AGENDA. Product Management & Marketing PRODUCT MANAGEMENT & MARKETING 10/18/2016

Transcription

1 Product Management & ing 18 October 2016 AGENDA Product Management Product ing PRODUCT MANAGEMENT & MARKETING ing Strategy October 2016 for re-distribution. Do not copy. 1

2 What Is Product Management? Interdisciplinary role: conceiving, planning, forecasting, designing/developing, testing.to continuously bring better products to market A function within a company dealing with all stages of the product lifecycle. A set of skills and leadership Solid business thinking What is a product? Combination of goods and services Satisfies a specific market need Deliberately created. Not accidental or naturally occurring Encompasses the entire customer experience Who Needs Product Management? Superior and differentiated products ones that deliver unique benefits and superior value to the customer are the number one driver of product success and product profitability. Robert Cooper, 2005 Product managers ensure companies develop market-driven, repeatable products Product managers respect the customer voice through all phases of the product life cycle Without them, companies focus on the technology (features) instead of on the customer (benefits) Engineers and Founders are too close to the product to be unbiased Can lead to building a product looking for a market Positioning incorrectly, or inefficiently Pricing out of the market, shot gun marketing Many products fail. Launch does not guarantee success for re-distribution. Do not copy. 2

3 Product Management Functions Inbound: teams, cross-functional management Upstream product management: planning, developing, improving the product Inputs: Goals Budgets Approvals Staff Executives Outputs: Strategy Forecasts (Projections) Economic activity, industry analysis Roadmaps Competitive Intelligence Inputs: Technical Capabilities Risks Product Outputs: Requirements Trends / priorities Customer research: User stories, personas, and cases Development Team Product Management ing + Sales s + Customers Inputs: Field Input Customer Feedback Outputs: Segmentation / Target s Positioning / Messages Benefits / Features Pricing Demos Outbound: deliver messages, training sales, go-to-market strategies, marketing communication channels supply chain, market & user expert Downstream product management: promotes product (ongoing product lifecycle management) Product Lifecycle SALES & PROFITS The course of a product s sales and profits over its life TIME PRODUCT DEVELOPMENT INTRODUCTION GROWTH MATURITY DECLINE TARGET AUDIENCE EARLY ADOPTERS MAINSTREAM LATE ADOPTERS LAGGARDS Management Style Sales Business Focus Design Focus Visionary Strategic Operational Cost management Small Growing Large Contracting None or low Awareness Rapidly indreasing share Stable or flattening Customer retention Moderate or decreasing Transition Tuning Scaling Support Transition for re-distribution. Do not copy. 3

4 Product Development Process Process initiated when new ideas require assessment and support from development to launch. Day-to-day, Product Managers must: 1. Monitor product performance 2. Report on the results 3. Respond to the issues 4. Support Sales 5. Monitor market activity Insights from day-to-day practices lead to New Product Development. The Product Manager interacts with, but is not solely responsible for, all stages in the process, working closely with the cross-functional Team Lead. Evaluating Product Value Questions to understand what will make your customer want to purchase your product: Who is your target customer? What are your target customer s needs? What product attributes are important to your target customer in order of priority? How is your product differentiated from your competitors? What are the customer perception of your company versus your competitor? Potential Product Customer delight, everything feasible to attract and hold customers Augmented Product Offering more than what is expected, means of differentiation Expected Product Generic Product Meet minimal expectations Core benefit Fundamental elements, no competitive advantage Fundamental benefit customer is buying for re-distribution. Do not copy. 4

5 Value Proposition Canvas Gain Creators describe how your products and services create customer gains. Gains describe the outcomes and benefits your customers want. Required gains Expected gains Desired gains What is your offering? Jobs describes the things your customer want to get done. Functional jobs Social jobs Personal/emotional jobs Pain relievers describe how exactly your products and services alleviate specific customer pains. Pains describe anything that annoys your customers, prevents them from getting a job done, or risks/bad outcomes. Assess Product- Fit 1. Address the correct customer problems 2. Solve those problems well 3. Be available through an appropriate channel for the customer to find the product at an attractive price You have a product or service that will address your customers needs You know your customer and what they want to accomplish Determine fit by going through gain creators and pain relievers to see if they fit a customer job, pain, or gain. for re-distribution. Do not copy. 5

