Uni

t1:
Int
roduct
iont
oPr
oductManagement
I
ntr
oduct
ion
ProductManagementi sbecomi ngani mport
antf uncti
onofmar ket
ing.Wi ththe
passageoft i
me,productmanagementhasunder gonemanychanges.I tisnomor ea
departmentofchurningoutpromot i
onalmat er
ial
sbuti shasnowbecomet hener v
e
centeroftheorganizat
ion.Effect
iveproductmanagementi sapr acti
cal,purposeful
andposi ti
veapproachofi mpr ov
ingthecompanyr esult
s,thr
ought heef f
ortsofa
compet entandcommi ttedteam,coordinati
ngmanuf acturi
ng,marketi
ngandsal es.
Inshort,i
tcanbesaidthatproductmanagementi nvolves.
Pr
oduct
Thewor d“ product ”canbedef inedi nmanyway s.Thedef i
nit
ionsdi fferaccordingt o
thedif
f erencei nt heconnot ati
oninwhi chi tisbeingused.Techni cally,aproductcan
bedefinedasany thi
ngt hatisproduced, whet herast heresultofgener ati
on,gr owt h,
l
abor,ort hought ,orbyt heoperationofi nvoluntarycauses;as,t hepr oductsoft he
season,oroft hef arm;t heproduct sofmanuf actures;theproduct soft hebr ain.In
manuf actur i
ng, productsar epurchasedasr awmat eri
alsandsol dasf ini
shedgoods.
Inproj
ectmanagement ,productsar ethef ormaldef i
nit
ionoft heprojectdeli
ver ables
thatmakeuporcont ri
but etodeli
veringt heobj ectivesofthepr oject.Inmarket i
ng, a
productisany thingthatcanbeof feredt oamar kett hatmightsatisfyawantorneed.
Fi
vePr
oductLev
els
1.Corebenefi
t:t
hebenef
itt
hecust
omeri
sreal
l
ybuy
ing.Ahot
elguesti
sbuy
ing
restandsl
eep.
2.Basi
cpr
oduct:
Hot
elr
oom i
ncl
udebed,
bat
hroom,
towel
set
c.
3.Expected pr
oduct:Setofat
tri
but
e buy
ers nor
mal
l
yexpect when t
hey
purchasethepr
oduct
4.Augment
edpr
oduct:
Exceedscust
omerexpect
ati
ons.
5.Potenti
alproduct:Her e compani
es sear
ch f
ornew way
sto sat
isf
y
customersanddist
ingui
sht
heirof
fer
ing.
Concept
srel
atedt
oPr
oduct
Theworldofproduct
shasmanyimport
antconcept
sr el
atedt oitthatarev er
y
popul
arl
ypr
eval
entint
hei
ndust
ri
eswor
ldover
.Letusunderstandeachofthem one
byone.
Pr
oductDev
elopment
Product devel
opment ist he process of designing,buil
ding,oper ati
ng,and
maintai
ning a good orser vi
ce.Pr oductdevelopmentadds t hi
ngs like pri
cing,
marketi
ng,andcustomersuppor ttot hetechnol
ogyt ocreateacompl et eproduct.
Thecompany ’sworl
dov er,useapr oductdevel
opmentpr ocesstoensur ethatthey
arenotjustmanufact
uri
ngapr oductthatpeoplewillwanttobuybutal soonet hat
peoplewouldli
ketocontinuetouse.Tobesur e,abaset echnol
ogyisatt heheartof
theproduct,butpr oductdev el
opmentensur esthatthecustomer’sv oiceisnotlostin
therusht oanexci ti
ngt echnology
.Pr oductdev el
opmenti sperformedbyamul ti
-
disci
pli
naryteam whosegoali sbuildi
ng,oper ati
ng,andmai ntai
ni ngthepr oduct.
Team member s may i nclude productmanager s,productdev elopers,project
manager s,pr oductoper at
ions engineers,customersuppor tmanager s,qual i
ty
assurancemanager s,userinter
facedesignengineers,marketer
s,financialper
sonnel,
graphicart
ists,etc.
NewPr
oduct
Thedy nami csofmar kets,technology ,andcompet i
ti
onhav ebr oughtchangest o
vir
tuall
yev erymar ketsect orandhav emadenew pr oductdev elopmentoneoft he
mostpower fulbusinessact ivi
ti
es.Themonument alchangest hatconst antlyimpact
commer cehav eforcedcompani estoi nnovatewi t
hi ncreasingspeed, effi
ciency,and
quali
ty.Inturn,thishasmadenew pr oductdev el
opmentoneoft hemostcompl ex
anddi f
ficul
tbusi nessf unctions.Howev er
,f i
rmsmusti nnovatei nor dertosur vive.
The powerofi nnovation i srevealed in numer ous st udies,whi ch show t hat
compani esleadingt heirindustri
esattributeabouthal foft hei
rr ev enuestopr oduct s
developedint hemostr ecentf i
veyears.Bycompar ison, compani esatthebot tom of
thei
rindustri
esachi eveappr oximatelyone- tenthoft heirsalesf rom newpr oducts.A
newpr oductcanbedef i
nedasapr oductt hatisnewt othemar ket .
Exampl
e:Sonyi
ntr
oducedWal
kman
GEi
ntr
oducedLi
ght
HLL’
sadul
tdi
aper
s,DEPEND,
inI
ndi
anmar
ket
.
Ther
ear
efi
vecat
egor
iesofnewpr
oduct
s.
1.New-
to-
the-
wor
ldpr
oduct
sorser
vicesar
enewi
nvent
ions.
Exampl
e:I
n-l
i
neskat
esandheal
thmai
ntenanceor
gani
zat
ions.
