What Is Product Management?
10/18/2016
Product Management & Marketing 18 October 2016
AGENDA Product Management
PRODUCT MANAGEMENT & MARKETING
Product Marketing Marketing Strategy
October 2016
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
1
10/18/2016
What Is Product Management? •
Interdisciplinary role: conceiving, planning, forecasting, designing/developing, testing….to continuously bring better products to market
•
A function within a company dealing with all stages of the product lifecycle.
•
A set of skills and leadership
•
Solid business thinking
What is a product? •
Combination of goods and services
•
Satisfies a specific market need
•
Deliberately created. Not accidental or naturally occurring
•
Encompasses the entire customer experience
Who Needs Product Management? “Superior and differentiated products – ones that deliver unique benefits and superior value to the customer – are the number one driver of product success and product profitability.” Robert Cooper, 2005
Product managers ensure companies develop market-driven, repeatable products
Engineers and Founders are too close to the product to be unbiased
Product managers respect the customer voice through all phases of the product life cycle
Without them, companies focus on the technology (features) instead of on the customer (benefits) Can lead to building a product looking for a market Positioning incorrectly, or inefficiently Pricing out of the market, “shot gun” marketing
Many products fail. Launch does not guarantee success
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
2
10/18/2016
Product Management Functions Inbound: teams, cross-functional management Upstream product management: planning, developing, improving the product Inputs: • Goals • Budgets • Approvals • Staff Inputs: • Technical Capabilities • Risks • Product Outputs: • Market Requirements • Trends / priorities • Customer research: User stories, personas, and cases
Executives
Product Management
Development Team
Outputs: • Strategy • Forecasts (Projections) • Economic activity, industry analysis • Roadmaps • Competitive Intelligence
Inputs: • Field Input • Customer Feedback Marketing + Sales Markets + Customers
Outputs: • Segmentation / Target Markets • Positioning / Messages • Benefits / Features • Pricing • Demos
Outbound: deliver messages, training sales, go-to-market strategies, marketing communication channels supply chain, market & user expert Downstream product management: promotes product (ongoing product lifecycle management)
Product Lifecycle The course of a product’s sales and profits over its life SALES & PROFITS
TIME PRODUCT DEVELOPMENT
TARGET AUDIENCE
INTRODUCTION EARLY ADOPTERS
GROWTH
MATURITY
DECLINE
MAINSTREAM
LATE ADOPTERS
LAGGARDS
Management Style
Visionary
Strategic
Operational
Cost management
Market
Small
Growing
Large
Contracting
Sales
None or low
Rapidly indreasing
Stable or flattening
Moderate or decreasing Transition Transition
Business Focus
Awareness
Market share
Customer retention
Design Focus
Tuning
Scaling
Support
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3
10/18/2016
Product Development Process Process initiated when new ideas require assessment and support from development to launch. Day-to-day, Product Managers must: 1. Monitor product performance 2. Report on the results 3. Respond to the issues 4. Support Sales 5. Monitor market activity Insights from day-to-day practices lead to New Product Development.
The Product Manager interacts with, but is not solely responsible for, all stages in the process, working closely with the cross-functional Team Lead.
www.brainmates.com.au
Evaluating Product Value Questions to understand what will make your customer want to purchase your product: • Who is your target customer? • What are your target customer’s needs? • What product attributes are important to your target customer in order of priority? • How is your product differentiated from your competitors? • What are the customer perception of your company versus your competitor? Customer delight, everything feasible to attract and hold customers Potential Product
Augmented Product
Offering more than what is expected, means of differentiation
Expected Product
Generic Product
Meet minimal expectations
Fundamental elements, no competitive advantage Core benefit
Fundamental benefit customer is buying
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4
10/18/2016
Value Proposition Canvas Gains describe the outcomes and benefits your customers want. • Required gains • Expected gains • Desired gains
Gain Creators describe how your products and services create customer gains.
What is your offering?
Jobs describes the things your customer want to get done. • Functional jobs • Social jobs • Personal/emotional jobs
Pains describe anything that annoys your customers, prevents them from getting a job done, or risks/bad outcomes.
Pain relievers describe how exactly your products and services alleviate specific customer pains.
Assess Product-Market Fit 1.
Address the correct customer problems
2.
Solve those problems well
3.