6 Performing a Analysis Answers the question: Why should audiences care? It is investigated from 3 vantage points: Company s POV about the market and its audiences. Product s strengths and weaknesses Against whom and what does a product compete? What are all the attributes of the product category? How much weight does each competitor place on each attribute? Understanding the audience: needs, feelings, perceptions Tools for mapping the landscape: 1. SWOT Analysis 2. Competitive Positioning 3. Technology Adoption Lifecycle (discussed later in ing Strategy section) SWOT Analysis for re-distribution. Do not copy. 6

7 Competitive Positioning Quantify how each competitor positions itself by each attribute that they use in their marketing. Do an attribute analysis of your competitors' marketing positioning strategies. Reverse engineer positioning based on the most important terms of the conversation. 3 Jobs of Product Management Business Owner (Strategist) Business function focused on maximizing business value from a product. PMs are obsessed with optimizing a product to achieve business goals while maximizing ROI. Business analyst flavored PMs are optimizers, masters of AB testing, SEO, and growth hacking. er (Customer, UX) Be the voice of the user inside the business; be out there testing products, talking to users and getting feedback. UX flavored PMs are masters of product-market fit, user functionality/experience, and onboarding. Business Technology You are here Customer (UX) Technologist Understand the level of effort involved in building products to make the right decisions. Engineering flavored PMs are masters in hard problems like search and recommendations systems. Product Customers for re-distribution. Do not copy. 7

8 Types of Product Management Challenges 1. Product Optimization Address problems that come from user feedback, conversations with customers, competitor analysis 2. Driven research to get fresh insights into unmet customer needs 3. Tech Driven Solution looking for a problem: Technological change may improve performance for a product or enable new capabilities 4. Visionary for these products does not exist yet; little knowledge to base assumptions Problem Defined Undefined Product Solution Defined Product Optimization Tech Driven Undefined Driven Visionary Cycle of Dysfunction VP Engineering: We need more features. Product engineers guess what the customer might need/want. Technology Driven Customer Driven VP Sales: We need to be customer-driven. Company designs products according to customer voice. Brand Driven VP Finance: We need to control spending. Company starts cutting budgets like travel, tech support, bonuses and even marketing. Cost Controlled VP ing: We need a brand. Company attempts to establish a brand based on something they sold before. New logo, color scheme, collateral, etc. What s missing from this cycle is the voice of the market (current and potential customers). So listen to the market! for re-distribution. Do not copy. 8

9 Product Management Summary Solutions ing Design / Development / QA Product Management Solutions ing Assess s Create a Strategy Plan Product Releases Design & Develop Products Roll-out & Launch Products Ideas drivers Emerging technologies Customer needs segmentation & sizing analysis Competitive analysis needs document Align objectives with vision Strategic plan Product/solution roadmap document Product description document Create target customer personas Target customer snapshot Business requirement document Product release plan Design & validate user experience User stories Function requirements Technical requirements Test plans Execute marketing plan Certified product Organizational readiness End of life plan What is ing? Definition of marketing is creating value for something among a defined audience. Role of marketing is to translate the product into value. Foundation of marketing revolves around audiences, not the product or company. for re-distribution. Do not copy. 9

