Product Management Lecture Notes PDF

Current Developments in Resources – Product Management Prof. Dr. Tobias Weiß Business Administration Lecture Business Administration with Informatics (BBA) Kick-Off & Introduction Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 2 Organizational Topics Prof. Dr. Tobias Weiß Produ...

Current Developments in Resources – Product Management Prof. Dr. Tobias Weiß Business Administration Lecture Business Administration with Informatics (BBA) Kick-Off & Introduction Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 2 Organizational Topics Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 3 Regulations for on-campus activities Some of the most important regulations are:  Wearing a FFP2 mask inside all buildings on the campus can help reducing infections.  Please follow the hygiene and distance regulations.  Note that you should not come to campus if you have symptoms associated with COVID-19! You will find additional information in our moodle course and the university’s homepage. Have a look! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 4 Safety instructions You will find additional information in our moodle course and the university’s homepage. Have a look! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 5 Dates & Places  Classes will be on: Tuesdays, 16:15-19:15 in room So-17.104  Lectures and seminar classes will go hand in hand.  There will not be a sharp separation between lecture and seminar classes.  Sessions might be:  Total lecture classes  Total seminar classes  A mix of lecture and seminar class  Classes will start on time.  See VPIS for potential changes. Be fair and professional - Be on time! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 6 E-Learning (Moodle)  https://e-learning.fh-swf.de/  Course name: Current Developments in Resources – Product Management - SoSe24  Enrolment key: ProdM2024  This is our download area. There you will find lecture slides, exercise content, reading recommendations etc.  Announcements for lectures etc. will be communicated via moodle, in the lectures, or exercise classes. You should check moodle (and your university email- address) frequently! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 7 Recommended literature Homburg, Christian, Sabine Trott, Paul. Innovation Kuester, and Harley Krohmer. Further reading recommendations management and new product Marketing management: A (mentioned in the different lectures development. Pearson education, contemporary perspective. and exercises of the module). 2017. McGraw-Hill Higher Education, 2013. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 8 Debating will be part of classes Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 9 Preliminary agenda Date Student Presentation Lecture Topic 16.04.2024 Kick-Off & Introduction to Product Management The Relevance and Scope of Product Management; 23.04.2024 The Product Life Cycle Model 30.04.2024 Considering Innovations within Firms I 07.05.2024 Considering Innovations within Firms II 14.05.2024 Analyzing & Shaping Product Strategy I 21.05.2024 Group 1 & 2 Analyzing & Shaping Product Strategy II 28.05.2024 New Product Development 04.06.2024 Self-studies New Product Development; 11.06.2024 Group 3 & 4 External Collaboration (Customer Integration), Internal Collaboration The Role of Thought Worlds in Product Innovation; 18.06.2024 Group 5 & 6 Product Phase-Out 25.06.2024 Group 7 & 8 The Connection between Product Management and Business Model Innovation Product Management & Change; 02.07.2024 A Concluding View on Product Management 09.07.2024 Exam Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 10 Contacting Your Professor Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 11 Contact details Prof. Dr. Tobias Weiß:  E-mail: [email protected]  Personal meeting opportunities:  You can arrange a meeting with me and meet me in  my office (room: 04.115b)  via zoom.  Please send me a short mail, then I can guarantee you a timeslot. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 12 E-mail communication with professors  It is recommended to use your university e-mail address (oftentimes, non-university e-mail addresses got filtered out by the university’s spam filter).  It is recommended to write a proper e-mail instead of using the moodle chat function. Moodle chat function messages will not be answered. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 13 If you write improper or unprofessional e-mails, do not expect to receive an answer Some examples: Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 14 If you write improper or unprofessional e-mails, do not expect to receive an answer  Be professional!  If you don’t know exactly, how to write professional e-mails  there a lots of tutorials out there, have a look! (e.g., https://www.purdue.edu/advisors/students/professor.php e.g., https://academicpositions.com/career-advice/how-to-email-a-professor) Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 15 Students’ Academic Freedom & Responsibilities Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 16 Students’ self-study duty Students are expected to engage in self-study. For example: A BBA module with a workload of 150 hours and 4 SWS means:  Contact time (lectures + exercise classes) = 60 hours  Self-study duty = 90 hours For one semester, that means approx. 90 hours / 15 weeks = 6 hours self-study duty per week.  Studying is not just consuming a lecture! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 17 It is expected from university students that they study not just the lecture content  University studies mean:  Students should learn how to learn.  Later in your jobs, you have to learn new content also by yourself.  Lectures are not the whole content that a module deals with. They are meant as starting point, introduction, and deep dive into certain parts of the respective field.  To become an expert in this field (which is expected from you) (examination…), you need to study the field also by yourself.  Lectures, seminars / exercises, reading & viewing recommendations, etc. are meant to help you with that.  Further primary and secondary literature should be studied by yourself.  Even if the lecture script contains a lot of information and content, there will be additional content discussed in classes. (The script just contains the central information.)  Recommendation for examinations: don’t just rely on learning the content on the lecture slides. Examinations might deal with more.  The study program is designed as on campus program. It is strongly recommended to join lectures as well as fulfil your self-study duties. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 18 The more motivated you are attending classes, the better your grade will probably be Motivation very high students How motivated you are attending classes Motivation very low Grade in the Exam 5 4 3 2 1 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 19 Course Grading Policies Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 20 Portfolio Examination Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 21 The module is organized as portfolio examination that consists of two parts Module Grade Group-Presentation Written Exam (50%) (50%)  Keep the deadlines for early-registration, published by the Dean’s office!  Keep the deadline for group registration!  Examination parts are compensable. Examination parts cannot be transferred to future semesters. If the module examination (consisting of the separate parts) is failed, all parts of the examination have to be repeated. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 22 The module is organized as portfolio examination that consists of two parts Module Grade Group-Presentation Written Exam (50%) (50%) Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 23 Group registration and assignment  In this module you need to register for group work (groups of four students).  Register before the deadline! Deadline is 03.05.2024, 12am!  Register in our moodle course under section “Group Assignment”  The course is limited to max. 32 students. Latecomers may be rejected and/or not get a place.  