Be available through an appropriate channel for the customer to find the product at an attractive price
You have a product or service that will address your customers’ needs
You know your customer and what they want to accomplish
Determine fit by going through gain creators and pain relievers to see if they fit a customer job, pain, or gain.
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5
10/18/2016
Performing a Market Analysis Answers the question: Why should audiences care? It is investigated from 3 vantage points: • Company’s POV about the market and its audiences. • Product’s strengths and weaknesses
• Against whom and what does a product compete? • What are all the attributes of the product category? • How much weight does each competitor place on each attribute?
• Understanding the audience: needs, feelings, perceptions
Tools for mapping the landscape: 1. SWOT Analysis 2. Competitive Positioning 3. Technology Adoption Lifecycle (discussed later in Marketing Strategy section)
SWOT Analysis
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6
10/18/2016
Competitive Positioning Quantify how each competitor positions itself by each attribute that they use in their marketing. Do an attribute analysis of your competitors' marketing positioning strategies. Reverse engineer positioning based on the most important terms of the conversation.
3 Jobs of Product Management Business Owner (Strategist)
Business
Business function focused on maximizing business value from a product. PMs are obsessed with optimizing a product to achieve business goals while maximizing ROI. •
Business analyst flavored PMs are optimizers, masters of AB testing, SEO, and growth hacking.
Customer (UX)
Technology
Marketer (Customer, UX) You are here
Be the voice of the user inside the business; be out there testing products, talking to users and getting feedback. •
UX flavored PMs are masters of product-market fit, user functionality/experience, and onboarding.
Technologist
Product
Customers
Understand the level of effort involved in building products to make the right decisions. • Engineering flavored PMs are masters in hard problems like search and recommendations systems.
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7
10/18/2016
Types of Product Management Challenges 1. Product Optimization Address problems that come from user feedback, conversations with customers, competitor analysis 2. Market Driven Market research to get fresh insights into unmet customer needs 3. Tech Driven Solution looking for a problem: Technological change may improve performance for a product or enable new capabilities
Product Solution Defined
Undefined
Defined
Product Optimization
Market Driven
Undefined
4. Visionary
Tech Driven
Visionary
Problem
Market for these products does not exist yet; little knowledge to base assumptions
Cycle of Dysfunction
VP Engineering: “We need more features.” Product engineers guess what the customer might need/want.
Customer Driven
Technology Driven
VP Finance: “We need to control spending.” Company starts cutting budgets like travel, tech support, bonuses … and even marketing.
VP Sales: “We need to be customer-driven.” Company designs products according to customer voice.
Brand Driven
Cost Controlled
VP Marketing: “We need a brand.” Company attempts to establish a brand based on something they sold before. New logo, color scheme, collateral, etc.
What’s missing from this cycle is the voice of the market (current and potential customers). So listen to the market!
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
8
10/18/2016
Product Management Summary Solutions Marketing
Design / Development / QA
Solutions Marketing
Product Management
Assess Markets
Create a Strategy
Plan Product Releases
Design & Develop Products
Roll-out & Launch Products
KEY STRATEGY:
KEY STRATEGY:
KEY STRATEGY:
KEY STRATEGY:
KEY STRATEGY:
Market segmentation & sizing
Align objectives with vision
Create target customer personas
Design & validate user experience
Execute marketing plan
OUTPUTS:
OUTPUTS:
OUTPUTS:
OUTPUTS:
OUTPUTS:
Market analysis
Strategic plan
User stories
Certified product
Competitive analysis
Product/solution roadmap document
Target customer snapshot
Function requirements
Organizational readiness
Ideas Market drivers Emerging technologies Customer needs
Market needs document
Product description document
Business requirement document Product release plan
Technical requirements
End of life plan
Test plans
What is Marketing? Definition of marketing is creating value for something among a defined audience. Role of marketing is to translate the product into value. Foundation of marketing revolves around audiences, not the product or company.
