obtained Patents are not just for the engineers or legal from the use of this information and shall not be liable for any third-party claims or losses of any department. While engineers are an important kind, including lost profits, and punitive damages.source of innovation and legal departments The Pragmatic Marketer is a trademark of must be involved in the patent process, Pragmatic Marketing, Inc.product managers are uniquely situated both Printed in the U.S.A.to create new patentable inventions and guide the All rights reserved. company to inventions worth patenting. ISSN 1938-9752 (Print) ISSN 1938-9760 (Online) 23 Agile Market Requirements About Pragmatic Marketing Steve Johnson Founded in 1993, Pragmatic Marketing provides training, consulting services and an onlineSuccessful product teams are agile, combining community for product managers, marketerscollaboration with small iterations. The key to and business leaders at thousands of technologyany agile team is building products that people companies.want to buy. To do that, an agile team needs a We have trained more than 45,000 product management and marketing professionals using themessenger for the market, a product manager Pragmatic Marketing Framework, a common sensewho thoroughly understands the problems facing approach to identifying market problems, buildingtodays customers. the right solution and creating effective go-to-market strategies. Over 90% of attendees rate the training as essential or very useful to their careers. 29 Problem Solving: Our Consulting Services provide technology companies with implementation support andIts All About Smart(er) Questions custom services designed to enhance the training Nilofer Merchant received at Pragmatic Marketings seminars or onsite workshops.The answer isnt always in the solutionits in the The online community at PragmaticMarketing.com questions. Smart questions define problems well is the first-choice destination for technology product and lead to a clear vision of the issues involved. management and marketing professionals. With more than 35,000 visitors per month, this dynamic resource center contains hundreds of articles, a job board, book reviews, instructional webinars, links to peer networking groups and much more.The Pragmatic Marketer Volume 6, Issue 1, 2008 3 Visit www.PragmaticMarketing.com to learn more. 4. $ TIC M ARKETINGCOMPENSATIONG MA S RA P2007ANNUAL17% say the bonus motivates a lot Product Managementover 26%and Marketing Surveysay the bonusdoes notAverage US product motivatemanagement compensation at allis $100,259 salary plus Each year Pragmatic Marketing conducts a survey of product $14,799 annual bonus. management and marketing professionals. Our objective is to provide you with information about compensation as well as 84% of product managersget a bonus based on: the most common responsibilities for product managers and other marketing professionals. 62% company profit44% quarterly objectives Over 900 product management and marketing professionals(MBOs) responded to the survey, which was conducted during the32% product revenue period of October 29 through November 28, 2007 using Vovicis EFM Feedback.Note: When making decisions, remember this report is describing typical practices, not best practices. To learn best practices in product management and marketing, attend Compensation by state a Pragmatic Marketing seminar.Adjusted for relative cost of living (COLA) using Q2, 2007 data from All comparisons are in US Dollars.the Missouri Economic Research and Information Center. States with less than three responses were excluded. Profile of a product manager 72% 88% are men claim to be The typical28%somewhat product41% haveareThe average 93%or very manager completedwomenproduct have technical hasa masters manager completedresponsibility program is 37 collegefor three years oldproducts 4 The Pragmatic Marketer Volume 6, Issue 1, 2008 5. Regional impact on compensationMaximum AverageMinimum MaximumAverage MinimumSalarySalary SalaryBonusBonus Bonus Europe$ 17 0, 0 0 0$ 10 0, 6 2 9 $ 3 5, 0 0 0$ 6 5, 0 0 0 $ 16, 4 8 3 $0Canada 18 3, 0 0 09 5, 6 3 5 5 3, 0 0 04 0, 0 0 011, 0140 USA* 24 0, 0 0 010 0, 2 59 3 0, 0 0 0215, 0 0 0 14 , 7 9 90Midwest 2 0 0, 0 0 0 8 8, 4 8 4 3 0, 0 0 012 5, 0 0 013, 8 4 31, 0 0 0Northeast 24 0, 0 0 010 3, 5 3 34 0, 0 0 07 0, 0 0 0 14 , 5 0 0 1, 0 0 0Pacific 2 0 0, 0 0 0 10 9, 5 6959, 0 0 0215, 0 0 016,161 0South 16 0, 0 0 0 9 6,110 4 7, 0 0 06 0, 0 0 0 15, 3 3 3 0Southwest 14 5, 0 0 0 10 2 ,16 25 0, 0 0 04 0, 0 0 0 13, 5 0 0 0 West 14 3, 0 0 09 3, 8 7 9 6 0, 0 0 010 8, 0 0 014 , 714 1, 0 0 0 Midwest (IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI); Northeast (CT, DE, MA, ME, NH, NJ, NY, PA, RI, VT); Pacific (AK, CA, HI, OR, WA); South (AL, FL, GA, KY, MD, MS, NC, SC, TN, VA, WV); Southwest (AR, LA, OK, TX); West (AZ, CO, ID, MT, NM, NV, UT, WY) COLA StateAverageAverage Illinois$ 124 , 2 31$ 12 7, 5 4 7Gender bias in compensation Texas113,10 8 12 6, 3 78 Conventional wisdom is that men earn more than women Georgia 113, 4 5 8 12 3, 9 9 8 for the same job. North Carolina114 , 9 0 012 0, 4 4 0 Women: $94,851 Men: $100,587 Missouri 10 8, 0 0 0119, 8 6 7 Arizona 12 7, 0 0 0 119, 5 8 6 However, the data suggest that males and females earn approximatelythe same amount when they have the same level of experience. Virginia112 , 2 31112 , 6 81 The overall numbers for women skew lower because the percentage Average 10 7, 8 3 4of women is higher in the lower-experience