Let me give you a little insight about what product management entails. When there is a new product within a company, a team is developed to oversee that the product is launched and thrives during the product life cycle. There are some factors which enable a product to enter the market successfully.
- Development of a new product
- Product planning
- Business justification or case. This incorporates the purpose and reason to initiate a task or project.
- Verifying the product
- Product marketing
Product management is not limited to developing new products alone, it involves designing and implementation of phased out planning to do away with outdated technology and products which will not do well in the market. There are three main objectives that this framework strives to achieve
- Enhanced profit margins
- Increasing and widening market share
- Increasing sales revenue
This framework ensures that the company’s messaging and solution set is aligned with its strategy and needs of the market. If any form of misalignment happens, it may be a market product or strategy, which will lead the company to less or below optimal profits.
It helps the company to remain focused and to avoid distractions that look like opportunities. Regardless of how a new innovation is great and workable, enhancement of products and products are built and marketed to fit the market needs. It ensures that others do what’s right for the company and to ensure the product cuts through all the noise of what seems like great ideas and customer requests. It guides the organization to a path that increases the sales revenue at minimal costs.
You know what the market is? It consists of buyers and non-buyers, customers and users which a company targets. They help the company to synthesize meaningful market data and it is used by executive management, marketing and sales department ls to set market trends of the product.
Benefits of product management to a company
- Articulates the customer value
The market is very competitive and attaining revenue targets can be stressful to the product management team. To reduce this pressure, a good framework applies so that a sustainable approach and collaboration with the sales team is close to ensure they do not pursue the wrong customers. Increased dialogue between these teams gives an opportunity to identify new target markets for the products, and problems that may lead to new product development.
- It reduces the risk of product failure
Identifying a set of assumptions, extraction of business intelligence and scanning and identifying market trends will reduce the risk. You don’t sail a ship to unknown destination, that’s why every company needs a business case before development of a new product. Pertinent internal like resources, business constraints and capabilities, and external data like market conditions, size and competitive landscape helps and organization to make better decisions.
- It future proofs the organization
They keep a track of changes in the market, competitors, customer need, financial intricacies and product performance. Having this knowledge gives a company good stead and a foundation to make changes and enhancement for optimum use in the market. It catches all the urgent and non-urgent issues concerning the product.
- Aligning organization key objectives with market needs.
It ensures new products meet both customer and business value and solves a percentage of market problems which align with business objectives.