AIPMM Product Management Certification (2022/2023) Already Passed

AIPMM Product Management Certification (2022/2023) Already Passed Product Management ✔✔process of conceiving, planning, developing, testing, launching, delivery and withdrawing products in the market. PMF - Product M ...

AIPMM Product Management Certification (2022/2023) Already Passed Product Management ✔✔process of conceiving, planning, developing, testing, launching, delivery and withdrawing products in the market. PMF - Product Management Framework ✔✔Product lifecycle (Product Development + Commercialization) stages plus their phases and gates. PMF Benefits (5) ✔✔1. define common language 2. provides standards for launching a products in each phase 3. allows product teams to develop and communicate mutual product plan commitments 4. empowers product team to execute based upon agreed upon objectives and schedules 5. facilitates continuous improvements to products and processes. Prodbok (body of knowledge) ✔✔strategies, methodologies, concepts, terms and activities that make up the product mgmt. and marketing domains as defined by AIPMM. Applies to any product or portfolio, across industries, throughout each phase of the product lifecycle. X-Axis PLC Stages (6) ✔✔1. New product dev/acquisition 2. introduction 3. growth/maturity/decline 4. withdrawal 5. commercialization 6. manufacturing operations X-Axis phases of PLC (7) ✔✔*go/no-go gates between each phases 1. conceive 2. plan 3. develop 4. qualify (test) 5. launch 6. delivery 7. retire Phases ✔✔prescribed, concurrent activities in PLC cross-functional gate precedes each phase successive phases require more resource commitment Gates ✔✔decision points (go, no go, Hold, Recycle) QC checkpoints Investment control checkpoints *Facilitate screening - evaluating new product ideas to reduce them into a smaller set. Y-Axis Key players on a product team (8) ✔✔1. Product Manager 2. Product Mktg. Manager 3. Project Manager 4. Business Analyst 5. Dev Manager 6. QA MAnager 7. Customer Support Mgr. 8. Sales Manager X/Y ✔✔X=time Y=your focus XY cell = details of your focus at that time Y-Axis Knowledge Areas (5) ✔✔1. Business 2. Market 3. Customer 4. Product 5. Organization Product Life Cycle - PLC ✔✔Manages stages that products go through from development to withdrawal from market. Helps you take the right action at the right time. Integrates people, data, processes and business system New Product Development + Commercialization Product Life Cycle Characteristics ✔✔1. Determines if each product has a different life cycle 2. Determines revenue earned 3. Contributes to strategic marketing plan Product Life Cycle Benefits ✔✔1. helps forecast and manage cash flow 2. helps identify when a product needs support, redesign, reinvigorated, or withdrawn. 3. helps in new product development and planning Product Portfolio ✔✔range of products a company has in development or available for marketplace at one time Business Portfolio ✔✔collection of businesses and products that make up a company. Portfolio Analysis ✔✔tool which helps mgmt. identify and evaluate the various businesses which make up the company Strategic Business Unit ✔✔unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses New Product Development (NPD) - 1st half of PMF ✔✔complete process of bringing a new product to market. Includes first 4 steps - conceive, plan, develop, qualify. For: 1. new product in new markets 2. new product in existing markets not previously targeted 3. enhance current product in existing product line. *2 parallel paths = idea generation, product design, and detail engineering + market research and analysis NPD New Product Development Steps (4) - 1st half of PMF ✔✔1. conceive 2. plan 3. develop 4. qualify Key Deliverables in conceive and plan phase (7) ✔✔1. Strategic Plan 2. Competitive analysis 3. Market Trends 4. Mktg requirements doc 5. Business Case 6. Product Requirements doc 7. Product roadmap Key deliverables in Develop and test phase (5) ✔✔1. Marketing strategy 2. Beta program 3. Launch plan 4. Marketing plan 5. Product Retirement plan Acquisition ✔✔act or process by which ownership is achieved by: 1. acquiring brand/product 2. purchase entire company 3 ways to get new product ✔✔1. develop 2. acquire 3. license Commercialization - 2nd half stage of PMF ✔✔process of introducing a new product into the market Commercialization phases (3) - 2nd half stage of PMF ✔✔1. launch 2. deliver 3. retire Commercialization Steps w/in PLC (5) ✔✔1. launch/production 2. Growth, Maturity/saturation, decline 3. withdrawal 4. commercialization 5. manufacturing operations Launch - phase 1 of commercialization ✔✔process of introducing a new product to market.. Gain awareness analysis = increase familiarity, expand market share stages of launch (4) ✔✔1. internal communication 2. pre-launch activities (distribution and ensures distribution partners have resources and knowledge) 3. external communications (PR, advertising) 4. pricing strategies strategies of launch/introduction (commercialization) (5) ✔✔1. competition = none 2. product = one 3. price = skimming or penetration 4. promotion = inform, educate 5. place = limited Growth - phase 2 of commercialization ✔✔2nd