One of the first things I ask about with a new product team is “how will a customer justify paying for your product?” An apparently simple question, but I often get blank stares. Here’s a thumbnail of the problem and the process, along with a tiny spreadsheet template.
The Heretech is Tom Grant‘s blog for Forrester on technology product management. His August 18th podcast with Rich Mironov covered a range of topics including agile and PM; product innovation and B2B products worth loving; where to look internally for good PM candidate; parenting as metaphor for product management; and dinosaur extinction theories. Tom’s light touch and literary allusions (“Dinosaurs in the Hands of an Angry God”) always make for good listening. Hear this podcast
Established companies in established markets generally have some standard ways to package and price their new offerings. Product extensions are benchmarked against the existing product line or the other guy’s features and prices. This leaves product managers focusing on “faster, cheaper, better, more.” In a brand-new market, though, there are fewer guideposts. Close competitors may not exist. Even before final products are ready, you need to define initial packaging and pricing for your fledgling sales force and prospects. Otherwise, the sales team will invent it haphazardly, one visit at a time. Here’s a starter approach that I’ve called “Goldilocks” packaging.