The Pragmatic Marketer magazine. The journal for technology product management and marketing professionals.

1. 7 1 2009
Pragmatic Marketing’s Career Growth and
the Product Manager
2008 Annual Product Practical Rules for Product
Management and Management (part 4 of 4)
Marketing Survey Winning in a Down Economy:
Are You Tuned in?
Changing Jobs in Product
Management: Evaluating,
Farming, Interviewing,
and Negotiating
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2. Is your company getting the most from its investment
in product management and marketing?
Does your product management and marketing function need
more structure or a repeatable process?
Training Seminars Training Seminars
for Product Marketing for Product Management
Effective Product Marketing teaches how to Practical Product Management defines the
create successful go-to-market strategies using a strategic role of product management using the
structured, repeatable framework that supports an Pragmatic Marketing Framework. From how
organization’s goals for growth in revenue, market to identify market problems to delivering a
awareness and customer retention. successful product plan.
New Rules of Marketing shows how to harness Requirements That Work shows you a
the power of online marketing using blogs, repeatable method for writing clear requirements
viral marketing, podcasts, video, search engine your team will read and use. It discusses
marketing and thought-leadership to reach techniques for prioritizing and organizing
buyers directly. market requirements and clarifies the roles
for team members.
Pragmatic Roadmapping teaches techniques
for developing, consolidating and communicating
product plans, strategy and vision to multiple
audiences—both inside and outside the company.
In addition to the extensive published schedule, training can be conducted
onsite at your office, saving travel time and costs for attendees, and allowing
a much more focused discussion on internal, critical issues.
Pragmatic Marketing’s seminars have been attended by more than 50,000 product management and marketing professionals.
Visit www.PragmaticMarketing.com or call (800) 816-7861

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The Pragmatic Marketer • Volume 7 Issue 1, 2009
, • 3

4. P R A G M AT I C M A R K E T I N G ’ S
2008 ANNUAL
Product Management and Marketing Survey
Each year Pragmatic Marketing conducts a survey of product management and
marketing professionals. Our objective is to provide information about compensation
as well as the most common responsibilities for those performing product management
and marketing activities.
We received over 1,100 responses to the survey, which was conducted during the
period of November 3 through November 26, 2008 using Vovici’s EFM Feedback.
When making decisions, remember this report is describing typical practices, not
best practices. For best practices in product management and marketing, attend a
Pragmatic Marketing seminar.
Profile of a Geographic impact on compensation (US $)
product manager
Maximum Maximum Average Average Minimum Minimum
Int'l Region
The average product manager is Salary Bonus Salary Bonus Salary Bonus
37 years old, has responsibility for Australia $
90,000 $
20,000 $
78,571 $
10,400 $
65,000 $
2,000
three products and 89% claim to
be “somewhat” or “very” technical. Canada 145,000 85,000 88,719 14,792 50,000 1,000
Europe 182,000 30,000 90,429 10,704 18,000 2,000
Compensation 1,000
USA 180,000 70,000 100,341 12,467 40,000
Average US product management
compensation is $100,341 plus
$12,467 annual bonus. 79% of US regional impact on compensation
product managers get a bonus.
Midwest $
170,000 $
30,000 $
90,944 $
10,453 $
50,000 $
1,000
Bonuses are based on:
Northeast 175,000 55,000 105,178 12,933 40,000 1,000
• 64% company profit
• 24% product revenue
Pacific 180,000 70,000 107,105 14,026 41,000 1,000
• 36% quarterly objectives Southeast 150,000 25,000 96,038 10,787 50,000 1,000
• Over 29% say the bonus does South 145,000 27,000 105,789 13,933 58,000 2,000
not motivate at all and only 16%
say the bonus motivates a lot. West 165,000 39,000 94,152 12,833 40,000 2,000
Midwest (IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI)
Northeast (CT, DE, MA, ME, NH, NJ, NY, PA, RI, VT)
Pacific (AK, CA, HI, OR, WA)
Southeast (AL, FL, GA, KY, MD, MS, NC, SC, TN, VA, WV)
South (AR, LA, OK, TX)
West (AZ, CO, ID, MT, NM, NV, UT, WY)
4 • The Pragmatic Marketer • Volume 7 Issue 1, 2009
,

