Enterprise 2.0 Marketing and Product Management

MARKETING

PRODUCT MANAGEMENT

TUTORIAL

Dominique Levin9/9/2010

1© by [email protected], www.twitter.com/nextgencmo

Agenda

Introduction

What is Product Marketing (video)?

Strategy

Product Management

Marketing

Q&A

9/9/2010

2

© by [email protected], www.twitter.com/nextgencmo

Dominique Levin

Product strategist who helped to build five businesses:

VP Product Management, Chief Marketing Officer and Acting CEO at LogLogic

Founding investor, board member and VP Marketing at PoliVec

Product Line Manager VOIP business for Dialogic (acquired by Intel)

Product Management for NTT (Tokyo, Japan)

Product Management at Philips Electronics (Eindhoven, The Netherlands)

Venture capitalist who created more than $630 million in shareholder value:

Resonext (acquired by RFMD for $133 million)

Navini Wireless (acquired by Cisco for $330 million)

LGC Wireless (acquired by ADC for $169 million)

Business and technical acumen

MBA (with Distinction) from Harvard University

M.Sc. (Cum Laude) in Industrial Design Engineering from the University of Delft

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What is Product Marketing

http://www.youtube.com/watch?v=czYDshjmys4&feature=related

http://www.youtube.com/watch?v=pHeiRiRUkeo

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http://www.youtube.com/watch?v=czYDshjmys4&feature=related



5

Strategy

9/9/2010

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Classic Marketing

9/9/2010© by [email protected], www.twitter.com/nextgencmo

7

Company Strategy


8

Market & Product Strategy


9

Customers

Competitors

Analysts

Technologists

Customer Analysis


10

Current customers

Cross-customer analysis

Individual customer interviews

Feature request analysis

Desired customers

Market research

Loss interviews

Customer Segmentation


11

0%

10%

20%

30%

40%

50%

60%

70%

80%

0-50K 50K-500K >500K

% count

% revenues

Vertical Analysis


12

Revenues Customers ASP

Telecommunications $20,000,000 20 $1,000,000

Construction $12,000,000 200 $60,000

Government $10,000,000 100 $100,000

Financial services $5,000,000 50 $100,000

Education $3,000,000 120 $25,000

Top 20 Customers (by name)

Crossing The Chasm


13

Bowling Pin Strategy


14

Customer Requirements


15

Use a requirements database

Give customers access

Example; Salesforce.com ideation module

http://sites.force.com/ideaexchange/ideaHome?c=09a

30000000D9xt

http://www.youtube.com/watch?v=KysYlRA8Ih0

http://www.youtube.com/watch?v=1tWcNwRbRvE

http://sites.force.com/ideaexchange/ideaHome?c=09a30000000D9xt

http://sites.force.com/ideaexchange/ideaHome?c=09a30000000D9xt

http://www.youtube.com/watch?v=KysYlRA8Ih0

http://www.youtube.com/watch?v=1tWcNwRbRvE

Win Loss Analysis Part 2


16

30%

30%

20%

10%

5%5%

Competitor

In-house solution

No Budget

Product related

Pricing

Account management

Win Loss Analysis Part 2


17

$0

$10

$20

$30

$40

$50

$60

$70

Competitor 1 Competitor 2 Competitor 3

Won

Lost

Seen

Competitive Analysis


18

Lab Tests

Analysts

Loss Interviews

Customers

Sources

Features

Roadmap

Pricing

Positioning

Information


19

Product Requirements

Urgency

Market

Opportunity

Strategic Alignment

Product Requirement Scoring Tool


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Strategic Alignment (product management) 20%

Market Opportunity (product management) 35%

Urgency (sales) 15%

Technical Complexity / Architecture Impact (engineering) 15%

Size of Investment (engineering) 15%

Pricing


21

Competitive

Value

Cost

Technical Feature Management

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The Spider in the Web

Product Management

Marketing Communications

SalesDevelopment

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Roles & Responsibilities

Product Manager

Program Manager

Product Marketing Manager

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Organizational Structure

Product Managers report to

26% directly to CEO or COO

21% in Product Management

16% in Marketing

13% in Development or Engineering

8% in Sales

3% in Product Marketing

(Pragmatic Marketing Survey 2009-2010)

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Product Manager Ratios

For each product manager, we find:

0.7 Product marketing managers

0.7 Marketing Communications

6.1 Salespeople

2.3 Sales engineers (pre-sales support)

1.1 Development leads

6.5 Developers

0.9 Product architects and designers

(Pragmatic Marketing survey 2009-2010)

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You Need a Process

How to decide what (not) to build?