2.Newcat
egor
yent
ri
esar
epr
oduct
sorser
vicest
hatar
enewt
oaf
ir
m
Exampl
e:Spor
tut
il
it
yvehi
cles
3.Addi
ti
onst
opr
oductl
i
nesaddpr
oduct
sorser
vicest
oaf
ir
m’scur
rentmar
ket
s.
Exampl
e:Whenapowderl
aundr
ydet
ergentof
fer
sal
i
qui
dver
sioni
tisconsi
der
eda
l
ineext
ensi
on.
4.Producti
mprovement
sar
eanot
hert
ypeofnewpr
oductandar
ecommont
oev
ery
productcat
egor
y.
5.Reposi
ti
oni
ngt
argetpr
oduct
stonewmar
ket
sorf
ornewuses.
Fir
mscanobt ai
nnewpr oduct
si nt
ernall
yorext ernal
ly.Externalsourci
ngmeanst he
companyacqui rest
heproductorservi
ce, orobtai
nst herightstomar ketthepr
oduct
orservi
ce,f
rom anotheror
ganizati
on.Int
er naldevel
opmentmeanst hefi
rm dev
elops
the new productitsel
f.Thisisr i
skiert han exter
naldev el
opmentbecause t he
companybear sallofthecost sassociat edwithnew pr oductdev el
opmentand
i
mplementation.Coll
aborat
ions,whi ch i
nclude st
rat
egi
c par
tner
shi
ps,st
rat
egi
c
al
li
ances,j
ointvent
ures,andlicensingagreement
s,occurwhentwoormorefi
rms
worktoget
herondevelopi
ngnewpr oduct
s.
Pr
oductLi
feCy
cle
Wehav eal
lheardabouttheproductli
fecycl
ecanbedi vi
dedintofourphases
namelyintr
oduct
ion,gr
owth,matur
ityanddecl
ine.Onthebasi
soft hesestages,
productpl
anni
ngisdone.Thel
if
ecy cl
econcept
sonwhichaproductpl
anningteam
worksare:
1.Pr
oductI
nit
iat
ion
2.Feasi
bil
i
ty
3.Dev
elopment
4.Test
ing
5.Pr
oductLaunch
6.Oper
ati
on
7.Decommi
sioni
ng
1.Pr
oductIni
ti
ati
onPhase:IntheIni
ti
ati
onPhase,Pr
oductManagement
,Engi
neer
ing,
orOperati
onssubmit
sar equestforanew serv
iceormodifi
cati
ontoanexist
ing
serv
ice.
Theser equestsarer eceivedandpr iori
ti
zedbyt heProgram ManagementOf fi
ce
(PMO).Oncepr iori
ti
zed,therequestsarereviewedbyv ar
iousmanagementt eamsto
assessthei mpactandv iabil
i
tyoft herequestinthecontextofbusinessneedsand
theorganizati
on’sstr
ategy.Ifapproved,therequestisgivennecessaryfundi
ngand
resour
cesi nordertoproceedt ot
heFeasi bi
li
tyPhase.
2.Feasibi
li
tyPhase:TheFeasibili
tyPhaseiswher eanideaisexplor
edinmoredepth
i
nor dertodeter
mi nethefeasibil
it
yofengi neer
ingtherequestedservi
cewithi
nthe
scopeoft hebusi nessneeds.Ther equestthathasbeen appr oved dur
ing t
he
i
niti
ati
onphasebyt heGov erningCommi tt
eeisev al
uatedatt heengineer
ingand
productmanagementl ev
el.
From anengineeri
ngper spect
ive,theservi
ceisev aluatedfortechnicalf
easibil
i
ty.
Thepr el
imi
naryTechni
cal Ser
viceDescri
pti
onoutli
nest hegeneralarchit
ect
ureofthe
proposed ser
vice.The Feasibili
tyAnaly
sis and stable Busi
ness Case ar e al
so
developedduri
ngthisphase.Thesedocument ssummar izet
imeandcostest i
mates
andot heri
nvestmentinformationnecessar
yf ordecidingwhet hertocontinuethe
productdevel
opmentprocessornot .
3.DesignandPlanPhase:I ntheDesi gn&Pl anPhase,t hecr oss-f
unctionalteam
documents al
ldetailpert
aining tot he devel
opmentoft he servi
ce.Whi le core
documents,
suchast heMar keti
ngSer vi
ceDescri
pt i
on,TechnicalServi
ceDescr i
pt i
on,
andDesignSpeci
fi
cations,
ar estabil
i
zed,othergroups,i
ncludingOperations,QA, and
CustomerCarebegintospeci f
yt hei
rrequir
ement sforsuppor t
ingtheserv i
ce.Allof
thesedocument
sareapprov
edandsignedoffbyt
hepr
ojectt
eam andtheDesign&
PlanCheckli
sti
spresent
edtotheGov er
ningCommi
tt
eef orfi
nalappr
ovalbefor
e
mov i
ngint
otheDev
elopmentPhase.
4.Dev elopmentPhase:I ntheDev elopmentPhase,t heact ualengineer ingoft he
serv
icei scompl eted.Ast heser vicei sbeingdev eloped,ot herfunct i
onalgr oups
conti
nuepr eparatorywor kfort heTest ingandI ntroductionPhases.Muchoft he
document at
iontosuppor tCustomerCar e,Trai
ning,Vendor s,andCl ientsi scr eated
duri
ngt hisphase.Al so,t
heQual i
tyAssur ance(QA)Gr ouppr epar
esf orthet esti
ng
handoffbydocument ingTestPlansandTestSpeci fi
cations, andconf iguringt hetest
envi
ronment .Int hisphase,adeci siongat eensur est hatal lpi
ecesr equiredf or
test
inghav ebeencompl eted.Thef ol
lowingarer equirement st opasst hr ought he
deci
siongat e:
(
a)Readyf
orTest
ingPhasef
rom aSy
stem I
ntegr
ati
onTestper
spect
ive(
b)Document
ati
onCompl
ete
(
c)TestEnv
ironmentCompl
ete
(
d)CodeCompl
ete
(
e)VendorRequi
rement
smet
(
f)I
ntegr
ati
onTest
ing&Resul
tsCompl
ete.