5. 34% 66% Organization
of product of product
managers managers The typical product manager reports to
are Women are Men a director in the product management
department.
Gender compensation (US $) • 45% report to a director
• 29% report to a vice president
Annual salary
• 17% report to a manager
$125,000 Women • 9% report to CxO
$100,000 Men
$75,000 Reporting Department
• 23% CEO
$50,000
• 19% Marketing
$25,000 • 22% Product Management
Years of
• 11% Development or Engineering
1 to 2 3 to 5 6 to 10 11 to 15 15+ experience • 7% Sales
• 4% Product Marketing
Responsible for Responsible for
product profit & loss go-to-market strategies Product Management
Product ratios within the company
Marketing
Manager Other CEO How are product managers allocated
relative to other departments? For each
product manager, we find:
CMO
CFO • 0.63 Product marketing managers
Director • 0.75 Marketing Communications
CEO VP Product
Manager • 3.5 Sales engineers (SE)
VP • 7.2 Salespeople
Director
Product
Product Marketing • 0.72 Development leads
Manager Manager
• 5.5 Developers
• 1.0 Product architects and designers
Software Development Methods Other ratios
• 3.6 developers per QA manager
Waterfall
• 3.6 salespeople per SE
Scrum • 22% Product Management
• 11% Development or Engineering
Other Agile Current
• 25% Other
Planned
Anything Goes
“Cowboy Coding”
0% 20% 40%
The Pragmatic Marketer • Volume 7 Issue 1, 2009
, • 5

6. Technical activities
Technology assessment 37.4%
Pragmatic Marketing’s 2008 Annual Product Management and Marketing Survey Strategic activities
Competitive analysis 75.0%
Win/loss analysis 36.5%
Distinctive competence 50.9%
Innovation 42.1%
Market research 68.3%
Strategic activities Percentage of respondents indicating User personas 56.0%
Market problems 67.9%
Distinctive competence 50.9% they conduct these Pragmatic Marketing Use scenarios 64.9%
Market sizing 46.6%
Market research 68.3% Framework activities.Product contract 30.0%
Monitoring release milestones 65.7%
Product performance 59.6%
Market problems 67.9% Operational metrics 31.3%
Market sizing 46.6% Business case 65.4%
Product performance 65.7% Marketing activities Pricing 49.6%
Operational metrics 31.3% Defining marketing plan 46.7%
Buy, build, partner 37.6%
Business case 65.4% Managing marketing programs 51.0%
Product portfolio 25.5%
Pricing 49.6% Measuring marketing program ROI 67.5%
Positioning 17.9%
Buy, build, partner 46.7% Market messages 22.8%
Sales process 52.5%
Product portfolio 51.0% Awareness plan 26.0%
Market requirements 78.0%
Positioning 67.5% Customer acquisition plan 78.3%
Product roadmap 20.3%
Sales process 22.8% Customer retention plan 18.8%
Market requirements 78.0% Technical activities
Launch plan 57.7%
Product roadmap 78.3% Buyer personas 34.8%
Technology assessment 37.4%
Success stories 34.8%
Competitive analysis 75.0%
Technical activities Thought leaders 28.1%
Win/loss analysis 36.5%
Business Marketing LeadInnovation 42.1%
generation 16.9%
Technology assessmentactivities
Strategic 37.4% Case
Positioning
Plan
Competitive analysis 75.0%
Distinctive competence 50.9% User personas 56.0%
Win/loss analysis Competence68.3% Market
Market research 36.5%
Distinctive
Sizing
Pricing
Sales
Process
Customer
Acquisition
Sales activities
Use scenarios 64.9%
Innovation 42.1% Providing sales channel training 59.6%
Monitoring release milestones 55.0%
Market problems 67.9%
User personas Market 46.6% Product
56.0% Buy, Build MarketCreating collateral and sales tools 30.0%
Customer Product contract 58.4%
Market sizing
Research Performance or Partner Requirements Retention
Use scenarios 64.9% Writing white papers 44.6%
Product performance 65.7%
Monitoring release milestones Market 31.3%
59.6% Operational Product Product WritingMarketing activities
Launchcompetitive checklists 45.2%
Operational metrics
STRATEGIC
contract Problems
Product Business case 65.4% Metrics Portfolio Roadmap Plan
Creating Defining marketing plan 37.6%
presentations and demos 67.0%
TACTICAL
30.0%
Market Quantitative Product Program Going on sales calls 25.5%
Product Managing marketing programs Sales Channel 39.9%
Pricing 49.6%
Marketing activities Analysis
Analysis
Buy, build, partner 46.7%
Strategy Planning Strategy Readiness
Staffing seminar and trade show events 17.9%
Measuring marketing program ROI 46.9%
Support
Defining marketing plan Technology51.0%Win/Loss
37.6% Answering sales questions via emailmessages 52.5%
User Buyer Market or phone 67.3%
Channel Presentations
Product portfolio Innovation
Managing marketing programs Assessment67.5%Analysis
Positioning25.5% Personas Personas Training
Awareness plan 26.0%
& Demos
Measuring marketing program ROI Competitive22.8%
Sales process17.9% Use Customer acquisition plan 20.3%
Success Collateral & "Special"
Market messages Analysis 78.0%
Market requirements 52.5% Scenarios Stories
Customer retention plan Calls
Sales Tools
18.8%
Awareness plan 26.0%
Product roadmap 78.3% Release Thought Launch plan Event
White 57.7%
Customer acquisition plan 20.3% Milestones Leaders Papers
Buyer personas 34.8% Support
CustomerTechnical activities
retention plan 18.8% Lead Success stories 34.8%
Competitive Answer
Launch plan 57.7%
Technology assessment 37.4%
Generation Thought leaders Desk
Write-Up 28.1%
Buyer personas 34.8%
Competitive analysis 75.0% Lead generation 16.9%
© 1993-2009 Pragmatic Marketing
Success stories 34.8%
Win/loss analysis 36.5%
Thought leaders 28.1%
Innovation 42.1% Sales activities
Lead generation 16.9%
User personas 56.0% Providing sales channel training 55.0%
Use scenarios 64.9% Creating collateral and sales tools 58.4%
Sales activities59.6%
Monitoring release milestones Writing white papers 44.6%
Providing sales channel training 55.0%
Product contract 30.0% Writing competitive checklists 45.2%
Creating collateral and sales tools 58.4% Creating presentations and demos 67.0%
Writing white papersactivities
Marketing 44.6% Going on sales calls 39.9%
Writing competitive marketing plan 37.6%
Defining checklists 45.2% Staffing seminar and trade show events 46.9%
Creating Managing marketing programs 25.5%
presentations and demos 67.0% Answering sales questions via email or phone 67.3%
Going on sales calls ROI 17.9%
Measuring marketing program 39.9%
fing seminar and trade show events 46.9%
Market messages 52.5%
g sales questions via email or phone plan 26.0%
Awareness 67.3%
Impacts on productivity
Customer acquisition plan 20.3%
Customer retention planreceive 50 emails a day and send about 25. Product managers typically
Product managers 18.8%
work 50 hour weeks. 57.7%
Launch plan
Buyer personas 34.8%
Product managers spend approximately two days a week in internal meetings (15 meetings per week).
Success stories 34.8%
But 55% go to 15 or more meetings each week, and 35% attend 20 or more meetings!
Thought leaders 28.1%
Lead generation 16.9%
6 • The Pragmatic Marketeractivities
Sales • Volume 7, Issue 1, 2009
Providing sales channel training 55.0%

