What is Product Management? Focus, Process and Tools

Product management is the process of overseeing and managing a product’s or service’s creation, manufacturing, and marketing. A product manager is in charge of establishing a product’s strategy and vision, performing market research to uncover consumer needs, and collaborating with cross-functional teams to create and deliver the product. They are also in charge of tracking the product’s performance and making necessary changes depending on customer input and market trends.

Strong communication skills, critical thinking, and the ability to work well with various teams are required to become successful product managers. One can gain expertise in this domain by taking a product management course that can enhance skills and knowledge.

Product Management Definition

Product management is the process of supervision at every stage of a product, from its making to positioning. It refers to the strategic direction of a product’s lifecycle and aims at satisfying both the customer’s needs and business objectives.

Product management takes into consideration all levels of functionality. Strategically planning the growth of a product from the very beginning involves cross-functional communication at various levels to create strong products that give positive outcomes. 

Apple’s creation and introduction of the iPhone is an example of product management. Apple’s product management staff was critical throughout the product lifecycle, from concept through launch and beyond. The product management procedure was as follows:

• Ideation and Concept Development: The product management team recognized a market need for an easy-to-use smartphone with a stylish design. They collaborated with the technical and design teams to develop the idea of an iPhone.

• Product Development: The product management team collaborated closely with the engineering team to oversee the iPhone’s development, ensuring that the device matched consumer expectations while also adhering to Apple’s design and quality standards.

• Product Launch: The product management team was essential in the iPhone’s introduction, collaborating with the marketing and sales teams to design a go-to-market strategy, pricing, and distribution strategy.

• Product Improvement: Following the product’s introduction, the product management team continued to make adjustments based on customer input and market developments. They collaborated with the technical team to create new features and functions, as well as with the marketing team to publicize these changes to clients.

History of Product Management

In 1931, Neil H. McElroy produced an 800-word memo at Procter & Gamble (P&G) to introduce modern product management. The memo outlined the responsibilities of “Brand Men”, who had the responsibility of sales tracking, product management, advertising, and promotions. This concept became a cornerstone of modern brand and product management.

McElroy’s proposal of “Brand Men” led to the creation of the role of product manager at P&G, and the company was restructured into a brand-centric organization. McElroy emphasized the importance of thorough field testing and client interaction for the success of product management. 

In later years, McElroy influenced two individuals at Stanford University, Bill Hewlett and David Packard, to prioritize customer-centric decision-making and make product managers the voice of customers. 

Following World War II, Japan’s industries adopted just-in-time manufacturing due to shortages and cash flow issues. Taiichi Ohno and Eiji Toyoda created the Toyota Production System, focusing on Kaizen (continuous improvement, innovation, and evolution) and Genchi Genbutsu principles (going back to the prime point to find facts for better decision-making and improved business performance). Both concepts further shaped the modern-day product management process.

Towards the end of the 20th century, western companies liked the ideas of Hewlett-Packard and Toyota. These ideas spread to Silicon Valley and around the world, changing how companies make and manage products.

Importance of Product Management

The importance of product management for companies lies in the following reasons.

• To develop and launch products that cater to their target audiences.
• To maintain market competitiveness, understand customer needs, increase efficiency by reducing waste and costs, and streamline the product development process. 
• By focusing on these aspects, companies can stay ahead of the competition and achieve their goals.

Focus of Product Management

To understand what is product management, it is important to know that it covers a vast range of fields that lead to a variety of focus points. The focus of product management is to particularly oversee the entire lifecycle of a product, from its idea to development to its launch and eventual retirement. Following are some focus points that need to be observed closely.

• Market Research: The research proves to be very important to figure out the needs of the customers, the latest technologies and trends, and analyze other competitive products.

• User Engagement: A product has to keep evolving to match the user’s needs and be in demand. If the product is not able to satisfy the needs of the consumers, its engagement will drastically be affected.   

• Performance of the Product: Monitoring the performance of the product in the market and gathering customer feedback to make data-driven decisions to optimize the product and drive growth is very important.

• Set a Strategy: The strategy set around a product defines the vision of the product growth, targeted audience, key features, and growth.

• Shared Goals: Before a product is released in the market, different departments evaluate the outcomes the product will bring after it is released. For example, the growth department will bring other departments to collaborate (ones responsible for the user engagement of the product). Hence, both of these departments have a shared goal which is to increase the sales of the product and maximize company profits.

Process of Product Management

If a product does not improve and remains just as it was when it was first made, it will stop selling. Therefore, the process of product management needs to evolve to match the growing standards of consumers. Given below is the process of product management.

Addressing Product Defects

For example, a fitness equipment firm discovers that its present line of treadmills is not selling well owing to a lack of sophisticated features in comparison to its competitors.

Step 1: Determine the product’s flaw(s) – The issue is that their treadmills lack 

the modern functionality that clients want.

Step 2: Research to better grasp the issue – The organization performs market research and consumer surveys to determine which features people want and how they view the current product.

Examining Several Solutions

After recognizing the issue, the corporation explores different options, such as adding new features, lowering the price, or collaborating with a technology company to develop a smart treadmill.

Step 3: Generate ideas for potential solutions – The organization assesses various solutions, taking into account the effect, practicality, and cost of each choice.

Step 4: Assess potential solutions – Following careful consideration, the corporation chooses to collaborate with a technology company to add sophisticated capabilities to its treadmill range

Cross-Functional Buy-In

Following the identification of the problem and the selection of a solution, the organization must obtain support from cross-functional teams such as executives, designers, developers, and marketers.

