TOPIC 1

INTRODUCTION TO
PRODUCT MANAGEMENT

Prepared by :Dr.Nadeem Aljonaid

 SELF-INTRODUCTION OF
INSTRUCTOR

◦Project Assistant at Islamic Relief Organization

◦Professor’s Teaching Assistant Hunan University
◦Research Facilitator & English Language Detector of Research Review
Committee Hunan and Shandong University
◦Professors at several Universities in Yemen

 Education:

◦Ph.D. of International Trade and Economics at Shandong university

◦Master degree of International Trade and Economics Hunan University
 Name

Experience of your major

Difficulties of your major

 Work Experience

3
 CLASS ORIENTATION

● Who is the representative of the class?

● Were you used to be taught in English and Arabic?
● What is/are your preferred teaching methods?
● Do you usually practice the course practical outcomes ?

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 STUDENTS’ PERSPECTIVE RESHAPE

● Why do you study this major ? What are your expectations from
majoring in IB or any other specializations?
● Do you know the possible typical outcomes that this major qualify
you for?(Professional Job, Academic job, Have your own project)
● Does your current followed studying method of courses help
moving you to any of this outcomes? Explain?
● What are your expectations about the course ?How can this
course help building any of this outcomes?

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TEACHING METHODS:

1-LECTURES USING PPT SLIDES (EXPLANATIONS FOR NEW TERMS MIGHT BE

PROVIDED UNDER EACH SLIDE) .(A O)

2-INTRODUCTORY VIDEOS FROM REAL LIFE CASES FOR THE TARGETED CHAPTER.(CLASS
EMBODIMENT ) AND ILLUSTRATED VIDEOS FOR SOME CLASS POINTS .

3-PREPARE FOR FUTURE CAREER.(YOUR OWN CASE , DESIGN WORKSHEET FOR YOUR
FUTURE PROJECT) (PROJECT OUTCOMES)

4-FIELD WORK (FIELD VISIT, GROUP PROJECT, DESIGNING EVALUATION SHEET FOR THE
TARGETED ORGANIZATION). (J OUTCOMES)
5- CASE STUDY DISCUSSIONS.: DESIGNING WORKSHEETS FOR THE TARGETED
DISCUSSION

6- BOOK AND/OR HANDOUTS FOR FURTHER READING.

7- BOOK ACTIVITIES AND EXERCISES

Assessment and scoring breakdown:

1.Practical activities (your own project, case

studies ,field visits) participation and assignments
20%

2.Mid-term 20%

3.Attendance 10%
4.Test 1 10

4.Final Exam 40%

 COURSE SYLLABUS

● GO to the WORD document

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 GOOGLE CLASSROOM CODE

● Google Classroom code: ub

● Google Classroom Link :

©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock
 WARM-UP

● Watch the video and Work in a pair to answer the work sheet-
questions (5 marks for the best )
● Video discussion
● SS embodiment

©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©SashkinShutterstock 10
 Content:
 Objectives Introduction
1. Concepts related to Product
1. Product Development
2. New Product
3. Product Life Cycle
4. Product Upgrade
2. Product Management: Meaning
3. Aspects of Product Management
1. Product Planning
2. Product Marketing
4. Product Management: Scope
5. Marketing Organisation
1. Characteristics of a Good Marketing Organisation
2. Types of Marketing Organisation
6. Role of Product Manager
 Objectives
 After studying this unit, you will be able to:

 Learn the Concept of Product

 Explain the Concepts related to Product
 Discuss the Definition and Scope of Product Management
 Understand Marketing Organisation
 Illustrate the Types of Marketing Organisation
 Introduction
 Effective product management is a practical, purposeful and positive
approach of improving the company results, through the efforts of a
competent and committed team, coordinating manufacturing,
marketing and sales.
 1. CONCEPTS RELATED TO PRODUCT

 There are 4 prevalent concept for producs.Let us

understand each of them one by one
 • Product Development
 • New Product
 • Product Life Cycle
 • Product Upgrade
 1. 1.PRODUCT DEVELOPMENT

 Product development is the process of designing, building, operating,

and maintaining a good or service.

 Product development adds things like pricing, marketing, and

customer support to the technology to create a complete product

 Product development is performed by a multi-disciplinary team whose

goal is building, operating, and maintaining the product.

