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What do product managers do and what are their general responsibilities? This article discusses everything you need to know about the skills you need to pursue this exciting career path.
Meet the unsung heroes of product development – product managers. They’re the architects behind the scenes, shaping a product’s journey from idea to triumph. In this guide, we’ll cut through the jargon and look at what product managers do and how they do it. Think of it as your go-to resource for understanding the pivotal role product managers play in creating successful products. We’ll also talk about how to become a product manager and provide some helpful resources to help you grow in your product management career.
Ready to demystify the role of product management? Let’s get started or skip to the section you’re most interested in:
- What do product managers do?
- Product manager responsibilities
- Product manager’s role in a company
- Skills you need as a product manager
- Product manager vs product marketer
- How do you become a product manager
What Does a Product Manager Do ?
Whether they are navigating complex product strategies or fostering seamless team collaboration, product managers are the driving force behind product innovation. But, exactly what does a product manager do in their day-to-day work?
If you ask product managers at a dozen different companies, you’re likely to hear a dozen different answers. This is because product development can be handled quite differently from company to company, with everything from titles to responsibilities changing along the way. The goal of a product manager can be stated quite simply, however, and that is to guide products from ideation to greatness, and profit.
How do they do it? They blend market insight with business strategy to steer product development, collaborating closely with engineering, marketing, and sales teams. Their role is essential in ensuring that the product fulfills customer requirements while achieving business goals.
Typical product manager responsibilities:
Market and Customer Research: Product managers conduct market research and gather customer feedback to understand the market needs and the product’s position within the market. They are the voice of the market and their research informs product strategy and development.
Product Strategy and Vision Development: Product managers help to shape the strategy and vision for a product. They identify market opportunities, understand customer needs, and define the overall strategy and goals for the product. This vision guides the product development process and aligns all stakeholders.
Product Roadmap Planning: Product managers are responsible for creating a product roadmap. This is a high-level, strategic visual summary that outlines the vision, direction, priorities, and progress of the product over time. Having a roadmap helps in planning and prioritizing the features and functionalities that need to be developed.
Feature Definition and Prioritization: Product managers help to decide which features to include in the product. They prioritize these features based on various factors like customer needs, market trends, business goals, and resource availability.
Cross-Functional Team Leadership: They work closely with cross-functional teams including engineering, design, marketing, sales, and customer support. Product managers ensure that all teams are aligned with the product’s goals and work collaboratively to develop and implement the product.
Product Development Oversight: Throughout the product development phase, product managers oversee the progress, make adjustments as necessary, and solve problems that arise. This involves regular interactions with the development team and stakeholders to keep the project on track.
Performance Monitoring and Optimization: After the product launch, they monitor its performance against key metrics and goals. Based on this data, product managers make informed decisions to optimize the product. This may include adding new features, making improvements, or pivoting the strategy.
Stakeholder Communication and Reporting: They regularly communicate with stakeholders, including company executives, to report on product performance, progress, and future plans. This ensures transparency and alignment across the organization.
Budget and Resource Management: Product managers are often responsible for managing the budget and resources allocated for the product. They need to ensure that the product development stays within budget while meeting its objectives.
Compliance and Quality Assurance: They ensure the product meets all legal, safety, and quality standards. This involves working with quality assurance teams to set and maintain high-quality standards for the product.
This isn’t an exhaustive list of product manager responsibilities. Organizations may assign additional responsibilities to their product managers that may include everything from revenue forecasting to tasks that typically fall under a product marketer.
What is a Product Manager’s Role within a Company?
Imagine throwing a party and nobody coming. Now imagine spending a lot of time, money, and energy to throw the party. The business equivalent of this is building a product nobody wants to buy. Product managers are there to make sure this doesn’t happen. They do this by aligning product development with business goals and market insights to ensure that companies focus on products that people want and will pay to get or use.
A product manager’s responsibilities integrate into and benefit the overall business ecosystem in several ways, such as:
Strategic Direction: They define and communicate the product vision and strategy, aligning it with the overall business objectives. This ensures that the product contributes directly to the company’s strategic goals.
Market Relevance: By conducting thorough market research and staying informed about industry trends, product managers help businesses remain competitive and relevant in the dynamic market landscape.
Cross-Functional Collaboration: Product managers facilitate collaboration among cross-functional teams, including development, marketing, and sales. This ensures a cohesive approach to product development and delivery.
Customer-Centric Focus: They gather and prioritize product requirements based on customer feedback and market needs, ensuring that the product meets customer expectations and addresses their pain points.
Product Lifecycle Management: Product managers oversee the entire product lifecycle, from ideation to launch and beyond. This comprehensive management ensures products are well-positioned and evolve to meet changing market demands.
Decision-Making Authority: They make informed decisions on features, enhancements, and trade-offs based on business priorities, contributing to the efficient allocation of resources and maximizing product value.
Performance Measurement: Analyzing key performance indicators (KPIs) allows product managers to measure the success of the product and make data-driven decisions for continuous improvement.
Innovation and Adaptability: Product managers foster an environment of innovation, driving continuous improvement and adaptation to emerging technologies and market shifts. They are able to achieve this because their role allows them to tie together product development and business goals with market buzz and customer desires.
Why do Product Manager roles and responsibilities vary?