OncetheProj
ectTeam hasapprov
edthereadi
nessoftheser
vice,t
heDev el
opment
Checkl
isti
scompiledandpresentedtotheGoverni
ngCommi tt
eef orappr
ovalto
movetheserv
icei
ntotheTest
ingPhase.
5.Testi
ngPhase:Themaj orityoft
heTestingPhasei sspentcer tify
ingthehardwar e
andsoftwarechangesinvol
v edintheserv
ice.Theser vicewillundergoanumberof
readi
nesstest
si naLabEnvironment.Anoperationalsoperfor msnecessar ysystem
andnetworktest stoensureoperati
onalreadinesspr i
ortodepl oyment .OnceQA
TestResul
tsandOper at
ionsReadinessTestResultsar ecompl eted,theservi
cemay
undergofi
eldt
rialsasdi
rect
edbypr oductmanagement .TheTest ingPhaseDeci sion
Gateisbasedont heQATestResul t
s,Operati
onsTestResul t
s,FieldVerif
icati
on,
ChangeRequest s,andBusinessNeeds.A‘ go’decisionatt hegat eauthori
zest he
l
aunchoftheser vi
ce.
6.ProductLaunchPhase:ThePr oductLaunchPhasecoor dinatesthedeploymentof
thenewormodi fiedservi
ce.Ast heser vi
ceisenabledbyOper ati
ons, t
hesuppor ti
ng
organi
zationsiniti
atesupportpr ocessest omai nt
aintheservice.Oncedepl oyeda
servi
cechecki smadebyt hePr ojectTeam andPr ogram ManagementOr ganizati
on
toensuret hattheSer vi
ceisav ail
able.Ift
heser vi
ceisfoundt obeunsuccessf ul
,a
predet
ermi nedun- l
aunchprocesswi llbeexecut
ed.Iftheservi
cei slaunchedwi t
hout
i
ncident,t
hePr ojectTeam thenev aluatesthestabil
i
tyofthereleaseandt heser vi
ce
i
st r
ansiti
onedtot heLifeCycleManagementPr ocess.
7.Operat
ionPhase:TheOper at
ionPhaseist
ypical
l
ythelongestoft
hephasessince
onceapr oducti
sdev eloped,i
tmaybeoper atedforquit
esomet i
mebeforeitis
updat
edordecommi ssioned.Theoperat
ionphaserequi
resanorgani
zat
ionthatcan
managet heproduct,trackpr obl
emsandbugs,andr espondtocust
omeri ssues
regar
dingtheproductinat imelyandcost-
eff
ecti
vemanner.Amult
i-
ti
eredproduct
supportmodelisusedt oensur ethatpr
oduct
sareoperatedi
nawayt hatl
eadst o
RASM (rel
i
abil
i
ty,avai
labil
it
y,securi
ty,
andmanageabi
l
ity
).
8.Decommi ssioningPhase:TheDecommi ssi
oningPhaseoccur sattheendoft he
productl
ifecycle.Whileitmayseem liket hedecommi ssi
oningphaseissomet hi
ng
thatcanbesaf elyignor
edsincetherewi l
llikelybelargerprobl
emsi ft
hepr oductis
decommi ssi
oned,t hetruthisthatmanypr oductsaret akenoutofservice.Ev en
whenacompanyi sinbankrupt
cy,ther at
ional,order
lyclosingdownofapr oductor
servi
ceisimportanttomanagingt hecompany ’
sassets.
Pr
oductManagement
:Meani
ng
Productmanagementi sanorganizati
onall
i
fecy cl
efuncti
on wi
thinacompany
deali
ngwi t
ht heplanningormarket
ingofaproductorproduct
satallstagesofthe
productli
fecy cl
e.Pr oductmanagementandpr oductmarket
ingaredi f
fer
entyet
complement aryeffort
swi tht
heobj ect
iveofmaximizi
ngsalesrevenues,market
share,andprofi
tmar gins.
Pr
oductManagementProcessst
art
swi
tht
het
ypeofcompanyonewor
ksf
or.Ther
e
maybecompaniest
hatare:
1.Technol
ogy
-dr
iven
2.Companydr
iven
3.Sal
es-
dri
ven
4.Mar
ket
-dr
iven
ProductManager’
spri
maryr oleistoserveasthe“voi
ceoft hecustomer
”.Thus
productmanagementincl
udesi ndi
rectmanagementandcooper at
ionwit
hother
member sofvar
iousgr
oupsot hermembersofvari
ousgroups.Thedaytodaywork
revol
vesar
oundexecut
ingfourmaintasks:
1.Dev
elopi
ngt
hemar
ketr
equi
rement
sdocument
2.Managi
ngt
hepr
oductf
eat
urel
i
st
3.Coor
dinat
ingact
ivi
ti
esofdi
ff
erentf
unct
ional
groups
4.Part
ici
pati
ngi
nand/
orr
unni
ngt
hel
aunchandpost
-l
aunchmar
ket
ingact
ivi
ti
esf
or
aproduct.