Groups that are not full need to accept other students adding to the group until it is a full group.  Final group assignment will be fixed after the registration deadline.  Changing groups after final group assignment is not possible.  Find your final group assignment in our moodle course. (Your preferred group assignment might be subject to change, e.g., due to amount of course participants; if there is more than one group with less than four members, etc.)  If you cannot find an open group, you might want to check over time, if other students decided to withdraw from a group, so that there is open group capacity again. Adding more groups or increasing the number of group members is not possible. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 24 Fairness & Group Assignment If you decide to deregister from the course:  Inform your group members.  Deregister also from your group.  Maybe there are other students who would like to join this course but can’t, because of no open groups.  Do you want to be this person registering for everything and then never got heard of again? https://leadingwithtrust.com/wp-content/uploads/2016/06/fair-vs-unfair.jpg?w=300 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 25 Group presentation  Together with your group you need to give a science paper presentation.  Specific task:  Choose an empirical scientific journal article (research article published in a high-ranked scientific journal, i.e. VHB-Rating 2024 A+ or A ranked that investigates hypothesized relationships of variables based on data) that relates to the field of our module (articles that relate to product management, project management, or leadership) and present this article. (Hint: you want to explain the managerial as well as scientific relevance of the study; you want to give real-life examples for the phenomenon the study deals with; you want to cover the methodology used by the authors; you want to describe the sample; you want to discuss the findings, implications and limitations of the study.)  Engage and moderate a lively discussion after your presentation.  Groupwork. (It is okay to split the presentation into parts that the group members present; every group member should have a part in the presentation that allows to assess her/his individual performance. But keep in mind that you present as a group, and you all want to be experts for the complete presentation-content. It is expected that every group member has the whole knowledge about the full content.)  All group members must be present. In case of absence of group members, surely, it is expected that the complete presentation is given by the group. In case of illness, a doctoral certificate (AU) has to be handed in at the same day. Otherwise 5.0.  Formal requirements:  20-minute presentation.  Presentation file (pdf or pptx) plus pdf-file of the chosen paper has to be handed in via moodle upload function before deadline. Deadline is 10 p.m. the day before presentation day.  Find the date of your presentation day in the latest version of the course agenda. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 26 Excursus: Journal Rankings  Journal articles:  Often primary source  Often peer-reviewed  Rankings for journals exist  Recommended: VHB-Rating 2024  VHB = German Academic Association for Business Research (Verband der Hochschullehrerinnen und Hochschullehrer für Betriebswirtschaft)  VHB-Rating 2024 replaces the VHB-Jourqual3 (JQ3) published in 2015.  Consists of 18 area ratings (e.g., Marketing, International Management, Service Management, etc.)  Papers from top journals (A+ or A) are the gold standard. Example: VHB-Rating 2024 – Extract of Ranking for Marketing-Area Tables for download: https://vhbonline.org/service/vhb-rating-2024 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 27  This is your course! Make it the best presentations possible! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 28 Medical certificate (Arbeitsunfähigkeitsbescheinigung / AU)  If you miss an examination (e.g., presentation, written exam) due to sickness you need to hand in a doctoral certificate on the day of the exam (latest one day later) which certifies that you are not able to participate in the session/exam due to sickness.  The certified time of sickness needs to include the date of the examination.  If you do not hand in an adequate doctoral certificate or hand it in late this leads to failing the examination (i.e., 5.0).  For courses that have “written exam” as type of examination:  you need to hand in the medical certificate at the student service office (not at your professor!).  For courses that have “portfolio examination” as type of examination:  you need to hand in the medical certificate at your professor. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 29 The module is organized as portfolio examination that consists of two parts Module Grade Group-Presentation Written Exam (50%) (50%) Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 30 Exam  Exam will be in written form.  You have to register to the portfolio examination before the deadline (early registration for portfolio examination).  Examination registration periods: see moodle blackboard or dean’s office.  Exam will be 60 minutes long.  60 points that you can achieve. ( hint: achievable points also give you an indication how much time you should invest to answer a question).  Threshold to pass the exam = 50%  you need 50% correct answers (30 points) to pass the exam.  The exam is part of the portfolio examination of this module and can only be taken on the exam date this semester.  Exam will refer to lecture content, seminar/exercise class content, student presentations, and content from reading and viewing recommendations.  Exam date: see latest version of course agenda  No auxiliary materials are allowed (e.g., no books, no slides, no smartphone, no smartwatch, no internet, no calculator, etc.). Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 31 Exam questions may look like these examples – I  Please indicate whether the following statement is true or false (1 point):  XYZ is…  True  False  Please define the term “XYZ”. (1 point)  Managers often talk about the concept of XYZ.  Please explain what is meant by the term “XYZ”. (3 points)  Please draw an illustration of XYZ. (2 points)  Please give an example of a XYZ. (3 points)  The following table includes information about XYZ.  Calculate XYZ. (5 points)  Explain what XYZ in this context means. (4 points)  What would you recommend to the responsible product manager for product X in order to increase profit? Explain your recommendation, show how this would change profits of product X in 2024. (10 points) Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 32 Exam questions may look like these examples – II  A detailed description of a complex situation is given. E.g., imagine the following situation: You are hired by Company A as their new management assistant. Company A has a long tradition of producing XYZ. An important decision is pending. …  Your new boss Lauren is asking you to prepare an analysis about XYZ. Please name three tools that you could use for your analysis. (3 points)  Please analyze XYZ in Company A by applying the most suited tool and explain why you chose this tool. (5 points)  Lauren is asking you to give her your recommendation whether to choose ABC or DEF. Please give your recommendation and argue about your recommendation. (5 points)  As Lauren knows you got deep knowledge about XYZ, she is asking you to help her work out XYZ.  Please describe XYZ. (3 points)  Which form would you recommend to Lauren in order to bring XYZ to the market? Why? (4 points) Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 33 Exam questions may look like these examples – III  Fill in the correct words. (12 points) XYZ analysis is a tool used to analyze an organization's _____________ and _____________ environment. It stands for _____________ , _____________ , _____________. …  Complete the following graphical illustration of XYZ model. (5 points)  Graphically illustrate XYZ. (5 points)  Explain what XYZ are and give one example. (2 points)  Choose one of the two positions and give three arguments for that position. Give your answer in an adequately structured way. (6 points) Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 34 Exam questions may look like these examples – IV  The following text contains some mistakes. Your task is to mark and correct these mistakes. Mark the mistakes by underlining the respective words and write the correction on the side. (2 points) Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 35 Exam questions may look like these examples – V  Indicate the correct answer to each question or statement.  