stage of PLC during which sales are increasing at an increasing rate, profits are increasing, and competitors enter the market analysis = focus on marketing product improvement and product diversification strategies of growth (commercialization) (5) ✔✔1. competition = growing 2. product = more versions 3. price = gain share, deal 4. promotion = stress competition 5. place = more outlets Maturity - phase 3 of commercialization ✔✔primary goal is to maintain market share and extend the product life cycle. Most profitable stage. analysis = defense of market share and product modifications necessary strategies of maturity (commercialization) (5) ✔✔1. competition = many 2. product = full product line 3. price = defend share, profit 4. promotion = reminder oriented differences 5. place = maximum outlets Decline - phase 4 of commercialization ✔✔product peaks and begins a downward slide in sales. Not economically feasible to continue developing the product. analysis = cost control, ensure productivity Strategies of declines (commercialization) (5) ✔✔1. competition = reduced 2. product = best sellers 3. price = stay profitable 4. promotion = minimal 5. place = fewer outlets Special Lifecycles (commercialization) (3) ✔✔1. styles = distinct mode of expression, popularity will vary over time 2. fads = gain rapid acceptance, peak early, decline quickly. limited market, Novel products which don't address basic needs 3. fashion = currently accepted or popular style, gains acceptance, peaks, then declines, cyclical in generations PdM roles are impacted by an organizations (2) ✔✔1. Growth Stage 2. Structure PdM role at each stage of Organization Growth ✔✔Company growth stage alters product mgmts. focus startup PdM = CEO small PdM= reports to CEO medium PdM = reports to VP large PdM = reports to Director Organization Structure Types (3) ✔✔1. Product-focused 2. Market-focused 3. Functional Process Focused Product-Focused Structure ✔✔companies define themselves by their products PdM responsible for overall health or product. Product Advocate Difference between product mgmt. and brand .mgmt. is clear. Cons = short-term, product cannibalization, resource priorities are product dev, fundamental questions ignored Market-focused structure ✔✔Marketing segment defines authority Marketing & Operations over market A, market B, and market C Strong customer focus better knowledge of entire product line cons = doesn't give PdM full responsibility for products Functionally-focused organizations ✔✔strategy through discussion and coordination Marketing + sales + operations work together simple administratively strong functional training EO and VPs make important strategy decisions cons: limited responsibility for specific products, conflicts with strategies can only be resolved through discussion, narrow manager scope limits development definition product manager ✔✔PdM investigates, select, and drive the development of products for an organization, performing the activities of product mgmt Directs internal value creation activities Leads: conceive, plan, develop, qualify definition product mktg manager ✔✔PmM acts as the voice of the customer to the rest of the product team and company Evaluates customers' perception of value Product Management Critical Skills ✔✔presentation personal analytical technical interpersonal leadership Key Activities of Product Mgmt ✔✔Market trends business models business cases P&L analysis Oppty analysis Business Intell Competitive Intell Product Positioning Product Reqs Functional Specs Product Roadmaps Prod Dev Monitoring Beta Programs launch plans end of life plans Key Activities of Product Marketing ✔✔Market needs market reqs business intel competitive analysis product branding pricing promotion channel partner plan sales tools customer testimonials success stories white papers reviewer guides product demos case studies Key Activities of Marketing ✔✔corporate branding corporate marketing plan website content company collateral PR brand awareness customer surveys and feedback increase web traffic marketing campaign advertising sales presentation templates Conceive Phase activities/deliverables (9) ✔✔1. analyze market trends 2. develop business models (how much) 3. develop business case (why) 4. Perform P&L 5. Perform oppty analysis 6. Define Business Plan (who, what, How, where, when) 7. Define market requirements 8. Define roadmap 9. build core team Plan Phase activities/deliverables (6) ✔✔1. collect business intel 2. collect competitive intel 3. develop product positioning 4. define product requirements 5. refine roadmap 6. refine business plan Develop Phase activities/deliverables (5) ✔✔1. Manage core team 2. Manage cross-functional plans 3. Review functional specs 4. Monitor product dev 5. Develop Beta plan Qualify Phase activities/deliverables (5) ✔✔1. Conduct testing to confirm product meets stated specs 2. Update Product Roadmaps 3. Refine/implement beta programs 4. complete all required FRS criteria 5. develop launch plan Launch phase activities/deliverables (3) ✔✔1. refine/implement launch plan 2. launch product 3. evaluate product supply and demand Deliver phase activities/deliverables (3) ✔✔1. maintain steady state operation by