Product professionals may find that roles and responsibilities for product managers vary from company to company. Additionally, they may take on responsibilities in one company that might fall to a product marketer, engineer, developer, or sales team in another company. Cindy Cruzado, a Pragmatic Institute Instructor with over 25 years of experience in product management and product leadership, argues that this lack of clarity may stem from a lack of clarity around the product management discipline and company and market changes. “First, when we are in school learning about business, we rarely learn about the role and discipline of “Product Management” like we learn about other disciplines like accounting or engineering.
This results in our role unfolding as we move through jobs and projects. Second, companies and their products are at different stages and constantly evolving, shaping the company’s priorities. Early on, companies must focus on building and selling their first products. Growing organizations need to find their next products and establish Product Management as a function. As markets mature and competitors enter the market, a new need arises to drive market share and growth while building new solutions to market problems. This is often when companies realize the job is too big for a single Product Manager. Product Management is often refined into multiple roles, and companies add Product Marketing Manager or Product Owner to allocate the tasks.”
Typical Product Manager Skills
Product management is not for the faint of heart. The core responsibilities of a product manager are difficult enough, but to be successful your skillset has to be expansive. Strategic thinking is crucial for setting and communicating the product vision. Analytical skills are needed to interpret market data and consumer trends, guiding informed decision-making. Strong communication and leadership abilities are essential for fostering collaboration among cross-functional teams and leading them towards common goals.
Product managers need excellent project management skills so they can easily handle timelines, resources, and project deliverables. They must have financial acumen so that they can predict a product’s success and identify signs that it is nearing the end of its life.
They also need to be innovative and adaptable so they can navigate changing market trends and organizational needs.
And there is also a fair bit of diplomacy and conflict resolution required as well. Product managers have to be able to negotiate, build consensus, and lead even when they are not in an executive position within a team. There will be disagreements about prioritization and many other aspects of a project. It’s up to the product manager to keep things positive, productive, and on track.
What Type of Companies Use Product Managers
What type of company hires a product manager? Just about any company that makes a product might hire a product manager. Sometimes the person filling that role might hold a different title, or several titles if the company is small and not all in on the idea of having a dedicated product manager. But more often than not, you can simply search for “Product Manager” on any job site like Indeed, and see a large range of companies from technology and finance to start ups and healthcare.
Technology Companies: Leading tech firms employ product managers to drive innovation and development of software, hardware, and other digital solutions.
Consumer Goods Companies: Companies manufacturing and selling consumer products utilize product managers to oversee the creation and improvement of their product lines.
E-commerce Platforms: Online retailers rely on product managers to enhance user experience, optimize features, and ensure the success of their digital products.
Financial Services Firms: Banks, insurance companies, and fintech startups employ product managers to develop and manage financial products and services.
Healthcare Organizations: In the healthcare sector, product managers play a role in developing and improving medical devices, software applications, and healthcare solutions.
Automotive Industry: Companies in the automotive sector employ product managers to oversee the development of vehicles, automotive software, and related products.
Media and Entertainment Companies: Content creation, streaming services, and digital media companies utilize product managers to enhance their offerings and user engagement.
Startups: Emerging startups across various industries often hire product managers to guide the development of their initial products and scale their businesses.
Telecommunications product managers Telecommunication providers rely on product managers to develop and manage their portfolio of communication products and services.
Retailers: Brick-and-mortar and e-commerce retailers use product managers to optimize and expand their product offerings, ensuring they meet customer needs and market trends.
Product Manager vs. Product Marketing Manager
Both product managers and product marketing managers play integral roles in the product development process, but their focuses and responsibilities differ significantly. Here is how these two roles are differentiated within many organizations:
Product managers are responsible for both the strategy and execution of a product throughout its lifecycle. They collaborate with cross-functional teams, define the product vision, and prioritize features based on market needs.
Product marketing managers concentrate on the external aspects of a product, emphasizing its promotion and market positioning. They craft compelling messaging, targeting the right audience, and developing go-to-market strategies to ensure successful product launches.
So, while product managers are internally oriented, overseeing the product development process, product marketing managers are externally focused, driving awareness and adoption in the market. Together, these roles form a cohesive partnership, ensuring a unified approach to product success.
In smaller organizations, a product manager may also have the responsibilities associated with a product marketer. This makes it important for a product manager to be well versed in the internal and external aspects of product development and launch.
How to Become a Product Manager
Becoming a product manager often involves a unique blend of experience, self-directed learning, and professional development rather than a strict reliance on formal higher education. Individuals frequently transition into product management from various career backgrounds, bringing diverse skills and perspectives into their approach to the role. This versatility is often supplemented with product management certifications, workshops, online courses, and hands-on experience.
Learn all about how to become a product manager with this guide.
As you can see, there isn’t a simple answer to the question “What does a product manager do?” The work is multifaceted, integrating skills from many disciplines along with strategic vision, market insight, and cross-functional leadership. It’s a unique role that blends customer-centric innovation with metrics and data-driven decision making. But ultimately, they stand at the heart of product development, skillfully weaving together creativity and analysis to turn great ideas into products we all love and use.
Learn more about product management with these resources:
Resources for Product Managers
50+ Interview Questions for Product Mangers (with Answers)
Product Management Certifications