7. Pragmatic Marketing’s 2008 Annual Product Management and Marketing Survey
Percentage of respondents indicating they conduct these activities.
Product Manager
Product Management VS. Product Marketing
Monitoring development projects
Writing product requirements
Researching market needs
Preparing business case
Writing detailed specifications
Visiting sites (without salespeople)
Creating sales presentations and demos
Creating promotional material
Training salespeople
Planning and managing marketing programs
Going on sales calls
Performing win/loss analysis
Measuring marketing programs
Working with press or analysts
0% 20% 40% 60% 80% 100%
We asked, “How has your job changed?”
• Introduction of Agile has made it very difficult to • Change is the name of the game. What hasn’t
fulfill traditional product management roles. Product changed?
managers have been turned into product owners
with project management and dev management • Development changed to Agile/Scrum, required
responsibilities. I know it does not have to be that Product Management to spend much more time as
way, but that is what has happened at the company. Product Owner.
Results: “Inside-Out” products and pricing. • Drastically—our company has gone from being
• More competition between people; more jockeying VERY development driven to being more
for position. It’s the eighties all over again... customer/business led.
swimming with sharks. • Fewer people to do more work.
• Product management has increasingly become the • I got more responsibility, the company is reacting to
clean-up crew. We take the messy promises that sales my suggestions and I receive support for new ideas.
and executives have made to big customers and
figure out how to deliver them in a professional • I transitioned from Product Marketing to Product
manner that might benefit other customers as well. Management. Because I was so used to multi-tasking,
I am the only person on the team that manages more
• I have more experience so I’m more dangerous. than one product.
• The product I have been evangelizing for three years • Less strategic and more tactical due to resource
finally received development resources and we constraints on overall business.
launched in May. It has generated over $1 million in
its first five months. • More chaotic, if that’s even possible.
• Added responsibilities, more outsourcing of services, • Much more fast moving and changing. Clients are
flattening of company (decrease in workforce). more savvy.
• As we re-tool our service delivery model, I have • Yes—my responsibilities have increased 10 fold
been given the “privilege” of more operational without an increase in pay. I’ve gone from managing
responsibility to find the right processes to support a small group of products to an entire division as
our products. well as our technology offerings AND managing all
of our releases.
The Pragmatic Marketer • Volume 7 Issue 1, 2009
, • 7