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
9
10/18/2016
Product Marketing Responsibilities Be responsible for market success of the product(s)
• • •
Revenue plans by product Pipeline reviews Integrated marketing campaigns
• Customer loyalty and lifetime customer value • Optimizing the buying process
Build deep knowledge of market, customers and competitors
• • •
Market planning Market segmentation Competitive insights
• Detailed customer needs • Market gaps and opportunities • Pricing strategy
Communicate a market position that is differentiated, clear, and monetizable
• • •
Messaging and positioning Content marketing Collateral and website
• • •
Media outreach & PR Influencer marketing Sales strategy
• •
Sales tools and training Channel enablement
• •
Objection handling Media outreach & PR
Equip sales with knowledge and tools for success
Marketing Management: Product Lifecycle SALES & PROFITS
TIME PRODUCT DEVELOPMENT
MARKETING OBJECTIVE
INTRODUCTION GAIN AWARENESS
GROWTH
MATURITY
COMMUNICATE MAINTAIN DIFFERENTIATION BRAND LOYALTY
DECLINE HARVESTING, DELETION
Competition
None or few
Growing
Substantial
Limited or fading
Product
One or two basic models
Expanding line
Full product line
Best sellers
Price
Free or at cost for endorsements, etc.
Value-based, max profit margins
Competition-based to max market share
Cost-based to prevent entrants and stay profitable
Promotion
Educate market, build brand I.D.
Stress competitive differences
Augment product, brand reputation
Phase out weak products, reduce costs, milk the brand
Limited outlets
More outlets
Maximum outlets
Trim unprofitable outlets
4Ps
Place
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10
10/18/2016
The Four Ps of Marketing: Marketing Mix WILLING TO PAY
• • • • •
Product
Price
What you will sell
Value to the buyer • • • • •
Technology / quality Design / accessories Features / usefulness Brand/packaging Sizes / format / variety
Target Market
• • • • •
Distribution channels Coverage Inventory Transport Locations
CONVENIENCE
Promotion Reaching customers
• • • • •
Special offers Sales force / personal selling Advertising / Endorsements Direct marketing Join ventures / Public relations
Education
Accessibility
Place Getting to the customer
Pricing strategies Discounts Allowances Payment period Credit terms
Value
Benefits
CUSTOMER SOLUTION
COMMUNICATION
Sizing the Market Few companies can supply the needs of an entire market. Most must breakdown the total demand into segments and choose those that the company is best equipped to handle. Total Available Market Served Available Market
Target Market
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TAM = How big is the universe
SAM = How many can I reach with my sales channel(s)
Target Market = Who will be the most likely buyers
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10/18/2016
Market Targeting Strategies Undifferentiated Marketing
Differentiated Marketing
Concentrated (Niche) Marketing
Micromarketing
Local Marketing
Aim for entire market with one marketing mix. Ignore segments. Focus on similarities across consumers. Advantage: Savings on production and marketing costs. Disadvantage: Susceptible to competition
Target several different market segments with separate marketing mix for each. Advantage: Higher sales and profits. Reduces risk. Disadvantage: Limits specialization. Higher costs.
Concentrate on one segment. Advantage: Economies of scale helps lower price. Strong positioning. Disadvantage: All eggs in one basket. If needs change, it is hard to redirect efforts. Threat of large competitors entering.
Cities, neighborhood, specific stores
Targeting Broadly
Individual Marketing
One person.
Targeting Narrowly
Market Segmentation Aggregating prospective buyers into groups that have common needs and respond similarly to a marketing action.
Product
Price Are willing to pay different prices in time, money, or effort to change behavior
Need different products (e.g. are interested in different benefits
Place Can be reached in different places (e.g. through different media outlets)
CONVENIENCE
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Target Market
Promotion Will respond to different types of promotion
Education
Accessibility
WILLING TO PAY
Value
Benefits
CUSTOMER SOLUTION
COMMUNICATION
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10/18/2016
Segmentation: Buyer Personas • Fictional, generalized representations of your ideal customers • Helps you understand customers better, to tailor your marketing content • Based on market research as well as on insights from your actual customer base
Example buyer persona from Trader Joe’s:
Bases of Market Segmentation Criteria Need-based
Customers’ perceived and unknown needs across the buyer’s journey
Behavioral
Divides buyers based on their uses or responses to a product
Value-based
Value placed by customers on the product (e.g. makes things easier, solves a problem, raise a positive emotion, provides security)
Demographic
• • •
Psychographic
Based on attitudes, opinions, lifestyle, or personality characteristics (e.g. technology adoption tendencies, experience, prominence)
Benefit sought
Based on benefits the customer hopes to derive from using the product (e.g. high quality, low price, status, sex appeal, brand symbol). Switching occurs in response to different needs.