monitoring sales, service, support, development and production activities 2. evaluate results periodically against plans and orchestrate change as necessary 3. decide when it is time to retire the product and begin retirement planning Retire Phase activities/deliverables (4) ✔✔1. refine/execute phase down plans 2. refine/execute end of life plan 3. implement replacement plan 4. continue monitoring customer needs Product definition ✔✔a good or service offered by an organization which affords a bundle of benefits both objective (physical) and subjective (image) to a user core = customer belief actual product = product appearance (design, packaging, quality, brand, functionality) extended product = product related services (payment terms, delivery, assembly/installation, maintenance/care, guarantee/warranty, customer support, on-site services, education/training) *all increase and create additional usage of product by making it easier to buy and use. Types of Products (6) ✔✔1. consumer - for personal consumption 2. convenience - purchased frequently, used immediately 3. shopping - bought less frequently, comparison shop, higher price, fewer places to buy 4. specialty - special purchase effort, high price, brand identification, unique characteristics 5. unsought - new innovations, products consumers don't want to think about (casket), require much advertising and personal selling (life ins) 6. industrial - for further processing or for use in conducting business (materials, parts, supplies, services) +other market offerings include organizations, persons, places, ideas (campaigns) Product Mix definition ✔✔number of individual products produced or sold by an organization or by a strategic business unit within the organization *width/breadth is number of different product categories for which the company has an offering (BMW owns autos, motorcycles, rolls royce, mini coope) *depth is the number of product lines in each category (autos = 1 series, 3 series, 5 series) *length is number of products offered in each product line (all series have coupe, sedan, convertible) Product Mix Decisions ✔✔width - the number of different product categories for which the company has an offering (BMW owns autos, motorcycles, rolls royce, mini cooper) depth - the number of product lines in each category (BMW autos = 1 series, 3 series, 5 series) length - the number of products offered in each product line (all car series have coupe, sedan, convertible) consistency - how closely related the various lines are Product Line definition ✔✔a group of closely related products with similar attributes or target market *stretch is expanding product line so that each line has a unique position in market *fill is adding variety in each product line to meet unique interests of customers. Ex: BMW has 1 series, 3 series, 5 series (stretch) within each has coupe, convertible, sedan (fill) Product Line Extension definition ✔✔use of an established products brand name for a new item in the same product category ex. Hidden Valley Ranch in bottles, in packets, in individual serving cups *extensions have shorter life expectancy than original product Service definition ✔✔a product that is not embodied in a physical good and typically effects change in another product, person or institution. Doesn't result in ownership of a physical product Characteristics of a service (4) ✔✔1. intangible - can't be seen, tasted, felt, heard, or smelled before purchase 2. variability - quality depends on who, when where and how it's delivered 3. inseparability - can't be separated from provider 4. perishability - can't be stored for later sale or use Marketing tasks of a service (3) ✔✔1. Manage differentiation 2. Manage service quality 3. Manage service productivity To Manage Service Characteristics ✔✔1. To increase tangibility = physical proof 2. To reduce variability = people and process 3. to address inseparability = people and process 4. to track perishability = promotion and success Globalization definition ✔✔creation of internal strategies by organizations for overseas expansion and operation on a worldwide level Decisions if entering a global market: 1. which products/services 2. how much to standardize or adapt 3. address packaging changes 4. address service offering changes Product Decisions (5) ✔✔1. attributes 2. packaging 3. labeling 4. branding 5. support services Product Attributes (3) ✔✔1. quality - reliability and durability 2. features - new, copy of competitors 3. style/design - affects how a product looks, feels and functions Planned obsolescence (part of product attribute quality) ✔✔a company decreases the quality of the product so it will wear out physically within a reasonably short period of time. Product Packaging ✔✔designing or producing the container or wrapper for a product 1st level - primary packaging 2nd level - holds multiples of the product distribution/tertiary packaging - transports customer packaging through supply chain. Holds multiple customer packaging. meant to protect customer packaging. Product Labeling ✔✔printed info appearing on or with the package that identify brand/product, promotes product Product Branding ✔✔creating, maintaining, protecting and enhancing products