8. Pragmatic Marketing’s 2008 Annual Product Management and Marketing Survey
If you could say one thing to your company president
without fear of reprisal, what would you say?
We received nearly 650 responses to this annual survey question. And boy, did you have something to say!
It’s clear many of you are • Give this company direction. • Let product management do our
looking to your company Give this company a plan that job. Stop micromanaging and
all employees are on the same dictating the technology we use—it
president for focus. page with. is too costly to always be the first
• Focus and stop micromanaging. adopter of a new technology and
• Give us a clearly defined business expect to offer a high-quality
• Focus on 1 or 2 market segments. strategy and stick with it. Then product to our customers.
communicate it to the entire
• Focus on distinct competence. organization. Support the new • Let product management do
function of Product Management their job.
• Focus on real customer needs.
by respecting the process.
• Let product managers do their job
• Focus on the critical few business
• Please provide us guidance on as Pragmatic Marketing defines the
items, fund them, and gain the
what basis you expect us to role. Don’t commit to any dates
support of the entire organization
compete for the next 24 months. without a moderate level of
around them.
definition and scoping. Clearly
• Please give us direction and a define roles & responsibilities.
• Focus on the market and we
vision, rather than linger while
will not get swept away by the
you’re waiting to retire. • Let us product managers help you.
economic downturn.
• Focus on the targeted, defined Then there are the It is not all negative,
market we’re in. Not on other
markets where no distinctive
“stop” messages... a number of you praised
competence exists. • Stop changing company strategy
the president and clearly
every two weeks. It makes it work for the “good ones.”
• Focus on winning products only.
impossible to develop and • Thank you for building a company
• Focus. Listen to the market, maintain a product roadmap that built to last through any economy.
and allow product management we have any chance of sticking to.
to focus externally. Fix the • Thank you for supporting a
• Stop changing priorities—let’s Product Management process!
operational barriers that force
finish the products we’ve started
product managers to focus
and get them right. • He is a leader and knows the
internally.
company from top to bottom!
• Stop chasing the last great
• Focus. We are too small to be
deal and focus on maintaining • He is extremely thankful for the
trying to do all of the
long-term viability. jobs we all do and he expresses
things we are doing.
it often!
• Stop micromanaging.
Many of you want your • Stop reorganizing all the time.
• He trusts his people to be
effective, challenges them to
president to lead, articulate succeed, and empowers them
a vision and set strategy for And the “let me” messages… to make decisions.
the organization.
• Let me do my job! • I think he really does care about
• Our market space provides great the company and the people.
potential but you need to clarify • Let me do product management It’s not just something he tells
your market vision and better instead of sales support and you customers and prospects.
communicate your business goals might be amazed at what we
to your staff. could accomplish!
• Give the company a vision and • Let me in on decision making more.
a strategic path for everyone to
follow—get out of the old ways • Let me own P&L of my product
of doing things and start looking with the ability to add resource
at new approaches to tackle if a business case exists and my
problems. Look at our prospects, products will be more profitable.
not just our customers for
product innovations.
8 • The Pragmatic Marketer • Volume 7 Issue 1, 2009
,

9. Pragmatic Marketing’s 2008 Annual Product Management and Marketing Survey
On the other hand, some
of you work for the “bad ones.”
• Would be nice if there were less lies in our PR.
• You are not the market.
• Resign. You offer no vision, you create poor
morale, and you get in the way more than not.
• Please stop selling things that we have
not built yet.
• Please listen to the customer!
Find more survey
• Please leave!
• Just because it has the word “product” in it
doesn’t mean you can dump it on Product
Management.
• Do you realize you are paying a lot for me to
results
sit around and demo to unqualified prospects?
How can that be profitable?
And finally...
• Could we please have someone assigned to this
at
weekly two hour planning meeting to track
PragmaticMarketing.com/survey
decisions & deliverables?
• There are some customer “requirements” which
violate the laws of physics. I think there is a
theorem in differential equations that proves
we cannot optimize simultaneously for two
or more factors.
• Great guy, but a bit of a cowboy.
• Stand up to the Corporate Blockheads who are
destroying our ability to be successful!
Steve Johnson is a recognized
thought-leader on the strategic role of
product management and marketing.
Broadly published and a frequent
keynote speaker, Steve has been a
Pragmatic Marketing instructor
for more than 10 years and has
personally trained thousands of product managers
and hundreds of company senior executive teams on
strategies for creating products people want to buy.
Steve is the author of the Product Marketing blog.
Contact Steve at sjohnson@pragmaticmarketing.com
The Pragmatic Marketer • Volume 7 Issue 1, 2009
, • 9

