2005 Newsletter Archive
Each year Pragmatic Institute conducts a survey of product managers, marketing managers, and other marketing professionals. Our objective is to provide Pragmatic Institute clients with industry information about compensation as well as the most common responsibilities for product managers and other marketing professionals. The survey received almost 500 responses from technology marketing professionals.
Every year, Pragmatic Institute conducts a survey about roles, responsibilities, and compensation for product management and marketing professionals. You can find prior years' results on our web site. As always, we're asking some questions to get more visibility into a typical day in the life of a product manager. And we're still asking compensation questions so you can see how your company's salary and bonus structure compares to the rest of the industry.
It is nearly impossible to predict annual revenues precisely, particularly for new products or businesses, but it is critically important for companies to create high-quality revenue budgets. To maximize the odds of being in the right ballpark relative to actual results, stick to a few key fundamentals.
Executives, managers and financial analysts throughout the country will soon turn their attention to the critical but extremely challenging process to develop revenue budgets for the 2006 fiscal year. Managers with revenue responsibility will spend weeks (and in some cases months) assessing market conditions, conducting analyses and negotiating with peers and superiors to set revenue expectations for next year. Executives will push their managers to set aggressive targets; managers will lobby executives for more achievable targets and greater resources; and sales teams will advocate targets that offer the best opportunity for maximum compensation.
Compared to manufactured goods or hardware, software products are easy to integrate so that they work together seamlessly. Therefore, collaborating with other software companies to complement and extend the scope of your own product has the potential to transform it and greatly increase your customer base, revenues, and profits.
Joining up with partners can result in offspring where the whole is greater than the sum of its parts. The ability to form successful partnerships plays a vital role in your company's success. It's not enough to get engaged, you want to get married and you want that marriage to last a long, long time.
Read Working With Partners for some ideas on how to develop a good marriage with the right partner company for your product, and how Product Managers can play a key role in forming a long lasting and fruitful relationship.
The key to success in technology companies is an understanding of Star Trek. Most engineers, developers, and technical people are familiar with these characters. Perhaps the Star Trek characters are familiar because we work with them every day. The characters of Star Trek give us the typical personas in a technology company. Is your company The Original Series or The Next Generation?
Corporate identity and image design rules of the past are gone and so are the principles of old-fashioned mass marketing blitzes. What is now new is to aim for the targeted areas with powerful, unique global name identities and apply the latest of cyber-branding skills. The laws of e-commerce and Internet marketing are just the right steps in the right direction.
Product management is a well-understood role in virtually every industry except technology. In the last ten years, the product management role has expanded its influence in technology companies yet we continue to hear the question, “Who needs product management?”
The role of product management spans product strategy, technical product management, and product marketing. Click here to see the breakdown and percentages by activity. In March 2005 we ran another profiles survey specific to Canada. See the results for Canada and then compare to the 2004 survey.
...I’ve seen similar situations in companies many times, and, as a product manager, I’ve seen this specifically when discussing requirements during product planning. Everyone who had even the smallest amount of anecdotal customer information became the expert on customer or market needs and thus what should or shouldn’t go into the next release of the product. Personal interpretation would trump hard analysis and emotional arguments would replace logical thought. Read You can never have too many product managers by Saeed Khan.
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