10 Product ing Responsibilities Be responsible for market success of the product(s) Revenue plans by product Pipeline reviews Integrated marketing campaigns Customer loyalty and lifetime customer value Optimizing the buying process Build deep knowledge of market, customers and competitors planning segmentation Competitive insights Detailed customer needs gaps and opportunities Pricing strategy Communicate a market position that is differentiated, clear, and monetizable Messaging and positioning Content marketing Collateral and website Media outreach & PR Influencer marketing Sales strategy Equip sales with knowledge and tools for success Sales tools and training Channel enablement Objection handling Media outreach & PR ing Management: Product Lifecycle SALES & PROFITS PRODUCT DEVELOPMENT INTRODUCTION GROWTH MATURITY DECLINE MARKETING OBJECTIVE GAIN AWARENESS COMMUNICATE MAINTAIN DIFFERENTIATION BRAND LOYALTY TIME HARVESTING, DELETION 4Ps Competition Product Price Promotion Place None or few Growing Substantial Limited or fading One or two basic models Expanding line Full product line Best sellers Free or at cost for endorsements, etc. Educate market, build brand I.D. Value-based, max profit margins Stress competitive differences Competition-based to max market share Augment product, brand reputation Cost-based to prevent entrants and stay profitable Phase out weak products, reduce costs, milk the brand Limited outlets More outlets Maximum outlets Trim unprofitable outlets for re-distribution. Do not copy. 10

11 The Four Ps of ing: ing Mix Benefits Accessibility CUSTOMER SOLUTION Product What you will sell Technology / quality Design / accessories Features / usefulness Brand/packaging Sizes / format / variety Place Getting to the customer Distribution channels Coverage Inventory Transport Locations CONVENIENCE Target WILLING TO PAY Price Value to the buyer Pricing strategies Discounts Allowances Payment period Credit terms Promotion Reaching customers Special offers Sales force / personal selling Advertising / Endorsements Direct marketing Join ventures / Public relations COMMUNICATION Value Education Sizing the Few companies can supply the needs of an entire market. Most must breakdown the total demand into segments and choose those that the company is best equipped to handle. Total Available Served Available TAM = How big is the universe SAM = How many can I reach with my sales channel(s) Target Target = Who will be the most likely buyers for re-distribution. Do not copy. 11

12 Targeting Strategies Undifferentiated ing Differentiated ing Concentrated (Niche) ing Micromarketing Local ing Individual ing Aim for entire market with one marketing mix. Ignore segments. Focus on similarities across consumers. Advantage: Savings on production and marketing costs. Disadvantage: Susceptible to competition Target several different market segments with separate marketing mix for each. Advantage: Higher sales and profits. Reduces risk. Disadvantage: Limits specialization. Higher costs. Concentrate on one segment. Advantage: Economies of scale helps lower price. Strong positioning. Disadvantage: All eggs in one basket. If needs change, it is hard to redirect efforts. Threat of large competitors entering. Cities, neighborhood, specific stores One person. Targeting Broadly Targeting Narrowly Segmentation Aggregating prospective buyers into groups that have common needs and respond similarly to a marketing action. CUSTOMER SOLUTION WILLING TO PAY Benefits Accessibility Product Need different products (e.g. are interested in different benefits Place Can be reached in different places (e.g. through different media outlets) Target Price Are willing to pay different prices in time, money, or effort to change behavior Promotion Will respond to different types of promotion Value Education CONVENIENCE COMMUNICATION for re-distribution. Do not copy. 12

13 Segmentation: Buyer Personas Fictional, generalized representations of your ideal customers Helps you understand customers better, to tailor your marketing content Based on market research as well as on insights from your actual customer base Example buyer persona from Trader Joe s: Bases of Segmentation Need-based Behavioral Value-based Criteria Customers perceived and unknown needs across the buyer s journey Divides buyers based on their uses or responses to a product Value placed by customers on the product (e.g. makes things easier, solves a problem, raise a positive emotion, provides security) Demographic Age Gender Life stage B2C Income Education Geography B2B Revenue Employees Business sector Psychographic Benefit sought Based on attitudes, opinions, lifestyle, or personality characteristics (e.g. technology adoption tendencies, experience, prominence) Based on benefits the customer hopes to derive from using the product (e.g. high quality, low price, status, sex appeal, brand symbol). Switching occurs in response to different needs. for re-distribution. Do not copy. 13