10. Book Review Management
The Art of Product
Who is as comfortable with tech tools, and product management how to look at your product—and
support reps as with executives? support. Tech Support sounds like your product management—from
Who knows both customers and something your company should a business point of view:
non-customers? Who is confident outsource but you may instead drive
in dealing with Finance, Sales, off your customers. Get Support Executives are paid to make
Marketing? That’s right. Product the organizational and strategic decisions: a productive day must
Management. If you’ve been a help it needs. include at least one decision.
product manager—or want to be Meetings, emails, discussions,
one—you’ll enjoy The Art of Product Elsewhere, Mironov makes clear a forecast reviews and brainstorming
Management by Rich Mironov. point I have been making for years: are secondary to making decisions
The book explores myriad topics that drive action. It’s easy to be
Product managers who don’t distracted by the minutiae of
of interest to product managers love their products should change
including roadmaps, the value business, or by analysis paralysis.
product lines or companies—
of technical support, growing or careers. There aren’t many decent product
product managers into executives, management books. Crossing the
understanding customers, supporting Indeed! If you don’t love your Chasm by Geoffrey Moore is a
sales systematically, pricing and product, you won’t do a good job. good business strategy book and
packaging. Logically organized into Product management isn’t factory marketing primer; Inspired: How To
articles in related topic areas, each work. Product management is both Create Products Customers Love by
article explores a single issue from art and science. It’s templates and Marty Cagan does a good job as an
all sides and offers recommendations. processes and meetings and product introduction to product management;
You could just start from the front knowledge but it’s also intuition, an of course, Tuned In by my colleagues
and read each article, or find the inquisitive nature, insight beyond at Pragmatic Marketing illustrates the
topic related to today’s thorny issue customer words to customer incredible results that come from
and jump straight there. problems, and a love for technical listening to your market. I’ll add The
solutions. Mironov looks at each issue Art of Product Management by Rich
Rich Mironov clearly has experience procedurally and philosophically,
in technology companies because Mironov to the product manager’s
often turning the issue on its head. required reading lists.
he touches on areas no professor
or theorists ever touch, such as Most of all, he invites product
customer support, software licensing, managers to think like executives
and field testing. For example, here’s instead of like gofers. Rich knows
Mironov on the under-appreciated, the best product managers are
under-staffed support group: future CEOs; he provides tips on
In my experience, making Support
a strategic asset takes a combination
of organizational planning, good Steve Johnson is a recognized thought-leader on the strategic
role of product management and marketing. Broadly
published and a frequent keynote speaker, Steve has been a
Pragmatic Marketing instructor for more than 10 years and
has personally trained thousands of product managers and
hundreds of company senior executive teams on strategies
for creating products people want to buy. Steve is the author of the Product
Marketing blog. Contact Steve at sjohnson@pragmaticmarketing.com
10 • The Pragmatic Marketer • Volume 7 Issue 1, 2009
,

11. Career
Growth and
the Product
Manager
to grow into and succeed as
By Art Petty one of a firm’s top leaders. The
most effective product managers and
mentors of product managers recognize
the importance of mastering the
portfolio of informal leadership skills,
and they constantly focus on creating
and participating in developmental
experiences that help those skills emerge.
I wear my
respect on my Here’s my short list of skills which
sleeve for the many product managers should develop
dedicated product if they want to crack the ranks of
management professionals senior leadership.
who work in what I believe is
one of the most difficult and critical Leadership
roles in today’s fast-moving technology
and B2B organizations. Product managers Today’s emerging leadership
shoulder a tremendous responsibility to model is moving away from the
guide organizational resources, facilitate command-and-control style many baby
strategic choices, and lead execution boomers grew up with, and towards
initiatives—often with little or no a role that emphasizes flexibility
formal authority. If corporate roles were and adaptability.
Olympic athletes, product managers
would be the decathletes. The new model for leading focuses on
creating the right environment for teams
While admittedly biased (based on and individuals to succeed, and it places
my years as a product manager and a priority on the continual development
as a leader of product managers), of talent through coaching and mentoring.
I firmly believe these talented and Early on, the successful product
well-rounded business professionals manager recognizes these leadership
represent some of the most valuable tasks as “table stakes” for success and
assets in a firm’s talent pool. Few works to strengthen his or her skills at
positions outside of the role of every opportunity.
product manager demand mastery
of a broad spectrum of leadership, Developing leadership skills is an
communication, and management intangible task many attempt to
skills as prerequisites for success. accomplish by attending training courses,
reading books, and observing other
From understanding the “voice of successful leaders. And, while these
the customer”…to assessing and are useful steps to help an individual
recommending strategic choices… develop context for the true role of a
to building the relationships leader, they are never substitutes for
and systems needed to drive the experience gained through live-fire
execution across organizational developmental activities.
silos, the product manager is
truly an executive-in-training. As a wise and experienced professional
once told me, “Leadership is a profession
Of course, not every product with a body of knowledge waiting to
manager is destined for be discovered.” Books and classes are
(or even desires) a role in important and valuable, as long as the
executive leadership. And insights and approaches are leveraged
many who are interested, to solve real problems for customers
fail to properly develop the and organizations.
critical soft skills needed
The Pragmatic Marketer • Volume 7 Issue 1, 2009
, • 11