Thegoal
ofpr
oductmanagementi
sto:
1.Ensur
eamar
ket
-dr
iven“
whol
e”pr
oductof
fer
ing
2.Est
abl
i
shcompet
it
iveandpr
ofi
tabl
epr
ici
ngmodel
s
3.Ensur
etheexi
stenceandsuppor
tofpr
oductdi
str
ibut
ion
4.Cr
eat
eef
fect
ivemar
ket
ingpr
omot
ionst
hatgener
ater
evenue.
Aspect
sofPr
oductManagement
Dependingont hecompanysizeandhi st
ory,productmanagementhasav ari
etyof
functi
onsandr oles.Someti
mesthereisapr oductmanager ,andsometi
mest herole
ofpr oductmanageri sheldbyot hers.Frequentl
yt her
eisPr ofi
tandLoss( P&L)
responsibil
i
tyasakeymet r
icf
orevaluati
ngpr oductmanagerperformance.Insome
compani es,theproductmanagementf unctionist hehubofmanyot heractiv
iti
es
aroundt heproduct.I
nother
s,i
tisoneofmanyt hingsthatneedtohappentobr i
nga
productt omarket.
Pr
oductPl
anni
ng
ProductPlanning i
st heongoing pr
ocessofident
if
ying and ar
ti
cul
ati
ng mar
ket
requi
rementsthatdefi
neaproduct’
sfeat
ureset
.
Def
iningNewPr oducts:I
tisi
mpor t
antt
odefi
netheproductsandservicesyouwant
topromote.Ideasfornew product
scanbeobt ai
nedfrom basicresearchusi
nga
SWOTanal y
sisand/orbrai
nst
ormingofnewproduct
,ser
vice,orst
oreconcepts.
Gather
ingMarketRequir
ement
s:Thisi
shel
pedbyanaly
zingmar
ketandconsumer
tr
ends,competi
tor
s,focusgr
oups,cor
por
atespi
es,t
radeshows,oret
hnographi
c
di
scoverymet
hods.
Buil
dingProductRoadmaps,Par ti
cularl
yTechnologyRoadmaps:Agr eatroadmap
walksthefineli
nebetweenbei ngtoonarrow( “aone-tr
ickpony”)andtoowi de(“
all
overthemap” )
.Demonstratefocusbybui l
dingyourplanandpr esent
ationtospend
themostt imeony ourinit
ialproducts.Si
zet hemar ketsconservat
ively
,andpick
real
ist
icpenetr
ati
onrat
es.Roadmapsar eal
way ssubjecttochange.
ProductLifeCy cl
eConsider
ati
ons:Thei deaofapr oductl
if
ecy cleacknowledges
thefactthatdesigni
ngandsell
ingapr oductisonlypar
tofthest or
y.Infact
,every
productgoesthroughaseri
esofst epsbet weentheti
meitisfi
rstconcei
vedandt he
ti
met hemanuf actur
edpr
oducti
sr etir
edordi scar
ded.
Product Differenti
ati
on: Pr oduct diff
erenti
ati
on ( al
so known si mply as
“di
ff
erent
iat
ion”)ist heprocessofdi sti
nguishi
ngt hedif
ferencesofapr oductor
off
eri
ngfrom ot her
s,tomakei tmoreat t
racti
vetoapar t
iculartar
getmarket
.This
i
nvolvesdif
ferenti
ati
ngitfrom compet i
tor
s’productsaswel lasone’sownproduct
off
eri
ngs.
Pr
oductManagement
:Scope
Productmanagementasadi scipli
neisaboutwhatt heproductshoul dbe.Product
manager sar eadv ocatesf ort hecust omer’sneedsanddesi res.A lar
gepr oduct
mi ghthav enumerouspr oductmanager sworki
ngtowardsi
tssuccessatav ari
etyof
l
ev els,allthewayf r
om t hej uniorpr oductmanagerwr i
ti
ngspeci fi
cati
onsabout
singlefeaturesetstoapr oductst r
ategydirect
orwhohasov erallr
esponsibi
l
ityto
execut i
ve management f or t he pr oduct dir
ect
ion. A pr oduct manager’s
responsibili
ti
esi
ncludet hefollowing:
1.Def
ini
ngandpl
anni
ngpr
oductl
i
nesandpr
oductenhancement
s
2.Managi
ng productcontract
sand sal
es.Set
ti
ng st
rat
egi
cdi
rect
ion based on
cust
omerneedsandbusinessgoal
s
3.I
nter
pret
ingst
rat
egi
cgoal
sint
ooper
ati
onal
tasks
4.Maki
ngpr
oposal
stoseni
ormanagementr
egar
dingi
mpl
i
cat
ionsofpr
oposedpl
an
5.Ser
vingasarepresent
ati
vetoint
ernalandext
ernalcl
i
ent
s.Taki
ngt
hel
eadi
ng
est
abl
ishi
ngt
act
ical
plansandobj
ecti
ves
6.Devel
opingandimplement
ingadmi
nist
rat
iveandoper
ati
onalmat
ter
sensur
ing
achi
evementofobj
ect
ives
7.Ev
aluat
ingr
isksandt
rade-
off
s
8.Pr
oposi
ngcont
ingencypl
ans
9.Analy
zingbusinesspr
ocessesandcr
eat
ingappl
i
cat
ionst
oimpr
oveorsuppor
t
thosepr
ocesses
10.Br
andi
ng
11.Wor
kingwi
thgr
aphi
cdesi
gner
stocr
eat
elookandf
eel
12.Def
ini
ngnav
igat
ional
flowanduserexper
ience
13.Def
ini
ngf
eat
ureset
sandscoopi
ngr
eleases.