Age Gender Life stage B2C
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• • •
Income Education Geography B2B
• • •
Revenue Employees Business sector
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10/18/2016
Buyer’s Journey Customers research and share experiences during the whole buying journey CUSTOMER JOURNEY
AWARENESS
CONSIDERATION
BRAND PENETRATION
Visibility
Evaluation attributes
PURCHASE
RETENTION
Choice
Experience
ADVOCACY
Recommendation & loyalty
CUSTOMER GOAL
Finding the best options to consider for engagement and loyalty needs
Exhaustively compare options and select a few front runners
Identify the company or solution they want to work with
To enter the best partnership agreement and peace of mind in decision
To prove the program’s worth and grow with partner
COMPANY INSIGHT
How is your brand positioning penetrating the market?
What does customer perception of your brand look like?
What are the barriers and triggers for action?
What are the customer likes and dislikes and what words to they use?
What are the customer likes and dislikes and what words to they use?
COMPANY STRATEGY
Drive traffic, generate leads (e.g. cookies, form fills)
Increase visibility (e.g. SEO, direct marketing)
Convert (e.g. UX, ecommerce)
Respond (customer delight)
Build relationship (engagement)
Content Marketing Owned Media Paid Media
Earned Media
Factors to marketing success: • Right channel or media • Right type of message at the right time of the buyer’s journey • Right information at the right time of the buyer’s journey • Right user context
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14
10/18/2016
Technology Adoption Lifecycle THE CHASM Mainstream markets
Early markets
Want solutions and convenience (Generalists)
Want new things, technology, and performance (Specialists)
Minimum Viable Product (MVP)
Innovators 2.5%
Whole Product Solution
Early adopters 13.5%
ENTHUSIASTS
Late majority 34%
Laggards 16%
CONSERVATIVES
SKEPTICS
Early majority 34%
PRAGMATISTS
VISIONARIES
Adapted from Geoffrey Moore: Crossing the Chasm
Technology Adoption & Product Lifecycle THE CHASM
Innovators
ENTHUSIASTS Product Lifecycle
Early adopters
VISIONARIES
Introduction
Early majority
PRAGMATISTS Growth
Late majority
CONSERVATIVES
Laggards
SKEPTICS
Maturity
Decline
Willing adopters: “I’ll buy it when it’s done, not before.”
Economic necessity, safe to adopt: “Status quo is ok. Move only when necessary!”
Traditional, cautious: “No way!” Block purchases of new technology
Customer mindset
Novelty value: “It’s cool! Let’s try it!”
Opinion leadership: “Get ahead of the herd!”
Key characteristic
Aptitude for technical info
Attracted by high risk, high reward
Focus on proven; prefer market leaders
Risk averse, price sensitive
Key challenge
Want access to top experts
Want to get ahead of the competition
Want good references from trusted colleagues
Need complete proven solution
Not a customer
Key role
Gatekeeper to early adapter
Fund development of early market
Gatekeeper to conservatives
Extend product lifecycle
Delay development of markets
Customer intimacy
Product leadership to close deals
Operational excellence
Company skill Product type Channel strategy
Technology proficiency & product leadership Generic product
Expected product
Build channels & alliances, get first customers
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Augmented product, easy plugin solution Solidify relationships, dominate niche by niche
Potential product
Hidden product
Mass market growth and penetration
Maintain, trim and modify, replace
15
10/18/2016
Product Marketing Summary Market Research
Tactical Marketing
Product Marketing Market Segmentation & Targeting
KEY STRATEGY: Handover to marketing from product management
Situation Analysis
KEY STRATEGY:
Market Positioning & Strategy
Marketing and Selling Model
Product launch
KEY STRATEGY:
KEY STRATEGY:
KEY STRATEGY:
Designing a unique value proposition
Setting milestones for the sales funnel
Execute marketing plan
Market segmentation & targeting
Conversations with key company stakeholders
OUTPUTS:
OUTPUTS:
OUTPUTS:
OUTPUTS:
OUTPUTS:
Market segmentation documents
SWOT analysis
Formal positioning statement
Sales & channel strategy
Campaign architecture
Value proposition
Advertising & promotion strategy
Identified target audience Voice of customer validation
Competitive positioning maps Identified product’s maturity (adoption lifecycle)
Market entry strategy
Marketing mix Content roadmap
Key performance indicators Implementation plan
Grace’s Recommended Readings to Further Your Knowledge or Be Ahead of the Herd
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16
10/18/2016
[email protected] www.drgracelee.ca
Connect with me!