14 Buyer s Journey Customers research and share experiences during the whole buying journey CUSTOMER JOURNEY BRAND PENETRATION AWARENESS CONSIDERATION PURCHASE RETENTION ADVOCACY Visibility Evaluation attributes Choice Experience Recommendation & loyalty CUSTOMER GOAL Finding the best options to consider for engagement and loyalty needs Exhaustively compare options and select a few front runners Identify the company or solution they want to work with To enter the best partnership agreement and peace of mind in decision To prove the program s worth and grow with partner COMPANY INSIGHT How is your brand positioning penetrating the market? What does customer perception of your brand look like? What are the barriers and triggers for action? What are the customer likes and dislikes and what words to they use? What are the customer likes and dislikes and what words to they use? COMPANY STRATEGY Drive traffic, generate leads (e.g. cookies, form fills) Increase visibility (e.g. SEO, direct marketing) Convert (e.g. UX, ecommerce) Respond (customer delight) Build relationship (engagement) Content ing Paid Media Owned Media Earned Media Factors to marketing success: Right channel or media Right type of message at the right time of the buyer s journey Right information at the right time of the buyer s journey Right user context for re-distribution. Do not copy. 14

15 Technology Adoption Lifecycle Early markets Want new things, technology, and performance (Specialists) THE CHASM Mainstream markets Want solutions and convenience (Generalists) Minimum Viable Product (MVP) Whole Product Solution Innovators 2.5% Early adopters 13.5% Early majority 34% Late majority 34% Laggards 16% ENTHUSIASTS VISIONARIES PRAGMATISTS CONSERVATIVES SKEPTICS Adapted from Geoffrey Moore: Crossing the Chasm Technology Adoption & Product Lifecycle THE CHASM Product Lifecycle Innovators Early adopters Early majority Late majority Laggards ENTHUSIASTS VISIONARIES PRAGMATISTS CONSERVATIVES SKEPTICS Introduction Growth Maturity Decline Customer mindset Novelty value: It s cool! Let s try it! Opinion leadership: Get ahead of the herd! Willing adopters: I ll buy it when it s done, not before. Economic necessity, safe to adopt: Status quo is ok. Move only when necessary! Traditional, cautious: No way! Key characteristic Aptitude for technical info Attracted by high risk, high reward Focus on proven; prefer market leaders Risk averse, price sensitive Block purchases of new technology Key challenge Want access to top experts Want to get ahead of the competition Want good references from trusted colleagues Need complete proven solution Not a customer Key role Gatekeeper to early adapter Fund development of early market Gatekeeper to conservatives Extend product lifecycle Delay development of markets Company skill Technology proficiency & product leadership Customer intimacy Product leadership to close deals Operational excellence Product type Generic product Expected product Augmented product, easy plugin solution Potential product Hidden product Channel strategy Build channels & alliances, get first customers Solidify relationships, dominate niche by niche Mass market growth and penetration Maintain, trim and modify, replace for re-distribution. Do not copy. 15

16 Product ing Summary Research Product ing Tactical ing Segmentation & Targeting Situation Analysis Positioning & Strategy ing and Selling Model Product launch Handover to marketing from product management segmentation & targeting segmentation documents Identified target audience Voice of customer validation Conversations with key company stakeholders SWOT analysis Competitive positioning maps Identified product s maturity (adoption lifecycle) Designing a unique value proposition Formal positioning statement Value proposition entry strategy Setting milestones for the sales funnel Sales & channel strategy Advertising & promotion strategy ing mix Content roadmap Execute marketing plan Campaign architecture Key performance indicators Implementation plan Grace s Recommended Readings to Further Your Knowledge or Be Ahead of the Herd for re-distribution. Do not copy. 16

17 Connect with me! Company of Rogue Academics for re-distribution. Do not copy. 17