Product Manager Primer
Product Manager Primer
Suggested Approach:
The only technique to understand this kind of goals is to have rounds of discussion with the
senior management at the very start. A product manager must remember that while there is
a scope of suggesting business goals in a small organization, large organizations typically
have already gone through a long laid out process before defining these goals.
On the other hand, a product manager can, and should, always ask the question “why”.
Chances are that the goals will not be understandable completely during first interactions.
Idea is to build on a basic understanding, and eventually align oneself to the organization.
Suggested Approach:
Short term goals are much easier to understand. While the only way still remains the same –
rounds of discussion – the number of discussions reduces drastically. Also there is much
more scope of contributing towards constructing these goals, so a product manager should
back himself to be able to pitch in in these discussions.
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2. Analyze Market
This is where a product manager’s work really starts. Once the goals are defined and
understood, a product manager would need to ideate, create and maintain products in order to
achieve those goals.
a. Market Sizing
What is the current TAM (Total Addressable Market)?
TAM is the entire population that appears to be a potential consumer of the product
whether now or even in the distant future. This does not mean that the solution needs to
cater to this entire population. This further needs to be broken down into segments
(described below) to find out the real market size.
Suggested Approach:
Although a lot of different data sources, many times specific to the industry, might be useful
in determining the market size, there are a bunch of common tools applicable in most cases:
Suggested Approach:
i. Surveys: Either through already available survey data, or self-designed survey,
try to find out the top three problems of a sample set. Maybe five problems if
the segment or industry is new.
ii. Customer feedback mechanism: This typically works well in case of existing
products. Also, it is easier to get sensible data from feedback in a B2B
environment, reason being the difference in loyalty towards a product at
customer end. B2B customers are typically more loyal and hence more
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invested in the success of the product. Besides, a major drawback is that this
information will not be available to a new entrant.
iii. User behavior analysis: Whether it is an internet consumer product, e-
commerce portal, or a retail shop, there is always a possibility of observing
the behavior of the customer at various stages of decision making. While on
the internet we have various tracking tools like Google Analytics, Adwords,
Trends etc, offline customer can be tracked by a physical observation. In
either case, hints to look for:
1. What did the customer come looking for
2. What did he ask for
3. What did he evaluate
4. Was the information enough for him
5. How did he go about making his decision
6. What are the factors that influenced his decision
7. What was his overall experience
8. Can something more be offered to him based on his buying
9. Why was he looking for a solution? (what is their goal)
c. Identify Gaps
What are the current ways in which these needs are being addressed?
Suggested Approach:
While the previous analysis was a top down method of finding customer needs, this part
should use a bottom up approach.
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3. Define Product Goals
Now that we know which needs to address, which consumer to address, and how to address it,
the Product Manager can go ahead and define the goal of the new product or redefine the goal
of an existing product. This goal definition is simply of the format:
The product has to solve “this” need of “this” customer by “doing this”.
You got that right: It is a positioning statement.
4. Define Product
OK, now we have the goal. Do we solve the skin problem of a customer through a fairness cream
or we solve it using a talcum powder? Are we going to make a mobile app to measure heart rate
changes or do we put a counter in the new cigarette lighter that stops it from lighting?
Define. This definition is an overlap with the positioning statement above, but a little more
concrete in terms of “what needs to be created”.
Taking the cigarette lighter example above, a positioning statement might look like:
“The product will help reduce smoking, within smokers trying to quit, by providing them a
reminder buddy that tells them they have had too much.”
The product definition then might be: “Counter in the cigarette lighter that counts no. of
cigarettes lit and stops lighting.” or: “Mobile app that measures heart rate change and warns the
customer.”
Or: “A pedometer that detects vicinity of smoke and calculates negative steps taken by the
customer today.”
How many of these customers actually are going to use your product?
Suggested Approach:
i. Ecosystem and value chain analysis – What are the government policies
regarding smoking, usage of lighter, usage of lighter gas, price increase in
gasoline etc. This will help in determining the actual number of people who
can be targeted among your target segment.
ii. PEST – An analysis of the Political, Economical, Social and Technological
landscape as applicable to the identified market. Are there new technologies
that will replace pedometer or lighter? In case of mobile, should IoT be
considered? What is the social acceptance of smokers who try to quit? Is it
going to become a norm? How is the global/national economics affected if a
large no. of people quit? What will happen to the tobacco industry? Being
aware of possibilities makes sure the product has both sustainability and
scalability. Being aware of challenges helps in risk mitigation at an early stage.
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iii. Surveys – Online survey, offline survey, casual vs formal survey. This is a direct
way of finding out whether a customer will use such a product. A wisely
chosen sample set with multiple rounds of surveys should be able to provide
substantially accurate data.
iv. Market reports – How many people are trying to quit? Is the sale of nicotine
gum an indicator? These reports should be used as a supplement to above
methods, or only as a wild estimate. However, it gets one started in absence
of other tools.
Is there another player in the market that tries to solve the same problem with a
different product?
