What is our value proposition?
Product life-cycle management is part of the process of competitive positioning and defining market opportunity. For better performance management, Marketing must:
- Identify new opportunities.
- Monitor the competitive landscape.
- Help determine what products and services will best do the job.
Marketing organizations must manage the product life cycle and maximize the return at every stage by adapting or retiring unprofitable products and introducing new ones.
As part of this process, Marketing should understand what proportion of sales comes from new products and compare this with competitors. This measure helps the organization judge the impact of investing more or less in innovation on overall performance.
As an investment advisor, Marketing is in a position to counsel the company on how to forecast changes in market share if the company does not introduce new products in a given time period. With in-depth analysis, the company can segment products by their various life cycles and corresponding expectations, so the company can plan new product introductions.
With the Product Life-Cycle Management decision area, you can set planning goals and scorecarding metrics for performance management elements such as:
- New products developed (#).
- New product growth, share and profit (%, $)
- New competitor product sales and growth (%, $).
- Market growth (%, $).
- Brand equity score.
- New product share of revenue (%).
Most importantly, you can analyze these goals and metrics by a number of dimensions to find the hidden gems in the data:
- Industry.
- Geographic region.
- Market segment (macro & micro).
- Brand and product line.
- Time-in-market.
Using the Product Lifecycle Management decision area
As a Marketing professional, you set targets and plan campaigns based on your targets for the goals and metrics in Product Life-Cycle Management. You monitor your success by looking at how you measure up against your targets. Further, you dive into your results to find out more about these aspects driving performance management.
- New products developed (#): Do we have a rich enough product pipeline to address a particular market segment?
- New product, competitor and market growth (%): Are our new products outpacing out rivals and the market as a whole?
- Brand equity score (#): Are the new products taking advantage of our brand, extending it or stretching and diluting it?