Mar
ket
ingFocusedOr
gani
sat
ion
Mar keti
ng Organi
zat
ion i
s an organi
zat
ion t
hatmar kets one ormor e sy
stems,
applicati
ons,and/orcomponent s pr
oduced by a devel
opmentor gani
zati
on to
potentialcustomerorganizat
ions.The typi
calresponsibil
i
ties ofa Mar ket
ing
Organizationar
eto:
1.Mar
ketappl
i
cat
ionst
othecust
omeror
gani
zat
ion(
s).
2.Provide change r
equest
s based on cust
omerf
eedback t
othe dev
elopment
or
ganizati
on.
3.Actasasour ceofr
equi
rement
sdur
ingt
heper
for
manceoft
her
equi
rement
s
i
denti
fi
cat
iont
ask.
Faced wi thincreasing demand f oraccount abili
tyand greaterpressurefr
om a
changingmedi al andscape,mar ketersarebei ngaskedbyseni ormanagementas
neverbef or
etoaddr essor gani
zati
onalissues:Isy ourmarketi
ngor gani
zat
ionsetup
forsuccess?Ar ey oualignedwithkeyst akeholdersacr
osst hebusiness?Canyour
organizati
onpr ovidetheni mbler esponsey ou’llneedtobeabl etomanagey our
mar keti
ngi nv
est ment?A l otofthepr oblem canbeexpl ainedinhow mar keti
ng
organizati
onsar estr
ucturedandhowt heymanage.
Char
act
eri
sti
csofaGoodMar
ket
ingOr
gani
sat
ion
Agoodmar
ket
ingor
gani
zat
ionshoul
dhav
efol
l
owi
ngchar
act
eri
sti
cs:
1.I
tshoul
dbef
lexi
blesoast
oal
l
ow t
hemanager
stouseanyt
ypeofmar
ket
ing
st
ruct
ure.
2.Itmustgi
vepossi
blef
utur
egr
owt
handaccept
abl
ephi
l
osophyt
othewhol
e
concer
n.
3.Personnelin mar
ket
ing depar
tmentmustbe wi
l
li
ng t
otake v
ari
ous j
ob
assi
gnments.
4.Connectedwi
ththepr
oblem offl
exi
bil
i
tyisthegrowthpot
ent
ial
.Wit
hthechange
ofmar ketposi
ti
onsnew product
sarei nt
roducedinplaceofoldones.So,the
provi
sionsar
erequi
redf
orthegrowthofnewpr oduct
sandsegmentsinconcer
nin
futur
e.
5.Thereshouldbeacentralphi
losophyortradit
ionprevai
l
ingintheconcer nthat
shouldbeinti
matedt
oall.Thi
sformst hewhol eobject
iveofthemar ket
ing.Some
concernspaymor eheedtomi ddle-andlower -
incomegroup.Int hiswaywhi le
poli
ciesandprogr
ammeschange,thecent
ralphil
osophyremainsguidetot hef
uture
acti
on.
Ty
pesofMar
ket
ingOr
gani
sat
ion
Mar
keti
ngor
gani
zat
ionsmaybeofv
ari
oust
ypes.Themosti
mpor
tantoft
hem al
l
i
ncl
ude:
1.Funct
ionOr
ient
ed
2.Mar
ketOr
ient
ed
3.Pr
oductOr
ient
ed
4.Cust
omerOr
ient
ed
5.Combi
nedTy
peLetusunder
standeachoft
hem onebyone.
1.FunctionOr i
ented:Thisi sthemostsi mpl eandcommont ypeofor gani
zati
on.
Underthist ype,the activ
iti
es ar e grouped on t he basis off uncti
on,such as
product
ionplanning,market i
ngr esearch,adverti
singandsal es.Ther eareseparate
managersf orspecifi
cfunct i
onsandeachoft hesef unct
ionsisf urt
hersubdivided
i
ntov ar
ioussubf uncti
onsl i
kepr oductplanning,mar ket
ingr esearch,advert
ising,
salespr
omot i
on,phy si
caldistr
ibuti
on, cust
omerser v
ice,et
c.
Themai nadvant
agesoff unct
ion-
ori
entedmar
ket
ing or
gani
zat
ionar
eincr
eased
eff
ici
encyandel
ast
ici
tyi
ntheorgani
sati
on.
2.MarketOri
ent
ed:Thi
stypeofst ruct
ureisusedbybi gcompani eswhoservea
l
argenumberofcust
omersspreadov erver
ylar
geterr
it
ory.Thestructur
eisdi
vi
ded
i
ntoregi
onal
basi
sandspeci
fi
car easareassi
gnedtodi
fferentper
sons.
Each regi
on may be under a super vi
sor whose number s depend on the
charact
eri
sti
csandrequi
rementsofapar t
icularregi
on.Eachsuper
visori
sgivena
numberofsal esmenunderhiscont
rol.Thust hemar ketisf
ragmentedint
osale
ter
ri
tori
eswhichmaybeadistr
ict
,di
vi
sionorr egi
on.
Themai
nadv
ant
ageoft
hist
ypeofmar
ket
ingst
ruct
urei
sthati
tenj
oysal
lthe
advantagesofbei ngfunct
ional.Additi
onally
,suchanor gani
zat
ionisi nconst
ant
touchwitht hecust
omers.I
tcomest oknowt hechangi
nghabits,
fashionandneeds
ofthecust omersofever
yregionandt herefor
ecanmakenecessar ychangesinthei
r
productsinashor tspanoft ime.Also,t heresponsi
bil
i
tycanbef ixedinsuchan
organi
zationveryeasi
l
yforanylapse.
