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AIPMM- CPM EXAM QUESTIONS AND CORRECT
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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 4. 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 2. introduction
- growth/maturity/decline
- withdrawal
- commercialization
- manufacturing operations X-Axis phases of PLC (7) - ANSWER- *go/no-go gates between each phases 1. 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 3. 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 2. plan
- develop
- qualify Key Deliverables in conceive and plan phase (7) - ANSWER- 1. Strategic Plan 2. Competitive analysis
- Market Trends
- Mktg requirements doc 5. Business Case
- Product Requirements doc 7. Product roadmap Key deliverables in Develop and test phase (5) - ANSWER- 1. Marketing strategy 2. Beta program
- Launch plan
- Marketing plan
- Product Retirement plan Acquisition - ANSWER- act or process by which ownership is achieved by: 1. acquiring brand/product
- purchase entire company 3 ways to get new product - ANSWER- 1. develop 2. 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 2. deliver
- retire Commercialization Steps w/in PLC (5) - ANSWER- 1. launch/production 2. 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) 4. pricing strategies strategies of launch/introduction (commercialization) (5) - ANSWER- 1. competition = none
- product = one
- price = skimming or penetration 4. 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 2. product = more versions
- price = gain share, deal
- promotion = stress competition 5. 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 2. product = full product line
- price = defend share, profit
- promotion = reminder oriented differences 5. place = maximum outlets
better knowledge of entire product line
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 interperson al 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
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 2. develop business models (how much)
- develop business case (why) 4. Perform P&L
- Perform oppty analysis
- Define Business Plan (who, what, How, where, when) 7. Define market requirements
- Define roadmap 9. build core team
Plan Phase activities/deliverables (6) - ANSWER- 1. collect business intel 2. collect competitive intel
- develop product positioning 4. define product requirements
- shopping - bought less frequently, comparison shop, higher price, fewer places to buy 4. specialty - special purchase effort, high price, brand identification, unique characteristics
- 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
1st level - primary packaging 2nd level - holds multiples of the product distribution/tertiary packaging - transports customer packaging through supply chain. Holds multiple customer packaging. meant to protect customer packaging. Product Labeling - ANSWER- printed info appearing on or with the package that identify brand/product, promotes product Product Branding - ANSWER- creating, maintaining, protecting and enhancing products and services brand is a name, symbol, etc that identifies the maker or seller of a product or service Product Support Services - ANSWER- provides end-user with information regarding a product and help if a product malfunctions. Via inserts, online help, manuals, on- demand like phone or physical location/on-site key decisions:
- SLA guarantee
- Remote diagnostics/repair
- Pricing *value brand can offer less services because customer pays and expects less Strategic Planning definition - ANSWER- the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities Strategic planning elements (4) - ANSWER- 1. defining clear company mission 2. setting supporting objectives
- designing a sound business portfolio 4. coordinating functional strategies Mission statement definition (strategic planning element) - ANSWER- statement of the organization's purpose, describes company's function, markets, and competitive advantages. A short written statement of your business goals and philosophies *not product oriented, completely market oriented Setting Supporting objectives definition (strategic planning element) - ANSWER- supports the mission statement. Should be measurable and concrete. Strategy and tactics will be developed to achieve these objectives. Business portfolio definition (strategic planning element) - ANSWER- the collection of businesses and products that make up the company
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: 1. 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
-experience, knowledge -unique characteristics -resources -geographical advantage, location
-competence, capabilities -quality, reputation Weaknesses -disadvantages -gap in experience, knowledge -financial aspects -reliability & trust -loss of key staff -geographical factors Opportunities -strategic alliances, partnerships -product development -import, export -innovation and technology development Risks -Loss of alliances and partners -price inflation/deflation -strong competition -competitors new products and innovation PEST Analysis - ANSWER- Macroenvironment - good for new markets to understand opptys and threats Political Economic Social Technologic al Political -ecological/environmental issues -current/future legislation home and abroad -regulatory bodies and processes -government policies, terms and change -trade policies -funding, grants and initiatives -lobbying home and abroad -wars and conflicts Economic -Economic situation, home and abroad -economic trends; home and abroad -general & product specific taxation issues -market routes, trade and distribution trends