Step 5: Get support from cross-functional teams – The corporation presents its idea to cross-functional teams and receives approval from each department.
Step 6: Create a strategy for putting the solution into action – The firm creates a strategy for executing the solution, including goals, timeframes, budgets, and responsibilities.

Minimum Viable Product (MVP)

The firm develops a minimal viable product by collaborating with a technology company to add new capabilities to its treadmill range.

Step 7: Create a minimal viable product (MVP) The business develops a prototype that includes only the components required to tackle the specified problem, such as an interactive display and individualized exercises.

Step 8: Do user tests on the MVP. The firm performs user testing to gain comments and insights on the MVP, which it then uses to improve the product.

The Final Product’s Execution

After perfecting the product, the corporation launches it and examines its performance. 

Step 9: Create the finished product To produce a fully-functional product with sophisticated features, the firm uses user feedback and iterates on the MVP.

Step 10: Introduce the product. A go-to-market strategy is developed by the firm, which includes generating marketing materials, establishing distribution networks, and preparing a launch event.

Step 11: Keep an eye on and analyze the product. To continually enhance the product, the firm gathers and analyzes data on product usage, customer feedback, and other vital variables, such as adding new features and modifying prices to match client demand.

What is Agile Product Management?

The word ‘agile’ attached to the term ‘product management’ essentially refers to the philosophy behind the product development process. The main principles that guide the agile product management process are:

• The emphasis should be on client and customer interactions rather than processes and tools.
• Working software development is preferred over extensive documentation.
• Collaboration with the customers before contract negotiations.
• Adapting to change versus sticking to a plan.

The principles of agile project management are more people-oriented (for those involved in the product development process) and user-oriented (for clients and customers) than focusing on the technical aspects of the project.

Types of Product Management Roles

The different types of project management roles are:

• Technical Product Manager: They are responsible for the technical aspects of the product development process. They work closely with technical teams, primarily engineering teams, to ensure seamless development of product functionality and digital infrastructure. They place a high value on the inner workings of a product.

• Data Product Manager: Data Product Managers are responsible for understanding and using data to inform and improve product decisions. They have in-depth knowledge of the product, its data sources, and the market environment. Aside from recognizing and analyzing market trends, data product managers are also able to create strategies and share insights with stakeholders. They are also proficient in data analysis and visualization tools.

• Growth Product Manager: They are responsible for driving user growth and engagement for a product. They use data and analytics to identify user behavior patterns and optimize the user experience. They develop strategies to increase user acquisition and engagement and design campaigns to promote the product and increase brand awareness.

Roles and Responsibilities of a Product Manager

The roles and responsibilities of a product manager are explained below.

Role of a Product Manager

The key role of a product manager is to take care of the product development lifecycle. Right from the planning stage to designing the product, coordinating with the cross-functional teams, and launching the product, the product manager’s role is significant. Product managers are like guides for products. They decide what makes a product successful, plan how it should work, and demonstrate how it’s good for customers and the company.

Responsibilities of a Product Manager

The responsibilities of a product manager are listed in the following tasks they carry out:

• Carry-Out Data-Driven Research: Product managers work with the design, marketing, and sales teams to figure out what customers need and if their product fits well in the market. The market-based and customer-centric research helps them know what products and services the company should focus on. 

• Plan for the Product Development Process: Once they know what customers want, product managers plan the way forward. They develop a production plan that specifies when and how a product will be made. They work with other teams to break the work into smaller parts and set the timeline. They also make sure everyone knows what is needed to complete the product and that the team is concentrating on their assigned tasks.

• Product Functionality Testing and Launching: When the product is finished, product managers make sure it works well. They run tests to see if all the features work properly. Sometimes the product development process is very extensive and occurs in several phases.  Therefore, the product manager also decides to test individual phases of product development through a “beta” launch. This means releasing an unfinished product with known and unknown bugs to test functionality and solicit user feedback to move the development process forward. 

• Examine Test Results and Report to Top Management: After the product is out and people have started to use it, product managers keep a close check on how well the product is doing and whether or not users like it. To analyze the success and failure of the product, they leverage various analytical tools to create reports. Finally, they are responsible for presenting the results to the leadership.

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Product Management Tools

Now that we properly understand what is product management, let’s dig into the product management tools that a product manager can use to make their work easier. Some of these tools are mentioned below.

• Communication Tools– These tools help in interacting with clients, buyers, stockholders, and partners. Various communication tools used by product managers are Outlook, Zoom, Skype, etc. 
• Roadmapping Software– This software is used to map out a product’s strategy which fulfills company goals. Some popular road mapping software are Wrike, ProductPlan, etc.
• Issue-Tracking Tools– These tools are used to note down the problems consumers are facing while they use a product or an app. With this tool, product managers can know what issue lies with their product and improve on it accordingly. Some issue-tracking tools are Jira, Bug Tracker, and Bugzilla.
• Customer Feedback and Survey Software– This software helps collect user feedback. Software included in this category are SurveyMonkey, Typeform, Usersnap, etc.

Conclusion

Product management is a thriving field. With growing human standards, every product needs to evolve and become something better and be more useful to consumers. Therefore, the goal of product management, which is to increase the sales of a product and get positive results, will always remain focused. The scope of this field is large and will no doubt expand even further in the near future.