The Ultimate Guide to Product Marketing in 2023

What is product marketing?

Product marketing is an activity that involves introducing a new product to the market, its promotion and support throughout its entire life cycle .

Product marketing is a fairly new direction that is only gaining momentum. That is why not all private entrepreneurs and even owners of large companies have a good understanding of what exactly specialists in this profile do and what benefits they can bring to the business.

The main task of product marketers (PMMs) is to formulate the value of a product and bring together its development, promotion and implementation. They are also responsible for market adaptation of the product and its further development if necessary. In general, the benefits of product marketing have so far been greatly underestimated. Let's try to fix this.

The concept of product marketing

What could all these cars – the Volkswagen T1, Volkswagen Beetle, Aston Martin DB6, Rolls-Royce Phantom V and Jaguar XK120 – have in common? In addition to the fact that they are all symbols of bygone generations, each model received a second life by becoming an electric car. A good idea is to adapt classic cars to the requirements of modern consumers.

An excellent move in product marketing, which occupies a place at the intersection of sales, the intersection of business and consumer desires, and R&D (product development). It is a specialist of this profile who conducts research, promotes the product in marketing and its subsequent sale.

A professional in this area works closely with the team creating the product, the sales department and other marketers. The question arises: why is this position at the junction of several groups needed at all? This position is not superfluous, there is no duplication of functions - a product marketer is needed to adapt the product to the market. He conveys its value to the buyer, answers questions that arise and resolves all doubts about the product before purchasing it.

Let's look at the work of a product marketer using a specific example.

Let's say you created a B2B product that helps automate processes in cafes and restaurants.

The buyer may have questions:

Questions acquire specific wording after the client communicates with the sales department and customer success manager. The product marketer prepares answers in communication with the product team, and then reviews them with the marketing and sales departments for accuracy.

That is, the work of this specialist is at the intersection of product, marketing and sales. It often happens that he becomes a “customer” for the marketing service on the part of the manufactured product. A product marketer's responsibilities may include training sales staff, developing marketing for product research, and running campaigns to attract new customers.

PMM responsibilities may vary depending on the type of company activity. But based on our own experience, communication with colleagues and employers, we will note the most important ones:

Product Marketing vs Marketing

It would be a grave mistake to put product marketing on the same level as conventional marketing.

A product marketer oversees both the product launch and the marketing strategy that supports it, so product marketing is an integral part of any business's marketing, sales, and product team.

Product marketing vs. marketing in general uses laser focus and strategy to create a product, any services associated with it, and its message to attract the target audience.

However, conventional marketing involves a wide range of communications, project management, operations and execution to get the product in front of the right people.

A key principle of product marketing versus marketing is the ability to listen to the specific needs of customers and make them the starting point in delivering a solution.

An example is MailChimp, which has recently expanded to become an all-in-one marketing suite rather than just an email marketing tool. The impetus for this move was a discovery made by their product marketing team: their customers primarily use their tool to grow their business.

What makes him so successful?

Instead of waxing lyrical about the deep analytics of their software, MailChimp chose to craft a message that focuses on exactly how their customers can use it to achieve their specific business goals.

What can we say? The strategy works - it's what helps MailChimp make a tidy profit and maintain its status as the most famous email marketing platform.

Customer Marketing vs Product Marketing

Thinking that these two areas of marketing have the same end goals is a big misconception, but it can be easily eliminated if you know the differences between product marketing and marketing in a broader sense.

As we know, product marketing centers its efforts around the product, its accessibility and overall practicality for target consumers. However, the goal of consumer marketing is to determine the most effective means of communication to convey this information to customers.

Using customer segmentation allows you to divide customers into groups and subgroups based on common characteristics to better market them.

This data-driven approach has been shown to lead customer marketers to a true unified view of the customer, the ideal customer, upon which they can shape their collective efforts.

What is the difference between product marketing and product management?

Product marketing and product management teams are close allies, but there are differences between them. What are the differences between product marketing and product management?

While product marketing uses tools like the Sean Ellis test to meet product-market fit criteria and drive the product life cycle, product management uses this knowledge as a compass to guide every step of the overall project life cycle, from organizing the first kickoff meeting to obtaining the final result.

This division is responsible for matching product requirements with market needs. The most polar difference between product marketing and marketing is the former's superior ability to accurately capture customer needs. This is what product marketing and product management have in common, just as digital marketing does with product management.