XYZ refers to: (3 points)  The money ….  The rate ….  The rate at which ….  The people ….  People working in ….  Company A has XYZ. Their strongest competitor has XYZ. What is the XYZ of Company A? (3 points)  0,3  0,35  0,8  350  0,65  3,5  35 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 36 Some general hints for the exam I  Structure your answers adequately!  Do this in a logical way that makes sense for the respective question.  Give your answers in an adeaquatly structured way.  E.g., underline pros and cons, number your arguments, use paragraphs, conclude, etc.  You might miss points, if you don’t structure your answer.  Background: Why is this important? Because a lot of students write unstructured plain text – something that almost never would be accepted in a professional company.  Write properly!  Be short and precise!  Put yourselves into my shoes: make sure that I will understand what you mean.  A critical reflection is not only allowed but appreciated. But make sure that you deliver the content correctly and completely.  The points that you can achieve for the question give you a hint how detailed your answer should be.  Don’t use pencils (lead-pencils)!  Keep the space empty that is reserved for corrections! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 37 Some general hints for the exam II  Read the questions and tasks thoroughly  put attention to what is expected from you  “Name xyz”  it is sufficient to just list your answer. No explanation necessary.  “Explain xyz”  it is not sufficient to just list your answer. An explanation is necessary. But it is ok to be short. (Also have a look at the points. These will give you an indication about how long your answer is expected to be.)  “Discuss xyz”; “Evaluate xyz”  You should mention advantages and disadvantages, pros and cons. Additionally, you should come to a conclusion.  “Critically reflect xyz”  You are expected to develop thoughts pro and against xyz. Come to a conclusion from these thoughts. You can and should state an opinion.  Sometimes, tasks contain more than one component. You need to answer the whole task in order to get all points.  “Why”  You are expected to give a line of reasoning. Depending on the points (time) you can also discuss your answer.  “Give an example”  You are expected to transfer the theoretical point to a situation that could happen in real life. Just learning what is on the lecture slides is sometimes not enough; you are expected to make up your own mind.  “Illustrate graphically”  You are expected to draw something. It is ok to do it without ruler / triangle ruler, but try to be not too imprecise. Do not use lead-pencils! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 38 Follow the exam-rules – leave the margin on the side of each exam-page free!  Leave a margin of approx. 3cm on the side of each exam sheet free!  This margin is for the purpose of correction.  Do not write into this margin!  Everything you write in this margin may be evaluated as “missing” by the corrector!  Do not write into the margin!  Leave the margin free! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 39 Information regarding the exam content  Lecture content  Book content  Further reading and viewing recommendations content  Exercise/seminar class content  Student presentations (if a course contains these)  Refer also to the information given in the first lecture. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 40 Medical certificate (Arbeitsunfähigkeitsbescheinigung / AU)  If you miss an examination (e.g., presentation, written exam) due to sickness you need to hand in a doctoral certificate on the day of the exam (latest one day later) which certifies that you are not able to participate in the session/exam due to sickness.  The certified time of sickness needs to include the date of the examination.  If you do not hand in an adequate doctoral certificate or hand it in late this leads to failing the examination (i.e., 5.0).  For courses that have “written exam” as type of examination:  you need to hand in the medical certificate at the student service office (not at your professor!).  For courses that have “portfolio examination” as type of examination:  you need to hand in the medical certificate at your professor. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 41 Let us interact! Participative Teaching If you have a question, please feel free to ask! I am interested to hear your thoughts! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 42 Learning objective: What do we want to discuss? When you have finished studying this chapter, you should be able to explain: Why is product management relevant? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 43 Why is Product Management Relevant? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 44 Why is product management important? Some Reasons „Product management really is the fusion between technology, Product managers… what engineers do – and the business side.“  know what customers want and need. Marissa Mayer (former CEO and president of Yahoo and Vice President of Google)  give birth to new products.  turn ideas into profit generating sales.  are responsible for letting products die.  are well connected within a company.  bring different departments in a company together to jointly create successful new products. https://img.welt.de/img/wirtschaft/webwelt/mobile135985392/4421625127-ci23x11-w3311/Marissa-Mayer.jpg Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 45 Out of 2.500 new consumer products in the USA per month… 2.500 product innovations Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 46 Out of 2.500 new consumer products in the USA per month… 2.500 product innovations How many are successful? What do you think? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 47 … up to 90% fail 2.250 250 Source: Gourville 2006 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 48 … up to 90% fail 2.250 250 Source: Gourville 2006 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 49 Some information regarding new products (innovations)  „In the U.S. packaged goods industry, for instance, companies introduce 30,000 products every year, but 70% to 90% of them don’t Frequency stay on store shelves for more than 12 months.” (Gourville 2006) 33% - 90%  „most companies find that 50 to 90 percent of their innovation initiatives flop” (Ulwick 2005) of Failure  Empirical studies show new product flop-rates between 33% und 48% according to the respective industry (Castellion & Markham 2012)  „About 40% of new products are estimated to fail at launch” (Cooper 2019) Costs of 100 Mrd. USD  „The cost of these [innovation] failures to U.S. companies alone is estimated to be well over $100 billion annually.” (Ulwick 2005) Failure New Product  „Es zeigt sich, dass der Erfolg neuer Produkte von einer Vielzahl von Faktoren beeinflusst wird. Wesentliche Einflussdimensionen sind Key Development u.a. der Neuproduktentwicklungsprozess (NPE-Prozess)“ (Albers & Herrmann 2013) [NPE = New Product Development Process] Reasons Process &  „Zahlreiche empirische Arbeiten stellen wiederholt die herausragende Bedeutung des NPE-Prozessmanagements für den Erfolg for Failure Meeting neuer Produkte fest (Cooper & Kleinschmidt 1995; Ernst 2002; Montoya-Weiss & Calantone 1994).