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AIPMM- CPM EXAM QUESTIONS ANDCORRECT
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Product Management - ANSWER- process of conceiving, planning, developing, testing, launching, delivery and withdrawing products in the market. PMF - Product Management Framework - ANSWER- Product lifecycle (Product Development + Commercialization) stages plus their phases and gates. PMF Benefits (5) - ANSWER- 1. define common language
- provides standards for launching a products in each phase
- allows product teams to develop and communicate mutual product plan commitments
- empowers product team to execute based upon agreed upon objectives and schedules
- facilitates continuous improvements to products and processes. Prodbok (body of knowledge) - ANSWER- strategies, methodologies, concepts, terms and activities that make up the product mgmt. and marketing domains as defined by AIPMM. Applies to any product or portfolio, across industries, throughout each phase of the product lifecycle. X-Axis PLC Stages (6) - ANSWER- 1. New product dev/acquisition
- introduction
- growth/maturity/decline
- withdrawal
- commercialization
- manufacturing operations X-Axis phases of PLC (7) - ANSWER- *go/no-go gates between each phases
- conceive
- plan
- develop
- qualify (test)
- launch
- delivery
- retire Phases - ANSWER- prescribed, concurrent activities in PLC cross-functional gate precedes each phase successive phases require more resource commitment
Gates - ANSWER- decision points (go, no go, Hold, Recycle)
Strategic Business Unit - ANSWER- unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses New Product Development (NPD) - 1st half of PMF - ANSWER- complete process of bringing a new product to market. Includes first 4 steps - conceive, plan, develop, qualify. For:
- new product in new markets
- new product in existing markets not previously targeted
- enhance current product in existing product line. *2 parallel paths = idea generation, product design, and detail engineering + market research and analysis NPD New Product Development Steps (4) - 1st half of PMF - ANSWER- 1. conceive
- plan
- develop
- qualify Key Deliverables in conceive and plan phase (7) - ANSWER- 1. Strategic Plan
- Competitive analysis
- Market Trends
- Mktg requirements doc
- Business Case
- Product Requirements doc
- Product roadmap Key deliverables in Develop and test phase (5) - ANSWER- 1. Marketing strategy
- Beta program
- Launch plan
- Marketing plan
- Product Retirement plan Acquisition - ANSWER- act or process by which ownership is achieved by:
- acquiring brand/product
- purchase entire company 3 ways to get new product - ANSWER- 1. develop
- acquire
- license Commercialization - 2nd half stage of PMF - ANSWER- process of introducing a new product into the market Commercialization phases (3) - 2nd half stage of PMF - ANSWER- 1. launch
- deliver
- retire Commercialization Steps w/in PLC (5) - ANSWER- 1. launch/production
- Growth, Maturity/saturation, decline
- withdrawal
- commercialization
- manufacturing operations Launch - phase 1 of commercialization - ANSWER- process of introducing a new product to market.. Gain awareness analysis = increase familiarity, expand market share stages of launch (4) - ANSWER- 1. internal communication
- pre-launch activities (distribution and ensures distribution partners have resources and knowledge)
- external communications (PR, advertising)
- pricing strategies strategies of launch/introduction (commercialization) (5) - ANSWER- 1. competition = none
- product = one
- price = skimming or penetration
- promotion = inform, educate
- place = limited Growth - phase 2 of commercialization - ANSWER- 2nd stage of PLC during which sales are increasing at an increasing rate, profits are increasing, and competitors enter the market analysis = focus on marketing product improvement and product diversification strategies of growth (commercialization) (5) - ANSWER- 1. competition = growing
- product = more versions
- price = gain share, deal
- promotion = stress competition
- place = more outlets Maturity - phase 3 of commercialization - ANSWER- primary goal is to maintain market share and extend the product life cycle. Most profitable stage. analysis = defense of market share and product modifications necessary strategies of maturity (commercialization) (5) - ANSWER- 1. competition = many
- product = full product line
- price = defend share, profit
- promotion = reminder oriented differences
- place = maximum outlets