/in/doctorlee @DoctorGraceLee
Company of Rogue Academics www.meetup.com/disrupt-academia/
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17
Product Management & Marketing 18 October 2016
AGENDA Product Management
PRODUCT MANAGEMENT & MARKETING
Product Marketing Marketing Strategy
October 2016
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
1
10/18/2016
What Is Product Management? •
Interdisciplinary role: conceiving, planning, forecasting, designing/developing, testing….to continuously bring better products to market
•
A function within a company dealing with all stages of the product lifecycle.
•
A set of skills and leadership
•
Solid business thinking
What is a product? •
Combination of goods and services
•
Satisfies a specific market need
•
Deliberately created. Not accidental or naturally occurring
•
Encompasses the entire customer experience
Who Needs Product Management? “Superior and differentiated products – ones that deliver unique benefits and superior value to the customer – are the number one driver of product success and product profitability.” Robert Cooper, 2005
Product managers ensure companies develop market-driven, repeatable products
Engineers and Founders are too close to the product to be unbiased
Product managers respect the customer voice through all phases of the product life cycle
Without them, companies focus on the technology (features) instead of on the customer (benefits) Can lead to building a product looking for a market Positioning incorrectly, or inefficiently Pricing out of the market, “shot gun” marketing
Many products fail. Launch does not guarantee success
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
2
10/18/2016
Product Management Functions Inbound: teams, cross-functional management Upstream product management: planning, developing, improving the product Inputs: • Goals • Budgets • Approvals • Staff Inputs: • Technical Capabilities • Risks • Product Outputs: • Market Requirements • Trends / priorities • Customer research: User stories, personas, and cases
Executives
Product Management
Development Team
Outputs: • Strategy • Forecasts (Projections) • Economic activity, industry analysis • Roadmaps • Competitive Intelligence
Inputs: • Field Input • Customer Feedback Marketing + Sales Markets + Customers
Outputs: • Segmentation / Target Markets • Positioning / Messages • Benefits / Features • Pricing • Demos
Outbound: deliver messages, training sales, go-to-market strategies, marketing communication channels supply chain, market & user expert Downstream product management: promotes product (ongoing product lifecycle management)
Product Lifecycle The course of a product’s sales and profits over its life SALES & PROFITS
TIME PRODUCT DEVELOPMENT
TARGET AUDIENCE
INTRODUCTION EARLY ADOPTERS
GROWTH
MATURITY
DECLINE
MAINSTREAM
LATE ADOPTERS
LAGGARDS
Management Style
Visionary
Strategic
Operational
Cost management
Market
Small
Growing
Large
Contracting
Sales
None or low
Rapidly indreasing
Stable or flattening
Moderate or decreasing Transition Transition
Business Focus
Awareness
Market share
Customer retention
Design Focus
Tuning
Scaling
Support
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
3
10/18/2016
Product Development Process Process initiated when new ideas require assessment and support from development to launch. Day-to-day, Product Managers must: 1. Monitor product performance 2. Report on the results 3. Respond to the issues 4. Support Sales 5. Monitor market activity Insights from day-to-day practices lead to New Product Development.
The Product Manager interacts with, but is not solely responsible for, all stages in the process, working closely with the cross-functional Team Lead.
www.brainmates.com.au
Evaluating Product Value Questions to understand what will make your customer want to purchase your product: • Who is your target customer? • What are your target customer’s needs? • What product attributes are important to your target customer in order of priority? • How is your product differentiated from your competitors? • What are the customer perception of your company versus your competitor? Customer delight, everything feasible to attract and hold customers Potential Product
Augmented Product
Offering more than what is expected, means of differentiation
Expected Product
Generic Product
Meet minimal expectations
Fundamental elements, no competitive advantage Core benefit
Fundamental benefit customer is buying
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
4
10/18/2016
Value Proposition Canvas Gains describe the outcomes and benefits your customers want. • Required gains • Expected gains • Desired gains
Gain Creators describe how your products and services create customer gains.
What is your offering?
Jobs describes the things your customer want to get done. • Functional jobs • Social jobs • Personal/emotional jobs
Pains describe anything that annoys your customers, prevents them from getting a job done, or risks/bad outcomes.
Pain relievers describe how exactly your products and services alleviate specific customer pains.
Assess Product-Market Fit 1.
Address the correct customer problems
2.
Solve those problems well
3.