“ (Albers & Herrmann 2013) Customer  One of the most important success factors is understanding customer needs (Kleinschmidt, Geschka, Cooper 1996) & Success Needs  „Dominant drivers of performance. […] product meeting customer needs.” (Henard & Szymanski 2001)  „New product launches within the last three years account for about 30% of corporate Sales” (Cooper & Edget 2003). Relevance  Empirical findings show a clear connection between launching innovations and company success. (Han, Kim, Srivastava 1998; for Zhou, Yim, Tse 2005) Key to Survival Company  „Product innovation is increasingly valued as a key component of the sustainable success of a business‘s operations.“ (Henard & Szymanski 2001) Success  „the introduction of breakthrough innovations is the key to survival in turbulent environments” (Zhou, Yim, Tse 2005) Product Management is highly important for a company‘s success. Conclusion Therefore, studying Product Management is highly relevant! Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 50 Learning objective: What do we want to discuss? When you have finished studying this chapter, you should be able to explain: What is (digital) product management? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 51 What is Digital Product Management? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 52 To understand what digital product management is, three preconditions need to be understood Understanding digital product management requires to… … understand what a … understand what … understand what a product is. product management is. digital product is. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 53 To understand what digital product management is, three preconditions need to be understood Understanding digital product management requires to… … understand what a … understand what … understand what a product is. product management is. digital product is. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 54 What is a product? Definition A product is “a bundle of features that aim to create customer benefits.” (Homburg 2013, p. 108) Characteristics of Products From a customer‘s perspective a product is something that should satisfy a customer‘s needs and thereby benefit the customer. Note: We will have a closer look on different concepts of how to define a product and different components of a product that can help generating customer benefits later. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 55 Basic typology of products  Note: Software can be both a product and a service, depending on how it is delivered and used.  Examples:  As a product, software is typically packaged and sold for customers to purchase and install on their own devices or systems. E.g., video games.  As a service, software is delivered to customers over the internet, and they access it through a web browser or specialized client software. This model is known as Software as a Service (SaaS) and is becoming increasingly popular, especially for business and enterprise applications. E.g., online storage solutions, customer relationship management (CRM) software, and project management tools. Basic typology of products Source: Homburg et al. 2013 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 56 To understand what digital product management is, three preconditions need to be understood Understanding digital product management requires to… … understand what a … understand what … understand what a product is. product management is. digital product is. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 57 Several descriptions of product management exist Example from Research Example from Leadership Example from Product Manager A popular description of product Sometimes, product management Some people say: management is: is regarded as: „Product managers are „a service department dealing „A good product manager is entrepreneurs within a with requests from the sales the CEO of the product.” company“ department“ (e.g. Szeliga 2003) (member of the board of a large (Ben Horowitz, product manager, company) investor, billionaire) Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 58 The definition of product management that we will use Definition Product management is the management of all activities from conceptualizing new products up until marketing them. (Albers and Herrmann, 2007) Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 59 To understand what product management is one should have a look on what product managers do and which tools they make use of in their daily work Scope of Product Management Managing the existing Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 60 To understand what product management is one should have a look on what product managers do and which tools they make use of in their daily work Scope of Product Management Creating the new Managing the existing Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 61 To understand what product management is one should have a look on what product managers do and which tools they make use of in their daily work Scope of Product Management Managing Controlling idea to launch Phasing-out the success process Product life cycle Creating the new Managing the existing Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 62 To understand what product management is one should have a look on what product managers do and which tools they make use of in their daily work Scope of Product Management Managing Monitoring Creating a Controlling idea to launch Phasing-out the market strategy the success process Product life cycle Creating the new Managing the existing Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 63 To understand what product management is one should have a look on what product managers do and which tools they make use of in their daily work Scope of Product Management Managing Monitoring Creating a Controlling idea to launch Phasing-out the market strategy the success process  Market research  Strategic product planning  Carrying out planned activities  Target-performance comparison  Informing the organisation  Evaluating customer satisfaction  Forecast planning  Training sales representatives  Sales figure analysis  Negotiating with suppliers  Finding out customer needs  Planning marketing activities (e.g.,  Advising customers  Cost controlling  Last order planning for customers  Analyzing competitors‘ activities pricing, sales channels, advertising)  Align activities with other  Product Evaluating marketlife share cycle  Advising customers complementary and products  … departments  Controlling profitability products  …  …  Measuring customer satisfaction  …  … Creating the new Managing the existing Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 64 To understand what product management is one should have a look on what product managers do and which tools they make use of in their daily work Scope of Product Management Managing Monitoring Creating a Controlling idea to launch Phasing-out the market strategy the success process  Market research  Strategic product planning  Carrying out planned activities  Target-performance comparison  Informing the organisation  Evaluating customer satisfaction  Forecast planning  Training sales representatives  Sales figure analysis  Negotiating with suppliers  Finding out customer needs  Planning marketing activities (e.g.,  Advising customers  Cost controlling  Last order planning for customers  Analyzing competitors‘ activities pricing, sales channels, advertising)  Align activities with other  Product Evaluating marketlife share cycle  Advising customers complementary and products  … departments  Controlling profitability products  …  …  Measuring customer satisfaction  …  … Creating the new Managing the existing With all these different tasks there are links to entrepreneurship, strategic management, business model design, controlling, operations management, leadership, marketing, sales, and more. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 65 The scope of product management differs from company to company Potential Fields of Product Management Sourcing:  Some companies include sourcing activities (like finding suppliers, negotiating quality and commercial aspects with a supplier, auditing the factories of a supplier) in product management duties. Business development management:  Often, companies include business development duties (like building up new business models, completely new product and / or customer segments, etc.) in product management duties. Strategy components:  Some companies divide between an extra department dealing with mid- and long-term strategic planning. Then a separate strategy department may exist along product management department.  