levels. Utah10 5, 6 6 710 6, 6 2 6Annual Salary Michigan 10 5, 2 8 6 10 6, 24 2$125,000 Women Median 10 5 , 0 0 0 Colorado10 6, 69 2 10 4 , 3 9 6$100,000 Overall South Carolina 94,6 67101, 0 3 2 $75,000Men Florida10 5, 3 6 4101, 0 2 0 $50,000 New Hampshire 115, 75 010 0, 3 9 0 Massachusetts 12 5, 0 6 59 9, 813 $25,000 Washington10 4 , 714 9 9, 5 3 8 Years of Minnesota9 9, 5 3 89 8, 74 8 0 1 to 23 to 56 to 1011 to 15 15+ Experience Wisconsin 9 4 ,15 49 8, 0 7 7Years of Experience Ohio 9 0, 6 0 09 6, 2 81100% Women Connecticut 121, 2 5 0 9 6,15 4 Nebraska 8 6, 5 0 09 5, 5 8 080%Men California12 8, 76 7 9 3, 51360% Tennessee82,4 0 09 2, 273 Maine9 9, 0 0 09 0, 74 2 40% New York119, 8 758 9, 3 2 620% Maryland 111,12 58 8, 8 2 9 Oregon 9 6, 8 75 8 8, 2 2 9 0%Years of0 1 to 2 3 to 56 to 10 11 to 15 15+ Experience New Jersey 10 9, 5 0 0 8 5, 614 Alabama7 7, 3 3 38 4,0 5 8 Pennsylvania 8 5, 2 5 08 3, 2 5 2The Pragmatic Marketer Volume 6, Issue 1, 2008 5 South Dakota 5 7, 3 3 36 2 ,18 4 6. Pragmatic Marketings 2007 Annual Product Management and Marketing SurveyORGANIZATION CEO VP The typical product manager reports to a director in the product COOmanagement department.39% report to a directorProduct8%Manager 33% 33% to VP8% report directly to the CEO or COO Director 36% are in a product management department21% are in the marketing department39% 12% are in Development or Engineering6% are in a sales departmentWorking with DevelopmentProduct Management ratios within the company The majority of product managers research market needs, write requirements, and monitor development projects. How are product managers allocated relative to other departments? 89% monitor development projects 85% write requirements (the what document)For each product manager, we find: 70% research market needs0.7 Product marketing managers 53% prepare business case (up from 0.4 in 2006) 51% write specifications (the how document)0.7 Marketing communicationsPercentage responsible for P&amp;L 18% perform win/loss analysis6.9 Sales people (up from 3.2 in 2006)35%2.3 Sales engineers (pre-sales support) Working with Marketing 30%(huge leap from 0.8 in 2006) Communications and Sales 25% 0.9 Development leads Product managers also spend time providing 20% 12.2 Developers technical content for marketing and sales. 0.7 Product architects and designers15%(a huge jump from 0.4 in 2006) 47% train sales people10% 44% go on sales calls Other ratios 43% write promotional copy5% 3.4 developers per QA manager 36% approve promotional materials 0% Product Product (versus 5:1 in 2006)Director VPCFO CEO Other 14% work with press and analysts Manager Marketing sales people per SE 2.9 Manager(improved from 4:1 in 2006) Percentage responsiblefor Product Responsible for P&amp;LProfit &amp; Loss Responsiblefor go to market Percentage responsible for Go-to-Market Strategies 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10%5% 5% 0% 0% Product Product DirectorVPCFO CEOOtherProduct Product Director VP CMO CEOOtherManager Marketing Manager Marketing Manager Manager 6 The Pragmatic Marketer Volume 6, Issue 1, 2008Percentage responsible for go to market 7. Pragmatic Marketings 2007 Annual Product Management and Marketing Survey Product Management0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%ACTIVITIESMonitoring development projects Writing product requirementsDetails of product management Researching market needsand product marketing activityCreating sales presentations and demosWhere do product management andCreating material for internal audiences (intranet/wiki)marketing professionals spend theirPreparing business case time? Over 80% of product managersare monitoring development projectsWriting detailed specifications and writing market requirements.In addition, most product managers Training sales peopleare involved with researching marketGoing on sales callsneeds and creating sales presentationsand demos.Writing copy for promotional materialThe good news from this chart is that Creating material for external audiences (blog/newsletter) over 50% of product managers are Planning and managing marketing programs building business cases. The businesscase is the evidence of the productVisiting sites (without sales people) managers role as a business leader inthe company. Approving promotional materialSadly, fewer than 20% of productPerforming win/loss analysismanagers are doing win/loss analysis,Measuring marketing programswhich is such a critical input toproduct planning!Working with press or analystsCompared to product managers,Product Marketing product marketers should have anemphasis on outbound activities.Creating sales presentations and demosIt is interesting, however, that 50%of product marketers also spend Planning and managing marketing programs time monitoring developmentactivities, indicating that the product Writing copy for promotional materialmanagement and product marketingroles are not consistently defined by Approving promotional materialinbound vs. outbound activities.Training sales people Researching market needsImpacts on productivityCreating material for internal audiences (intranet/wiki)Product managers receive Creating material for external audiences (blog/newsletter) 50 e-mails a day and send about 25. Monitoring development projects Product managers spendapproximately two days a weekGoing on sales callsin internal meetings (15 meetingsper week). But 55% go to 15 orPreparing business case more meetings each week, and35% at...</p>