Be available through an appropriate channel for the customer to find the product at an attractive price
You have a product or service that will address your customers’ needs
You know your customer and what they want to accomplish
Determine fit by going through gain creators and pain relievers to see if they fit a customer job, pain, or gain.
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
5
10/18/2016
Performing a Market Analysis Answers the question: Why should audiences care? It is investigated from 3 vantage points: • Company’s POV about the market and its audiences. • Product’s strengths and weaknesses
• Against whom and what does a product compete? • What are all the attributes of the product category? • How much weight does each competitor place on each attribute?
• Understanding the audience: needs, feelings, perceptions
Tools for mapping the landscape: 1. SWOT Analysis 2. Competitive Positioning 3. Technology Adoption Lifecycle (discussed later in Marketing Strategy section)
SWOT Analysis
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
6
10/18/2016
Competitive Positioning Quantify how each competitor positions itself by each attribute that they use in their marketing. Do an attribute analysis of your competitors' marketing positioning strategies. Reverse engineer positioning based on the most important terms of the conversation.
3 Jobs of Product Management Business Owner (Strategist)
Business
Business function focused on maximizing business value from a product. PMs are obsessed with optimizing a product to achieve business goals while maximizing ROI. •
Business analyst flavored PMs are optimizers, masters of AB testing, SEO, and growth hacking.
Customer (UX)
Technology
Marketer (Customer, UX) You are here
Be the voice of the user inside the business; be out there testing products, talking to users and getting feedback. •
UX flavored PMs are masters of product-market fit, user functionality/experience, and onboarding.
Technologist
Product
Customers
Understand the level of effort involved in building products to make the right decisions. • Engineering flavored PMs are masters in hard problems like search and recommendations systems.
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
7
10/18/2016
Types of Product Management Challenges 1. Product Optimization Address problems that come from user feedback, conversations with customers, competitor analysis 2. Market Driven Market research to get fresh insights into unmet customer needs 3. Tech Driven Solution looking for a problem: Technological change may improve performance for a product or enable new capabilities
Product Solution Defined
Undefined
Defined
Product Optimization
Market Driven
Undefined
4. Visionary
Tech Driven
Visionary
Problem
Market for these products does not exist yet; little knowledge to base assumptions
Cycle of Dysfunction
VP Engineering: “We need more features.” Product engineers guess what the customer might need/want.
Customer Driven
Technology Driven
VP Finance: “We need to control spending.” Company starts cutting budgets like travel, tech support, bonuses … and even marketing.
VP Sales: “We need to be customer-driven.” Company designs products according to customer voice.
Brand Driven
Cost Controlled
VP Marketing: “We need a brand.” Company attempts to establish a brand based on something they sold before. New logo, color scheme, collateral, etc.
What’s missing from this cycle is the voice of the market (current and potential customers). So listen to the market!
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
8
10/18/2016
Product Management Summary Solutions Marketing
Design / Development / QA
Solutions Marketing
Product Management
Assess Markets
Create a Strategy
Plan Product Releases
Design & Develop Products
Roll-out & Launch Products
KEY STRATEGY:
KEY STRATEGY:
KEY STRATEGY:
KEY STRATEGY:
KEY STRATEGY:
Market segmentation & sizing
Align objectives with vision
Create target customer personas
Design & validate user experience
Execute marketing plan
OUTPUTS:
OUTPUTS:
OUTPUTS:
OUTPUTS:
OUTPUTS:
Market analysis
Strategic plan
User stories
Certified product
Competitive analysis
Product/solution roadmap document
Target customer snapshot
Function requirements
Organizational readiness
Ideas Market drivers Emerging technologies Customer needs
Market needs document
Product description document
Business requirement document Product release plan
Technical requirements
End of life plan
Test plans
What is Marketing? Definition of marketing is creating value for something among a defined audience. Role of marketing is to translate the product into value. Foundation of marketing revolves around audiences, not the product or company.
