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 technology, business, 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.