cons = doesn't give PdM full responsibility for products Functionally-focused organizations - ANSWER- strategy through discussion and coordination Marketing + sales + operations work together simple administratively strong functional training EO and VPs make important strategy decisions cons: limited responsibility for specific products, conflicts with strategies can only be resolved through discussion, narrow manager scope limits development definition product manager - ANSWER- PdM investigates, select, and drive the development of products for an organization, performing the activities of product mgmt Directs internal value creation activities Leads: conceive, plan, develop, qualify definition product mktg manager - ANSWER- PmM acts as the voice of the customer to the rest of the product team and company Evaluates customers' perception of value Product Management Critical Skills - ANSWER- presentation personal analytical technical interpersonal leadership Key Activities of Product Mgmt - ANSWER- Market trends business models business cases P&L analysis Oppty analysis Business Intell Competitive Intell Product Positioning Product Reqs Functional Specs Product Roadmaps Prod Dev Monitoring
Beta Programs launch plans end of life plans Key Activities of Product Marketing - ANSWER- Market needs market reqs business intel competitive analysis product branding pricing promotion channel partner plan sales tools customer testimonials success stories white papers reviewer guides product demos case studies Key Activities of Marketing - ANSWER- corporate branding corporate marketing plan website content company collateral PR brand awareness customer surveys and feedback increase web traffic marketing campaign advertising sales presentation templates Conceive Phase activities/deliverables (9) - ANSWER- 1. analyze market trends
- develop business models (how much)
- develop business case (why)
- Perform P&L
- Perform oppty analysis
- Define Business Plan (who, what, How, where, when)
- Define market requirements
- Define roadmap
- build core team Plan Phase activities/deliverables (6) - ANSWER- 1. collect business intel
- collect competitive intel
- develop product positioning
- define product requirements
- unsought - new innovations, products consumers don't want to think about (casket), require much advertising and personal selling (life ins)
- industrial - for further processing or for use in conducting business (materials, parts, supplies, services) +other market offerings include organizations, persons, places, ideas (campaigns) Product Mix definition - ANSWER- number of individual products produced or sold by an organization or by a strategic business unit within the organization *width/breadth is number of different product categories for which the company has an offering (BMW owns autos, motorcycles, rolls royce, mini coope) *depth is the number of product lines in each category (autos = 1 series, 3 series, 5 series) *length is number of products offered in each product line (all series have coupe, sedan, convertible) Product Mix Decisions - ANSWER- width - the number of different product categories for which the company has an offering (BMW owns autos, motorcycles, rolls royce, mini cooper) depth - the number of product lines in each category (BMW autos = 1 series, 3 series, 5 series) length - the number of products offered in each product line (all car series have coupe, sedan, convertible) consistency - how closely related the various lines are Product Line definition - ANSWER- a group of closely related products with similar attributes or target market *stretch is expanding product line so that each line has a unique position in market *fill is adding variety in each product line to meet unique interests of customers. Ex: BMW has 1 series, 3 series, 5 series (stretch) within each has coupe, convertible, sedan (fill) Product Line Extension definition - ANSWER- use of an established products brand name for a new item in the same product category ex. Hidden Valley Ranch in bottles, in packets, in individual serving cups *extensions have shorter life expectancy than original product
Service definition - ANSWER- a product that is not embodied in a physical good and typically effects change in another product, person or institution. Doesn't result in ownership of a physical product Characteristics of a service (4) - ANSWER- 1. intangible - can't be seen, tasted, felt, heard, or smelled before purchase
- variability - quality depends on who, when where and how it's delivered
- inseparability - can't be separated from provider
- perishability - can't be stored for later sale or use Marketing tasks of a service (3) - ANSWER- 1. Manage differentiation
- Manage service quality
- Manage service productivity To Manage Service Characteristics - ANSWER- 1. To increase tangibility = physical proof
- To reduce variability = people and process
- to address inseparability = people and process
- to track perishability = promotion and success Globalization definition - ANSWER- creation of internal strategies by organizations for overseas expansion and operation on a worldwide level Decisions if entering a global market:
- which products/services
- how much to standardize or adapt
