Product Management
 Charles A. Besio, Jr.
 Southern Methodist
University
4/13/2015
•Marketing Components
 Product
 Pricing
 Distribution
 Promotion (Marketing Communications)
4/13/2015
Overview - Product
Management
 Product Manager-vs.-General Marketing
Management
 Many Different titles
 Manage a Product or Group of Closely
Related Products
 Focus is Tactical-vs.-Strategic
4/13/2015
Product Manager’s
Qualifications
 MBA - vs.-Non-MBA
 1/2 required
 Several had internal training
 MBA -vs.- Non-MBA
 Experience more important
 Consumer Product Companies
 Small Companies
 Industrial Sector
From a Survey of Product Managers
(<$500 Million - 8; >$500 Million - 15)
4/13/2015
Product Manager’s Critical Skills
 Organized
 Efficient
 Excellent Interpersonal Skills
 Persuasive
 Aware of Business Environment
From a Survey of Product Managers
(<$500 Million - 8; >$500 Million - 15)
4/13/2015
Product Manager’s
Responsibilities
 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)
4/13/2015
Marketing Organization
 Product-Focused Organizations
 Market-Focused Organizations
 Functionally Focused Organizations
 Marketing Organizations Implications
of Global Marketing
4/13/2015
Product-Focused Organizations
 Classic P&G Brand Structure (1930s)
 Product Manager = “Mini CEO”
 Assistant Product Manager
 Associate Product Manager
4/13/2015
Market-Focused Organizations
 Segments
 Industry
 Channels of Distribution
 Geographic Regions
 Significant Buyer Behavior Differences
4/13/2015
Functionally Focused
Organizations
 Aligned By Function
 Most Marketing Orgs. Have Some
 Coordinated Implementation
4/13/2015
Role of Sales Force
 Part of the Marketing Mix
 Separate from Marketing Organization
 3 Structures
 Product/Product
 Product/Market
 Market/Market
4/13/2015
Marketing Organization
Implications of Global Marketing
 Facilitate within Existing Structure
 Change Tactics
 Often Conflicts w/in Structure
 Most Companies Evolve Into
 Begin through Exporting
 Strong Local Organizations Develop
 Few Strong Centralized PM Systems Exist
4/13/2015
Changes Affecting Product
Management
 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 Discounts
 Product Life Cycles Shortening
4/13/2015
Changes Affecting Product
Management
 Increased Power of Retailers

Category -vs.-Brand Perspective
 business units
 retailers organized with category
mgrs.
 Significant Spending on Sales Promo

 90s Sales Promo Passes Advertising
Pricing and Value
4/13/2015
Impact of Change on Organizational
Structure: Category Management
 Customer Retention More Important
 Focus on Lifetime Value of Customers
 Increased Global Competition
 Asia, India, Latin America
4/13/2015