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Contents 1 PRODUCT MANAGEMENT TOOLKIT 1.1 THE PURPOSE OF A PRODUCT MANAGEMENT TEAM 1.2 PRODUCT MANAGEMENT OWNERSHIP AND ACCOUNTABILITY 1.3 WHEN SHOULD STRATEGIC PRODUCT MANAGEMENT ACTIVITIES BE CONDUCTED 1.4 Product Management Research Studies and Methods 1.4.1 Conducting-a-Concept-Test 1.4.1.1 Elements of a Concept 1.4.1.2 Purpose of a Concept Test: 1.4.1.3 Major Research Steps in Developing a Concept: 1.4.2 Considerations for Developing a Product Advertising Strategy 1.4.2.1 What is the purpose of advertising? 1.4.2.2 Enhance Market Share by Setting Strategic Advertising Objectives 1.4.2.3 Advertising Messages that Enhance Adoption of a Product: 1.4.2.4 Advertising Media Allocation Considerations 1.4.3 Other Product and Brand Research and Associated Analyses

[edit] PRODUCT MANAGEMENT TOOLKIT

OVERVIEW

Product management research is based on a series of very important questions:

• What is the purpose of a product management team?
• What is the division of accountability and ownership
• When should strategic product management activities be commensed, or otherwise conducted?
• How do I conduct product management research?
  • Conducting a Concept Test
  • Naming and Branding a Product
  • Developing a Product Advertising Strategy
  • Product and Brand Research and Associated Analysis

This brief introduction describes a few considerations for the product management team.

[edit] THE PURPOSE OF A PRODUCT MANAGEMENT TEAM

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	· 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

[edit] PRODUCT MANAGEMENT OWNERSHIP AND ACCOUNTABILITY

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.

[edit] WHEN SHOULD STRATEGIC PRODUCT MANAGEMENT ACTIVITIES BE CONDUCTED

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	Decline Concept Revision Price Elasticity Cost Reduction

[edit] Product Management Research Studies and Methods

[edit] Conducting-a-Concept-Test

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.

[edit] 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)

[edit] 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.

[edit] 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.

[edit] Considerations for Developing a Product Advertising Strategy

Awareness Advertising Distribution Intensity Publicity Word of Mouth	Associations Product Attributes Relative Price Celebrity Person/Image Competitors Intangibles Use/Applications Life Style/Personality Country/Geographic Area Customer Benefit User/Customer Product Class	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
Extended Identity Logo Trademark Personalities Sub-brands Product Scope	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)

[edit] 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

[edit] 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

[edit] 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.

[edit] 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.

[edit] Other Product and Brand Research and Associated Analyses

Other Study Types And Associated Analyses
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 Attribute Checklist
Brand Share Drivers (Conjoint)	Conjoint Analysis
Market Segmentation Segment Member Grouping Life Style 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