Other companies include the strategy components into product management duties. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 66 In most companies product management is at least responsible for managing the product life cycle Scope of Product Management Managing Monitoring Creating a Controlling idea to launch Phasing-out the market strategy the success process Product life cycle Creating the new Managing the existing Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 67 To understand what digital product management is, three preconditions need to be understood Understanding digital product management requires to… … understand what a … understand what … understand what a product is. product management is. digital product is. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 68 What is a digital product?  A digital product is a product or service that is primarily delivered through digital channels, such as the internet, mobile devices, or other electronic platforms.  Digital products can take many forms, including software, mobile apps, digital media (such as music, videos, and ebooks), online courses, and web-based services.  Unlike physical products, digital products do not have a physical form, and their delivery and consumption typically rely on technology.  Digital products are often distributed and sold online, and can be easily accessed and downloaded by customers from anywhere in the world.  They can also be updated and modified more quickly than physical products, https://www.de.digital/DIGITAL/Redaktion/DE/Digitalisierungsindex/Bilder/branchenbilder/top-bild-branchenbilder.jpg?__blob=normal&v=3&size=1900w allowing for continuous improvement and innovation.  Digital products have become increasingly popular in recent years, as more and more people rely on technology in their daily lives. They offer convenience, flexibility, and often lower costs than traditional physical products.  Digital products also offer businesses new opportunities for revenue growth, customer engagement, and competitive advantage in the global marketplace. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 69 Examples of digital products  Mobile applications: Mobile apps are software programs that can be downloaded and used on a mobile device, such as a smartphone or tablet. Examples include social media apps, productivity apps, and gaming apps.  Software-as-a-service (SaaS) platforms: SaaS platforms are web- based applications that provide users with access to software and data over the internet. Examples include customer relationship management (CRM) systems, project management software, and e- commerce platforms.  Digital media: Digital media includes a wide range of content that can be accessed and consumed online, such as music, videos, podcasts, and e-books.  Web-based services: Web-based services are online services that provide a specific function or utility to users, such as cloud storage, email marketing, or online payment processing. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 70 What are differences between a digital and a non-digital product? Some key differences:  Delivery: Digital products are delivered electronically, while non-digital products are delivered physically.  Production and distribution costs: Digital products are often (not always!) cheaper to produce and distribute than non- digital products, as they do not require physical manufacturing or shipping. (However, R&D and production costs can also be extremely high with digital products!)  Customization: Digital products can often be easily customized and personalized, while non-digital products may require more time and effort to customize.  Accessibility: Digital products can be accessed from nearly anywhere in the world, while non-digital products may be limited by geographical location or physical availability.  Interactivity: Digital products can be interactive, with features like online communities, chatbots, and user feedback, while non-digital products are often static and do not offer the same level of interactivity.  Overall, digital products usually are more versatile, scalable, and flexible than non-digital products, and are often more cost-effective to produce and distribute.  However, non-digital products offer unique sensory experiences and can have a stronger emotional impact on consumers. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 71 Physical products can be combined with digital products Examples of the combination of digital products with physical products:  Smart locks: a lock that offers multiple ways to be opened – a physical key but also connectivity with a smartphone that enables to send a key to a third person without the need of handing over a physical key.  Smart appliances: Smart appliances are physical products, such as refrigerators or ovens, that have digital features and connectivity. They can be controlled and monitored remotely via a mobile app or a web-based interface.  Wearable technology: Wearable technology, such as smartwatches or fitness trackers, are physical products that incorporate digital sensors and features. They can track activity, monitor health metrics, and connect to other digital devices.  Connected cars: Connected cars are physical products that incorporate digital technologies, such as GPS, navigation systems, and in-car entertainment. They can be connected to other digital devices, such as smartphones or home automation systems.  Augmented reality products: Augmented reality (AR) products combine physical products with digital overlays to create immersive experiences. For example, AR-enabled toys or games can use a mobile app to display interactive digital content over physical objects.  QR codes and NFC tags on physical products that link to digital content, such as product information, reviews, or promotional offers.  Smart luggage with embedded GPS and Bluetooth connectivity that allows travelers to track their bags and receive alerts if they are lost or stolen.  Fitness equipment, such as treadmills or weightlifting machines, that incorporate digital tracking and analysis features to monitor physical performance.  B2B predictive maintenance systems: sensors are built into the physical product, the manufacturer monitors the product and offers maintenance proactively based on the data that the sensors provide. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 72 What is digital product management?  To define digital product management, the definition of product management can be expanded to digital products:  Digital product management is the management of all activities from conceptualizing new digital products up until marketing them. Definition  As we will see, digital product managers (like non-digital product managers) Product management is the management of all activities from conceptualizing new products up until marketing them.  work closely with cross-functional teams, including designers, engineers, marketers, and customer support, (Albers and Herrmann, 2007) to ensure that products are developed and launched successfully.  are responsible for identifying customer needs, defining product requirements, prioritizing features, and managing product development timelines and budgets.  monitor product performance, collect user feedback, and use data-driven insights to continuously improve the product and ensure its success in the market. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 73 What are differences between digital product management and non-digital product management Some key differences:  Distribution: Digital products are typically distributed and sold through online channels, while non-digital products may be sold through traditional retail channels, such as brick-and-mortar stores (physical products need to be stored, transported, and displayed in physical locations).  