3.Pr oductOr i
ent ed:Bigcompani esaswel lassmal l
erconcer nsexistsidebysidein
the field ofpr oduction.The smal l
ercompani es hav e anotherpopul arform or
structure which assi gns t o pr
oductmanager s and br and manager s wit
ht he
responsi bi
li
tyformar ket
ingdecisionsofpar ti
cularpr oduct sorgroupsofpr oducts.
Adv erti
sing,sal
espr omot i
on,mar ket
ingresearch,et c.canbecent ral
izedacti
viti
es.
Thepr oductmanagert akesdecisionsandexecut esdeci sionsregardi
ngadv ert
isi
ng
and sal es promot ions aftertaking necessarysuggest ions fr
om t he advert
isi
ng
managerandsal espr omotionmanagerr especti
vel y
.
Thistypeofst ruct
ureisbestsui
tedtoindustri
esproduci
ngdi f
fer
entproductsor
brands.Everydepart
mentcanbecont r
oll
edeffi
cient
lybythedepartmentincharge,
renderi
ngt her
eon,anadditi
onalbenefi
tofmaki ngitpossibl
ef oreval
uati
onand
compar i
sonoftheperfor
manceofthediff
erentdepar
tments.
4.CustomerOr ient
ed:Underthi
stypeofstr
ucture,concentr
ati
onisonthetypeof
customers.Separategr
oupsar edesi
gnat
edr esponsibl
ef ormarket
ingcl
assesof
thei
rdif
ferentcl
assesofcust
omerssuchas:
(
a)Di
str
ibut
ors
(
b)Ret
ail
ers
(
c)Cust
omer
s
Underthistypeofor
ganizat
ion,f
ullatt
entioncanbepaidtoeachclassofcustomer s
andtheirproblemscanbewel lunderstoodbyt heor
ganizati
on.Asanor ganizat
ion
comesi ncontactwi
ththecustomer sregular
ly,
iti
seasiertoesti
matetheirdemand
andsatisf
ythem.
Al
thought
hecust
omersati
sfact
ioni
sthemainaim oft
hestr
uct
ure,buti
tissui
tabl
e
i
nthoseor
gani
zat
ionsonl
ywherethenat
ureofcust
omersisdi
ff
erent.
5.Combi
nedTy pe:Thefourt
y pesdiscussedabovearebasi
cconceptsregar
ding
or
gani
zat
ion str
uct
ures.Any struct
ureini t
s pureform israrel
yfound in an
or
gani
zat
ion.I
npract
ice,
onenormal l
ycomesacrossacombinat
ionsuchas:
(
a)Funct
ional
wit
hter
ri
tor
ial
str
uct
ure,
or
(
b)Funct
ional
wit
hpr
oduct
-or
ient
edst
ruct
ure,
or
(
c)Mar
ketor
ient
edwi
thpr
oductst
ruct
ure.
Mar
ket
-FocusedOr
gani
zat
ions

Pr
oduct
-FocusedOr
gani
zat
ions
Usedwher
edi
ff
erentpr
oduct
suset
hesamechannel
dist
ri
but
ion.
ProductManageract
sasa“
mini
-CEO”byt
aki
ngr
esponsi
bil
i
tyf
ort
heov
eral
lheal
th
ofthebrand.
A well
-defi
nedhierar
chywit
hinthepr
oductmanagementsy
stem wi
l
ldev
eloped.
(
refert
ot hehi
erar
chystr
uct
ure)
Keyr
olesar
eassi
gnedt
oassi
stantandassoci
atepr
oductmanager
s
 Assi
stantPM -mar ket& shar
ef orecasti
ng,budget
ing,coor
dinat
ing wi
th
pr
oduction,
execut
ingpromoti
on,packaging,et
c.
 Associ
atePM –mor
efr
eedom t
odev
elopbr
andext
ensi
on.
Leadtot
he“
deat
hoft
hepr
oductmanagersy
stem”andwi
despr
eadbur
noutamong
them.
Thi
sbur
noutar
e:
 f
ocusonshor
tter
m -st
if
lesi
nnov
ati
on
 anexpl
osi
onofmar
ket
ingdat
aleadi
ngi
ntoi
nfor
mat
ionov
erl
oads,
 cor
por
atedownsi
zi
ng;
and
 mor
eresponsi
bil
i
tyandpr
essur
ewi
thl
essaut
onomy
.
Adv
ant
ages:
 Locusofr
esponsi
bil
i
tyi
scl
ear
.
 PM’st
rai
ningandexper
ience-dev
elopt
heabi
l
ityt
owor
kwi
thot
herar
easi
n
or
gani
zat
ion.
 Adv
ocat
efort
hepr
oduct
.
  Fastr
esponset
ocust
omerr
equest
.
Di
sadv
ant
ages:
 Focusononepr
oduct
.
 Cent
ral
i
zedst
ruct
ure.
 Toomy opi
c– f
ocusonSTsal
es&mar
ketshar
egoal
s(i
ncr
easei
nsal
es
promot
ion)
.
 I
nef
fi
cientuseofmar
ket
ingf
unds–f
ami
l
ybr
andsuchas“
Kraf
t”.

Pr
oductDev
elopmentPr
ocess
St
epsi
nthePr
oductDev
elopmentPr
ocess:
 I
deagener
ati
on.
 Scr
eeni
ngofnewi
deas.
 I
nit
ial
conceptt
est
ing.
 Busi
nessanal
ysi
s.
 Pr
otot
ypedesi
gn.
 Mar
kett
est
ing.
 Commer
cial
i
zat
ion.
 Moni
tor
ingcust
omerr
eact
ion.
