P&B Chapter 01.pdf

7/13/2024 Hello AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 1 ...

7/13/2024 Hello AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 1  7/13/2024 Getting to know you Name? What is your major? and Why? What Product and brand management? Syllabus Mid-Exam is going to be on 11/08/2023 AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 2  7/13/2024 Assignment Individual & Team Work For local Companies CHAPTER 1 Introduction to Product Management AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 3  7/13/2024 What is Product? A product can be defined as a collection of benefits that can be either tangible such as a physical item or intangible such as a service or experience. AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 4  7/13/2024 What is Product Management? Product management is an organizational function that guides every step of a product's lifecycle — from development to positioning and pricing — by focusing on the product and its PM sets a process that focuses on bringing a new product to market or developing an existing one. AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 5  7/13/2024 Product development Product development is the creation of a new or different product that offers innovative new benefits to the end user. This includes both the creation of an entirely new product and modifications to an existing product. These changes or new introductions may be targeting a newly defined customer requirement or a niche category in the market. Sample stages of product development AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 6  7/13/2024 Product Life Cycle A product's life cycle is usually broken down into four stages; introduction, growth, maturity, and decline. Product life cycles are used by management and marketing professionals to help determine advertising schedules, price points, expansion to new product markets, packaging redesigns, and more. Product Life Cycle Introduction Growth Maturity Decline Best period to Practical to change Poor time to Cost control increase market price or quality change image, critical share image price, or quality Company Strategy/Issues R&D engineering is Strengthen niche Competitive costs critical become critical Defend market position Drive-through Internet search engines restaurants DVDs Xbox 360 iPods Boeing 787 Sales 3D printers 3-D game Analog Electric vehicles TVs players Figure 2.5 AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 7  7/13/2024 Product Life Cycle Introduction Growth Maturity Decline Product design and Forecasting critical Standardization Little product development Product and Fewer product differentiation critical process reliability changes, more Cost Frequent product Competitive minor changes minimization OM Strategy/Issues and process product Optimum capacity Overcapacity in design changes improvements and the industry Increasing stability Short production options of process Prune line to runs Increase capacity eliminate items Long production High production Shift toward runs not returning costs product focus good margin Product Limited models Enhance improvement and Reduce Attention to quality distribution cost cutting capacity Figure 2.5 Product Upgrading Product upgrading—improving product quality and increasing value for consumers—may be stimulated by changes in end markets, usually refer to changes in customer preferences, or the desire for higher value added, higher quality. Thinking out of circle AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 8  7/13/2024 Product management process and key activities: 1. Vision development, 2. Customer understanding, 3. Strategy development, 4. Product development, 5. Marketing and sales, and 6. Metrics tracking. Each of the stages may include inbound and outbound activities. Inbound activities focus on product development and include defining vision and strategy, product development, testing, and launch. Outbound activities are oriented toward the marketing of a product and its sales. This includes branding, sales, and analysis of customer feedback. AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 9  7/13/2024 Product management process and key activities: 1. Vision development Product vision is a significant part of product management. It’s not a strategy of product development yet, but this is where strategy development starts with idea management when a team discusses a new product. Geoffrey Moore’s book Crossing the Chasm suggests using the following template for the product vision definition. AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 10  7/13/2024 Product management process and key activities: 2. Customer understanding and Market research Market research is a process of information collection and analysis of the market and its present or potential customers. It comprises comparing similar products that already exist, studying the competition, and identifying target customer groups. This activity include sub-activities as following: 1. Customer understanding Identifying customers’ needs is the only way to create and deliver the product that will be in demand. Besides defining specific problems and necessity for a specific product, customers can be classified into groups according to their 4 main needs: price, quality, choice, and convenience. Product management process and key activities: Studying customer behavior involves understanding your target customers’ psychology and motivations. That includes knowing how they reason and choose between different alternatives. 2. Market research can be made by a company (primary research) or taken from an external source (secondary research). Secondary research involves already produced data that can be found in statistical databases, journals, online sources, etc. Primary research is adapted to a company’s needs and can be either qualitative or quantitative. Qualitative research focuses on defining problems and relevant issues AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 11  7/13/2024 Product management process and key activities: 3. Strategy development The strategy describes a way to achieve them and sets main milestones. It must to be a clear and realistic plan for the team that works on a product. An effective product strategy defines the main features of a product, users and their needs. AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 12  7/13/2024 SWOT Analysis Mission Internal External Strengths Opportunities Analysis Internal External Weaknesses Threats Strategy Product management process and key activities: 4. Product Development. Product development starts with defining technical specifications, making first prototypes, and a mockup design. 4. Marketing and Sales The 3 important aspects of a successful product launch are 1. Building customer awareness with the help of various marketing campaigns and promotional activities; 2. Defining pricing strategy based on the product’s value and market competition; and 3. Choosing the most effective release timing considering customer readiness, performance of other existing products, competitors’ launches, etc. AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 13  7/13/2024 Product management process and key activities: 6. Tracking product metrics These metrics can be organized into several main groups: The financial metrics for identifying revenue, such as monthly recurring revenue that shows the revenue related to the product in one month; Metrics reflecting user engagement, like session duration that measures how long the product was used; metrics demonstrating user interest, i.e., retention rate that calculates the number of consumers who stayed loyal to the company after a certain period of time; Who is a Product Manager? A product manager is the person who creates internal and external product vision and leads product development. This individual defines customer needs, works with stakeholders and teams on creating the required product, and carries responsibility for overall product success. Product manager’s responsibilities? Identifying opportunities Developing product vision and strategy Team and stakeholders management Marketing activities. Constant product improvement. AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 14  7/13/2024 END AR Rasheed Smart University - Dr. Zakaria Saeed Alkindi 15