Product Management Toolkit

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.

Below is a list of specific marketing functions that fall under the guidance of a 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
• 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

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.

Strategic Product Management Research, including Product Management Surveys, may be identified as being more appropriate at certain points along the product life cycle.

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

WHAT IS THE PURPOSE OF ADVERTISING?

Advertising is intended to:

1. Create Recognition
2. Inform
3. Persuade
4. Remind
5. Enhance Recall
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
7. Advertising Media Allocation Considerations

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.

• Value/Benefit/Attribute Laddering Analysis
• Means-End Chains
• Positioning of Comparative Brands
• KYST Multidimensional Scaling Analysis
• Positioning of Brands on Attribute Scales Multidimensional Preference Analysis
• Correspondence Analysis
• Brand Personality: Brand Associations, Brand-Attribute Evaluation, Brand Share Drivers (Conjoint)
• Attribute Checklist
• Conjoint Analysis
• Market Segmentation: Segment Member Grouping, Lifestyle Descriptor Development, Usage Level Segment Identification
• Cluster Analysis
• Factor Analysis
• Discriminant Analysis
• Forecasting: Trial/Adoption
• Trial-Repeat-Share-Advertising Model
• Fort/Woodlock Parfit-Collins (Elementary)
• BASES