 Team members may include product managers, product developers,

project managers, product operations engineers, customer support
managers, quality assurance managers, user interface design
engineers, marketers, financial personnel, graphic artists, etc.
1.2 NEW PRODUCT

 A new product can be defined as a product that is new to

the market
 It is the process of innovating the products on accordance
with the dynamics of markets, technology, and
competition that have brought changes to virtually every
market sector
 1.2.2 CATEGORIES OF NEW PRODUCTS
 There are five categories of new products.
1. New-to-the-world products or services are new inventions.
 Example: In-line skates and health maintenance organizations.

2. New category entries are products or services that are new to a firm
 Example: Sport utility vehicles

3. Additions to product lines add products or services to a firm’s current

markets.
 Example: When a powder laundry detergent offers a liquid version it is considered a line extension.

4. Product improvements are another type of new product and are common
to every product category.
 Example: Product improvement made in Lifebuoy Soaps
CONT. CATEGORIES OF NEW PRODUCTS
 Repositionings target products to new markets or for
new uses.

Repositioning Maggi
Questions


Analyse three benefits that NIL derived by
1.
repositioning Maggi.
Case
What do you learn from the case above?
2.Study
.
Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, introduced the
Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles
product.

With the launch of Maggi noodles, NIL created an entirely new food category – instant noodles –
in the Indian packaged food market. During the 1990s, the sales of Maggi noodles declined, and
this was attributed partly to the growing popularity of Top Ramen, another instant noodles
product. In order to improve sales and attract more consumers, NIL changed the formulation of
Maggi noodles in 1997. However, this proved to be a mistake, as consumers did not like the
taste of the new noodles. In March 1999, NIL reintroduced the old formulation of the noodles,
after which the sales revived.
Over the years, NIL also introduced several other products like soups and cooking aids under
the Maggi brand. However, these products were not as successful as the instant noodles. In the
early 2000s, Maggi was the leader in the branded instant noodles segment, and the company
faced little serious competition in this segment.
In the early 2000s, NIL started introducing new ‘healthy’ products in accordance with the Nestlé
Group’s global strategy to transform itself into a health and wellness company. NIL also
adopted the same strategy for the Maggi brand with the launch of the Maggi Vegetable Atta
Noodles (Vegetable Atta Noodles), a ‘healthy’ instant noodles product made of whole wheat
flour and vegetables (instead of refined flour), in 2005. The Dal Atta Noodles were another
variant of Maggi’s healthy instant noodles.
4 LOVELY PROFESSIONAL UNIVERSITY

Because of its first-mover advantage, NIL successfully managed to retain its leadership.
 1. 3.1 PRODUCT LIFE CYCLE
 The product life cycle can be divided into four phases namely
introduction, growth, maturity and decline.
 On the basis of these stages, product planning is done. The life
cycle concepts on which a product planning team works are shown
in Figure 1.2.
Product Initiation

Feasibility
Development

Testing

Product

Launch
Operation
Decommisioning
1.3.2
 Product Initiation Phase: In the Initiation Phase, Product Management,
Engineering, or Operations submits a request for a new service or modification
to an existing service
 Feasibility Phase: The Feasibility Phase is where an idea is explored in more
depth in order to determine the feasibility of engineering the requested service
within the scope of the business needs.
 Design and Plan Phase: In the Design & Plan Phase, the cross-functional team
documents all detail pertaining to the development of the service
 Development Phase: In the Development Phase, the actual engineering of the
service is completed
 Testing Phase: The majority of the Testing Phase is spent certifying the
hardware and software changes involved in the service.
 Product Launch Phase: The Product Launch Phase coordinates the deployment
of the new or modified service
 Operation Phase: The Operation Phase is typically the longest of the phases
since once a product is developed,
 Decommissioning Phase: The Decommissioning Phase occurs at the end of the
product life cycle.
1.4. PRODUCT UPGRADE

 When a customer is finished using a product, he can be

upgraded to a follow a product that meets their needs or
deprovisioned*.
 The product upgrade path is desirable because it keeps the
customer and reduces customer reacquisition costs.
Customers frequently outgrow products or their needs
change. If a company has a well managed product portfolio,
a product more suited for the customer’s current situation
will be waiting for them.
 SELF ASSESSMENT

Fill in the blanks:

1.Effective………………………..is a practical, purposeful and positive
approach of improving the company results.
2.A commodity can also be anything widely available in the
………………………..market.
3.Theproduct ………………………..path is desirable because it keeps the
customer and reduces customer reacquisition costs.
4.The dynamics of markets, technology, and competition have brought
changes to virtually every market sector and have made
………………………..development one of the most powerful business
activities.
 1.3 Product Management: Meaning
 Product management is an organizational life cycle function within a company dealing
with the planning or marketing of a product or products at all stages of the product life
cycle.

