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PRODUCT MANAGEMENT TOOLKIT
OVERVIEW
Product management research is based on a series of very important questions:
This brief introduction describes a few considerations for the product management team.
THE PURPOSE OF A PRODUCT MANAGEMENT TEAM (Back To Top)
The purpose of a product management team is to oversee the functions and responsibilities of marketing throughout the entire life-cycle of a product or marketing effort:
- Life-Cycle Management — Complete “cradle to grave” management of the product life-cycle.
- Managing the Marketing Mix — Determine the distribution of resources and organizational effort between the four ‘P's of marketing (Product, Place, Price, and Promotion) .
- Identification and Capturing of Opportunities — It is the responsibility of a product management team to identify and capture opportunities that exist within the scope of the effort. These opportunities include, but are not limited to: co-marketing/partnerships; product related acquisitions; and line extension for the purpose of increased revenue capturing and market coverage.
- Precision execution of the marketing functions for the purpose of meeting established strategic and tactical objectives.
The table below denotes some specific marketing FUNCTIONS that fall under the guidance of a product management team:
Marketing Functions Influenced by the Product Management Team |
· Advertising
· Branding and Naming
· Channel and Distribution Management
· Competitive Force Analysis
· Direct Marketing Programs
· Forecasting
· Inside Sales Management
· Key Account Management
· Lead Generation and Management
· Market Research
· Market Identification and Development
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· Outside Sales and Promotions
· Packaging and Presentation
· Planning
· Positioning
· Pricing
· Product Design and Development
· Product Legal Considerations and Protection
· Program Management
· Public Relations — Press Management
· Strategy
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PRODUCT MANAGEMENT OWNERSHIP AND ACCOUNTABILITY (Back To Top)
The ownership of the specific functions and responsibilities in Product Management, marketing and research are divided, individually or collectively, amongst the members of a product management team. The product manager is accountable for the product, and the identification of the marketing functions that must be implemented for success.
WHEN SHOULD STRATEGIC PRODUCT MANAGEMENT ACTIVITEIS BE CONDUCTED?(Back To Top)
Strategic Product Management Research, including Product Management Surveys may be identified as being more appropriate at certain points along the product life cycle.
Product Management Research Studies by Stage in the Product Life Cycle |
Pre-Introduction
Concept Test
Product/Brand Association
Product Satisfaction
Attribute/Benefit Tests
Product Positioning
Advertising Copy
Market Response
Habits/Uses Study
Concept Fit to Formulation |
Introduction
Sales/Share Tracking
Store Audits
Product Stocking
In-Store Promotion
Price Tests
Awareness Tracking
Trial Estimates
Repeat Purchase
Market Segmentation/Tracking
Competitive Performance Tests |
Growth
Product Performance
Sales Forecasting
Product Positioning Line
Advertising Effectiveness
Product Redesign- Improvement
Features/Value Analysis
Product Improvements |
Maturity
New User Identification
New product Uses
Line Extensions
Competitive Analysis
Cost Savings Tests
Concept Simplification
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Decline
Concept Revision
Price Elasticity
Cost Reduction
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Product Management Research Studies and Methods (Back To Top)
Considerations in Conducting a Concept Test (Back To Top)
A Concept is an idea aimed at satisfying consumer wants and needs. A concept is an organized attempt to convince a target segment that a proposed product/brand possesses the benefits they desire and to present evidence to support the claims.
Elements of a Concept
Product Attributes (Characteristics, Capabilities)
Product Features (Add-ons)
Physical Properties (Dimensions)
Quasi-Physical Properties (Sweet, Spiciness, Luxury, Style)
Benefits (Derived from Attributes)
Imagery (Image to Consumer or Significant other)
Values (The concept is consistent with or supportive of desired values)
Purpose of a Concept Test:
(1) Screen New Ideas, (2) Estimate Market Demand for attributes, features and benefits, (3) Estimate Market Demand for an extension or launch.