These questions sound very similar to the gap analysis we performed earlier. The only
difference is, earlier it was at a larger level catering to the parts of a consumer problem
remaining unsolved, while now it is about analyzing the existing products and identifying
ways to make it better. In other words, look at the existing products and ask:
The gap analysis now says: “The problem of craving is still unsolved”.
So one can attempt reduction in craving for the same result: reduced smoking.
At the same time, another similar product uses a low volume alarm in its reminder
buddy. However, it might be a better solution to raise a loud alarm, thus embarrassing
the smoker in public and adding social pressure. Of course, this has to be validated from
the insights about our customer, taken from market analysis and customer analysis
performed earlier.
As in the previous point, use the customer analysis done earlier and decide what would
make the product more useful and usable for this customer.
Suggested Approach:
i. Identify competition: This is the most essential
ii. Be a customer: Use the trial version of the product wherever possible.
However, sometimes the workflows need to be analyzed are only available in
paid version. So buy it, but use it.
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iii. Evaluate the competitor’s product on various parameters like performance,
usability, availability, pricing, features, reliability etc. Prepare a complete
comparison chart for all the products including the non-existing features. It is
important here to make sure that benchmarks/baselines for measurement are
quantified wherever possible. This makes it much more easier to identify
whether there is scope for innovation or improvement in a particular area.
Finding resources for other platforms (for example outsourcing) or developing capabilities
in-house may require investment in terms of both money and time, which is not feasible at
the moment.
At the same time, the opportunity analysis might reveal that Microsoft is working on a new
Windows version which will have great features for IoT, making it possible to link a cigarette
lighter to the mobile app with ease. However, a larger sized opportunity lies on the android
platform due to the popularity of android handsets.
Based on this analysis, it gives a snapshot of current and future state of affairs, provides an
understanding of the feasibility, and helps create a strategic plan for the evolution of the
product.
Typically ask few of the following questions, once the strengths, weaknesses, opportunity
and threat are identified:
Suggested Approach:
i. Porter’s forces - This is one of the most popular ways to get a good look at the
competitive landscape and analyze possible threats. At the same time, it gives
a good knowledge of our strengths and weaknesses vs the competition. The
product manager should look at the value exchange (provided or gained)
happening due to this product with various entities like direct and indirect
competition, raw material suppliers and customers.
ii. Core Competency - This is another tool to analyze strengths and weaknesses.
iii. PEST, Ecosystem analysis, Value Chain analysis - These are good tools to find
opportunities and threats by analyzing existing organizations, government
bodies etc and supply chain in this market.
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5. Coordinate with stakeholders
The question to be answered here is: How can the product add value to each and every
stakeholder? This is one of the key activities of a product manager, so much so that it often
differentiates a good product manager from a bad one. Given the diversity of expectations,
difference in outlook and performance pressures, there will always be a conflict of interest
amongst the stakeholders when it comes to “what product to build” and it is highly unlikely that
all stakeholders agree to a single point of view immediately. Stakeholder management takes
rounds and rounds of negotiation and persuasion, and the product manager is seen as
negotiating both for and against every stakeholder. A product manager need not stick entirely to
his product definition, however, it will be a nightmare to accommodate each and every
requirement of other stakeholders. Besides, a well analyzed and thought out product definition
should not have to go through multiple iterations, and should definitely not change its core
proposition.
a. Identify Stakeholders
Apart from customers and users, it is important to identify the internal stakeholders.
These are typically the functions whose functional performance (and hence individual
KPIs) is directly or indirectly affected by the performance of the product.
Typically the functions affected are: Sales, Operations, Marketing, Customer Care,
Service and Technology. However, it is a good practice to think of support functions like
HR and Finance as well when considering stakeholders.
Suggested Approach:
There is no particular method or tool for stakeholder management. The Product manager
has to make sure he is approachable, empathetic, prepared with data and open to criticism
at the same time in order to successfully handle this activity. Still, there are some skills that
a product manager should acquire in his job, to be able to handle this part successfully:
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ii. Leadership skills - People ultimately need to believe and follow you
iii. Negotiating skills - How do you manage various trade-offs with multiple
stakeholders, and how do you derive maximum value for the customer in the
process.
Suggested Approach:
The actual problem here is to prioritize the features/activities in a way that you have a
complete product at regular intervals, as well as you don’t miss out on important goals of
the business. There are many different ways in which product managers approach this kind
of problem:
Use an excel sheet to clearly lay out a matrix of activities and their goals/importance. While
goals can be different in different situations, some of the common aspects that affect
decision making should form part of the goals axis. Few examples of such aspects are
“Dependencies”, “Hygiene” and “Technical Debt”. Sometimes Hygiene and Technical Debt
are necessary activities and cannot be avoided. Similarly, a feature may be dependent on
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another feature or an architectural change. These aspects need to be understood, their
importance evaluated and assigned to goals axis as per the preferences of the organization.
i. Start rating each activity on basis of its contribution towards realizing the goal
vs other activities. So if an activity results in both reach and engagement, it
may be rated 9 on reach as it brings the maximum traffic, but 3 on
engagement since other activities/features will be required to keep the visitor
engaged.
ii. Assign a relative rating to each goal w.r.t. to other goals based on their
importance in the coming term.
iii. Once all ratings are assigned, a weighted average approach can be used to
determine which features are most effective in realization of goals.