 Product Management Process starts with the type of company one works for. There may be
companies that are:
1. Technology-driven
2. Company driven
3. Sales-driven on profit
4. Market-driven
 Product Manager’s primary role is to serve as the “voice of the customer”. Thus product
management includes direct and indirect management and cooperation with other members
of various groups other members of various groups.
 The day to day work revolves around executing four main tasks:
1. Developing the market requirements document
2. Managing the product feature list
3. Coordinating activities of different functional groups
4. Participating in and/or running the launch and post-launch marketing activities
for a product. 8
 The goal of product management is to:

1. Ensure a market-driven “whole” product offering

2. Establish competitive and profitable pricing models
3. Ensure the existence and support of product distribution
4. Create effective marketing portions that generate revenue
 4.Aspects of Product Management
1.Product Planning is the ongoing process of identifying and articulating
market requirements that define a product’s feature set.

1.Defining New Products: Ideas for new products can be obtained from basic
research using a SWOT analysis and/or brainstorming of new product, service, or
store concepts.

2.Gathering Market Requirements: This is helped by analyzing market and

consumer trends, competitors, focus groups, corporate spies, trade shows, or
ethnographic discovery methods.

Task: Find out the meaning of ethnographic method*. What do you analyse
about the consumers of Yemeni fashion industry using the ethnographic study.
Enlist all the points of your analysis.
3.Building Product Roadmaps, Particularly Technology Roadmaps: Size
the markets conservatively, and pick realistic penetration rates. Roadmaps
are always subject to change.

4.Product Life Cycle Considerations: The idea of a product life cycle

acknowledges the fact that designing and selling a product is only part of
the story.

5.Product Differentiation: Product differentiation (also known simply as

“differentiation”) is the process of distinguishing the differences of a
product or offering from others, to make it more attractive to a particular
target market.
.
1.4.2 Product Marketing

Product marketing deals with the first of the “4P’s” of marketing, which are Product,
Pricing, Place, and Promotion. Product planning, as opposed to product management,
deals with more outbound marketing tasks.

Product Marketing is based on identifying, anticipating and satisfying customer needs

effectively and profitably.

 It encompasses market research, pricing, promotion, distribution, customer care, your

brand image and much more.

 Example: Product planning deals with the nuts and bolts of product
development within a firm, whereas product marketing deals with marketing
the product to prospects, customers, and others.

1.Product Positioning and Outbound Messaging: Positioning is a process that focuses

on conveying product value to buyers, resulting in a family of documents which drive all
outbound communications.

• The best positioning clearly states how the product will 9

solve specific
customer problems.
2. Promoting the Product Externally with Press, Customers and Partners:. Each of
the marketing method includes liaison with press, customers and partners ,

 The most important of these methods include packaging, trade shows,

exhibitions, promotional videos, internet marketing, etc..

3.Monitoring the Competition: The old adage, “keep your friends close, and your
enemies closer”, is applicable not only to personal relationships but business
relationships as well.

 Self Assessment

Fill in the blanks:

1. ……………………….. is the process of distinguishing the differences of a product
or offering from others.
2.Product planning, as opposed to product management, deals with more
……………………….. tasks.
Activity 5 minutes
In a group work identify the key differences between product product
planning marketing with examples ?
 1.5 Product Management: Scope
Product management as a discipline is about what the product should be.
A product manager’s responsibilities include the following:

1.Defining and planning product lines and product enhancements

2.Managing product contracts and sales. Setting strategic direction based on customer needs and
business goals
3.Interpreting strategic goals into operational tasks
4.Making proposals to senior management regarding implications of proposed plan
5.Serving as a representative to internal and external clients. Taking the leading establishing
tactical plans and objectives
6.Developing and implementing administrative and operational matters ensuring achievement of
objectives
7.Evaluating risks and trade-offs
8.Proposing contingency plans(future event or circumstance)
9.Analyzing business processes and creating applications to improve or support those processes
10.Branding
11.Working with graphic designers to create look and feel
12.Defining navigational flow and user experience
10

13.Defining feature sets and scooping releases.