Major Research Steps in Developing a Concept:
(1) Habits and Practices study to discover unmet consumer needs
(2) Unmet Needs survey and analysis to confirm the existence reactance to concepts addressed for unmet needs
(3) Develop the product in the laboratory
(4) Test the product in an actual use setting
(5) Test promotion and advertising comprehension, fulfillment, and reaction
(6) Test Market
Concept Test: Major Evaluation Points
“Would Buy” Ratios
Demographic Profile Development
Key Benefit Identification
Key Benefit Importance Ratings
Attribute Ratings
Purchase Intention Ratings
Purchase Frequency and Volume
Believability
Importance of message |
Evaluating a Concept: Criterion for Acceptability/Rejection
Believability; Ability to manufacture, produce;
Realism of concept in use;
Ability to define the market;
Acceptance of the product by the market;
Ability of the market to support it;
Exit costs;
Safety/risk factors;
Social issues;
Uniqueness;
Enjoyment/Fun;
Fit with current trends;
Ability to reach the market through existing channels;
Effects on current product sales;
Competitive reaction;
Fit within company strategy. |
Considerations for Naming and Branding a Product (Back To Top)
Awareness
Advertising
Distribution Intensity
Publicity
Word of Mouth
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Associations
Product Attributes
Relative Price
Celebrity Person/Image Competitors
Intangibles
Use/Applications
Life Style/Personality
Country/Geographic Area
Customer Benefit
User/Customer
Product Class
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Quality/Value Propositions
Attribute Value
Price Elasticity
Functional Benefits
Emotional Benefits
Self Expressive Benefits |
Loyalty Position |
Brand Analysis
Core Product Identify
Value Offering
Product Quality
Service Quality
Attribute Associations
Demographics
Attribute Performance Life Style
Segment Identity |
Customer Analysis Influencer
Shopper
Purchaser
Consumer
Benefit
Usage/Application |
Competitive Analysis
Competitors
Substitutes
Cannibalization |
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Extended Identity
Logo
Trademark
Personalities
Sub-brands
Product Scope
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Branding Objectives and Decisions
Line Extension (within class: flavors, options, sizes)
Vertical Stretch (quality, value, price, perceptions)
Brand Extensions
Co-Branding (Delta-AMEX, GM-AMEX) |
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Considerations for Developing a Product Advertising Strategy (Back To Top)
What is the purpose of advertising?
Advertising is intended to:
(1) Create Recognition,
(2) Inform,
(3) Persuade,
(4) Remind,
(5) Enhance Recall and
(6) Change Perceptions
Enhance Market Share by Setting Strategic Advertising Objectives
Market Share is enhanced when advertising messages promote, influence, create or change the attributes, features and benfits (choice criterion) that are considered in evaluating, testing (trial) or purchasing a product or service:
(1) Influence the important attributes used as choice criterion used in selecting a product
(2) Change Relevance of Product Attributes
(3) Create new salient attributes
(4) Change the ideal amount of an attribute a brand possesses
(5) Change the perceived amount of an attribute held by your brand
(6) Change the perceived amount of an attribute held by a competitor
Advertising Messages that Enhance Adoption of a Product:
Product Adoption is enhanced when the advertising message promotes:
(1) High Value
(2) Complexity (low levels required to reach a goal.... ease of use)
(3) Visibility of results (easy to verify)
(4) Ability to try (easy trial)
(5) Fit to your needs (no waste, yet adequate for your needs)
(6) Compatibility with life style and behaviors.
Advertising Media Allocation Considerations
(1) Set Advertising goals: (Increase usage rate, alternative use, market share, rate of penetration)
Number of exposures, awareness levels, attitude development or change, trial rates, repeat purchase or loyalty rates
(2) Develop the Message:
(3) Implement the message through the copy
(4) Identify the media viewed by the target market
Develop plans for use of advertising, sales promotion, publicity, personal selling
(5) Identify the timing to meet the target market when they are in the market
(6) Determine budget or spending plan to meet needs
(7) Determine the allocation of spending
(8) Identify procedures for pre-testing and monitoring results: Market tracking relative to competition, for measures of awareness, recall, likes, dislikes, brand ratings, purchase, use. |
Other Product and Brand Research and Associated Analyses (Back To Top)
| Other Study Types And Associated Analyses |
Value/Benefit/Attribute Laddering Analysis:
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Means-End Chains |
Positioning of Comparative Brands:
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KYST Multidimensional Scaling Analysis |
Positioning of Brands on Attribute Scales Multidimensional Preference Analysis
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Correspondence Analysis |
| Brand Personality: Brand Associations |
Brand-Attribute Evaluation
Attribute Checklist |
| Brand Share Drivers (Conjoint) |
Conjoint Analysis |
Market Segmentation
- Segment Member Grouping
- Life Style Descriptor Development
- Usage Level Segment Identification
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Cluster Analysis
Factor Analysis
Discriminant Analysis
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Forecasting: Trial/Adoption
Trial-Repeat-Share-Advertising Model |
Fort/Woodlock Parfit-Collins (Elementary)
BASES |
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