and services brand is a name, symbol, etc that identifies the maker or seller of a product or service Product Support Services ✔✔provides end-user with information regarding a product and help if a product malfunctions. Via inserts, online help, manuals, on-demand like phone or physical location/on-site key decisions: 1. SLA guarantee 2. Remote diagnostics/repair 3. Pricing *value brand can offer less services because customer pays and expects less Strategic Planning definition ✔✔the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities Strategic planning elements (4) ✔✔1. defining clear company mission 2. setting supporting objectives 3. designing a sound business portfolio 4. coordinating functional strategies Mission statement definition (strategic planning element) ✔✔statement of the organization's purpose, describes company's function, markets, and competitive advantages. A short written statement of your business goals and philosophies *not product oriented, completely market oriented Setting Supporting objectives definition (strategic planning element) ✔✔supports the mission statement. Should be measurable and concrete. Strategy and tactics will be developed to achieve these objectives. Business portfolio definition (strategic planning element) ✔✔the collection of businesses and products that make up the company Portfolio analysis definition ✔✔a tool by which mgmt identifies and evaluates the various businesses making up the company BCG Growth-share matrix definition ✔✔To analyze portfolio a portfolio-planning method that evaluates a company's strategic business units in terms of their market growth rate projections and anticipated market share *cons = too simple market share/growth rates may not be only determinants only considers relationship to the market leader BCG Growth-share matrix strategies (4) ✔✔1. Hold - cash cow provides steady cash flow, high market share, low market growth rate 2. Build - question marks which require investments, low market share, high market growth rate 3. Harvest - generate short term cash from weak products 4. Divest - get rid of product to allow resources to be used elsewhere Strategic business unit definition ✔✔a unit of the company that has a separate mission and objectives and that can be planned independently from other company business. Ansoff Product-Market Expansion Grid ✔✔*To identify expansion identifies company growth opportunities through: 1. penetration 2. market development 3. product development 4. diversification explores existing markets and new markets vs existing products and new products Porter's Model for Competitive Intelligence ✔✔compares the competitive advantage against the competitive scope. Concentrates on cost leadership, differentiation, cost focus and differentiation focus. Ansoff Product Market Expansion Grid details ✔✔Market Penetration = existing products in existing markets Market Development = existing products in new markets Product Development = new products in existing markets Diversification = new products in new markets *riskiest Porter's Model for Competitive Intelligence Competitive Forces (5) ✔✔*For competitive intell 1. bargaining power of customers 2. bargaining power of suppliers 3. Threat of new entrants 4. threat of substitute products 5. level of competition in industry Kotler Model for Competitive Advantage/Market Strategies ✔✔analyze and promote products based on performance models including: 1. market leader - should adopt a defense strategy 2. market challenger - gain market share, become the leader 3. market follower - counterfeiter, cloner, imitator, adapter 4. market nicher - GE McKinsey Matrix for Portfolio Analysis ✔✔*for Portfolio analysis alternative to BCG analyzes business position vs industry attractiveness pros: most measurement cons: no guidance on what strategy to follow could be subjective Balanced Scorecard (BSC) definition ✔✔Strategy and Vision Financial - what we want to work in the financial sector Customer - How does the customer rate our performance Business Processes - How well do we satisfy the needs of our customers? Learning & Growth - How can we remain flexible and could be improved SWOT Analysis ✔✔Strengths Weaknesses Opportunities Threats/Risks internal = strengths & weaknesses externa = opportunities & threats strengths -advantages -experience, knowledge -unique characteristics -resources -geographical advantage, location -competence, capabilities -quality, reputation Weaknesses -disadvantages -gap in experience, knowledge -financial aspects -reliability & trust -loss of key staff -geographical factors Opportunities -strategic alliances, partnerships -product development -import, export -innovation and technology development Risks -Loss of alliances and partners -price inflation/deflation -strong competition -competitors new products and innovation PEST Analysis ✔✔Macroenvironment - good for new markets to understand opptys and threats Political Economic Social Technological Political -ecological/environmental issues -current/future legislation home and abroad -regulatory bodies and processes -government policies, terms and change -trade policies -funding, grants and initiatives -lobbying home and abroad -wars