Product Manager HQ also notes that one person may be best suited for both roles due to the close similarity of their skill sets. These include:

Differences between a product marketer and other specialists

In addition to this product specialist, the company also employs other professionals - marketers, product and brand managers - who have similar responsibilities, which is why they are often confused with each other. Yes, the tasks they solve do often overlap, but the role and influence on the product of these workers is different.

Marketer

He is responsible for direct customer acquisition and conducts product promotion activities. And the product marketer determines the overall strategy: selects the audience, formulates the main messages and goals of the product (for example, who should emphasize what features and functions) and sets tasks that the marketer carries out through his specific channels.

Product Manager

His task is to make a product that the consumer needs. And PMM must convey its benefits and value to the consumer. A product manager works with production and resolves technical issues, while a product marketer interacts with users through marketing and sales services.

Brand Manager

It can be said that the responsibilities of a product marketer are most similar to the responsibilities of a brand manager in FMCG (fast-moving consumer goods). They both work on marketing the same product or product line. Only the brand manager controls PR campaigns conducted on all platforms and media, and monitors the preservation of the brand philosophy as a whole. And the RMM specialist conducts product-oriented marketing and strives to convey its value to the consumer, but also within the framework of the company’s philosophical concept.

Top Reasons to Hire a Product Marketer

When the staff of engineers and sales managers is already full, a product marketer is invited to work. This usually happens immediately after or simultaneously with hiring a product manager.

There are a number of reasons for hiring a PMM:

At first, the company does not need a product marketer. The amount of work is small, the work processes are simple. All employees are within walking distance, task setting and distribution of responsibilities occurs quickly - between the product, CEO, CTO, etc. But some managers do the opposite, inviting at the initial stage of the company's formation a PMM with experience in performance marketing: he will take over and product strategy development in marketing, and will be able to manually test their hypotheses through paid lead generation.

When the company’s activities are planned for multiple growth, the PMM, within the framework of the developed strategy, is able, together with product and top management, to plan in advance the further development of the product. The amount of resources is growing, and accordingly the desire to spend them quickly is growing, so competent management is simply necessary. Coordinated, flexible and transparent interaction between teams must be maintained - there are more and more market segments / target customers, so new product launches must be more prepared.

Product development process: 6 stages (with examples)

The rapid development of existing technologies, the emergence of new materials, and increased competition will not allow the company to quietly rest on its laurels, releasing the same product. The consumer wants to see new and improved products.

Product updates happen in different ways.

There is a certain classification:

Let's consider the main stages of product marketing using the example of its development.

Summary

The product development process consists of six stages and represents the product's journey from initial concept to market launch. This process helps to break down work into tasks and organize the collaboration of specialists in different areas. Find out how to implement it for your needs.

Developing a new product is exciting but challenging. Each new product is unique at all stages from the emergence of an idea to development and creation of a prototype. However, there is a general process that will help you navigate this path most efficiently. The product development process involves six stages through which a new product goes through: from the creation of the initial concept to the introduction to the market. This includes identifying market needs, researching the competitive landscape, formulating an idea for a solution, developing a product roadmap, and creating a minimum viable version.

The product development process has undergone some changes in recent years. Today it is usually applied in six stages. This helps to organize the process itself more efficiently and divide individual expected results into smaller tasks. The product development process not only simplifies its launch, but also stimulates collaboration between different groups , because it is based on team communication and clear exchange of information.

Let's look at the product life cycle and define the six stages of its development. This will help you successfully launch your next product.

1. Proposing ideas

The product development process starts with coming up with new ideas. At the initial stage, the proposed ideas of the product concept are collectively discussed, taking into account the needs of customers, pricing factors and market research results. When developing a concept for a new product, the following factors should be considered:

• Target market. Your target market is characterized by a typical consumer for whom you are developing a product. Therefore, it is important to define his portrait at the very beginning of the process in order to formulate a product concept taking into account the needs of such a person.
• existing products. Having formulated the concept of a new product, it is desirable to evaluate the portfolio of existing options. Are there products that solve similar problems? If so, how will the novelty differ from them enough to be viable? The success of your new concept depends on the answers to these questions.
• Functionality. Although you don't need detailed information about the functionality of the product yet, you need to have a general idea of what functions it will perform. Evaluate the aesthetic aspects of your product and consider how it might interest potential buyers.
• SWOT analysis . By analyzing the strengths, weaknesses, advantages and disadvantages early in the process, you can formulate the best possible new product concept. This ensures that your product will stand out from competitors and find its niche in the market.
• SCAMPER method . Use a brainstorming technique like SCAMPER to refine your idea , which involves various actions on the product concept, including substitution, combination, adaptation, modification, alternate use, deletion of elements, or restructuring.

