Download - 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