Second post of the new series of posts on 4 key strategic skills in Product Management. In this second post, we will focus on strategy.
The role of the product manager and his or her responsibilities vary from industry to industry. Each product operates in a different environment and this causes variations.
But, even taking this into account, there are 4 key strategic skills in Product Management that are intrinsic and that we will discuss in this series.
Key strategic skills in Product Management: Product strategy
Product strategy is a high-level plan that defines the unique value proposition to the target audience. This justifies how the product will meet key objectives throughout its life cycle.
Also known as product development strategy, this fundamental foundation links the user’s needs with the company’s objectives. The idea is to communicate the real purpose of the product. This is the first step in turning the product vision into action.
We can find some product/market fit assumptions that are part of the product strategy, such as:
- Target audience
- Problem or challenge to be solved
- Value proposition
- Strategic differentiation
- Competitors
- Acquisition strategy
- Monetization strategy
- Key performance indicators (KPIs)
Deciding on the right product strategy depends on the specific needs of the market in which you operate and the resources available. Below, we will highlight some product strategies that can be effective:
- Market leadership
- Quality, where the product challenges the current market leader by offering an enhanced experience.
- Niche or focus, where the product is tailored to meet the particular needs of a very specific segment of the market, rather than aiming to dominate it as a whole
- Costing, where there is a focus on highlighting the product through the offering
In the next post we will discuss another key variable: design.
Photo credit: SSP
