Product management is a particular type of business management concerned with managing a product’s planning, design, development, and delivery. It has originally been defined as the management of end-to-end processes required to create and deliver customer value by creating products that meet customer requirements.
Product managers are responsible for planning, organizing, and driving the product life cycle risks across all product development stages, including market research, formulation, design verification and testing (DFVT), manufacturing, marketing launch, etc.
Product management is a cross-functional role that involves interaction across functional teams. It has grown as one of the most important functions in business today.
Product Management is a combination of two roles: Product Owner and Product Manager. They are always present in the same team and work together to deliver the product to the customer.
These roles are crucial for successful project management, leading to a successful product launch. These roles are not established in all organizations, but once they are recognized, they will become part of any product management organization.
The main purpose of having a product owner is to deliver the right thing, at the right time, with the right quality, and within budget. Product management is responsible for translating business (customer) requirements into features that make up a product ultimately delivered to customers.
As a result of this process, the product manager will need to engage in conversations with business stakeholders. The product owner owns this information and is responsible for keeping it up-to-date and available.
What is product management?
The process of bringing a new product to market or further developing an existing one is known as product management. It begins with the conception of a product with which a consumer will engage, and it culminates in an analysis of how well consumers received the product.
Bringing together business, product development, marketing, and sales is what product management does. According to several studies, successful product management can lead to a 34.2% rise in profits, demonstrating the significance of putting this strategy into action.
Understand the benefits of product management through its impact on the organization and its bottom line. Product management has the distinct ability to drive both market penetration and return on investment (ROI).
When implemented correctly, it can result in a 26% increase in share price. In addition, it can increase loyalty among customers by 24%. This amount holds when considering that their ROI increases with each launched product.
5 Key Roles in Product Management
1) Vision development:
Planning for the long term is what product management does for its organization. Product development and vision for success are the most important factors that product managers consider in their daily activities.
They ensure that the organization focuses on developing products that will ultimately be sold to customers. Their responsibilities include identifying customer needs and developing and identifying potential markets.
It also involves engaging in conversations with other departments, like marketing, sales, finance, etc., to ensure an entire range of support during product development.
2) Product management:
Product management is where everything comes together, dramatically impacting all of an organization’s departments. This role is derived after all the planning and visioning that has taken place throughout the entire organization.
Their activities include engaging in conversations with business stakeholders, marketing, sales, finance, etc., to ensure a range of support during product development.
3) Customer needs:
Product managers are responsible for making sure that their customers get what they specifically want from their product as they market it to them. They conduct market research to ensure they know the product they want and how best to sell it to their customers.
They then develop a plan for success. This plan includes how they will engage with customers and market their products and determine what role marketing, design, manufacture, etc., will play in the development of the product.
4) Strategy development:
As the first phase of product development begins, a product manager will begin to develop a strategy that will be used for designing and manufacturing products for their customers.
These strategies must consider the customer, a price point (if the organization does not have one, the product manager might need to work with finance to establish one), and a timeline. The timeline is important, as it is determined by the customer and can be tweaked if necessary.
5) Marketing and sales:
Product managers recruit the right people, manage and monitor them, and engage with customers through various channels to ensure they can market their products effectively. They also test the product after launch and keep on testing until they have determined whether or not the product is a success.
The Bottom Line!
Product managers demonstrate their value and make a substantial impact in their organization. They must be able to negotiate effectively, plan and create a cohesive team environment where they can collaborate effectively with other departments while facilitating complete customer satisfaction.
The role of product management is essential in the success of any organization as it ensures that its customers get what they want at an affordable price point.