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Minggu, Juni 06, 2010

Marketing Mix - 4P's

Marketing decisions generally fall into the following four controllable categories:
  • Product
  • Price
  • Place (distribution)
  • Promotion

The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below:

The Marketing Mix

The Marketing Mix


These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.

Product Decisions

The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:

  • Brand name
  • Functionality
  • Styling
  • Quality
  • Safety
  • Packaging
  • Repairs and Support
  • Warranty
  • Accessories and services

Price Decisions

Some examples of pricing decisions to be made include:

  • Pricing strategy (skim, penetration, etc.)
  • Suggested retail price
  • Volume discounts and wholesale pricing
  • Cash and early payment discounts
  • Seasonal pricing
  • Bundling
  • Price flexibility
  • Price discrimination

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution decisions include:

  • Distribution channels
  • Market coverage (inclusive, selective, or exclusive distribution)
  • Specific channel members
  • Inventory management
  • Warehousing
  • Distribution centers
  • Order processing
  • Transportation
  • Reverse logistics

Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

  • Promotional strategy (push, pull, etc.)
  • Advertising
  • Personal selling & sales force
  • Sales promotions
  • Public relations & publicity
  • Marketing communications budget

Limitations of the Marketing Mix Framework

The marketing mix framework was particularly useful in the early days of the marketing concept when physical products represented a larger portion of the economy. Today, with marketing more integrated into organizations and with a wider variety of products and markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc. Today however, the marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.

Product Manager - Delegate Tactical Responsibilities

Delegate tactical responsibilities

If you want to be a bad product manager, do everything yourself. You’re the product manager, after all, so you should be the final authority on everything related to the product. You should be the one answering questions from salespeople, drafting press releases for marketing, defining all of the processes for suppliers, and poring over every detail with engineering. Sure it takes a lot of your time, but that’s what a product manager should be spending time on. What other more important things are there to do?

If you want to be a good product manager, delegate tactical activities to allow you to spend time on the strategic aspects of the job. Effective product managers pass on product knowledge and responsibility for tactical decision-making as much as possible to others on the product development team. By leveraging the rest of the team, the product manager can focus on the strategic role of product management.

It is difficult for many product managers — especially new product managers — to effectively balance the strategic and tactical priorities of product management. With so many competing priorities, the minutia and day-to-day tends to take over. To extend a common metaphor, it’s not just that product managers sometimes focus on the trees instead of the forest — they go so far as to end up focusing on a specific piece of bark.

While it is easy to say that product managers should be more strategic and less tactical (see Spend your time in the right places, for example), actually accomplishing that is a significant challenge. Pragmatic Marketing recently released the free ebook “The Strategic Role of Product Management,” by Steve Johnson, which describes why product management is a strategic role and why product managers need to think and act strategically. Buried in the “Final thoughts” section is this beautiful nugget of wisdom (emphasis added):

Product management is a strategic role. Yet as experts in the product and the market, product managers are often pulled into tactical activities. Developers want product managers to prioritize requirements; marketing people want product managers to write copy; sales people want product managers for demo after demo. Product managers are so busy supporting the other departments they have no time remaining for actual product management. But just because the product manager is an expert in the product doesn’t mean no one else needs product expertise.

Product managers should take heed of this last sentence. Think about all of the tactical activities in which you engage — documenting details, answering questions, describing functionality, responding to feedback, tracking down responses, and the like. How much of your time is taken up by these activities? Why are you engaged in them? Is it because

  1. you are the only person in the company who knows how?
  2. everyone else is busy and you are the only one who has free time?
  3. they are so important that they must be done by you and only you?

The answer to these questions is probably an emphatic NO in most cases. The real reason that product managers are engaged in these activities is because they have done them in the past, so others assume they will do them in the future. Every time a product manager writes copy for marketing, or conducts a demo for sales, or investigates some technical issues for development, the product manager creates the expectation that he or she will do that in the future. Obviously, there are some occasions where this may be appropriate, However, the vast majority of the time, the product manager can and should be giving the necessary direction, context, and guidance to allow other people to accomplish these tasks themselves.

Most product managers do not have staff reporting to them, so it is not necessarily as easy as delegating tasks to a direct report. Instead, product managers need to leverage others and teach them to be self-sufficient. This is not to say that product managers should ignore requests or haphazardly push off their responsibilities, of course. Instead, product managers should look to make those around them more effective by providing them with the tools, information, or resources they need.

Every time you as a product manager are presented with a task, ask yourself these questions:

  • Is this helping to advance the product strategy?
  • Does this support one of the high-level goals for my product?
  • Is there anyone else within the company besides me who can accomplish this task (e.g. answer this question, investigate this problem)?
  • Is this something that has come up before or is likely to come up again?
  • Is this a valuable use of my time?