12. Career Growth and the Product Manager
In supporting the development The practicing product manger Tuned In book, by seeking to
of product managers, I encourage or the product manager’s mentor uncover unresolved client problems
an approach that emphasizes the must focus on an approach that and then developing the programs
application of key leadership skills emphasizes the development of key and experiences that fill those needs
in diverse and challenging situations. leadership skills and the application and delights customers in ways that
Developing informal leadership skills of these skills in a series of diverse competitors cannot readily emulate.
by shepherding a new product to leadership situations.
market is a formative experience Perhaps the most difficult obstacle
for a product manager. Ideally, any leadership development for the product-manager-as-strategist
program for product managers to overcome is the ability to look
This situation emphasizes the will emphasize gaining experience critically at his or her own struggling
development of critical business in leading informally, leading product offerings and conclude that,
planning, communication, horizontally, and managing upwards. in some circumstances, the problems
negotiation, and execution skills. A constant focus on testing the are not solved by investing more
By the same token, managing product manager in new situations money, creating more features, or
an initiative to assess and create accelerates the personal learning working on the next release.
strategies for product offerings and development critical to the
that are struggling helps develop emerging leader. I know a product manager has
critical-thinking and decision-making evolved to an important intellectual
skills in the face of tough level when he or she has the
circumstances.
Strategic thinking courage to confront a failing
initiative with a strategy other than
Like leaders, strategists aren’t born;
While not wanting to invite the “spend more” or “develop more.”
in most cases, they are forged over
“product-manager-as-project-manager” I’m particularly excited when the
time via the development of critical
debate, I encourage product new proposal is clearly grounded
analytical skills. Few positions
managers to recognize that execution in the “voice of the customer” and
in a firm have the potential to
inside an organization takes place takes into account the prevailing and
contribute more to strategic thinking
through projects, and I advise them expected market forces.
and development than that of the
to gain experience developing and
product manager. If you are a senior leader or mentor,
leading project teams.
it is important to encourage your
I was fortunate enough to enjoy
The experience of working to product managers to think critically
early career mentors that challenged
develop high-performance project and to consider the external
me to constantly think outside
teams teaches the product manager environment in formulating their
of my product and outside of
the importance of focusing on plans—as well as to involve them
my company…to look at the big
creating an effective working in strategic planning activities.
picture…to tune in to my various
environment. Additionally, the Ensure your interactions are heavily
audiences…and to develop and test
time spent dealing with the many weighted toward asking strategic
strategic hypotheses while growing
headaches and people-issues that questions versus offering answers.
the business. This is a very different
often bedevil projects is invaluable Your own example will teach product
way of thinking than the typical
training in the reality of how managers on your team to think
“What are the top 10 features I can
challenging it is to drive results by holistically about strategy when
jam into my next release?” Too many
leading without formal authority. formulating plans.
product managers don’t learn to look
beyond their narrow scope (product, If you are a product manager seeking
market segment). Worse yet, too to grow your career, learn the art of
many don’t grasp the importance asking questions, and invest ample
of their role as a strategist in the time in the market—observing
overall firm’s plans. customers and looking for unresolved
problems. And most important,
The product-manager-as-strategist
recognize that the sun does not
understands he or she must invest in
rise and set with the products you
looking at the big picture of market
manage. Rather, your goal is to
forces, customers, and competitors—
uncover unique opportunities to
and comparing this view to a
create value for your customers.
company’s strategic priorities and
The true solution may be something
capabilities. The effective product
that doesn’t remotely resemble the
manager internalizes the philosophies
offerings you are managing today.
espoused in Pragmatic Marketing’s
12 • The Pragmatic Marketer • Volume 7 Issue 1, 2009
,

