What Is ...

What is Product Management?

What is Product Management?

According to the Business Dictionary, Product Management is the development, marketing and sale of a product to a customer. Product Management starts from when a product is merely just an idea and continues all the way through the product lifecycle, including when the product arrives in the customer’s home.

Product Management depend on the company and type of products. However one thing is consistent, the product manager represents the customers’ needs. The product manager is responsible for bringing together the technologybusiness, and users.

The technology includes the actual product itself. The business represents those that have the ability to bring the product to market, and the user is the customer that has a desire for this product.

What is the objective of Product Management?

The main objective of Product Management is the development of a new product or products. This product should be better than what is currently available, or at least be able to differentiate itself as unique, in order to be of value for the customer.

What determines whether the product is profitable and successful is the customer’s reaction. While Product Management can vary in its function and the roles related to it, according to the size of the company, there is always a product manager to make certain that the objectives of the product are met. This can be a person or a group of people in the organization.

Product Management doesn’t only add to meet the objectives of the product and organization; it can also choose to remove something from the process, which is called an elimination decision. This includes a detailed report on the impact that this elimination will have on the whole business.

How to plan Product Strategy?

There are four key components to a product strategy.

Firstly, most important thing is the customer. What they want and how to get it to them. Therefore, defining the customer is a crucial aspect of any successful strategy. A strong understanding of a customer’s need is required before strategizing the product. The customer and the marketplace often changes, so allow for wiggle room to adjust the strategy with customers’s feedback.

Secondly, understand the competition. Determine how your strategy will differentiate yourself from those that are offering similar products in the market. Know what your product can deliver that the competition can’t or isn’t currently addressing; this means studying the competition and analyzing the marketplace to see if you can discover any opportunities that aren’t being taken advantage of.

Thirdly, how will the product be profitable for the company? If your organization is for-profit, then making money is the bottom line. If your product is not addressing this concern, it is not going to be a success. Therefore, describe how the product you’re planning to develop is going to help the company meet its business goals and make money.

Finally, don’t forget to consider the macro environment. The macro environment accounts for economic, technological, political and cultural forces that are at play and can impact the market and your product’s entry into it, over the short- and long-term.

Therefore, think about emerging markets where there can be a demand for the product, new technologies, what economic trends are impacting your customers and whether or not your customers needs and behaviors changing.

What Is ...

New Product Development and Business Development – what is the difference?

New Product Development and Business Development are impressive titles that are often heard in business organizations. However, not everyone understands and knows these concepts well. So, what are Product Development and Business Development? How are they different? Let’s find out.

What is New Product Development?

New Product Development is the activity to bring out a new product in the market. It means this product has never been manufactured in this company.

For example: company A trades in air purifier about 5 year. However,
company A want to expand market so that it have to manufacture new products. It can be dehumidifier, humidifier or combination product.

“New product development begins with realizing market opportunities for products, ending with the production, sale and distribution of products to customers.”

With this definition, it is clear that the scope of New Product Development is very wide. It almost covers the entire life cycle of the product, not just limited to the stages of drawing, calculating or testing.

Therefore, an engineer works in the Product Development department must not only have in-depth technical knowledge but also have diverse knowledge along with effective working skills and methods.

Coca – Cola appears for the first time in 1899. Courtesy: Wikimedia Commons.

In industrial production, profession product development process will help company make new products response standard and quality.

With 14 years of experience in making products, cooperating with businesses, MES LAB develops a complete Product Development process, based on the “Design Thinking” rule. It consists of the following steps:

  • Empathize
  • Define
  • Ideate
  • Prototype
  • Test

This philosophy has the following 4 characteristics:

  • Centered Human centered: User centered
  • Collaborative: Collaborate closely in the design process
  • Experimental: Promote prototyping and testing
  • Optimistic: Every problem can find a solution

What is Business Development?

In the simplest terms, Business Development can be summarized as the ideas, initiatives and activities aimed towards making a business better. This includes increasing revenues, growth in terms of business expansion, increasing profitability by building strategic partnerships, and making strategic business decisions.

Business development based on 3 main components:

  • Customers: Research on customers’ behaviors, regions, etc.From that, they can find new customers and create more value for existing customers.
  • Market: Understanding and assessing the market, analyzing competitors, etc. grasping the latest market trends
  • Relationships: Building and leveraging relationships based on trust to facilitate opportunities.
Business development based on customers, market, relationship.

Business Development activities extend across different departments, including sales, marketing, project management, product management and vendor management. Networking, negotiations, partnerships, and cost-savings efforts are also involved. All of these different departments and activities are driven by and aligned to the business development goals.

How are they different?

Product DevelopmentBusiness Development
Product development is the
creation of new products to provide consumers and markets so that enterprise can earn profits through sales and business activities
Business Development can be summarized as the ideas, initiatives and activities aimed towards making a business better
The goal is to create new productsThe purpose is to develop and expand business
Short-term natureLong-term nature
Who responsible are the engineersBusiness developer with expertise in economics will perform.
The differences are between New Product Development and Business Development.

What is the relationship between New Product Development and Business Development?

Although there are a few differences, however, New Product Development and Business Development also have some similarities such as:

Firstly, both of these activities are creative.

Innovation in New Product Development is expressed through product ideas. This idea must be unique, new, hard to copy, highly feasible, etc. From that, it is able to design and develop ideas into concepts and finished products.

Simply ! No idea, No product.

For Business Development, the idea is even more important. Ideas are expressed through business development strategies. Because of its long-term nature. A good business strategy will create a foundation for businesses to grow and expand their business in a few decades.

Secondly, both of them are indirectly profitable for the company

After, the product is manufactured. Selling product need to go through the sales and marketing department – the department directly working with customers.

Besides, Business Development aims to expand and develop the market in order to find potential market sources for products. After that, sales and marketing department will sell products to bring direct profits to the company.

In conclusion, they have reciprocal support.

In the course of product development, one important step is Define. This activity aims to devise strategies for the product. That is, the product will be sold to the audience, price, market, etc.

At the same time, good products also bring high opportunities to expand and develop business markets.


Hello world!

Welcome to WordPress. This is your first post. Edit or delete it, then start writing!