and conflicts Economic -Economic situation, home and abroad -economic trends; home and abroad -general & product specific taxation issues -market routes, trade and distribution trends -interest and exchange rates Social -lifestyle, consumer trends -demographics -consumer attitudes and opinions -media views -law changes affecting social factors -brand, company, technology image -buying access and trends -ethnic/religious factors -ethical issues Technological -competing, associate and replacement technology development -research funding -technology legislation -innovation potential -technology access, licensing, patents -intellectual property issues McKinsey Seven-S Framework ✔✔Improve performance of company helps examine effects of future changes in company helps align depts. during merger or acquisition McKinsey Seven-S Framework factors (7) ✔✔Hard factors 1. strategy - how to shape vision and strategy of the company 2. structure - right org chart, right roles and responsibilities identified 3. systems - systems and processes in place to support change or strategy Soft factors 4. skills - right core competencies to achieve change or strategy put in place. May mean additional training or new resources to help support required skills or competencies needed. 5. staff - right staff 6. style - rules and standards observed by staff 7. Shared values Business Model definition ✔✔A framework that describes the rationale of how an organization creates, delivers, and captures value. Part of the business strategy Business Model Reasons (5) ✔✔1. used to describe and classify businesses 2. used to explore opportunities 3. a recipe for creative managers to create new products 4. used for public reporting purposes 5. allows managers to focus on value creation Business Model Canvas (9) ✔✔1. customer segment - different customers aim to serve 2. value proposition - proposed value for customers 3. channel - distribution channels 4. customer relationships - type of relationship 5. key activities - most important activities to make model work 6. key resources - key assets to make model work 7. key partners - network of suppliers and partners 8. cost structure - cost to implement business model 9. revenue streams - cash company generates for each segment. Business Case Definition ✔✔Support planning and decision making -whether to buy -which product to bring to market -which projects to fund -which vendor to choose -when to implement a project Captures reasoning for creating/enhancing Reasons for a business case (7) ✔✔Formal business cases are evaluated to ensure: 1. investment has value and importance 2. project will be properly managed 3. organization has the capability to deliver the benefits 4. dedicated resources are working on the highest value opportunities 5. projects with interdependencies are started in the optimum sequence 6. answers the question "what happens if we take this course of action?" 7. Answers the question "should we invest in this market?" Business Case Activity (9) ✔✔1. Assess market 2. Identify customers 3. Define value 4. position product 5. analyze business 6. identify impact 7. estimate P&L 8. recommend 9. Obtain approval Things you need to create Business Case (4) ✔✔1. market or product requirements document 2. business intelligence report 3. competitive analysis or market report 4. product roadmap Business Case Canvas (6) ✔✔1. Product 2. Financial Analysis 3. Customer 4. Market 5. Business 6. Organization Roadmap ✔✔a plan that applies to a specific product that matches your company's short-term and long-term goals with specific options to help meet them. a detailed set of time-based milestones that aligns your business and product strategy with unmet customer needs and market opptys to guide the work you and your development team actually do. visual representation of a series of product development activities that plans and shapes the product vision *use code names for projects *create as PDF uneditable files Why do we create a roadmap ✔✔Sales-driven reassure customers (tactical) Market-driven reassure press/analysts of company's directions (strategic) guide engineering efforts secure funding Types of Roadmaps ✔✔Market & Strategy - which markets you are going to be entering and define strategy to enter them. Visionary - industry trends mapped against company's high level vision of the future Technology - industry technology advances against company's product plans based on those advances Technology across Products - which products use which technology Platform roadmap - software releases, development tools on a platform Product roadmap - high level plans of getting a product to market. includes internal to help solidify product decisions, resource allocation. External use to convey to customers/analysts where company is headed. Multiple product line roadmap - rank products against each other. 8 steps for creating a product roadmap ✔✔1. decide level of detail 2. create competitive, market and technology trends 3. gather and prioritize requirements (prioritization matrix) 4. Decide on timeline 5. Choose organizing strategy a. themes - logical groupings of high scoring items (help resist feature creep) b. golden features - based on single feature that is most important priority for release. Effective for short release cycles like Agile c. timed releases - uses release dates rather than features to drive schedule. Provides known ship dates. 