2. Product Management vs. Product Marketing

In this section, we will explore the relationship between product management and product marketing, highlighting their differences and how they complement each other.

The Four P's of Marketing

To understand the distinction between product management and product marketing, we start with the classic concept of the Four P's of Marketing: Product, Price, Promotion, and Place. This framework was developed by Jerome McCarthy in his book Basic Marketing in 1960 and remains a fundamental concept in marketing.

Product

The first P, "Product," focuses on identifying what product will solve customer problems and meet their needs. This is the primary responsibility of product management—determining what product to build, ensuring it aligns with customer needs while also supporting the company's strategic objectives.

Place

"Place" refers to the distribution channels through which the product will be sold. Will it be sold online through a website, via an inside sales team, or through a direct sales force? Will there be special pricing or conditions depending on the sales channel? These considerations are part of the broader strategy of how and where the product will be made available to customers.

Price

"Price" involves not just setting the right price for the product but also deciding on any trial periods, freemium models, channel-specific pricing, promotional pricing, or product bundles. These decisions are critical in positioning the product in the market and ensuring it meets the revenue goals of the company.

Promotion

Finally, "Promotion" is about how the product will be communicated to the world. This includes defining the key message, identifying the target audience, and crafting a story that clearly articulates the problem the product solves. Even the product name plays a crucial role in promotion, as it can greatly impact search engine optimization (SEO) and how easily potential customers find the product.

For example, at Conta Azul, we introduced a feature that allowed users to generate and send payment slips directly from the platform, simplifying the process of receiving payments from clients. After researching how potential users searched for solutions, we named the feature "Receba Fácil" ("Easy Receive") to align with common search terms, improving its discoverability and effectiveness in attracting users.

Responsibilities of Product Management vs. Product Marketing

Product Management

Product management is primarily responsible for the "Product" P. This involves determining what product to build to solve customer problems while achieving the company's strategic goals. Product managers focus on creating the right product, ensuring it meets the needs of the market and provides value to both the users and the business. They are also responsible for monitoring key metrics like churn rate and user engagement, which reflect how well the product is performing and whether it is meeting customer needs.

Product Marketing

Product marketing, on the other hand, is responsible for the other three P's: Price, Place, and Promotion. This includes setting the product's price, deciding on the distribution channels, and creating the promotional strategy to introduce the product to both external and internal audiences. Product marketers focus on generating new revenue by attracting new users and educating the sales and marketing teams within the company about the product.

Collaboration Between the Two Roles

While product management is focused on building the right product, product marketing is focused on effectively communicating that product to the world. Externally, this means reaching potential customers and addressing their needs. Internally, it involves ensuring that the entire organization, especially the sales and customer support teams, understands the product’s features, benefits, and positioning in the market.

In summary, product management and product marketing are distinct yet complementary functions. Product management is about making the right product, while product marketing is about telling the right story to the right audience, ensuring the product’s success in the market.