Feature Prioritization and Management

How to ensure you build the RIGHT product?

Stage Gate Process

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Assign Budgets, Align Organization

Product Roadmap

Feature Roadmap

Customer Escalations

Sustaining Engineering

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Feature Management Process

Triage

+

Translate to

Product

Requirements

Apply

Prioritization

Criteria and

Algorithm

+

Prioritized

List (1 to n)

Validate with

Field /

Customers

Detailed

Engineering

Sizing /

Resource

Management

+

Scheduling

by Release

Theme Based

Planning

Overlay by

Product

Management

+

Proposed

Roadmap

Steady State Functionality Request to Commit Process

Ongoing Weekly Monthly

Cadence

Incoming

Request

Roadmap

Approval

Check for

Investment

Balance

Requestor Triage Team Prioritization Team

Team

EMT

Quarterly

Link to

Feature

Management

Process

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Accommodate Exceptions

Business Case

Size of specific customer revenue opportunity?

Immediate?

Long Term?

Size of overall revenue opportunity?

Customer satisfaction impact?

NRE or professional services?

Associated Costs

Impact on other requirements?

Cost in FTE months?

How long will it take?

Roadmap impact?

Other financial considerations?

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ROI

Prioritization (Product) Team


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Marketing

Product Management

Field Sales

Field Engineering

Engineering

Support

Product Development Lifecycle

Planning

• Phase 0: Concept

• Phase 1: Product & Feature Planning

• Phase 2: Design

Execution

• Phase 3: Implementation

• Phase 4: Alpha

• Phase 5: Beta

Release

• Phase 6: Release to manufacturing

• Phase 7: Release to field sales

Maintenance

• Phase 8: Sustaining engineering

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Stage Gate Concept


33

Explicit agreement

What: exit criteria

When: at each step along the way

Who: approval authority

Built the RIGHT Product


34

P0: Concept


35

Product roadmap, project or release proposal,

proposed timeline

Market Requirements Document (MRD), or other

Use cases & workflow

Deployment configuration

Preliminary timeline (granularity: quarter)

Gate: Go/No Go Decision by management

P1: Product & Feature Planning


36

Define product/feature requirements, timeline

and resource allocation

Write, review and approve:

Product Requirement Document (PRD)

Engineering PRD Response (a.k.a. ERD)

Gate: PRD reviewed and approved by

product management, engineering, sales &

support

And key customers …!!!

P2: Design


37

Define high-level architecture, functionality and detailed design specifications Architecture Specifications

Functional Specifications

Design Specifications

QA Test Plan (incl. performance tests)

User Manual Plan

Go To Market Plan

Training Plan

Detailed release timeline (granularity: month)

Gate: Architecture, Functional and Design Specifications have been reviewed and approved by appropriate managers (approval matrix)

P3: Implementation


38

Implement feature or functionality based on

functional and design specifications

Implement and review code, develop documentation

and QA Test Plan and Test Cases

Coding & Unit Test

Integration Test

Performance Test

Gate: Feature complete and QA test plan/test

cases, as verified with team leads, QA and PM.

Be able to demo specific features to customers

P4: Alpha


39

Verify new feature completeness and focus on product functionality test Execute all alpha test cases

Refine release criteria

Develop documentation set

Develop TOI

Develop external beta test plan (if applicable)

Demo features internally

Demo features to key customers (if applicable)

Gate: Correct functional feature implementation reviewed and agreed by product management, engineering, QA and key customer(s)

P5: Beta


40

Ensure no regressions across all product functionality

Conduct performance, stress and longevity tests

Review and execute all beta test cases

Documentation Review

Develop marketing materials

TOI to Field Sales (including draft data sheet)

Product specifications and limitations

Gate: management review and approval that all issues are resolved to meet customer expectations for functionality and quality

P6: Release to manufacturing


41

Prepare and deliver release materials to manufacturing

Conduct final release candidate regression test

Publish completed documentation

Deliver release material (build, documentation)

Finalize and review Release Notes

ECO to manufacturing

Gate: Satisfactory go/no-go review meeting with engineering, product management verifying that all release criteria have been passed for release to manufacturing