As part of a product concept statement, ideas can be documented in the form of a business case . This way, all employees will have a clear understanding of the initial functions of the new product and the goals of its launch into the market.

2. Definition of the product

Having drawn up the business case, as well as discussed the target market and functionality of the product, you can begin to define the product itself. This process is also called pre-production or concept writing, and focuses on developing a product strategy.

At this stage it is important to determine the following aspects:

• Business analysis. Business analysis involves drawing up a product distribution strategy, an e-commerce strategy, and a deeper analysis of competitors. The goal of this phase is to start creating a well-defined product roadmap.
• Product value proposition. The value proposition is the problem that the product solves. Think about how the product differs from analogues on the market. This value of the product can be guided by market research and marketing strategy development.
• Success criteria. In order to measure and evaluate the success of a product launch, the relevant criteria must be clearly defined in advance. Are there any key metrics worth paying attention to? These could be generic KPIs like average order value, or something more specific like custom goals that are relevant to your organization.
• Marketing strategy. Once you understand your value proposition and success criteria, brainstorm a marketing strategy tailored to your needs. Decide through which channels you are going to promote your product, for example, on social networks or blogs. Although such a strategy can be adjusted to the final product, it is advisable to think about it already at the product definition stage in order to start planning ahead.

When the ideas are clearly articulated, it will be possible to start creating a minimum viable product through the development of an initial prototype.

3. Development of the prototype

During the prototyping phase, your team will actively research and document the product, building a more detailed business plan and building the product itself.

A preliminary prototype can be either a simple sketch or a more complex computer representation. Prototypes help identify various risks before creating a product. At the prototype preparation stage, the following aspects are worked out:

• Market risk research. It is critical to analyze the potential risks associated with the production of a product before it is physically created. This will avoid disruption to the subsequent product launch. In addition, this way you can inform colleagues about potential threats by recording them in the risk register .
• Development strategy. Next, you can begin to formulate a development plan. In other words, you need to understand how you will assign tasks and what the deadlines for their completion will be. One way to plan tasks and estimate deadlines is to use the critical path method .
• Project feasibility analysis. The next step in this process is to evaluate the product strategy based on the results of the feasibility study. Determine whether the expected amount of work can be completed within the predetermined time frame. If not, adjust the timing accordingly and seek assistance from stakeholders.
• Minimum viable product. The final outcome of the prototype development phase is a minimum viable product. It should be perceived as a product that has a minimum set of functions that ensure its functioning and are necessary only to enter the market, but nothing more. For example, the minimum viable version of a bicycle has a frame, wheels and a seat, but no basket or bell. Creating a minimum viable product allows you to bring it to market faster than in the case of developing a product with a full set of functions, the launch of sales of which can take a long time. Additional functions can be added in the future when the necessary resources are available.

Now is the time to start creating the product design to bring it to market.

4. Initial design

During the initial design phase, project stakeholders collaborate to prepare a product mockup based on a minimum viable product prototype. The design should be created keeping in mind the target audience and complementing the main functions of the product.

A successful product design may require several iterations before finding the right solution, as well as working with distributors to acquire the necessary materials.

As part of the creation of the initial design, the following actions are performed:

• Search for materials. Material sourcing plays an important role in developing the initial layout. This could be working with different suppliers, ordering materials, or creating your own. Since materials may come from different places, it is necessary to record their use in a common space so that the information you need can be found later if necessary.
• Interaction with stakeholders. To keep the initial design solution on track, it is critical to maintain ongoing communication throughout the design phase. Weekly or daily progress reports can be used to share relevant information and coordinate issues as needed .
• Getting initial feedback. Once the design is complete, ask management and project stakeholders to share their initial impressions. Subsequently, the necessary changes can be made to the product design until the product is ready for sale.

Once the design is approved and ready for delivery, you can move on to the approval stage, which involves final testing of the product before launch.

5. Approval and testing

Before launching a new product, it must first be approved and tested. This will ensure that all elements of the product, from development to marketing, work effectively before distribution to a wider audience.

