Introduction to

Product Management
 Objectives of this session

Understand the importance of Brands & identify

differences b/w pharma marketing vs. consumer
marketing

Understand the range of roles & responsibilities

of a product manager

Identify the major challenges for product

managers & develop strategies for dealing with
them
 Objectives of this session

Identify skills and characteristics of successful

product manager

Understand the importance of working with sales

& other department
 What is a brand?
“Part Art, part Science, “brand” is the
difference between a bottle of soda and a
bottle of Coke….

….the intangible impact of a person’s

subjective experience with the product –

….the personal memories and cultural

associations which orbit it”
4
 How a brand is developed EXTERNAL/
OTHER FACTORS
EX Word of mouth
OF P E Journalism etc
US PR RIE
E OD NC
UC E
T
IN

COMPANY INPUT
Products/architecture
Communication
Identity
Availability
Pricing & promotion
etc

5
 The case for brands
– For the Customer:
Simplifies decision
Saves time
Reduces risk

– For the Company:

In growth encourages trial and adoption
In maturity defends share and margin
In decline extends value of ‘tail’
6 Brands deliver value to the customer and value to the company
 Brands – Typically an FMCG stronghold!
FMCGs have taken the lead in the race of
building great brands

Why?

Direct contact with the consumers – first hand

experiences. Able to build strong
relationships with customers because of the
personal nature of the brands
Why brands are important in the
Pharma Industry
– Change in competitive environment owing to radical shift in the
discovery process

– New products rapidly face direct competition from equivalent

molecules

– Technical differentiation will be increasingly short-lived

– Need to create brand values as a sustainable source of

differentiation
Building strong brands creates and sustains competitive advantage

8
 Pharmaceutical Marketing vs.
Consumer Marketing
A long product development time

A strong relationship between production and

Research & Development and marketing/sales
 Pharmaceutical Marketing vs.
Consumer Marketing
High R&D cost

A medicine may take more than 12 years and

hundreds of millions of pounds to develop.

Only 1out of 10 molecules can make it to the

market

Short patent life with only a few years left when

marketing starts.
Pharmaceutical Marketing vs.
Consumer Marketing
A heavy emphasis on quality assurance and
control within the manufacturing process

A high level of regulation/monitoring by

outside agencies
– Ministry of Health
– Physicians
– Patients
– Media
Pharmaceutical Marketing vs.
Consumer Marketing
Users and Decision makers are different

Mode of communication
– DTC advertising

Peoples health at stake

 Job Description
Even within a specific organization type, product
manager’s job varies among industries & among
products

Many of the preceding description of the product

manager’s job was general.
Are you the ONE?
 Major Activities
Collecting & Analyzing background market &
product category data

Utilizing the background analysis for marketing

strategy development

Implementing the marketing strategy through

marketing mix & related decisions
 Role of a Product Manager
To manage the product in all stages of PLC

To develop a Marketing plan that details the

strategy for successful product management,
including pre-launch, launch and post-launch
activities.

To develop communication strategies &

promotional plan

To accurately forecast sales, & ensure

availability of stocks
 Role of a Product Manager
To launch new products, line extensions etc

To evaluate strategy implementation & message

delivery

To initiate Market development & public awareness

campaigns to support the brand

To analyze market & competition

To Liaise with sales, finance, regulatory, medical

and production
 Role of a Product Manager

To conduct market research in order to gain a good

knowledge of disease areas, doctors’ prescribing
habits and types of patients.

To maintain close contact with the market, monitor

product performance and react quickly to changing
needs
 The product manager job is
becoming increasingly complex

Changes in the Information technology

Increased diffusion & improvement in the

internet

Changing customer needs & wants

Increasing competition
 Challenges faced by a Product
Manager
Assessment of the market potential

Competitor analysis

Forecasting & budgeting

Co-ordination among other functions

Selling

Working within ethical boundaries

Critical Skills of a Product Manager

Negotiations

Teamwork

Communication

Analytical ability
Critical Skills of a Product Manager

Execution & Implementation

Problem Solving

Entrepreneurship

Multitasking
 Negotiation skills
Product managers often find themselves
managing teams of functional partners who are
essentially important in achieving goals but they
hold no direct authority

Requires persuasion or influence management

to create win-win situation
 Teamwork

Ability to work in and lead teams of individuals

from all parts of an organization

When managing a group of brands, a product

manager must foster harmony among peers or
assistant product managers
 Communication skills

Both internally & externally

Verbal & Written

Communicating benefits of the products through

advertising & promotion
 Analytical skills
Requires great deal of quantitative & qualitative
analysis, interpretation & taking corrective
actions

Analyze market, sales trends, competitor’s

activities
 Execution & Implementation

30% planning & 70% execution is key to

success

Monitoring implementation of strategies

 Problem-solving
Good at fire fighting

Keep things moving in the right direction

 Entrepreneurship

Demonstrate entrepreneurship
– Leadership
– Decision making
– Focus on ROI & Profitability
 Multitasking

Able to work simultaneously on

– different products,
– different projects,
– liaison with different departments,
– developing various promotional campaigns
– Managing multiple activities
Changes affecting Product Management
The Web

The data explosion

The increased emphasis on “brands”

Changes in the balance of market power

Increased importance of customer retention

Increased global competition

 The Web
www in mid 90’s

New channel of distribution, a new

communication medium, and creating a
community around a brand

Company & products profiles

Public awareness campaigns

– Depression website
– Pakistan Parkinson Society
 The Data Explosion
Effective product management require
sophisticated information management

Product sold are tracked more effectively by the

manufacturer as well as the retailers

Enhanced IT means quicker & accurate

transmission of sales data
 The Data Explosion
What are the sources of market, sales &
competitors information in the pharmaceuticals
industry
– Company’s own sales data

– IMS

– Sales force

– Market research
 Brand Equity
The “Value” of the Brand name

Examples of strong brand equity

– Coke
– Mercedes
– IBM
– Sony

Examples of strong brand equity in the

pharmaceutical industry
Changes in the balance of market
power
Balance of power has shifted from manufacturing
to marketing/sales

Companies used to market/sell what they were

manufacturing BUT now they are manufacturing
what they can market/sell
Increased importance of customer
retention
Focusing more on the retention of existing
customers than developing new

More focus on understanding customers needs

& finding ways to satisfy them

Customer retention programs

 Increased competition
Competition has increased both globally &
locally

No. of Pharma companies

– In 90’s & now

Competing for Dr’s time in the clinic

Working with other departments
Co-operation with other parts of the organization
is critical (e.g.)

– Internally (Sales, Production)

– Externally (distributors & suppliers)

A Product Manager’s potential
interactions
 Working with the sales force
Why working closely with the sales force in
pharmaceutical industry is very important
for product managers?
 Role of the sales force
Most of product’s A&P budget and other
resources are utilized through the sales
force

Limited promotional activities that do not

involve sales force
 Role of the sales force
Achieves top line sales targets for your brands

Understand the needs of the customer

Provides feedback on the customers as well as

the competitors activities

Implement strategies in the market

 A Product Manager’s potential
interactions
Influence on P&L Statement