6. Build internal roadmap 7. Fine tune and get buy-in from stakeholders - compares against competitive technology slide (step 2) 8. Create external roadmap - remove features and details so it can be shown outside the company. Things you'll need for roadmap (5) ✔✔1. product master plan or business case 2. market or product reqs doc 3. competitive analysis for market report 4. plan of record 5. previous roadmap version Marketing Mix definition ✔✔set of controllable tactical marketing tools - product, price, place and promotion - that an organization blends to produce the response it wants in the target market 1. price 2. place 3. product 4. promotion extended mix - for service oriented industry only 5. people 6. process 7. physical proof Managing the Marketing Mix ✔✔-managing the mix allows customer satisfaction -enables meeting marketing objectives -elements are interdependent -elements in extended mix apply to services only Marketing Mix tools (7) ✔✔1. price - what is the customer willing to pay 2. place - how or where will customers buy (direct sales, use of distribution channels) 3. product - addresses customer need & delivers benefit 4. promotion - how and where will you present product to target market extended mix for service oriented industry only 5. people - who delivers the service, plays most important role in service delivery 6. process - ensures consistency of service delivery 7. physical proof - makes service offering feel more tangible and add to perceived value Product Marketing Mix questions ✔✔What does customer want from the product? What needs does it satisfy? What features must it include to meet these needs? Are there any missing features customers expect? How and where will customers use it? What is the user experience? What does it look like? What is it called? How is it differentiated versus its competitors? Place Marketing Mix Questions ✔✔Where do buyers look for your products? How can you access the right distribution channels? Do you need to use a sales force? How and where will customers use it? What do its competitors do? How are distribution channels or places to buy differentiated versus its competitors? Price Marketing Mix Questions ✔✔What value will it deliver to target customers? Are there established price points for competing or similar products? What is the customer willing to pay for this or similar products? What is the price sensitivity of target customers? How will its price differentiate it from its competitors? Promotion Marketing Mix Questions ✔✔Where and when can you get across your messaging to your target market? How will you reach target customers? When is the best time to promote? What are external factors that impact the timing of its launch or promotions? How do competitors promote competing products? People Marketing Mix Questions ✔✔Who delivers the service? What expertise is needed to deliver and support the service? How will people strengthen customer relationships? How will people increase customer retention and loyalty? How will people differentiate it from competing services? Process Marketing Mix Questions ✔✔How will service be consumed? How will you provide customer support? How will you identify unmet customer needs? How will customer orders be handled? How will complaints be handled? How will customer service and support differentiate it from competing services? Physical Proof Marketing Mix Questions ✔✔What tangible goods help communicate and perform the service? What is the ability and environment required to deliver the service? What is the customer experience when delivering the service? How do you communicate exceptional customer satisfaction to prospective customers? How can physical proof differentiate it from competing services? Price Definition ✔✔the amount of money charged for a good or service. the sum values exchanged for the benefits of having or using the good or service. There is fixed pricing and dynamic pricing. Internal Factors affecting pricing decisions (4) ✔✔1. marketing objectives - survival, profit maximization 2. marketing mix strategy - consistent with other mix variables 3. costs - fixed, variable, total 4. organizational consideration - who makes the decision External factors affecting pricing decisions (3) ✔✔1. types of markets - pure competition - monopolistic competition -oligopolistic competition -pure monopoly 2. competition 3. other environmental factors - consumer perceptions, government/political/legal policies, reaction of distribution channel to price changes General Pricing Approaches (3) ✔✔1. cost-based approach - cost plus pricing 2. value-based approach - consumer perceptions of value 3. competition-based approach - what competitors are charging Market Segmentation definition ✔✔dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. Market segment definition ✔✔a group of consumers who respond in a similar way to a given set of marketing efforts Market targeting definition ✔✔the process of evaluating each market's segment's