- address packaging changes
- address service offering changes Product Decisions (5) - ANSWER- 1. attributes
- packaging
- labeling
- branding
- support services Product Attributes (3) - ANSWER- 1. quality - reliability and durability
- features - new, copy of competitors
- style/design - affects how a product looks, feels and functions Planned obsolescence (part of product attribute quality) - ANSWER- a company decreases the quality of the product so it will wear out physically within a reasonably short period of time. Product Packaging - ANSWER- designing or producing the container or wrapper for a product
Portfolio analysis definition - ANSWER- a tool by which mgmt identifies and evaluates the various businesses making up the company BCG Growth-share matrix definition - ANSWER- To analyze portfolio a portfolio-planning method that evaluates a company's strategic business units in terms of their market growth rate projections and anticipated market share *cons = too simple market share/growth rates may not be only determinants only considers relationship to the market leader BCG Growth-share matrix strategies (4) - ANSWER- 1. Hold - cash cow provides steady cash flow, high market share, low market growth rate
- Build - question marks which require investments, low market share, high market growth rate
- Harvest - generate short term cash from weak products
- Divest - get rid of product to allow resources to be used elsewhere Strategic business unit definition - ANSWER- a unit of the company that has a separate mission and objectives and that can be planned independently from other company business. Ansoff Product-Market Expansion Grid - ANSWER- *To identify expansion identifies company growth opportunities through:
- penetration
- market development
- product development
- diversification explores existing markets and new markets vs existing products and new products Porter's Model for Competitive Intelligence - ANSWER- compares the competitive advantage against the competitive scope. Concentrates on cost leadership, differentiation, cost focus and differentiation focus. Ansoff Product Market Expansion Grid details - ANSWER- Market Penetration = existing products in existing markets Market Development = existing products in new markets Product Development = new products in existing markets Diversification = new products in new markets *riskiest
Porter's Model for Competitive Intelligence Competitive Forces (5) - ANSWER- *For competitive intell
- bargaining power of customers
- bargaining power of suppliers
- Threat of new entrants
- threat of substitute products
- level of competition in industry Kotler Model for Competitive Advantage/Market Strategies - ANSWER- analyze and promote products based on performance models including:
- market leader - should adopt a defense strategy
- market challenger - gain market share, become the leader
- market follower - counterfeiter, cloner, imitator, adapter
- market nicher - GE McKinsey Matrix for Portfolio Analysis - ANSWER- *for Portfolio analysis alternative to BCG analyzes business position vs industry attractiveness pros: most measurement cons: no guidance on what strategy to follow could be subjective Balanced Scorecard (BSC) definition - ANSWER- Strategy and Vision Financial - what we want to work in the financial sector Customer - How does the customer rate our performance Business Processes - How well do we satisfy the needs of our customers? Learning & Growth - How can we remain flexible and could be improved SWOT Analysis - ANSWER- Strengths Weaknesses Opportunities Threats/Risks internal = strengths & weaknesses externa = opportunities & threats strengths
- advantages
- experience, knowledge
- unique characteristics
- resources
- geographical advantage, location
- interest and exchange rates Social
- lifestyle, consumer trends
- demographics
- consumer attitudes and opinions
- media views
- law changes affecting social factors
- brand, company, technology image
- buying access and trends
- ethnic/religious factors
- ethical issues Technological
- competing, associate and replacement technology development
- research funding
- technology legislation
- innovation potential
- technology access, licensing, patents
- intellectual property issues McKinsey Seven-S Framework - ANSWER- Improve performance of company helps examine effects of future changes in company helps align depts. during merger or acquisition McKinsey Seven-S Framework factors (7) - ANSWER- Hard factors
- strategy - how to shape vision and strategy of the company
- structure - right org chart, right roles and responsibilities identified
- systems - systems and processes in place to support change or strategy Soft factors
- skills - right core competencies to achieve change or strategy put in place. May mean additional training or new resources to help support required skills or competencies needed.