To ensure a high quality product, follow these steps:

• Concept development and testing. Let's say you've successfully prototyped your product, but you'll still need to troubleshoot problems that come up during the concept development process. These can involve both software development and the physical production of a prototype. Test functionality with staff and beta testers to ensure high quality development.
• Testing the client side. At this stage, the client part is tested for problems in the code of the software being developed or errors on the end-user side. This includes testing e-commerce functionality and ensuring it is ready for launch.
• Testing the marketing part. Before you start producing the final product, test your marketing plan for functionality and errors. At the same time, the correct organization of all campaigns and readiness for launch are checked.

After completing initial testing, you can begin to create the final version of the concept, so that you can then launch the product into production for subsequent distribution to customers.

6. Commercialization

Now is the time to start commercializing your concept, that is, bringing the product to market and posting it on your website.

By this time, work on the design solution will be completed and the quality of the development and marketing strategy will be tested. You must be completely confident in the final version of the product and ready to produce it.

At this stage the following work is performed:

• Product development. This is the physical creation of a product that will be offered to your customers. Production or additional development of software concepts may be required at this stage. Provide your team with final prototype and minimum viable product designs to ensure the product is built to current specifications.
• Implementation of e-commerce functionality. Once product development is complete and you're ready to launch, your development team will implement the e-commerce components of the product. However, additional testing may be required to ensure that the finished product works as planned in the previous stage of client-side testing.

So, your final product is launched. All you have to do is measure success using the criteria you initially formulated.

Product Development Process Examples

Now that you understand the six stages of the product life cycle, let's give you some inspiration by looking at some of the most successful product development strategies from iconic startups.

Example 1: How Figma expanded the functionality of its product

The starting point of Uber's strategy was to occupy a vacant niche in the taxi market: creating a simpler process for ordering a taxi through an application with simplified payment processing. But the company did not stop there and continued to implement innovations in its product portfolio at various levels from luxury to economy. Of course, every situation is unique, but with the right product strategy, you can also create an innovative portfolio.

Who is on the product development team?

Many different teams and stakeholders are involved in the product development process. The key figure here is the product manager, who oversees all tasks related to ideation, research, development and product launches.

Other important participants in the process include:

In addition to these important functions, specialists from such areas as finance, engineering and any other interested parties can participate in the process. All of them can perform their functions in the process depending on the complexity of the concept.

Expand your portfolio, develop new products

A properly implemented product development process helps optimize each stage through clear organization of tasks and team collaboration. The six steps outlined above will guide your team through the process from initial ideation through development.

Some difficulties when introducing a product approach to marketing

As a rule, sales and marketing are carried out by people with a creative streak; creativity in these areas is indispensable. Therefore, it is difficult for them to change their mindset to start working with product tools.

An RMM specialist definitely needs support in the person of a marketing director , otherwise he will cause irritation and hostility among employees who have a poor understanding of his role in the company. Management's job is to explain to the team the importance of separate product management for marketing. Otherwise, all sorts of problems may arise.

For example, endless meetings and meetings in which it is easy to get confused. The solution is very simple - create a general calendar of all events held by the department and do not forget about them. You can add information about planning deadlines and company-level meetings to the same list.

Another problem: searching for information and planning takes up almost all of my working time. In order for management to analyze research results rather than spend hours on the Internet, you can quickly organize a wiki (internal information channel) of the department and create planning templates. To do this, it is worth using a product approach in the form of an in-depth interview and an MVP - minimum viable product.

Another PMM tool, identifying and expanding bottlenecks , is suitable for improving the conversion of the marketing funnel and sales model. But in this situation, the RMM specialist acts as a performer, so he must work under the direct supervision of the director of marketing, sales, and deputy director of commerce.

And finally, a few general words. Modern products and grocery tools are becoming more complex, which makes the profession of an RMM specialist increasingly in demand. In large companies, the marketing service focuses its attention on specific areas of promotion: targeted, contextual and paid advertising, influencers, and affiliate projects. And the work of an RMM specialist is concentrated on the segment between users and sales: he researches the target audience, knows well for which channel this or that message is suitable, and develops a general marketing strategy for the product in all variants of its movement outside and within the company.

The profession of food marketer in USA is just beginning to become famous. Large companies began to introduce this position into the staffing table just a couple of years ago. But as understanding of the need to work as a product marketer grows, the demand for this specialty will increase significantly in the next five years.