attractiveness and selecting one or more segments to enter. Market positioning definition ✔✔arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers Positioning strategies ✔✔1. by specific product features 2. by benefits, needs or problem solutions 3. for specific usage occasions 4. for a user category 5. Against other product(s). Positioning Process steps (3) ✔✔1. Develop product positioning based on key differentiators 2. validate with customers and channels 3. refine positioning based on research results Positioning Templates (3) ✔✔1. brand positioning 2. category positioning 3. target positioning Repositioning Strategies (3) ✔✔1. change product communication to communicate the new product to same market 2. change target market - deliver same product 3. change both product - attributes and target market Categories of research (2) ✔✔1. Primary - research conducted by/for us (meets an exact research need, personalized, proprietary) 2. Secondary - research conducted by others (industry experts, trade associations, news articles, competitors) Why conduct research ✔✔to guide actions based on reality, not hunch to focus on customers' and not organizations needs or beliefs Categories of data ✔✔1. qualitative - the story -observation - how is the product used -focus groups - how do people interact with the product -in depth interviews - beliefs people hold about the product -mystery shopping - how is the product presented/sold 2. quantitative - the numbers -need statistical confidence -sizing markets -track changes over time -strategic pricing decisions Why secondary research ✔✔1. cost effective 2. faster 3. most effective for overview of market/issue Qualitative Research Methodologies ✔✔1. face to face 2. online 3. telephone 4. online/telephone combo Qualitative Applications ✔✔-new product development -positioning and branding studies -concept evaluation -advertising evaluation -ideation Quantitative Applications ✔✔-ad recall -tracking studies -pricing strategy -market share -level of awareness and preference Steps for Qualitative Research (7) ✔✔1. determine objective 2. define recruiting criteria 3. develop discussion guide 4. recruit 5. conduct research 6. analyze results 7. create action steps Research Pitfalls to avoid ✔✔-inexperienced researcher -using qualitative when quantitative is needed -insufficient sample size -objectives not clearly defined -recruiting the wrong participants -participants not properly screened -wording Value Chain definition ✔✔the series of departments which carry out value-creating activities to design, produce, market, deliver, and support a firm's products. Value Chain Model Support Activities ✔✔1. Firm infrastructure 2. human resource management 3. technology 4. procurement Five primary activities in Value Chain Model ✔✔1. Inbound logistics 2. Operations 3. Outbound logistics 4. Marketing and sales 5. service Value Delivery network definition ✔✔the network made up of the company, suppliers, distributors, and ultimately, customers who "partner" with each other to improve the performance of the entire system. Value Chain Mgmt vs Supply Chain Mgmt ✔✔Value chain is mgmt of the process to optimize design, production, marketing, sales, deliveries and product support to capture and deliver value Supply chain is mgmt of the facilities, functions, and activities involved in producing and delivering a product or service, from suppliers to customers Beta test ✔✔formal, structured, controlled activity to determine market readiness of a new product or capability. External user acceptance testing. Released to a limited audience. ideally 4- 6 weeks long Steps in a Beta test ✔✔1. set goals 2. write beta program plan 3. decide who manages it 4. determine start date 5. determine duration 6. Recruit participants 7. determine response rate (incentivize) 8. determine participation levels 9. select candidates/obtain agreements 10. kick off 11. Maintain ongoing communication 12. respond to participants 13. Communicate internally 14. Administer exist survey 15. Write final report *Give internal summary including what worked and what didn't *thank teammates *thanks participants Product Launch Goals ✔✔1. how many leads to generate 2. what is the revenue you want to receive? 3. How strongly to set the competitive argument? 4. How much initial awareness to generate? How many units to get into customers' and channels' hands. 3 Types of launches ✔✔1. soft launch 2. minimal launch 3. full scale launch Soft launch definition ✔✔1. Soft launch - product may not be fully ready, may be deployed to limited set of customers, capture some revenue and go to VCs for additional funding. Or, company may want to get product into customer's hands to get quick feedback for iteration. doesn't cost much - little to no marketing $, the sales cycles is long and you want customers to become aware of it. Downside = little to no revenue, company may have lost ability to create excitement. Minimal Launch definition ✔✔consider when funding and resources are limited. good for minor revisions to installed base Can be effective if using resources wisely, like for a vertical launch. Full-scale launch definition ✔✔maximize awareness, generate as many leads and sales as