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
9
10/18/2016
Product Marketing Responsibilities Be responsible for market success of the product(s)
• • •
Revenue plans by product Pipeline reviews Integrated marketing campaigns
• Customer loyalty and lifetime customer value • Optimizing the buying process
Build deep knowledge of market, customers and competitors
• • •
Market planning Market segmentation Competitive insights
• Detailed customer needs • Market gaps and opportunities • Pricing strategy
Communicate a market position that is differentiated, clear, and monetizable
• • •
Messaging and positioning Content marketing Collateral and website
• • •
Media outreach & PR Influencer marketing Sales strategy
• •
Sales tools and training Channel enablement
• •
Objection handling Media outreach & PR
Equip sales with knowledge and tools for success
Marketing Management: Product Lifecycle SALES & PROFITS
TIME PRODUCT DEVELOPMENT
MARKETING OBJECTIVE
INTRODUCTION GAIN AWARENESS
GROWTH
MATURITY
COMMUNICATE MAINTAIN DIFFERENTIATION BRAND LOYALTY
DECLINE HARVESTING, DELETION
Competition
None or few
Growing
Substantial
Limited or fading
Product
One or two basic models
Expanding line
Full product line
Best sellers
Price
Free or at cost for endorsements, etc.
Value-based, max profit margins
Competition-based to max market share
Cost-based to prevent entrants and stay profitable
Promotion
Educate market, build brand I.D.
Stress competitive differences
Augment product, brand reputation
Phase out weak products, reduce costs, milk the brand
Limited outlets
More outlets
Maximum outlets
Trim unprofitable outlets
4Ps
Place
Slides prepared for UBC mini-MBA. Not for re-distribution. Do not copy.
10
10/18/2016
The Four Ps of Marketing: Marketing Mix WILLING TO PAY
• • • • •
Product
Price
What you will sell
Value to the buyer • • • • •
Technology / quality Design / accessories Features / usefulness Brand/packaging Sizes / format / variety
Target Market
• • • • •
Distribution channels Coverage Inventory Transport Locations
CONVENIENCE
Promotion Reaching customers
• • • • •
Special offers Sales force / personal selling Advertising / Endorsements Direct marketing Join ventures / Public relations
Education
Accessibility
Place Getting to the customer
Pricing strategies Discounts Allowances Payment period Credit terms
Value
Benefits
CUSTOMER SOLUTION
COMMUNICATION
Sizing the Market Few companies can supply the needs of an entire market. Most must breakdown the total demand into segments and choose those that the company is best equipped to handle. Total Available Market Served Available Market
Target Market
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TAM = How big is the universe
SAM = How many can I reach with my sales channel(s)
Target Market = Who will be the most likely buyers
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Market Targeting Strategies Undifferentiated Marketing
Differentiated Marketing
Concentrated (Niche) Marketing
Micromarketing
Local Marketing
Aim for entire market with one marketing mix. Ignore segments. Focus on similarities across consumers. Advantage: Savings on production and marketing costs. Disadvantage: Susceptible to competition
Target several different market segments with separate marketing mix for each. Advantage: Higher sales and profits. Reduces risk. Disadvantage: Limits specialization. Higher costs.
Concentrate on one segment. Advantage: Economies of scale helps lower price. Strong positioning. Disadvantage: All eggs in one basket. If needs change, it is hard to redirect efforts. Threat of large competitors entering.
Cities, neighborhood, specific stores
Targeting Broadly
Individual Marketing
One person.
Targeting Narrowly
Market Segmentation Aggregating prospective buyers into groups that have common needs and respond similarly to a marketing action.
Product
Price Are willing to pay different prices in time, money, or effort to change behavior
Need different products (e.g. are interested in different benefits
Place Can be reached in different places (e.g. through different media outlets)
CONVENIENCE
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Target Market
Promotion Will respond to different types of promotion
Education
Accessibility
WILLING TO PAY
Value
Benefits
CUSTOMER SOLUTION
COMMUNICATION
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Segmentation: Buyer Personas • Fictional, generalized representations of your ideal customers • Helps you understand customers better, to tailor your marketing content • Based on market research as well as on insights from your actual customer base
Example buyer persona from Trader Joe’s:
Bases of Market Segmentation Criteria Need-based
Customers’ perceived and unknown needs across the buyer’s journey
Behavioral
Divides buyers based on their uses or responses to a product
Value-based
Value placed by customers on the product (e.g. makes things easier, solves a problem, raise a positive emotion, provides security)
Demographic
• • •
Psychographic
Based on attitudes, opinions, lifestyle, or personality characteristics (e.g. technology adoption tendencies, experience, prominence)
Benefit sought
Based on benefits the customer hopes to derive from using the product (e.g. high quality, low price, status, sex appeal, brand symbol). Switching occurs in response to different needs.