Development & Production: Digital products are often produced using agile methodologies, with a focus on rapid prototyping and iterative development. Non-digital products may have longer production cycles and require more complex supply chains.  Manufacturing: Physical products require manufacturing processes, while digital products do not. Manufacturing processes involve raw material sourcing, production planning, quality control, and supply chain management, among other activities.  Customer feedback: Digital products can be quickly updated and modified based on user feedback, while non-digital products may have more limited opportunities for customer input and feedback.  Data analysis: Digital products generate large amounts of data that can be used to inform product development and marketing strategies, while non- digital products may require more qualitative research methods.  Marketing: Digital products may require sophisticated digital marketing techniques, such as social media advertising and search engine optimization, while non-digital products may rely more on traditional advertising and promotional activities.  Scalability: Digital products might be scaled up to serve large numbers of users, while non-digital products may have more limitations on their scalability due to physical constraints.  Lifecycle: Physical products have a finite lifecycle, while digital products might be continuously updated and improved with new features and functionalities.  These differences can influence product management tasks. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 74 How relevant is it to differentiate between managing digital products vs. managing non-digital products?  Differentiating between digital product management and product management  can be relevant, as digital products might require different tactics (e.g., more frequent updates, different business models, different pricing models) or  may involve different channels for customer acquisition and retention.  However, digital product management and product management both share the same underlying core principles.  Hence, a lot of “regular” product management knowledge can be applied also in digital product management. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 75 Learning objective: What do we want to discuss? When you have finished studying this chapter, you should be able to explain: Where in the company is product management located? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 76 Where in the Company is Product Management Located? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 77 There are different approaches how companies set-up product management within their organization PM under Marketing PM under R&D PM under Sales Standalone PM Senior Marketing R&D Sales Management Product Product Product Product Management Management Management Management Often used in technology- Set-up less often used, but it Can be useful in large Very common set-up. focused companies. exists. organizations with multiple (Homburg 2020) (Johne and Rowntree 1991) (Homburg 2020) product lines. Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 78 Learning objective: What do we want to discuss? When you have finished studying this chapter, you should be able to explain: What is a product life cycle? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 79 What is a Product Life Cycle? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 80 The product life cycle model Introduction Growth Maturity Saturation 2 1 Date of introduction 3 6 2 Peak of sales quantity 3 Recovery, e.g. due to product Sales enhancements quantity 4 Loss at market entry (development costs) Time 5 Break-even point (Profit threshold) 1 5 7 6 Profit maximum Profit 7 Re-entry in loss zone 4 Referring to the product lifecycle model, every product runs through specific life cycle phases with every phase showing different sales- and profit potentials. Source: Homburg 2017, Homburg 2000 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 81 The product life cycle model Basic Information  Product life cycle model is usually referring to one product. But it also can be used to refer to whole markets and industries.  What we have seen so far is the ideal type of a product life cycle. Empirical research has found multiple further types (Fischer 2001; Rink and Swan 1979).  The phases of the product life cycle can be characterized by different criteria. Analyzing these criteria can help to determine in which phase of its’ life cycle a product, market or industry is. (see next slides) Product life cycle types (adapted from Rink and Swan 1979, p.222) Source: Homburg 2017, Homburg 2000 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 82 Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 83 Learning objective: What do we want to discuss? When you have finished studying this chapter, you should be able to explain: How can the different phases in a product life cycle be characterized? Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 84 Criteria That Characterize the Phases in a Product Life Cycle Prof. Dr. Tobias Weiß Product Management | SoSe 2024 Slide 85  The phases of the product life cycle can be characterized by different criteria Life Cycle Phase Criterion Introduction Growth Maturity Saturation Market Increasing growth rate. Steeply increasing growth rate. Stagnation, negative growth rate Negative to strongly negative growth Growth towards end of phase. rate. Market Difficult to determine; Still considerably difficult to estimate market Limited market potential. Very limited market potential, Potential realization of small percentage potential mainly due to price reductions. frequently only demand for of potential demand. replacement. Market Shares Not feasible to estimate Market shares concentrated in the hands of a few companies. Increased concentration and market share development. consolidation as weak competitors are eliminated. Stability of Strong fluctuation of market Consolidation of market shares. High degree of stability, fluctuations mostly due to exit of competitors. Market Shares shares – high volatility. Number of Small. Number of competitors reaches maximum. Exit of competitors w/o competitive Number of competitors is further Competitors advantage. reduced. Customer Hardly any loyalty towards Certain degree of customer loyalty while Relatively high degree of customer loyalty. Loyalty companies. alternatives are frequently explored. Entry Barriers In general, entry barriers do Market access difficult (established companies Market entry increasingly difficult In general, companies do not have not exist; entry depends on use cost reduction potential); as a rule, entry because of growing “experience” of incentives to enter a stagnating financial capacity, technical feasible when market niches (beachheads) competition; market shares can only market. know-how and the willingness can be created. be increased at the cost of to take risks. competitors. Technology Technological innovation as a Product and process improvements. Familiarity with market requirements; Well-known, widespread and Prof. Dr. Tobias Weiß Product Management prerequisite | SoSe 2024 for tapping into streamlining of production and stagnating technology. Slide 86 new markets. distribution processes. Source: Homburg et al. 2013  The phases of the product life cycle can be characterized by different criteria Life Cycle Phase Criterion Introduction Growth Maturity Saturation Market Increasing growth rate. Steeply increasing growth rate. Stagnation, negative growth rate Negative to strongly negative growth Growth towards end of phase. rate. Market Difficult to determine; Still considerably difficult to estimate market Limited market potential. Very limited market potential, Potential realization of small percentage potential mainly due to price reductions. frequently only demand for of potential demand. replacement. Market Shares Not feasible to estimate Market shares concentrated in the hands of a few companies. Increased concentration and market share development. consolidation as weak competitors are eliminated. Stability of Strong fluctuation of market Consolidation of market shares. High degree of stability, fluctuations mostly due to exit of competitors. Market Shares