13. Fr M Po A
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et anagi les
ss s
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ar for M Re
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speak the language of executives. day-to-day communications.
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regardless of with whom they are S i or c t
meeting—is an opportunity to communication style that creates t du g
interesteand fosters respectuist c e duc r o ni n
P n
build trust by understanding needs,
cti
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creating shared perspectives, and tin ten e Pro rman
essentialcfor success. Diplomatic r Pl
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building reasons for people and mp Pe t er
manage across, and to manage theal
Co uc Us nas
teams to move forward. on o d egy rso
generationst and the various cultures
e ati P r at Pe
per etric
ark rch teams are skills thats r
The recent award-winning HBO M ea
via distributed O
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miniseries, John Adams (based help thesproduct manager quickly
e iv e
Us rios
R t on
on David McCullough’s biography move beyond a t mid-level role. ti t a is ov ati ena
rke s an l ys Inn Sc
Ma lem
of the same name), shows the
Q u An a
mercurial and aggressive Adams b
Tying it allrotogether ase
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nearly destroying any chance
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to earn France’s support for the It is remarkably ark tois
easy s get Wi alys Mi
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EG
American Revolutionary War with caught up in the a A
his demands for immediate action. An
day-to-day business and the y
Visit the
AT
log
no ent
His style and tactics nearly destroy “urgent-unimportant,” and forget
ch smto
the hard-won credibility that that every day is aTe s
online community at
R
chance
advance your career.ss
e
ST
Benjamin Franklin earned over the A e
several years he spent developing
If you are fortunate enough et have
itiv PragmaticMarketing.com
mp s
a mutually agreeable reason to to is
oppose the British. C naly
a great mentor, consider oyourself
A
lucky. Pay attention to that mentor; • Review 9 years of Annual
As a product manager, you may listen and learn. If you don’t have Product Management and
very well understand the “right” Marketing Survey results eI
a valued mentor or coach, it is Th
direction and believe that those incumbent upon you to take the
who don’t share your opinion are initiative to create the experiences • Attend a webinar by one of
blind to the obvious. Recognizing necessary for you to develop and today’s industry thought-leaders
no two humans look at the same fine-tune the leadership, strategic,
picture and see the same thing is an and communication skills you need • Read hundreds of articles on
important first step in understanding to advance your career. product management, marketing
the need for you to develop your and leadership strategies
diplomatic skills. Simply put, the role of product
manager offers a unique • Visit the Job Board to see
Another wise person in my foundation on which to build companies looking to hire
life once advised, “Seek first a successful career; the time to product managers and marketers
to understand and then to begin preparing is now.
• Read profiles of companies who
have achieved success using the
Pragmatic Marketing Framework
Art Petty is a leader, strategist, and team-builder with
more than 22 years of experience directing the growth, • Stay connected with your
global expansion, and rise to market leadership of global industry peers by joining a local
organizations in technology, services, and manufacturing. Product Management Association
• Participate in online
Art is the founder and principal at Strategy & Management- networking with LinkedIn
Innovations, LLC, a leadership development and strategy and Facebook groups
consulting practice, as well as the co-author of the 2007 book, Practical Lessons
in Leadership—A Guidebook for Aspiring and Experienced Leaders. • View a list of recommended
books and software tools for
Art writes the popular management blog, Management Excellence at product managers and marketers
www.artpetty.com and serves as an adjunct faculty member teaching management,
quality, and project management in the MBA program at DePaul University’s
Kellstadt Graduate School of Business. Contact Art at art.petty@artpetty.com

14. Practical Rules for
By Maureen Rogers
RULE #16
Positioning should be complete
before you start developing.
Anyone who has spent more than a few days
in technology product management, product
marketing, or development is familiar with that
scariest of creatures: The Continuously Morphing
Set of Requirements.
Everyone can be guilty of feeding this particular
beast by coming up with a last-minute feature request.
Even if you have stellar positioning, you still might
have light bulbs go off in your head right up until
the second the product is supposed to ship. But if
Editor’s Note: In Volume 6 Issue 5, Maureen you have solid positioning completed before product
Rogers applied her own interpretations and personal development begins, you should face no major
surprises, because you will already have considered:
experiences of Pragmatic Marketing’s 20 rules for
• Who exactly will be using this product?
product management success in Part III of her series
• How many different constituencies are there
of articles on this topic. In Part IV, she concludes the (worker-bees, managers, partners, customers
of your customer, etc.)?
series with Rules 16 -20.
• For what specific purpose will each of these
groups be using the product?
• What does each of these groups need in order
Pragmatic Marketing’s Practical Product Management to truly adopt the product?
seminar not only teaches product managers about • What does each of these groups need in order
to derive maximum benefit from the product?
the renowned Pragmatic Marketing Framework, it • How will the product be deployed?
offers attendees 20 rules for product management • How will the product be sold?
success. In this final article about rules that just • What does each channel need to effectively
aren’t meant to be broken, we present Rules sell the product?
• Who will be implementing this product?
16 -20 — which are all about positioning, naming,
• What do they need to easily deploy it?
sales tools, and the power of the market-driven
• Who will be supporting this product?
product manager. Read on.
• What do they need to effectively support
the product?
• Where will this product be available?
• Are there any regional/country differences
to consider?
• Etc.
14 • The Pragmatic Marketer • Volume 7 Issue 1, 2009
,