It’s never easy saying “no,” though it may be easier to look at it this way — every time a product manager says “yes” to something that is tactical and routine, they are saying “no” to something that is forward-looking and strategic. Which would you feel more comfortable telling your boss — or the CEO — that you said “no” to?

So what do you do with the tactical activities — those requests for copy writing, operational meetings, responses to customers, and discussions of detailed product minutia? Ask yourself — and others — whether they are really necessary, or at least whether it is really necessary for you to be included. Going back to the three questions posed earlier, look at why you are engaged in tactical activities:

  1. If you are the only one who knows some vital piece of information, figure out some way to rectify that. Document it, communicate it, teach it to others, pick someone to transfer knowledge — find some way to make sure that someone else has the information. Beyond just providing better use of your time, this can be vital for business continuity and succession planning.
  2. If everyone else is claiming to be busy and is offloading responsibilities, the same can be doubly true for a product manager. Help create ways for people to answer questions or streamline tasks on their own, rather than passing on their additional work for you.
  3. If there really are activities that appear to be vital enough to be performed by you and only by you, analyze those activities closely. Some may seem critical at first glance, though upon review you may notice that they are not as important as originally thought. Also, other people may be turning to you because they think you want to be involved, or because they think you would be offended if you were not consulted. Just because someone else thinks a task is crucial enough that it must only be done by you does not mean that you have to agree with them.

Lastly, if you are involved in these activities only because you have always been — well, then make it a resolution to stop today! The more product managers can think about their role as being strategic and market-focused, the more they can add value to the organization and to customers. Effective product managers help create more product expertise within the company. This gives the product manager as much time as possible to focus on the reason the company created the position — to add value by creating and improving market-focused products.

Note: This post is part of a Pragmatic Marketing’s BlogFest. Other posts as part of previous BlogFests include:

Product Manager - Role & Responsibilites

The Product Manager represents the Product Owner and the End-User/Customer – they are responsible for defining and scheduling the delivery of high quality output in line with business requirements and priorities.

The Product Manager and the Product Owner define the ‘What’, The Scrum Team define the ‘How’ and they work together to agree the ‘When’.

The Product Manager is on hand during the course of the Sprint for questions and confirmation of progress in the ‘right direction’. For example, the Scrum Team may approach the Product Manager mid-Sprint with an “is this what you were after” or “I could either do this or that… which would you prefer?”

The Product Manager works with Stakeholders and the Product Owner to set Product Strategy and will often be responsible for managing the Product P&L – they seek to identify and define the highest value deliverables Just In Time for each Sprint Planning Session.

The Product Manager tracks progress across sprints in the form of a Release Plan, Release Burndown and/or Agile Epic Board to ensure that delivery stays on track and remains alligned with the overall programme/business strategy and objectives.

It’s important to note that this role will vary slightly different from one organisation to another. The main contentious issue seems to be whether it falls to the Product Owner or the Product Manager to own the communication of new product requirements to the team.

Best practice dictates that this communication should be owned by the Product Owner. With that said, as the number of Product Owners increases, it can become less efficient to run things this way.

In order to keep planning sessions to a minimum and to reduce the points of contact for the Team, a Product Manager may become empowered to take responsibility for more of the direct communication. In order to ensure the Product Owner has buy-in and remains in the loop, they attend the Sprint Review sessions and or Daily Scrum plus other sessions where appropriate. It’s not ideal to have this extra degree of separation but it does seem to work alright nevertheless.

Key Responsibilities of the Product Manager (Scrum Meetings):

Pre-Requirements Workshop (and Ongoing)

  • Meet with business stakeholders to discuss, define and capture requirements – User Research
  • Consider Market conditions – Market Research e.g. SWOT analysis , Marketing Mix - Product, Price, Promotion, Place
  • Manage the Product Management documentation- Product Backlog(s), Release Plan(s), Product Roadmap(s), Release Notes and any other Requirements-level notes/sketches
  • Communicate and capture requirements in a way that people can understand them e.g. Themes, Epics,User Stories, Test Cases, UI sketches, Conditions of Satisfaction etc.

