Product management: what it is and how to implement it

The Product management is one of the most important organizational functions for the growth of a company, as it helps make important decisions throughout the life cycle of a product to ensure its success in the market.

In this article we will introduce you to what product management is and what steps are included in this process.

What is product management?

Product management is the process that accompanies products through their life cycle, from development to positioning and pricing.

In general, this process consists of sub-processes Product planning, creation, introduction, management and optimization and is usually led by a product manager to achieve the respective goals.

To create the best possible product, product managers within the company advocate for customers and ensure that the voice of the market is heard and considered.

Because of this customer focus, product teams often bring better designed and better performing products to market.

The importance of good product management

A standardized product management process is critical because it helps the rest of the company understand the value of a product.

Product management allows you to understand and master both the market and the product. This ensures that you can develop products that customers will buy and run the company with a balanced view of all aspects of the product.

Essentially, it's about knowing what sells and how to convert a developed product into sales. And you do that by understanding the customer.

Product management in a customer-focused company identifies the customer's challenges and expresses the solutions in the product. Product management not only finds out what customers like and dislike, but also why.

Without product management, it would be difficult for different departments to come together to figure out what they need to contribute to a successful product. For this reason, the role of product manager is second to none.

7 steps to successfully introduce product management

Now that you know what product management is all about, here are the 7 key steps to apply this process in your company:

1. define the problem

It all starts with identifying a high-value customer pain point. Then people or organizations try to do something they can't do, or if they can do it, it's expensive or complicated. Or, if they can, it's expensive or time-consuming or resource-intensive or ineffective or just plain inconvenient.

Product management transforms these abstract complaints, wishes and longings into a problem for which a solution is sought. Solving this problem and alleviating this pain is the initial spark and motivation for everything that follows.

2. Quantify the opportunity

To justify the investment in developing a new product or solution, product management must answer the following questions and be able to build a business case based on the answers found:

• How big is the addressable market?
• Is the problem or pain so great that people consider alternative solutions?
• Are they willing to pay for an alternative solution (or is there another way to monetize the solution)?

Once product management has assessed the potential market, you can try to address it if the opportunity is big enough.

3. Create an MVP

After confirming the desirability and feasibility of a particular solution, the product development team can get to work.

First, the Minimum Feature Set (MVP) needs to be defined, and then the team can create a working version of the product that can be tested in practice with real users.

MVPs can test the functionality of the product as well as the overall message and positioning of the value proposition as well as the marketing of the product.

The key is to find out whether this nascent product is in demand by the market and whether it adequately meets the basic requirements.

4. Marketing activities

Marketing is one of the most important factors that contribute to the success of a product and managers must work closely with product marketers.

This includes conducting market research, monitoring current industry trends, collecting and analyzing customer feedback, determining pricing, and developing a comprehensive brand strategy.

5. Continuous product improvement

Although at first glance it seems as if product management only deals with administrative tasks and not with creating products, this is not the case.

Managers are constantly working on new product innovation ideas, testing, analyzing data, and managing defects to improve them. Finally, a product manager must make the final decision about what the final product should look like and determine the strategy for its development and launch.

Although there is no uniform set of KPIs and responsibilities for a product manager, they typically include monetization, user retention, and user satisfaction.

KPIs can vary depending on the company and industry. Some product managers focus primarily on development, writing specifications, and monitoring development progress, while others focus more on marketing and sales, developing a marketing plan and training a dedicated sales team.

6. Create a feedback loop

Product management should regularly consider and collect customer feedback to identify opportunities for improvement.

It is also important to process, summarize and convert the feedback into actionable ideas that are included in the product roadmap or order book.

Product management should also set up a closed system that closes the feedback loop so that customers know that their complaints and suggestions have been heard and, if necessary, taken into account.

7. Tracking product metrics

After launch, product management is responsible for monitoring product progress and analyzing data to understand success or response.

Choosing the metrics to track and collecting information is definitely not enough. What matters is the subsequent data analysis and the valuable insights that can be gained from the data to subsequently influence decision making.

The results of this analysis show the management team how the product is performing and whether changes need to be made, be it adding new features, adjusting the sales strategy, or updating the marketing campaign.

Use the advantages of QuestionPro to improve your product management!

As you can see, product management is crucial for any company that constantly strives for improvements to ensure the success of its customers and increase its sales. Ultimately, the role of product management revolves around strategy.

Product managers first develop the strategy for the product and present it effectively. They then ensure that the strategy is considered and supported in all decisions regarding development, marketing, etc.

The success of new features for a company and its customers depends largely on the product managers who work at the interface between business and technology leaders.

Product management can be a lucrative career for people who are passionate about collaboration, strategic thinking, and delivering great experiences for others.

QuestionPro is survey software that product managers can benefit from in various forms of product management. You can use customer feedback surveys to gather suggestions for existing products and ideas for new products.

Surveys can be used to identify customer needs, requirements and problem areas, which can then lead to new creations and improvements to existing products.

Customer satisfaction surveys can measure customer response to current offerings and identify opportunities for improvement. Comparative research allows you to compare your company's products with those of your competitors and identify areas where you shine or fall short.

Remember that with QuestionPro you can also access free product survey templates to evaluate the different stages of your product life cycle, or if you prefer to create your own survey according to your needs.

Create your free account today or take a free online demo to experience all the advanced features!

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KEYWORDS OF THIS BLOG POST

Product management | Products | Management