15. Product Management
This list might seem “duh-simple,” but Unfortunately, all benefits statements • End users mostly want to know
you’d be surprised at the “must-have” started to sound alike: Use our what your product does for them,
requirements that show up at the last product to save time and money, how it’s going to change the way
minute if you haven’t answered them. increase productivity, and grow they work, and how easy it’s going
your revenues. You could read these to be for them to learn to use. And
If you haven’t thought about your benefits statements and come away just like misery, end users love
sales force, you may forget to with no idea whatsoever whether company: They want to know who
mention to the developers that you someone was trying to sell you a else is using your product.
need a web-accessible demo. That mainframe or a spreadsheet.
decision to market overseas may have • Managers may not need all the
significant implications. You may not This all came about because, as details that the tech buyer and end
have considered the possibility that marketers, we often fail to think user do, but they still need info on
management doesn’t want to use the through exactly who our buyers how your product is going to make
product every day, but still wants are—especially in terms of all the life better for their people and for
to see high-level information on various constituencies who might be them. It’s at this level that the
a dashboard. involved in a purchase decision. positioning starts shifting gears
from being predominantly feature-
The more precisely you’ve defined We jumped from thinking only oriented to a bit more benefits-
your positioning, the less likely about the techies and their need to oriented.
you are to have any last-minute know the gritty product details, to
surprises—or even post-last-minute thinking only about the illustrious • For the executive/economic
surprises, when you’ve launched “C-level” exec who just wants to buyer, your positioning moves
the product, only to find it comes know the ROI. squarely into the benefits camp.
up short for any number of reasons. But you still need to ensure that
Reasons that you could have easily With individual positioning work, the positioning communicates what
avoided if only you’d answered all you’ll have the essential messages the product is and does, since even
the questions! you need to communicate about the most hands-off execs need to
your product and its value to all know whether they’re okaying the
of your audiences.
RULE #17
purchase of accounting software
• For the technology buyer, go or a storage drive.
heavy on the features and technical • Don’t forget vertical positioning,
You need a positioning details. By the time they’re looking
at your product, these buyers have
either. Most industries have their
own peculiarities and lingo.
document for each often already made the decision to
buy something. They need to know Having these positioning documents
type of buyer. what differentiates your product on hand saves you a lot of effort
from the pack. Sure, they want to when you’re creating sales tools,
know how your features translate collateral, and program material.
into benefits, but mostly, they want You’ll know what to say, and you’ll
In the dawn of technology marketing, to know how it works, what it’s make sure you’re saying the right
we spoke “techinese,” emphasizing made of, and what it’s going to thing to the right people.
features and often forgetting take to implement and support.
the benefits. When they’re thinking benefits,
Then someone uttered those they’re probably looking for what
immortal words, “People don’t they need in order to sell up the
buy features; they buy benefits.” chain in their organization.
So we were off to the races with
benefits statements.
The Pragmatic Marketer • Volume 7 Issue 1, 2009
, • 15

16. Are your product management and marketing teams
overloaded with tactical activities, spending too much
time supporting Development and Sales rather than
focusing on the strategic issues of the organization?
The Pragmatic Marketing Framework
© 1993-2009 Pragmatic Marketing
The Pragmatic Marketing Framework is the standard
for product managers and marketers at thousands of
companies. Since 1993, more than 50,000 people have been
trained using this market-driven approach to creating and
launching products.

17. learn industry best practices
Product Management training Product Marketing training
Practical Product Management defines the Effective Product Marketing teaches how to create
strategic role of product management using the successful go-to-market strategies using a structured,
Pragmatic Marketing Framework (left). From how to repeatable framework that supports an organization’s
identify market problems to delivering a successful goals for growth in revenue, market awareness and
product plan. customer retention.
Requirements That Work shows you a repeatable New Rules of Marketing shows how to harness
method for writing clear requirements your team will the power of online marketing using blogs, viral
read and use. It discusses techniques for prioritizing marketing, podcasts, video, search engine marketing
and organizing market requirements and clarifies the and thought-leadership to reach buyers directly.
roles for team members.
Pragmatic Roadmapping teaches techniques for
developing, consolidating and communicating product In addition to the extensive published schedule,
plans, strategy and vision to multiple audiences—both training can be conducted onsite at your office
inside and outside the company. allowing a more focused discussion for your
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achieve market-driven success
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Optimize your go-to-market programs. Understand recent wins & losses, and learn how evaluators review your
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participate in a thought-leading community
For more than 50,000 visitors per month, PragmaticMarketing.com is a dynamic, growing resource center with
hundreds of articles, tips and techniques, expert blogs, a job board, book reviews, informative webinars, links
to peer networking groups and much more.
Visit www.PragmaticMarketing.com or call (800) 816-7861