I
dea I
nit
ial Busi
ness Desi
gn Market Commer
cial
i
zat
io
Gener
ation Concept Anal
ysi
s Prot
oty
pe Test
ing n
and Testi
ng
Scr
eening

Based on Research Esti

mat e Design and Limi ted Plant
argeti
ngand
customer customer development, pr
oduce mar kettri
als ti
mingoflaunch
needs and value of productionand working orsi mulat
ed
Plan production
wants product mar ket
ing mix pr
otot y
pes testing
and mar ket
ing
concepts costs
Screenout Test Test mix supportf or
unprofi
tabl Refine Compar ecosts protot
ype different l
aunch
e or concept with potenti
al functi
onali
ty mar ket i
ng
unsuit
able based on share, sales, , cust omer mix
i
deas research profi
tabi
l
ity t
o appeal combi nati
on
i
dentify good sf orsuppor t
candidat
es
FACTORSI
NFLENCI
NGDESI
GNOFTHEPRODUCT
1.Requi
rement
sofTar
get
edCust
omer
s.
2.Av
ail
abi
l
ityandAccesst
oNecessar
yPr
oduct
ionFaci
l
iti
es.
3.Ty
peandqual
i
tyofr
aw-
mat
eri
alsusedt
opr
oduceapr
oduct
.
4.Costt
oPr
iceRat
io.
5.Pol
i
cyofQual
i
tySt
andar
ds.
6.Av
ail
abi
l
ityofPl
antandMachi
ner
ies.
7.I
mpactofupcomi
ngpr
oductonexi
sti
ngpr
oduct
soft
hecompany
.
8.Reput
ati
onorGoodwi
l
loft
heCompany
.
1.Cust
omer
s’Requi
rement
s
 Theproductdesi
gnersmustconsi
derandst
udyt
her
equi
rement
soft
hei
r
tar
get
edcustomers.
 Thedesigned pr
oductmustsati
sfycust
omersint er
msofgood pr
oduct
requi
rement
sli
kequali
ty,
per
for
mance,r
eli
abi
l
ity
,dur
abil
it
y,et
c.
 Theproductmustcr
eateconf
idenceamongcust
omer
ssot
hatt
heybecome
l
oyalt
oitandstar
tent
rust
ingi
tscompany.
 Thiswil
lleadt
orepeat
edcy
cleofsal
esf
ort
hecompany
,thusboost
ingi
ts
prof
it
s.
2.Pr
oduct
ionFaci
li
ti
es
 Thepr oductdesigner
smustcheckt hatpr
oduct
iondepar
tmenthasgotal
l
necessaryfaci
l
iti
estoproduceapr
oduct.
 Simpleproductdesignr
equi
resmini
mum pr
oduct
ionfaci
l
iti
es.Thi
swil
lmake
thejobofpr oduct
iondepar
tmenteasy
,anditwi
l
lalsomi ni
mizethecostof
product
ion.
 Themachinesandtoolswhi
chareusedtoproducetheproductmustgi
ve
comf
ortandconveni
encet
otheempl
oyeesofpr
oducti
ondepart
ment.
3.Raw-
mat
eri
alst
obeused
 Thetypeandqual
i
tyoft
heraw-mat
eri
alst
obeused,gr
eat
lyi
nfl
uencet
he
desi
gnandmaki
ngofapr
oduct
.
 Thedesignermusthaveproperknowl
edgeaboutl
atestmat
eri
als,whi
char
e
requi
redtoproducet
hepr
oduct.
 He mustcollectinfor
mat
ion aboutr
equi
red mat
eri
alsf
rom pr
imar
yand
secondar
ysources.
 Hemustalsof
indoutwhatmat
eri
alsar
eusedbyt
hecompet
it
orsf
ort
hei
r
pr
oduct
s.
4.Costt
oPr
iceRat
io
 Costi
soneoft
hemai
nfact
ors,
whi
chi
nfl
uencest
hedesi
gnofapr
oduct
.
 Somet i
mest heproductdesignerisi
nformedaboutthemaximum costoft
he
product.Sohehast odesi gntheproductwit
hint
hiscost
.Insuchacase,he
hasnof reedom t
oov er
-designtheproduct
.
 Thepr
oductdesi
gneri
sal
sogui
dedbyt
hecostofcompet
it
or'
spr
oduct
s.
 I
tmayhappent hatthedesignerfi
rstdesi
gnst heproductandthent hefi
nal
pri
ceoftheproductisdeci
ded.Inthiscase,thedesignerget
saf reedom t
o
desi
gnthepr
oducts.However,hemustnev eroverdesi
gntheproduct.
5.Qual
it
yPol
icy
  Thedesi
gnoftheproducti
sgui
dedbyqual
i
typol
i
cy,
whi
chi
sfi
xedbyt
het
op
l
evelofmanagement.
 Thispoli
cygiv
es,gui
del
i
nesforqual
i
tystandar
d.I
tsetsthedesi
gnt
rendfor
thefut
ure.I
tal
sobuil
dsapar
ti
cul
arqual
i
tyimageofthecompany'
spr
oduct
s.
 Somecompani espr
efert
ohav ethe'
presti
geimage'
fort
hei
rpr
oduct
s.Fore.
g.
Mercedes-
Benz,Rol
l
sRoy ce,
RolexWat ches,
etc.
 Ot
hercompani
espr
efert
he'
popul
ari
mage'
fort
hei
rpr
oduct
s.
6.Pl
antandMachi
ner
ies
 Thepr
oductdesi
gndependsont
heav
ail
abi
l
ityofpl
antandmachi
ner
y.
 Thedesi
gnermustnotdesi
gnaproductwhi
chcannotbemanuf
act
uredbyt
he
machi
nesavai
labl
einthecompany.
