Why it is Important to Position Product Management in the Organization?
In a competitive global economy, companies turn to product management to generate great revenue. Competent product management starts at the level of a project portfolio when indicators are defined for performance evaluation.
The term project management includes not only project management, but also project portfolio and program management. And more and more companies understand the effectiveness of investing money, time and resources in enhancing the competence of project management.
Thanks to the development of project management, it is possible to achieve cost reductions, increase efficiency, and improve interaction with customers.
However, behind each successful product, there is a person who worked tirelessly on it and led the development team. One who has successfully combined design with engineering skills to solve real customer problems. Usually, this person is a Product Manager.
Product Manager- There can be only one – who makes the decision!
A product manager has strategic responsibility for a product. He creates marketing concepts for the products and positions them in the market and looks after it throughout all life-cycles. As a product manager, the task is to manage a product across departments and successfully place it on the market. The tasks of a product manager range from planning to marketing to the withdrawal of products.
Why Does Any Start-up Need a Product Manager?
Today, the need of managing product is higher than before, because of the focus on creating user-centric products. However, many organizations doubt whether they should appoint a product manager, or not.
For better understanding the importance of a product manager in any company, you should look more closely at the jobs and responsibilities that he performs.
Responsibilities of Product Manager
Product management serves as an interface between the divisions and departments involved. The product manager acts as a mediator and communicator of all involved.
The tasks range from market analysis, planning and implementation of the product, to the control of marketing processes and the support of end customers.
Product management in an organization is a versatile and complex process. Responsible for the product and its development, the product manager has to lock in a lot of different activities. We tried to highlight the key ones.
The analysis activity of product manager refers to the indoor and outdoor areas of entrepreneurial activities. The internal company processes are analyzed to determine the potentials and weaknesses of the product. During this phase, the product manager analyzes and evaluates the current marketing situation.
An external condition, such as the prevailing market situation, is also examined for opportunities and threats. Likewise, the competitive environment becomes the focus of external investigations.
It develops strategic concepts based on the analysis results. The product manager creates product concepts and positioning against the background of the defined company goals.
The area of responsibility of a product manager concerns the entire coordination of product implementation. Likewise, the monitoring of product realization falls within the scope of product management. In addition to the external features, such as design and packaging, it also controls the price positioning of the product in the market.
The successful market launch of the product or service requires a targeted orientation of the 4 P’s (Price, Product, Place, and Promotion). The product manager works closely with the company’s marketing department during the launch of the product. The following tasks arise within the framework of the market launch:
- Price policy
- Product Policy
- Place ( distribution policy )
- Doctorate (communication policy)
Customer satisfaction is one of the top goals for product management. In the B2B area, the customer has a particularly high influence on the end product. Frequently, products or services tailored to the customer are also offered. If the product enters the market, it is among the tasks of the product manager to evaluate customer satisfaction through regular analyzes. Measuring instruments can be questionnaires, e-mail surveys or evaluations of complaints.
Success-oriented product management always remains vigilant in market analyzes in order to identify and implement potential optimizations at an early stage. In the case of major changes in the market, the product manager should adjust the price and positioning to compete with other companies.
Preparation of long-term road-map and planning
Long-term planning is one of the key responsibilities of any product manager. Both in a large and small company- it’s a duty of the product manager to draw a roadmap for a real, existing product for a couple of years in advance.
Product Management in an Entrepreneurial Context
The scope of the product manager covers several departments of a company. In product management, on the one hand, the product manager performs a demand analyzes to determine the real use value of a product. On the other hand, it accompanies products and services from their creation to market exit. The duties of the active manager combine different business branches, such as:
Successful product management requires a comprehensive information base. All participating business departments must ensure sufficient transparency about data and facts.
Requirements for Product Management
In order to gain a foothold in the area of product management, various entry-level opportunities can be taken. A classical study program or a specialized apprenticeship does not exist. However, interested parties can receive training in the field of product management. A cross-entry from related positions, such as sales or research, is also possible.
Perspectives in Product Management
Project management offers far-reaching perspectives in the area of corporate management. Versatile work and close contact with other business departments enable a comprehensive overview of different business processes. This allows product managers to easily position themselves in other areas or to fill management positions.
Challenge in Product Management
Interdepartmental work in product management poses challenges. The project manager has to deal with different opinions and objections and bring them together. The smooth cooperation between the different departments demands a high load capacity. In addition, the market entry of a new product can be tedious and difficult.
The project manager is the “entrepreneur for his product” and thus the engine for product success. The company must give it the necessary competencies i.e. the positioning of product management in the company must be the top priority.
As you can see, it can make communication with customers and users close and effective from the earliest stages of its creation. However, in any case, the decision to hire a product manager is very individual. It depends on many factors, including a budget, product complexity, and the goals behind it.