possible, and let the industry know who your company is and why you matter. cost mosts money can be broadly horizontal or targeted to one or more verticles Gives product greatest chance for success. Launch Strategy ✔✔1.Use full scale launch as starting point and back off if budget, resource or time-constrained. Ensures you don't forget to consider all of the options. Elements of a successful launch (8) ✔✔1. Planning 2. Communicationn 3. Timing 4. Effective Marketing Mix 5. Compelling Messaging 6. Budget to Achieve Goals 7. Message reaches target customers 8. Product Readiness Planning phase (successful product launch) ✔✔-summary -purpose of this plan -market overview -key market trends -target customers and their needs -product -ship date/window of oppty -positioning -tag line -features and benefits -price -place and channel -marketing strategy -marketing tactics/promotion -launch budget -marketing mix -expected ROI -action plan/deliverable ownership -rough timeline/schedule -key decisions remaining Communication (launch plan) ✔✔ Timing (launch plan) ✔✔have marketing and PR hit shortly after the product becomes available for customers to purchase. Continue with product marketing and product reviews. Set estimated ship date and work backwards about 4 months prior to launch. Avoid announcing too early. Effective Marketing Mix (launch) ✔✔determine mix of marketing components in order to reach your target market in several ways, building awareness and interest, creating a desire to buy the product and then incenting prospects to take action. biggest mistake = assuming that you need to do only one or two type of marketing. success = achieve critical mass with marketing mix while providing effective ROI, plus effective selling tools, and a good process for converting leads. Compelling Messaging (launch) ✔✔ensure you have compelling messaging which speaks to your customer pain points and needs. 1. Develop the positioning - determine target group, focus on specific features or benefits, needs it fulfills, or solutions to problems. 2. Write features and benefits 3. determine unique selling proposition -test message with focus group Positioning process 1. come up with several potential ideas for how product is differentiated in market. 2. test with customers and channel partners 3. create matrices (map differentiators against competitors) 4. formal positioning statement - sums up most critical points - who your target customer is, what their need is and what features you provide to solve their problems, then SPECIFICALLY calls out why you are better than your competitors. don't confuse tag line with positioning statement. Positioning statement meant primarily for company. tag line is succinct version of positioning statement but for wider audience. Once you have created the positioning, you can determine the rest of the messages. Then write features and benefits. Finally, write USP: Unique Selling Position. USP: Unique Selling Proposition definition ✔✔One sentence summary of why the customer should not even consider purchasing anyone else's product. Memorable and repeatable and should support positioning and tag line. Budget (launch) ✔✔ensure amount spent allows you to meet the goals you have set out for the launch. Look at financial rules of similar companies to get an idea of what they spend on marketing (5- 25% of expected revenues) Message Reaches Target Customers (launch) ✔✔Use right marketing mix to reach your target market. Check your assumptions using ROI spreadsheet Product Readiness (launch) ✔✔ensure all aspects of the product are ready - sales, manufacturing, operations, channels, customer support, product quality and associated necessary components. track each component in your weekly launch team meeting. Review Programs after launch ✔✔Top 10 things you can do to make it much easier for them to be more prone to give you a great review. 1. Put a dedicated sr. product manager on the job 2. Start earlier, work from a timeline and hold team meetings 3. Get your materials and references together and provide to reviewers. 4. Do the killer demo (during press tour): practice practice practice 5. Make it "dummy proof" with custom preset accounts #6 Set the competitive argument - tell reviewers/the front upfront what category you are in, who the competitors are and why you are superior. 7. Phase rollout, track equipment, check in routinely - rollout out to reviewers to sure everything is working correctly, use a spreadsheet to track the date you sent the product and the date it was received back, make calls to ensure you have the best response possible. 8. Provide immediate responses to reviewers, 9. Include screenshots & photos with captions - screenshots should include top 3 features of your product. 10. Write the review for them - provide a comprehensive and thorough reviewer's guide to include an overview and introduction that sets the stage in terms of what is important when reviewing this type of product and what is important to the customer. *Include a FAQ 9 key product process templates ✔✔1. business case 2. market needs 3. product description 4. market strategy 5. roadmap 6. beta plan 7. launch plan 8. marketing plan 9. end of life plan