* Daniel Ferretti is co-founder and CPO of Franq Gone are the days when product was just one of the four “Ps” of Marketing: Product, Price, Place and Promotion. This separation, created in the 60s by Jerome McCarthy, no longer makes much sense in an era in which the product, for technology, can become […]
* Daniel Ferretti is co-founder and CPO of Frank
Gone are the days when product was just one of the four “Ps” of marketing: product, price, place, and promotion. This separation, created in the 60s by Jerome McCarthy, no longer makes much sense in an era in which the product, for technology, can become the business lever.
Now, the formulas for selling more have become complex and entrenched. In such a digital world it is difficult to determine what is the point of sale, promotion or branded content🇧🇷 Not to mention influencers are part of the sales room.
Adapting and evolving with the market in the midst of major transformations is a priority. Especially in the world of technology and software, where big companies are investing heavily to stay ahead of the curve. It is worth remembering: looking at the product is strategic, essential and a priority.
What we can now call corporate strategy, software development frameworks or any buzzword of the moment, was born in the 1930s with a note to Procter & Gamble entitled Brand Men. It makes one thing clear: One of the core competencies of any product manager is an understanding of marketing.
The so-called Product Management, in English, or product management is a dermis with some layers that complement each other. It combines the development of solutions and software with the outside world in an orderly and precise way. This has everything to do with marketing, the most customer-oriented discipline of any business.
The company’s relationship with its market is the soul of a good product strategy. The importance of “feeling in one’s skin” what the consumer needs – his own pain – and systematically transmitting the customer’s sensations to the product with improvements.
It may seem simple, but the growth of Product Management gains strength with the exponential growth of technology companies, because studying the customer means predicting the future of products and the market. In other words, it means being on the front line, solving people’s everyday problems. This was what he called heroes and tech gurus.
Examples that have gone further
No one imagines that anyone has asked Steve Jobs to put songs digitally on the iPod, nor asked Jeff Bezos to buy books online, and certainly never sent an email talking about a rocket landing upside down, as he made Elon Musk in his quest to get to Mars.
These names have managed to go further and foresee needs and pains before they existed. This meant that the projects were worth $3.5 trillion, three times Brazil’s GDP.
This gigantic ability to generate value has brought the entire market in the relentless pursuit of building incredible products and has raised the bar for the former project professional by specializing in product construction and management.
In the example of Musk himself, his focus on the product is evident, regardless of the industry that has been revolutionized (or created): rockets, electric cars and flamethrowers. And Elon’s new “toy” is the social network Twitter.
After buying (and giving up, then deciding to buy outright) for $44 billion and being criticized, rather than praised, for the decisions he made, Musk got to tinkering with product strategy. He fired top executives, board members and more than half of the company to control spending.
In the midst of this turmoil, he decided to sell the distinctive blue checkmark, an indication next to your Twitter account name that you have a “verified” account. Previously aimed at public figures and great creators, it can be purchased for a simple monthly fee.
How to define the right price for something that potentially has very low real value for people, but at the same time is coveted by our social insecurity and need for affirmation?
After declaring the price would be $20 a month, it was quickly criticized within the digital world’s most conflicted and controversial network. It was a few days before a new price was announced: $7.99 a month.
What may seem like a simple afterthought is actually an ancient price pegging strategy. An old promotional strategy that pushes the consumer to perceive a lower price simply because he has presented a higher one.
It’s basically the 1990s DRTV Ginsu knife commercial: “Wait, that’s not all! You also have this wonderful wooden cutting board… call now and enjoy the promotional price of 599 for 299!”
Not only did Musk execute an efficient Go To Market strategy, but he also developed the entire process of billing, verification, marketing… all in a two week sprint. What do you mean? create monthly recurring revenue that can account for up to 50% of Twitter’s total revenue, which today is 90% from advertising and ad serving.
Of course, being the CEO, sole owner and a globally recognized figure, he certainly didn’t have to convince stakeholders and prioritize the production backlog in Jira’s Kanban. But even so, he demonstrates a clear vision of a product in technology, which seeks results by delivering value – or satisfying a hidden desire in this case – efficiently and without any fear of making mistakes.
If we can learn one project management lesson from Elon Musk, it’s that a product should be at the heart of any technology company’s strategy, regardless of its size.
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Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