Age Gender Life stage B2C
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• • •
Income Education Geography B2B
• • •
Revenue Employees Business sector
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Buyer’s Journey Customers research and share experiences during the whole buying journey CUSTOMER JOURNEY
AWARENESS
CONSIDERATION
BRAND PENETRATION
Visibility
Evaluation attributes
PURCHASE
RETENTION
Choice
Experience
ADVOCACY
Recommendation & loyalty
CUSTOMER GOAL
Finding the best options to consider for engagement and loyalty needs
Exhaustively compare options and select a few front runners
Identify the company or solution they want to work with
To enter the best partnership agreement and peace of mind in decision
To prove the program’s worth and grow with partner
COMPANY INSIGHT
How is your brand positioning penetrating the market?
What does customer perception of your brand look like?
What are the barriers and triggers for action?
What are the customer likes and dislikes and what words to they use?
What are the customer likes and dislikes and what words to they use?
COMPANY STRATEGY
Drive traffic, generate leads (e.g. cookies, form fills)
Increase visibility (e.g. SEO, direct marketing)
Convert (e.g. UX, ecommerce)
Respond (customer delight)
Build relationship (engagement)
Content Marketing Owned Media Paid Media
Earned Media
Factors to marketing success: • Right channel or media • Right type of message at the right time of the buyer’s journey • Right information at the right time of the buyer’s journey • Right user context
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Technology Adoption Lifecycle THE CHASM Mainstream markets
Early markets
Want solutions and convenience (Generalists)
Want new things, technology, and performance (Specialists)
Minimum Viable Product (MVP)
Innovators 2.5%
Whole Product Solution
Early adopters 13.5%
ENTHUSIASTS
Late majority 34%
Laggards 16%
CONSERVATIVES
SKEPTICS
Early majority 34%
PRAGMATISTS
VISIONARIES
Adapted from Geoffrey Moore: Crossing the Chasm
Technology Adoption & Product Lifecycle THE CHASM
Innovators
ENTHUSIASTS Product Lifecycle
Early adopters
VISIONARIES
Introduction
Early majority
PRAGMATISTS Growth
Late majority
CONSERVATIVES
Laggards
SKEPTICS
Maturity
Decline
Willing adopters: “I’ll buy it when it’s done, not before.”
Economic necessity, safe to adopt: “Status quo is ok. Move only when necessary!”
Traditional, cautious: “No way!” Block purchases of new technology
Customer mindset
Novelty value: “It’s cool! Let’s try it!”
Opinion leadership: “Get ahead of the herd!”
Key characteristic
Aptitude for technical info
Attracted by high risk, high reward
Focus on proven; prefer market leaders
Risk averse, price sensitive
Key challenge
Want access to top experts
Want to get ahead of the competition
Want good references from trusted colleagues
Need complete proven solution
Not a customer
Key role
Gatekeeper to early adapter
Fund development of early market
Gatekeeper to conservatives
Extend product lifecycle
Delay development of markets
Customer intimacy
Product leadership to close deals
Operational excellence
Company skill Product type Channel strategy
Technology proficiency & product leadership Generic product
Expected product
Build channels & alliances, get first customers
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Augmented product, easy plugin solution Solidify relationships, dominate niche by niche
Potential product
Hidden product
Mass market growth and penetration
Maintain, trim and modify, replace
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Product Marketing Summary Market Research
Tactical Marketing
Product Marketing Market Segmentation & Targeting
KEY STRATEGY: Handover to marketing from product management
Situation Analysis
KEY STRATEGY:
Market Positioning & Strategy
Marketing and Selling Model
Product launch
KEY STRATEGY:
KEY STRATEGY:
KEY STRATEGY:
Designing a unique value proposition
Setting milestones for the sales funnel
Execute marketing plan
Market segmentation & targeting
Conversations with key company stakeholders
OUTPUTS:
OUTPUTS:
OUTPUTS:
OUTPUTS:
OUTPUTS:
Market segmentation documents
SWOT analysis
Formal positioning statement
Sales & channel strategy
Campaign architecture
Value proposition
Advertising & promotion strategy
Identified target audience Voice of customer validation
Competitive positioning maps Identified product’s maturity (adoption lifecycle)
Market entry strategy
Marketing mix Content roadmap
Key performance indicators Implementation plan
Grace’s Recommended Readings to Further Your Knowledge or Be Ahead of the Herd
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[email protected] www.drgracelee.ca
Connect with me!
/in/doctorlee @DoctorGraceLee
Company of Rogue Academics www.meetup.com/disrupt-academia/
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