- staff - right staff
- style - rules and standards observed by staff
- Shared values Business Model definition - ANSWER- A framework that describes the rationale of how an organization creates, delivers, and captures value. Part of the business strategy Business Model Reasons (5) - ANSWER- 1. used to describe and classify businesses
- used to explore opportunities
- a recipe for creative managers to create new products
- used for public reporting purposes
- allows managers to focus on value creation Business Model Canvas (9) - ANSWER- 1. customer segment - different customers aim to serve
- value proposition - proposed value for customers
- channel - distribution channels
- customer relationships - type of relationship
- key activities - most important activities to make model work
- key resources - key assets to make model work
- key partners - network of suppliers and partners
- cost structure - cost to implement business model
- revenue streams - cash company generates for each segment. Business Case Definition - ANSWER- Support planning and decision making
- whether to buy
- which product to bring to market
- which projects to fund
- which vendor to choose
- when to implement a project Captures reasoning for creating/enhancing Reasons for a business case (7) - ANSWER- Formal business cases are evaluated to ensure:
- investment has value and importance
- project will be properly managed
- organization has the capability to deliver the benefits
- dedicated resources are working on the highest value opportunities
- projects with interdependencies are started in the optimum sequence
- answers the question "what happens if we take this course of action?"
- Answers the question "should we invest in this market?" Business Case Activity (9) - ANSWER- 1. Assess market
- Identify customers
- Define value
- position product
- analyze business
- identify impact
- estimate P&L
- recommend
- Obtain approval
Product roadmap - high level plans of getting a product to market. includes internal to help solidify product decisions, resource allocation. External use to convey to customers/analysts where company is headed. Multiple product line roadmap - rank products against each other. 8 steps for creating a product roadmap - ANSWER- 1. decide level of detail
- create competitive, market and technology trends
- gather and prioritize requirements (prioritization matrix)
- Decide on timeline
- Choose organizing strategy a. themes - logical groupings of high scoring items (help resist feature creep) b. golden features - based on single feature that is most important priority for release. Effective for short release cycles like Agile c. timed releases - uses release dates rather than features to drive schedule. Provides known ship dates.
- Build internal roadmap
- Fine tune and get buy-in from stakeholders - compares against competitive technology slide (step 2)
- Create external roadmap - remove features and details so it can be shown outside the company. Things you'll need for roadmap (5) - ANSWER- 1. product master plan or business case
- market or product reqs doc
- competitive analysis for market report
- plan of record
- previous roadmap version Marketing Mix definition - ANSWER- set of controllable tactical marketing tools - product, price, place and promotion - that an organization blends to produce the response it wants in the target market
- price
- place
- product
- promotion extended mix - for service oriented industry only
- people
- process
- physical proof Managing the Marketing Mix - ANSWER- - managing the mix allows customer satisfaction
- enables meeting marketing objectives
- elements are interdependent
- elements in extended mix apply to services only Marketing Mix tools (7) - ANSWER- 1. price - what is the customer willing to pay
- place - how or where will customers buy (direct sales, use of distribution channels)
- product - addresses customer need & delivers benefit
- promotion - how and where will you present product to target market extended mix for service oriented industry only
- people - who delivers the service, plays most important role in service delivery
- process - ensures consistency of service delivery
- physical proof - makes service offering feel more tangible and add to perceived value Product Marketing Mix questions - ANSWER- What does customer want from the product? What needs does it satisfy? What features must it include to meet these needs? Are there any missing features customers expect? How and where will customers use it? What is the user experience? What does it look like? What is it called? How is it differentiated versus its competitors? Place Marketing Mix Questions - ANSWER- Where do buyers look for your products? How can you access the right distribution channels? Do you need to use a sales force? How and where will customers use it? What do its competitors do? How are distribution channels or places to buy differentiated versus its competitors? Price Marketing Mix Questions - ANSWER- What value will it deliver to target customers? Are there established price points for competing or similar products? What is the customer willing to pay for this or similar products? What is the price sensitivity of target customers? How will its price differentiate it from its competitors? Promotion Marketing Mix Questions - ANSWER- Where and when can you get across your messaging to your target market? How will you reach target customers? When is the best time to promote? What are external factors that impact the timing of its launch or promotions? How do competitors promote competing products? People Marketing Mix Questions - ANSWER- Who delivers the service?