Suggested Approach:
i. Now use this same matrix to rate each goal based on its achievability through
a particular activity vs other goals from the same activity. This is like defining
the main purpose of each activity and might sometimes give different results
than the previous method of rating.
ii. Based on this rating, assign 2 – 3 specific goals and targets on which this
activity needs to be measured. Keeping it realistic and then assigning stretch
targets is one of the approaches in defining KPIs and targets.
Suggested Approach:
Based on the KPIs and targets, prioritized feature list and dependencies, determine the
point where the collection of features can be called a complete product. Ideally, this product
will be a direct solution to the first problem/need/gap that we decided to solve earlier. If
not, the prioritization exercise needs to be repeated.
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d. Define the Go To Market Strategy
What are the channels through which this product will be promoted?
How much and for how long do you think promotions will be required?
Do you need people for this?
Last but not the least, what value proposition should be communicated to the end user?
Suggested Approach:
For each feature, define the target audience: Who could act as evangelists and who would
be followers? Can you identify early adopters? These questions lead to a well-defined GTM
strategy. Marketing function plays an important role in building this strategy. However, if
there is no separate marketing function (like in a early stage startup) it is the product
manager’s job to create an end to end GTM strategy.
e. Set Timelines
Once the MVP is set, define the timelines to get it delivered. Technology plays a vital
role here as they are the ones executing the entire plan in the end.
Suggested Approach:
Take the MVP to tech team and explain each feature at the top level. Ask them for ball park
estimate, then add time buffer. Once you have the time estimates for all activities, you can
map it in a chart to lay out the actual roadmap.
7. Describe Features
Now starts the ground level work. Detailing a feature has four parts:
Suggested Approach:
i. Flowcharts – The workflows are meant for engineers. Engineers love
flowcharts.
ii. User Stories – Engineers need to know the intentions of the product. User
stories tell them exactly how the product will behave on a particular action of
the user. This will also help the testing team to create better test plans.
Suggested Approach:
i. One way of doing this is to create a laundry list of anything that needs to be
tracked, and ask for it at every step of the workflow. The obvious drawback is
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performance issues, too much data to cater to. Benefit is the ability to use
modular approach to tracking and hence less development time.
ii. Define tracking parameters at feature level – direct measurement of KPIs. This
will tell you whether a feature worked or not, and then you can use ad-hoc
experiments to determine improvements inside the feature to achieve more
out of it.
iii. Define tracking at every user action – This will give a detailed data of user
behavior as well as product performance. Sometimes if the feature
implementations are standard, this may be unnecessary data.
c. Create Wireframes:
This is not UI designing. This is a skeleton of the product. Depending on the kind of
product, it may require a drawing tool or a CAD-CAM software.
Suggested Approach:
There are a huge number of tools for wireframing and all require a little bit of self-learning.
However, some of the tools widely used are listed below.
i. Balsamiq – Where on page interactivity is not required to be shown.
ii. Axure – Creates HTML protoypes and can be used for visualizing interactivity
at the basic level.
iii. Excel sheets – Where the designer is expected to do all the work.
iv. MS Paint – To depict small modifications to existing designs
d. Define UX:
In many cases this is a task handled by the designers. However, it is a good practice to
get involved in basic User experience at the feature description stage. It only helps in
giving more clarity to the designer.
Suggested Approach:
The UX is best described as part of flowcharts and wireframes. While flowcharts give a step
by step description, wireframes give a more visual representation of what the user
experiences while using the product. Ultimately, the designers are required to create the
final effect.
Suggested Approach:
From defining development processes to tracking and monitoring, various methods can be
used as follows
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i. Agile development – When you have a clearly defined MVP, and user stories
can be clubbed into chunks of 2 – 3 week cycles. This method can also be used
during development of patch or sub-versions of a product.
ii. Other methodologies – Typically a long cycle of development where a single
feature or user story takes many weeks, requires a more traditional form of
development.
Suggested Approach:
i. AB experiments – AB experiments is one of the most popular mechanisms.
This requires making small changes and pushing it to smaller chunks of target
audience. There are other similar experimentation techniques, which can also
be explored. Various tools are available for this method of quick
measurement. The method is typically applicable for products with a very
short release and feedback cycle. Enterprise products may have frequent
patch releases but feedback may not be quickly available.
ii. Building a feedback mechanism within the product – This works mostly where
user loyalty and engagement can be assured. This means the product should
be already above average.
iii. Analytics data – If properly set up, an analytics tool can reveal a lot of
interesting information regarding user behavior and the points at which a
feature worked vs failed.
iv. Broad market survey – Talking to customers always helps understand the
product viability better.
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