shares – high volatility. Number of Small. Number of competitors reaches maximum. Exit of competitors w/o competitive Number of competitors is further Competitors advantage. reduced. Customer Hardly any loyalty towards Certain degree of customer loyalty while Relatively high degree of customer loyalty. Loyalty companies. alternatives are frequently explored. Entry Barriers In general, entry barriers do Market access difficult (established companies Market entry increasingly difficult In general, companies do not have not exist; entry depends on use cost reduction potential); as a rule, entry because of growing “experience” of incentives to enter a stagnating financial capacity, technical feasible when market niches (beachheads) competition; market shares can only market. know-how and the willingness can be created. be increased at the cost of to take risks. competitors. Technology Technological innovation as a Product and process improvements. Familiarity with market requirements; Well-known, widespread and Prof. Dr. Tobias Weiß Product Management prerequisite | SoSe 2024 for tapping into streamlining of production and stagnating technology. Slide 87 new markets. distribution processes. Source: Homburg et al. 2013  The phases of the product life cycle can be characterized by different criteria Life Cycle Phase Criterion Introduction Growth Maturity Saturation Market Increasing growth rate. Steeply increasing growth rate. Stagnation, negative growth rate Negative to strongly negative growth Growth towards end of phase. rate. Market Difficult to determine; Still considerably difficult to estimate market Limited market potential. Very limited market potential, Potential realization of small percentage potential mainly due to price reductions. frequently only demand for of potential demand. replacement. Market Shares Not feasible to estimate Market shares concentrated in the hands of a few companies. Increased concentration and market share development. consolidation as weak competitors are eliminated. Stability of Strong fluctuation of market Consolidation of market shares. High degree of stability, fluctuations mostly due to exit of competitors. Market Shares shares – high volatility. Number of Small. Number of competitors reaches maximum. Exit of competitors w/o competitive Number of competitors is further Competitors advantage. reduced. Customer Hardly any loyalty towards Certain degree of customer loyalty while Relatively high degree of customer loyalty. Loyalty companies. alternatives are frequently explored. Entry Barriers In general, entry barriers do Market access difficult (established companies Market entry increasingly difficult In general, companies do not have not exist; entry depends on use cost reduction potential); as a rule, entry because of growing “experience” of incentives to enter a stagnating financial capacity, technical feasible when market niches (beachheads) competition; market shares can only market. know-how and the willingness can be created. be increased at the cost of to take risks. competitors. Technology Technological innovation as a Product and process improvements. Familiarity with market requirements; Well-known, widespread and Prof. Dr. Tobias Weiß Product Management prerequisite | SoSe 2024 for tapping into streamlining of production and stagnating technology. Slide 88 new markets. distribution processes. Source: Homburg et al. 2013  The phases of the product life cycle can be characterized by different criteria Life Cycle Phase Criterion Introduction Growth Maturity Saturation Market Increasing growth rate. Steeply increasing growth rate. Stagnation, negative growth rate Negative to strongly negative growth Growth towards end of phase. rate. Market Difficult to determine; Still considerably difficult to estimate market Limited market potential. Very limited market potential, Potential realization of small percentage potential mainly due to price reductions. frequently only demand for of potential demand. replacement. Market Shares Not feasible to estimate Market shares concentrated in the hands of a few companies. Increased concentration and market share development. consolidation as weak competitors are eliminated. Stability of Strong fluctuation of market Consolidation of market shares. High degree of stability, fluctuations mostly due to exit of competitors. Market Shares shares – high volatility. Number of Small. Number of competitors reaches maximum. Exit of competitors w/o competitive Number of competitors is further Competitors advantage. reduced. Customer Hardly any loyalty towards Certain degree of customer loyalty while Relatively high degree of customer loyalty. Loyalty companies. alternatives are frequently explored. Entry Barriers In general, entry barriers do Market access difficult (established companies Market entry increasingly difficult In general, companies do not have not exist; entry depends on use cost reduction potential); as a rule, entry because of growing “experience” of incentives to enter a stagnating financial capacity, technical feasible when market niches (beachheads) competition; market shares can only market. know-how and the willingness can be created. be increased at the cost of to take risks. competitors. Technology Technological innovation as a Product and process improvements. Familiarity with market requirements; Well-known, widespread and Prof. Dr. Tobias Weiß Product Management prerequisite | SoSe 2024 for tapping into streamlining of production and stagnating technology. Slide 89 new markets. distribution processes. Source: Homburg et al. 2013  The phases of the product life cycle can be characterized by different criteria Life Cycle Phase Criterion Introduction Growth Maturity Saturation Market Increasing growth rate. Steeply increasing growth rate. Stagnation, negative growth rate Negative to strongly negative growth Growth towards end of phase. rate. Market Difficult to determine; Still considerably difficult to estimate market Limited market potential. Very limited market potential, Potential realization of small percentage potential mainly due to price reductions. frequently only demand for of potential demand. replacement. Market Shares Not feasible to estimate Market shares concentrated in the hands of a few companies. Increased concentration and market share development. consolidation as weak competitors are eliminated. Stability of Strong fluctuation of market Consolidation of market shares. High degree of stability, fluctuations mostly due to exit of competitors. Market Shares shares – high volatility. Number of Small. Number of competitors reaches maximum. Exit of competitors w/o competitive Number of competitors is further Competitors advantage. reduced. Customer Hardly any loyalty towards Certain degree of customer loyalty while Relatively high degree of customer loyalty. Loyalty companies. alternatives are frequently explored. Entry Barriers In general, entry barriers do Market access difficult (established companies Market entry increasingly difficult In general, companies do not have not exist; entry depends on use cost reduction potential); as a rule, entry because of growing “experience” of incentives to enter a stagnating financial capacity, technical feasible when market niches (beachheads) competition; market shares can only market. know-how and the willingness can be created. be increased at the cost of to take risks. competitors. Technology Technological innovation as a Product and process improvements. Familiarity with market requirements; Well-known, widespread and Prof. Dr. Tobias Weiß Product Management prerequisite | SoSe 2024 for tapping into streamlining of production and stagnating technology. Slide 90 new markets. distribution processes. Source: Homburg et al. 2013  The phases of the product life cycle can be characterized by different criteria Life Cycle Phase Criterion Introduction Growth Maturity Saturation Market Increasing growth rate. Steeply increasing growth rate. Stagnation, negative growth rate Negative to strongly negative growth Growth towards end of phase. rate. Market Difficult to determine; Still considerably difficult to estimate market Limited