Showing posts with label Product Management. Show all posts
Showing posts with label Product Management. Show all posts

Tuesday, November 12, 2013

War Commander And Competitive Strategy

While at business school, Competitive Strategy and Marketing Management were my favorite subjects and I ended up specializing in them.  Of the two, Competitive strategy was my favorite simply because it caters to a human’s basic desire to compete and win. As a co-founder and president of my current company Personagraph, which is a wholly owned subsidiary of a larger company, I end up using a lot of teachings from the competitive strategy class by Pai-Ling Yin and the Advanced Competitive Strategy class by Michael Cusumano. As a product manager in my previous jobs, I benefited a lot from what I learned from these classes. The only other class, which taught me more, was the System Architecture class by Prof. Edward Crawley. You can read my detailed blog on the System Architecture class here.


I have been obsessed with the War Commander game by Kixeye for the last couple of weeks now. It is an extremely addictive game and I ended up spending a lot of money buying weapons, for the first time ever. I finally understand why Zynga is not doing so well in comparison to Kixeye. Apart from being targeted for a different demographic, it is an extremely well made game. The hiring video of Kixeye highlights the type of games they make and the company culture.

I have spent many hours on the game seizing a lot of territory by attacking and capturing enemy territories and it reminded me of what I learned in the Competitive Strategy and Game Theory classes. It took me some time before I recollected what I had read in the book Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by Renee Mauborgne. One of the central themes of the book is that the competitive strategies are modeled after the archaic war strategies (resources are limited and the only way to win is to defeat the enemy and capture their resources).  My favorite quote from the book is “To focus on the red ocean is therefore to accept the key constraining factor of war- limited terrain and the need to beat an enemy to succeed and to deny distinctive benefit of the business world: the capacity to create new market space that is uncontested”.

Initially, when I started playing this game, I was continuously attacking enemy installations for resources (oil and metal). But once I recollected many of the Blue Ocean strategies and Coopetition theory, I started searching for new resources (oil fields and metal deposits) and was able to expand resources much more quickly. It is amazing how many of these lessons I applied and practiced in the War Commander game. Business schools should make games like these mandatory part of the course material.



I will write a lot more about Coopetition, Competitive Strategy, Blue Ocean Strategy and Business Strategy in next few weeks. My main goal for this blog was to highlight that business schools that focus a lot on theory, could benefit by incorporating games like War Commander in their curriculum which provides a platform to practice many of the theories taught in class. Those of you who have read Sun Tzu’s (a military strategist from china, on of the greatest military leaders in history) book The Art of War will be able to apply many of those strategies in this game as well. If you have not read Sun Tsu, grab a copy from amazon and read if you plan to make a career in strategy.

Saturday, November 9, 2013

Field of Marketing

I sat down, ready to write down my thoughts on marketing. Thirty minutes later I could not come up with anything original. There is nothing which has not already been said by Mr. Philip Kotler. For those of you who do not know Philip Kotler, he is unofficially known as the “father of Marketing”, the first person to receive the “Leader in Marketing Thought” in 1975, and placed 4th in the “Most Influential Business Writers/Management Gurus” category.  His book Marketing Management: Analysis, Planning, and Control is the most widely adopted book in business schools around the world today.

Marketing is both an art and a science. The science aspect of marketing (also called formulated marketing) is easy to grasp and most engineers who gravitate towards marketing tend to do well in this field. The artistic side of marketing requires a lot more creativity and takes a longer time to master. I have read almost every book written by Kotler accompanied by many other books on Marketing, and after four years in the field, I can say I have yet to feel 100% confident on the subject.

The average lifetime of a CMO or marketing executive is 18 months, which highlights the unpredictability of this job. Marketing is about increasing the perceived value of a product so that the buyer’s utility (perceived value – price a customer is willing to pay) is higher than the competitor’s product. This said, given the same quality, the buyer will purchase the product with the lowest price. It is part science, part art, and part a function of competitive landscape, which is a complex system dynamics model (competitive strategy, time delayed non-linear cause and effect relationship).

Buyer Decision process: The customer will choose product A over product B if (perceived value of product A – Price of A) > (perceived value of product B – price of B)

The job of marketing is to make sales irrelevant. People in Sales try to reduce the price to make the sale while Marketing is about increasing the price, therefore increasing the profitability of the product/company. Sales is transactional whereas Marketing is relational. Sales is about fulfilling need, whereas marketing is about creating need and increasing demand.

There is constant criticism about marketing and how it creates needs. However the book Principles of Marketing Management addresses this point well.  It suggests that needs are inherent to humans and cannot be influenced. Human  “wants” are something more closely tied to the product. Humans need food, but want a sandwich. Demand is something, which can be influenced by price and is about a specific product/brand. Customers demand subway sandwiches. This book argues that marketers’ influence wants and demands, but needs pre-exist marketing.

Marketing is one of the most versatile fields and I highly encourage and respect people pursuing it. But many people seem to be gravitating towards it with starry eyes and false hopes that it will be an easy field to conquer. I can promise you that this is not the case, marketing will end up being the toughest field you can choose as you grow into the leadership roles.

The reason Marketing is so complicated is because attributing the uplift in sales to a specific marketing campaign is not easy. At least not in the past, before the data driven marketing field gained traction. Also before the advent of Internet, it was much more difficult to directly correlate the influence of a marketing campaign to a specific sale. I will write a separate blog on attribution marketing later as it is a large field within itself.