P7: Release to field sales


42

Prepare and deliver release materials to field

sales

Upload release to support website

Load code on hardware inventory

Deliver Final Marketing Materials

Gate: Management approval GO/NO GO on

General availability

P8: Sustaining


43

Address customer escalations and/or deliver

minor feature enhancements

Develop and deliver hot fixes, point releases and

release notes and upload these to customer

support portal and/or release to manufacturing

Same release criteria are met as part of

normal release process

End of Sale / End of Life Policy


44

Definitions:

End of Sale (EOS) – last day product or service can be purchased

End of Life (EOL) – last day that product or service is supported

Repair or replacement service of hardware for a period after end-of-sale

Requires inventory

Could use newer hardware

New software releases compatible with end-of-sale hardware for a period

Requires regression testing

May require development

Support for rolling software releases (current and back)

Bug fixes

Access to technical support from the end-of-sale date for hardware

Notice period of the product and service's end-of-sale date

PRD Template

Project

Background

Core Release Tenets

Target Customers

Definitions

Product Naming

Pricing Considerations

Requirement Prioritization

Individual Requirement PRD

Individual Requirement

Customers

Problem

Use Cases and Scenarios

Functional Requirements

Performance Requirements

Hardware Requirements

Upgradeability Requirements

Compatibility Requirements

Regulatory and Environmental

Assumptions and Dependencies

Comments

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PRD Guidelines

Name (brief but specific title)

Problem Statement / Use Case

Describe capability, functionality

Performance

RAS

Inter-operability

Compatibility

Manufacturability, serviceability

Usability / Deploy-ability

Marketing Dependencies

Link(s) to Feature Requests

Be actionable

Be measurable

Be verifiable

Be release sized

(i.e. if a functionality will be delivered across multiple releases, its requirements should be divided by release to allow for development and QA planning and execution)

Reflect what’s actually required / needed by the customer

Validated by field

Reflect what’s actually being delivered

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Marketing

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Marketing Plan


48

Sales Enablement

Communications

Programs

Sales Enablement


49

Training

Sales Tools

References

Marketing Process

Suspects Prospects Buyer Customer

Campaign

Qualification Forecasted ClosingTrial Reference Evangelistwebsite

PR/AR

Tradeshows

SEO/Web

Webinar

F500

Competitive

Lists

Channel

Lead

Contact



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Sales Tools …


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1. Suspect >> 2. Prospect >> 3. Trial >> 4. Close >> 5. Customer !

1. Awareness: Drives Leads and Provides Air Cover

1. Message board

2. Field Marketing

3. Campaigns

4. Events

5. Web / Flash

6. Weekly Demo

7. Corp Preso : Vision

Pitch

8. CD / Collateral

9. Vertical Whitepaper

10.Industry / LMI Pack

Must Use Marketing Tools 2. Consideration: Create business case & differentiation

1. Web / Flash

2. Live Demo & Q&A

3. Corp Preso : Vision

Pitch

4. ROI Whitepaper & Tool

5. References & Case

Studies

6. Application brief

7. Solutions brief

8. Reprints

9. Webinar

10. Events

Must Use Marketing Tools

3. Preference: Creates preference during final stages of sales cycle

1. Proposal

2. Best Practices doc

3. Workshop

4. Sample Reports

5. Whitepapers

6. Webinars

7. Partner reference

8. Channel reference

9. Customer reference

10. Reprints


1. Reference program

2. eZine | Blog

3. Whitepapers

4. Webinar

5. Reprints

6. Enrol in customer case

study

7. Webinar

8. Event

5. Loyalty: Building loyal customers


1. Business Case

2. ROI Framework

3. Q&A

4. Reprints

5. Pass-up Doc

6. Analyst reports


4. Justification: Assimilation into final tech/business case

… Aligned to Sales Process


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Suspect

Starter Pack

Corp Presentation

Industry/Solution Pack

Core C collateral - CD

Demo | Flash

Web | Demo | Flash

Prospect

Reference Blueprints

Solutions Brief

Case Studies |

What Works

Product Reviews

App/Solutions Brief

“Fast Start” Day

Trial

ROI Model

Success Criteria

Customer Reference

RFQ/P Docs

Close

Business Case

ROI Model

Pass-up Preso

Enterprise 2.0


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Online (Social) Marketing

Self-Service Trial

Customer Communities

Q&A

9/9/2010

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Enterprise 2.0 Marketing and Product Management

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