market potential. Very limited market potential, Potential realization of small percentage potential mainly due to price reductions. frequently only demand for of potential demand. replacement. Market Shares Not feasible to estimate Market shares concentrated in the hands of a few companies. Increased concentration and market share development. consolidation as weak competitors are eliminated. Stability of Strong fluctuation of market Consolidation of market shares. High degree of stability, fluctuations mostly due to exit of competitors. Market Shares shares – high volatility. Number of Small. Number of competitors reaches maximum. Exit of competitors w/o competitive Number of competitors is further Competitors advantage. reduced. Customer Hardly any loyalty towards Certain degree of customer loyalty while Relatively high degree of customer loyalty. Loyalty companies. alternatives are frequently explored. Entry Barriers In general, entry barriers do Market access difficult (established companies Market entry increasingly difficult In general, companies do not have not exist; entry depends on use cost reduction potential); as a rule, entry because of growing “experience” of incentives to enter a stagnating financial capacity, technical feasible when market niches (beachheads) competition; market shares can only market. know-how and the willingness can be created. be increased at the cost of to take risks. competitors. Technology Technological innovation as a Product and process improvements. Familiarity with market requirements; Well-known, widespread and Prof. Dr. Tobias Weiß Product Management prerequisite | SoSe 2024 for tapping into streamlining of production and stagnating technology. Slide 91 new markets. distribution processes. Source: Homburg et al. 2013  The phases of the product life cycle can be characterized by different criteria Life Cycle Phase Criterion Introduction Growth Maturity Saturation Market Increasing growth rate. Steeply increasing growth rate. Stagnation, negative growth rate Negative to strongly negative growth Growth towards end of phase. rate. Market Difficult to determine; Still considerably difficult to estimate market Limited market potential. Very limited market potential, Potential realization of small percentage potential mainly due to price reductions. frequently only demand for of potential demand. replacement. Market Shares Not feasible to estimate Market shares concentrated in the hands of a few companies. Increased concentration and market share development. consolidation as weak competitors are eliminated. Stability of Strong fluctuation of market Consolidation of market shares. High degree of stability, fluctuations mostly due to exit of competitors. Market Shares shares – high volatility. Number of Small. Number of competitors reaches maximum. Exit of competitors w/o competitive Number of competitors is further Competitors advantage. reduced. Customer Hardly any loyalty towards Certain degree of customer loyalty while Relatively high degree of customer loyalty. Loyalty companies. alternatives are frequently explored. Entry Barriers In general, entry barriers do Market access difficult (established companies Market entry increasingly difficult In general, companies do not have not exist; entry depends on use cost reduction potential); as a rule, entry because of growing “experience” of incentives to enter a stagnating financial capacity, technical feasible when market niches (beachheads) competition; market shares can only market. know-how and the willingness can be created. be increased at the cost of to take risks. competitors. Technology Technological innovation as a Product and process improvements. Familiarity with market requirements; Well-known, widespread and Prof. Dr. Tobias Weiß Product Management prerequisite | SoSe 2024 for tapping into streamlining of production and stagnating technology. Slide 92 new markets. distribution processes. Source: Homburg et al. 2013  The phases of the product life cycle can be characterized by different criteria Life Cycle Phase Criterion Introduction Growth Maturity Saturation Market Increasing growth rate. Steeply increasing growth rate. Stagnation, negative growth rate Negative to strongly negative growth Growth towards end of phase. rate. Market Difficult to determine; Still considerably difficult to estimate market Limited market potential. Very limited market potential, Potential realization of small percentage potential mainly due to price reductions. frequently only demand for of potential demand. replacement. Market Shares Not feasible to estimate Market shares concentrated in the hands of a few companies. Increased concentration and market share development. consolidation as weak competitors are eliminated. Stability of Strong fluctuation of market Consolidation of market shares. High degree of stability, fluctuations mostly due to exit of competitors. Market Shares shares – high volatility. Number of Small. Number of competitors reaches maximum. Exit of competitors w/o competitive Number of competitors is further Competitors advantage. reduced. Customer Hardly any loyalty towards Certain degree of customer loyalty while Relatively high degree of customer loyalty. Loyalty companies. alternatives are frequently explored. Entry Barriers In general, entry barriers do Market access difficult (established companies Market entry increasingly difficult In general, companies do not have not exist; entry depends on use cost reduction potential); as a rule, entry because of growing “experience” of incentives to enter a stagnating financial capacity, technical feasible when market niches can be created. competition; market shares can only market. know-how and the willingness be increased at the cost of to take risks. competitors. Technology Technological innovation as a Product and process improvements. Familiarity with market requirements; Well-known, widespread and Prof. Dr. Tobias Weiß Product Management prerequisite | SoSe 2024 for tapping into streamlining of production and stagnating technology. Slide 93 new markets. distribution processes. Source: Homburg et al. 2013  The phases of the product life cycle can be characterized by different criteria Life Cycle Phase Criterion Introduction Growth Maturity Saturation Market Increasing growth rate. Steeply increasing growth rate. Stagnation, negative growth rate Negative to strongly negative growth Growth towards end of phase. rate. Market Difficult to determine; Still considerably difficult to estimate market Limited market potential. Very limited market potential, Potential realization of small percentage potential mainly due to price reductions. frequently only demand for of potential demand. replacement. Market Shares Not feasible to estimate Market shares concentrated in the hands of a few companies. Increased concentration and market share development. consolidation as weak competitors are eliminated. Stability of Strong fluctuation of market Consolidation of market shares. High degree of stability, fluctuations mostly due to exit of competitors. Market Shares shares – high volatility. Number of Small. Number of competitors reaches maximum. Exit of competitors w/o competitive Number of competitors is further Competitors advantage. reduced. Customer Hardly any loyalty towards Certain degree of customer loyalty while Relatively high degree of customer loyalty. Loyalty companies. alternatives are frequently explored. Entry Barriers In general, entry barriers do Market access difficult (established companies Market entry increasingly difficult In general, companies do not have not exist; entry depends on use cost reduction potential); as a rule, entry because of growing “experience” of incentives to enter a stagnating financial capacity, technical feasible when market niches can be created. competition; market shares can only market. know-how and the willingness be increased at the cost of to take risks. competitors. Technology Technological innovation as a Product and process improvements. Familiarity with market requirements; Well-known, widespread and Prof. Dr. Tobias Weiß Product Management prerequisite | SoSe 2024 for tapping into