Requirements Workshop

  • Presentation of new user stories/requirements (this may also be done by the Product Owner)
  • Document feedback from the development team (e.g. viability of stories and top-level effort estimates)
  • Re-prioritise, expand and more clearly define the product backlog
  • Add/remove user stories and conditions of satisfaction as necessary

Planning Poker

  • Introduction of user stories and agreed conditions of satisfaction to the development team
  • Document level of effort estimated to deliver each user story – use these to drive prioritisation and release planning

Post-Planning Poker

Sprint Planning

  • Present the highest priority User Stories – and suggest the proposed scope of iteration (this may be done by the Product Owner)
  • Negotiate top-level Sprint scope and ensure that requirements are fully understood
  • Agree Sprint Objectives with development team – this is a collaborative process
  • Remain on hand for questioning whilst the Scrum Team defines their Sprint Delivery Strategy (if required)

Post-Sprint Planning

  • Update release plan further to the meeting and ensure that the Product Owner (and Key Stakeholders where appropriate) are aware of the Sprint scope

Daily Scrum

  • May attend the Daily Scrum to receive update on Sprint progress, but is not allowed to actively contribute – they are an observer
  • May be alerted to impediments, that they can help to clear

Sprint Review

  • Circulates Sprint Review invitation to relevant key stakeholders
  • Receives a presentation of the work completed during the course of the sprint
  • The Product Manager and Product Owner(s) decides whether the Sprint Objectives have been achieved (or not).

Post-Sprint Review

  • Define, schedule and monitor progress against a top-level product Release Plan, Release Burndown and/or Agile Epic Board

Sprint Retrospective

  • The Product Manager is an optional attendee to this session, however I recommend they attend so to promote transparency, trust and collaboration between them and the Scrum Team
  • The focus of this session is to review what went well in the previous sprint, what didn’t go so well and what the team can/will do together and individually in order to improve performance in the next sprint.

Product Manager (1)

Oftentimes our clients ask us if we have sample Product Manager job descriptions for use in hiring or defining job roles and responsibilities. We've put together these feel free to modify the samples and use them for recruiting purposes.

Product Manager Job Description Sample #1 (Primarily inbound)

Job Description
The Product Manager is responsible for the product planning and execution throughout the product lifecycle, including: gathering and prioritizing product and customer requirements, defining the product vision, and working closely with engineering, sales, marketing and support to ensure revenue and customer satisfaction goals are met. The Product Manager's job also includes ensuring that the product supports the company's overall strategy and goals.

The Product Manager is expected to:

  1. Define the product strategy and roadmap
  2. Deliver MRDs and PRDs with prioritized features and corresponding justification
  3. Work with external third parties to assess partnerships and licensing opportunities
  4. Run beta and pilot programs with early-stage products and samples
  5. Be an expert with respect to the competition
  6. Act as a leader within the company

Required experience and knowledge

  1. Minimum of N years experience as a Product Manager
  2. Demonstrated success defining and launching excellent products
  3. N+ years of experience in a job in the XXX market
  4. Excellent written and verbal communication skills
  5. Bachelor's degree (MBA preferred)
  6. Technical background, with experience in XXX
  7. Excellent teamwork skills
  8. Proven ability to influence cross-functional teams without formal authority
  9. Must be able to travel XX% of the time
  10. Examples and at least one sample of an effective document delivered in the past

Product Manager Job Description Sample #2 (inbound and outbound)

Job Description
The Product Manager is responsible for both product planning and product marketing. This includes managing the product throughout the product lifecycle, gathering and prioritizing product and customer requirements, defining the product vision, and working closely with engineering, tod deliver winning products. It also includes working with sales, marketing and support to ensure revenue and customer satisfaction goals are met. The Product Manager's job also includes ensuring that the product and marketing efforts support the company's overall strategy and goals.

The Product Manager is expected to:

  1. Define the product strategy and roadmap
  2. Deliver MRDs and PRDs with prioritized features and corresponding justification
  3. Work with external third parties to assess partnerships and licensing opportunities
  4. Be an expert with respect to the competition
  5. Develop the core positioning and messaging for the product
  6. Perform product demos to customers
  7. Set pricing to meet revenue and profitability goals
  8. Deliver a monthly revenue forecast
  9. Develop sales tools and collateral
  10. Propose an overall budget to ensure success
  11. Brief and train the sales force at quarterly sales meetings
  12. Brief press and analysts and go on press tours
  13. Act as a leader within the company

Required experience and knowledge

  1. Minimum of N years experience as a Product Manager or Product Marketing Manager
  2. Demonstrated success defining and launching excellent products
  3. N+ years of experience in a job in the XXX market
  4. Excellent written and verbal communication skills
  5. Bachelor's degree (MBA preferred)
  6. Technical background, with experience in XXX
  7. Excellent teamwork skills
  8. Proven ability to influence cross-functional teams without formal authority
  9. Must be able to travel XX% of the time
  10. Examples and at least one sample of an effective document delivered in the past