 Themachinestobeusedf orproduct
ionshoul
dbeofgoodquali
tyandina
bet
tercondi
ti
on(wellmaintai
ned)tomeettheneedsoft
hepr
oductdesi
gner
s
andthequal
it
ystandards.
7.Ef
fectonExi
sti
ngPr
oduct
s
 Theproductdesi
gnermustconsi
dertheimpactoref
fectoft
hepr
oduct
desi
gnontheexi
sti
ngpr
oduct
softhecompany.
 Anupcomingnewproductmaybadlyaf
fectt
hesal
eofexi
sti
ngpr
oduct
s.The
desi
gnermustav
oidthi
ssit
uat
ion.
 Fore.g.acompanymaydesi
gnal ow-qual
it
ypr
oduct
,buti
tmaybadl
yaf
fect
thesaleofi
tshi
ghqual
i
tyexi
sti
ngproduct.
 Secondl
y,i
fanewproducti
sgoi
ngtorepl
aceaf
ormerproduct,theni
tmust
beabletouset hesamemanufact
uri
nganddi
str
ibut
ionstrategi
esofthe
exi
sti
ngproduct
.
8.Reput
ati
onoft
heCompany
 Theproductdesi
gnermustconsi
dert
her
eput
ati
onoft
hecompanyi
nthe
market
.
 Companieswhichhaveagoodnameandgoodwil
linthemar
ketwi
l
lwant
thei
rnewproductdesi
gnst
omat
chorkeepupt
hei
rposi
ti
vei
mage.
Changesaf
fect
ingpr
oductmanagement
Theweb
New channeldist
ri
buti
on,communi
cat
ion medi
um,& cr
eat
ing a
communit
yaroundabrand.
cust
omeracqui
sit
ionandr
etent
ion.
par
tofthebrandbui
l
dingandwi
l
laf
fectmanyf
acet
soft
hepr
oduct
manager
’sj
ob.
Thedat
aexpl
osi
on
Incr
ease the use of I
T - eff
ecti
ve mar
ket
ing t
oday r
equi
res
sophist
icat
edi
nfor
mati
onmanagement.
Forconsumergoods bettert
ime f
ormar
ketshar
es,sal
es and
di
str
ibut
ion.(
Eg:
Scanner)
.
Lapt
opcomput
ergui
det
ransmi
ssi
onofcompet
it
ori
nfor
mat
ion.
Useof“
dat
ami
ning’
sof
twar
eandt
raf
fi
cdat
a.
Thei
ncr
easedemphasi
sonbr
ands
Br
andi
sthegr
eat
estasset
sofacompany
.
Focusonbr
andequi
ty.
Changesi
nthebal
anceofmar
ketpower
Inv
olv
ementi nITpar
tner
sbet
weenmanuf act
urer
sandsel
l
ersbot
hhas
equalaccesstosal
esandmarketshar
edata.
The bal
ance powerin di
str
ibut
ion channel
s has shi
ft
ed f
rom t
he
manufact
urert
oretai
l
er.
Consumer
s&r
etai
l
ershol
dbi
ggermar
kerpower
.
I
ncr
easedi
mpor
tanceofcust
omerr
etent
ionpr
ogr
ams
Companyf
ocusont
hel
i
fet
ime-
val
ue-
of-
a-cust
omerconcept
.
Cust
omer serv
ices and sat
isf
act
ion pr
ogr
ams, adv
ert
isi
ng and
pr
omoti
onprograms.
I
ncr
easedgl
obalcompet
it
ion
Notappr
opr
iat
eor
gani
zat
ionst
ruct
ure.
Obtai
n experi
ence & knowl
edge abouthow a v
ari
ety ofcul
tur
es
conductbusi
ness.
Formi
ngt r
adeblocks(
Eg:Eur
opeanUni
on,Sout
hAmer
ica,economy
fr
ee–tradezone).
Rol
eofPr
oductManager
Apr oductmanagerpl aysanut t
erl
yimport
antrol
einanorganizat
ion.Beingatav er
y
responsibleposit
ion,he/shehastoguideateam thati
schargedwi t
hapr oductli
ne
contri
butionasabusi nessunit.Thisext
endsf r
om incr
easingthepr ofi
tabi
li
tyof
existi
ngpr oduct
st odevelopi
ngnewproductsf
orthecompany .
Apr oductmanagerbuildsproduct
sfrom exist
ingideas,andhelpst odevel
opnew
i
deas based on t he i
ndustr
y exper
ience and hi
s contactwi t
h customers and
pr
ospect s.Hepossessesauni quebl endofbusinessandt echnicalsav
v y
;abig-
pi
cturev isi
on,andthedriv
et omaket hatvi
sionar eal
it
y.Hespendst i
mei nthe
mar
kett
ounderst
andthepr
obl
emsoft
hecust
omer
s,andf
indsi
nnov
ati
vesol
uti
ons
f
ort
hebroadermar
ket
.
The role ofa pr oductmanageral so becomes i mportantbecause he has to
communi catewithal lar easofthecompany .Thepr oductmanagerwor kswithan
engineeri
ngcount erpartt odefi
neproductr el
easer equir
ement s.Atthesamet i
me,
he wor ks with mar keting communi cat
ions to def i
ne the go-to-
marketstr
ategy,
hel
pingt hem under standt heproductposit
ioning,keybenef i
ts,andtar
getcust
omer .
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Apr oductmanager’skeyrol
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es
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Drivi
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imari
ly
Development/Engi
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ng Communi cati
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requir
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ngandi mpl ementi
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company -
widego-to-marketplan,wor
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ldepar
tment stoexecute.
5.Anal
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ent
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par
tnerr
elat
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psf
ort
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oduct
.