 1.6 Marketing Organisation
Marketing Organization is an organization that markets one or more systems,
applications, and/or components produced by a development organization to
potential customer organizations.

The typical responsibilities of a Marketing Organization are to:

1. Market applications to the customer organization(s).

2. Provide change requests based on customer feedback to the

development organization.

3. Act as a source of requirements during the performance of the

requirements identification task.

LOVELY PROFESSIONAL UNIVERSITY 11

 1.6.2 Types of Marketing Organisation
 The most important of them all include:
1. Function Oriented
2. Market Oriented
3. Product Oriented
4. Customer Oriented
5. Combined Type

1. Function Oriented: This is the most simple and common type of organization. Under this type,
the activities are grouped on the basis of function, such as production planning, marketing
research, advertising and sales. *

2.Market Oriented: This type of structure is used by big companies who serve a large number of
customers spread over very large territory.
The structure is divided into regional basis and specific areas are assigned to different
persons.*

12 LOVELY PROFESSIONAL UNIVERSITY

3.Product Oriented: Advertising, sales promotion, marketing research, etc. can be
centralized activities. *
Big companies as well as smaller concerns exist side by side in the field of
production.

The smaller companies have another popular form or structure which assigns to
product managers and brand managers with the responsibility for marketing decisions
of particular products or groups of products.

4. Customer Oriented: Under this type of structure, concentration is on the type of

customers. Separate groups are designated responsible for marketing classes of their
different classes of customers such as:
(a)Distributors
(b)Retailers
(c)Customers

5.Combined Type: The four types discussed above are basic concepts regarding
organization structures.
 In practice, one normally comes across a combination such as:
(a)Functional with territorial structure, or
(b)Functional with product oriented structure, or 13

(c)Market oriented with product structure .

 Task Analyse different types of marketing organisations and find out
their disadvantages. Enlist each with reasons.

Self Assessment

Fill in the blanks:

9.………………………..structure is used by big companies who serve a large number of
customers.
10.Every marketing organization should possible future growth and acceptable
philosophy to the ……………………….. .
11.In ………………………..marketing organization, separate groups are designated
responsible for marketing classes of their different classes of customers.
.
 1.8 Role of Product Manager
A product manager’s key role is strategic, not tactical. The other organizations will
support your strategic efforts; you won’t be supporting their tactical tasks.

The key responsibilities of a product manger may include:

1.Managing the entire product line life cycle from strategic planning to tactical
activities

2.Specifying market requirements for current and future products by conducting

market research
3.Driving a solution set across development teams (primarily
Development/Engineering, and Marketing Communications) through market
requirements, product contract, and positioning.

4.Developing and implementing a company-wide go-to-market plan, working with

all departments to execute.

5.Analyzing potential partner relationships for the product. 15

 Self Assessment

Fill in the blanks:

14.………………………..is an organization that markets one or more systems,
applications, and/or components produced by a development organization to
potential customer organizations.
15.………………………..is the most simple and common type of marketing organization.


 1.9 Summary


• A product can be defined as anything that is produced.



• Product management is an organizational life cycle function within a company

dealing with the planning or marketing of a product or products at all stages of the
product life cycle.
• Product Management is becoming an important function of marketing.
• Product development is the process of designing, building, operating, and
maintaining a good or service.
• Product development adds things like pricing, marketing, and customer support to
the technology to create a complete product.
16
 1.9 Summary

• The power of innovation is revealed in numerous studies, which show that companies
leading their industries attribute about half of their revenues to products developed in
the most recent five years.
• Depending on the company size and history, product management has a variety of
functions and roles.
• Product Planning is the ongoing process of identifying and articulating market
requirements that define a product’s feature set.
• Product management as a discipline is about what the product should be. Product

managers are advocates for the customer’s needs and desires.

• Product marketing deals with the first of the “4P’s” of marketing, which are Product,
Pricing, Place, and Promotion.
• Marketing Organization is an organization that markets one or more systems,
applications, and/or components produced by a development organization to
potential customer organizations.