Product management spans a wide breadth of services and responsibilities and commonly means different things to different companies. Companies must understand and implement effective product management as an essential part of any product lifecycle.
This guide answers the question "What is product management," explaining how it differs between B2B and B2C companies and why it is important, and details critical strategies for success.
Product Management Defined
Product management encapsulates the big picture strategy, development, market launch, and continual support and improvement of products. It involves crafting a vision, communicating with stakeholders, and creating and maintaining a product roadmap. While it is often conflated with project management, it is notably different. Unlike product management, which is dedicated to the master plan, project management is focused on the day-to-day tasks and details.
B2B vs. B2C Product Management
Both business-to-business (B2B) and business-to-consumer (B2C) business models require product management. Here is how they compare.
Both B2B and B2C product managers must create strong value propositions that provide practical, emotional, and financial justifications. However, the two models differ in key ways. In B2B scenarios, the buyers are not usually the users, and convincing and winning over the buyers takes longer. In B2C scenarios, the users are also the buyers and generally take less time to convince and win over.
Furthermore, B2B product managers need to be industry experts, focus on the professional buyer persona, answer clients' demands and expectations, and release bundled features to avoid interrupting workflows. B2C product managers need to experiment and analyze data, focus on the individual buyer persona, and cultivate a more extensive user base.
Why Product Management is Important
Product management is essential because it is responsible for the vision and purpose of the product. It determines the product's "why" and communicates the value proposition to stakeholders so that all parties involved are aligned with the vision.
Strategies in Product Management
There are many ways to manage products. Product management is not written in stone. In fact, product management has to evolve and adapt to the organization, product, and people involved. That being said, there are some essential strategies to integrate into any product management approach.
1. Define the Problem
Formulate an answer to the question, "What is a high-value customer pain point?" Identify a need and a market gap by turning abstract complaints, wants, and desires into a problem statement that seeks a solution.
2. Determine Whether or Not the Problem is Worth Solving
Despite an idea's excitement, not all problems are worth addressing. To determine if the need justifies the investment, answer the following questions:
- Is the total addressable market large enough?
- Is the problem severe enough that people want and will consider alternative solutions?
- Are people willing to pay for alternative solutions, or can the solution be monetized in other ways?
3. Research Potential Solutions
Have brainstorming sessions to think of any and every solution, and write everything down. Think big, innovate, and consider even the wildest ideas. Then, explore how possible solutions land with the target market and bounce ideas off other teams.
4. Build the Product
Build a working prototype with the bare minimum functionality to test with users. This prototype is also known as the minimum viable product (MVP). It allows companies to test how the product works and how the messaging and positioning of the value proposition is received.
5. Create a Feedback Loop
Make it easy for customers to provide feedback and then process and utilize it. Make sure that customers feel heard. Warmly and directly address their complaints and feedback when applicable.
6. Create a Product Strategy
Create goals and objectives to improve the product, deliver it to the market, and expand the market reach. Base the strategy on SMART goals that are specific, measurable, achievable, relevant, and time-bound. Integrate key performance indicators (KPIs) and other metrics to define and evaluate success. Make sure these metrics align these with the company's existing general objectives and activities the company already does well. Also, ensure that stakeholders buy-in to the goals, objectives, and evaluative criteria.
7. Execute the Product Strategy
Create the product roadmap, prioritize the goals, and help stakeholders see what is on the horizon and why it is relevant. For the most persuasive and inspiring pitch, structure the execution and product roadmap around compelling themes and outcomes instead of features and delivery dates.
Product Management with Encora
Encora is deeply expert in product management. Our engineers collaborate with all essential customer stakeholders to define a comprehensive product plan and roadmap, ensuring successful product engineering and management.
To learn more about product management and get started, contact Encora today.