Another reason why Marketing is difficult is because a lot depends on the product value proposition and competitive landscape. Your products’ competitive landscape will dictate how easy or hard it is to differentiate the product and the position it will take in peoples mind. If you recall from your undergraduate marketing classes, marketing is about 5Cs (Marketing Strategy) and 4Ps (marketing tactics). It is the STP analysis (Segmentation, Targeting and Positioning) which connects the strategy to the tactics. The process of anticipating needs and defining a product which will address those needs and positioning it in the market at a price point where buyers will see the value of your product over your competitors in this hyper competitive world is a very difficult task.  Most of the time, Marketing is brought in very late in the product life cycle, a few months before the product launch rather than from the very beginning of the product development process. By this time the product has already been defined and built and it is too late for marketing to conduct a customer feedback study and influence the product development. We as Marketers are asked to create a marketing campaign for a product, which might not have been completely validated, or value proposition hypothesis tested. Sales is looking to marketing to provide the leads, and senior executives are breathing down your neck for demonstrating the ROI (return on investment) on marketing spend, while also looking at the sales number to see the impact of marketing budget. This field is no child’s play.


There are two types of marketing roles prevalent in the Silicon Valley. Product Marketing and Field Marketing. Product Marketing is about communicating the product to the world (3 of the 4Ps – price, placement and promotion, while product management is about product features, 4th P). As a Product Marketing Manager you are responsible for product launch including online marketing campaign. Field Marketing is about mostly outbound marketing including attending and publicizing at conferences, trade shows and events. It is about press release and building strategic partnerships. In my opinion Product Marketing is the toughest part of the job, but I am no expert and it depends on how the role is defined in a specific company. Most companies combine Field and Product Marketing into a single role, while others spilt them. The two roles should be divided but more on this later.

Saturday, November 24, 2012

Audible.com

I signed up for audible.com yesterday just to try it out. I also wanted to review the
The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses book as I had no patience to read it the second time. I was pleasantly surprised by how effective audible.com is. Maybe my experience was so positive as I had already read the book. 

The only biggest issue with the audible books is you cannot purchase them within the iPhone apps. I am sure this has to do with Apple insisting that publishers pay 30% cut. I had to buy the book using a website and then download it to iPhone, which takes an effort. Remember my earlier post about reducing friction in user experience.

After wasting time politicking in my new role as a GM at a different kind of company, I am back to writing my book. I am hoping to start publishing some material from the book as blog articles. This will help me get some valuable feedback as well as generate buzz for the book.

Friday, November 23, 2012

Friction


Today I was talking to my friend about a product idea that requires users to take a very simple action to derive value from it. She thought that the product might have an issue with stickiness if it requires users to take an explicit action on regular basis. The reason that Mint works so well is because user is not required to take any action or change his normal routine in any manner. It pulls the necessary data from the bank servers.

The discussion reminded me of something I read in an innovation strategy book about continuous vs. discontinuous innovation. Even a small friction in value delivery can reduce the adoption and stickiness of the product. Users are less likely to adopt to discontinuous innovation, unless the value they derive from the effort to learn or perform an extra action is higher than the effort.



Wednesday, July 4, 2012

Data Driven Product Management

After a long time, I was finally able to find some time for my book (data driven product management). I now have 108 pages of content, ready to be published. I think I am 70% there. Now time to figure out, how to publish on Amazon.

Sunday, April 22, 2012

Product Definition –startup vs. large company


Startups follow the start-fire-aim approach to product definition as against the traditional start-aim-fire. Basically startups do not have the luxury of time and resources to conduct focus group, gather requirements by interviewing users and then build a product based on the sum of needs. Obviously, they have some idea about the market needs and problems they are solving, but they have not yet validated those assumptions with customers, apart from few visionaries. There is of course the risk of ending up building a product which only appeals to visionaries.

Startups first build a product (start-fire) and then look for customers (aim) who are in need for solutions that this product attempts to solve. Well, what they are building is a minimal viable product (MVP) and hence they are very nimble both in terms of product strategy and technical implementation. They can quickly iterate over the market feedback and adapt. I will talk more about MVP later, but for now, it is sufficient to understand that MVP should include only minimal set of features needed to demonstrate the product solution to few customers (few being the operative word here).

Different dynamics are at play in large firms, as they are either adding new features to existing products where the customers and needs are well understood, or they are working on developing new products for existing market and hence they have good understanding of their customers. They could be looking to expand the existing products in new markets and hence they just need to add few features to meet the needs of other market segments. In either case, they have the luxury of time/resources and opportunity to follow the voice of customer (start-aim-fire).


Recommended books for Product Management


I have been in various roles during my career (software industry), but product management was by far the toughest. Unlike various roles, where practice can increase skills, product management requires true blend of art and science.

These books will not only help you increase your knowledge, but also provide you various frameworks and mental tools, to help improve your product management skills.

Interaction design:


Marketing:


Product Management:


 Entrepreneurship & Customer Development:


Strategy and Innovation:


Pricing:


Metrics and Testing:


These books should at least get you started in the exiting field of product management. As discussed earlier, product management is blend of art and science, so no amount of reading can substitute for your inherent product passion and hard work. Even though fluid intelligence plays a role and is often seen as the common factor among successful product managers, I believe that these skills can be developed over time. These books are part of long series of articles I plan to write about product management. This is an effort both to guide prospective product managers as well as learn through interactions and critical thinking which comes through writing.