There are five things that you don’t need to do for every product if you do them once for the portfolio. They’ll reduce the stress that goes with constantly changing priorities and more importantly, improve product management’s stock by operating more strategically, simplifying execution and getting better results.
1. Market Segmentation
Imagine that you have 20 products, each of them with strong growth potential in five market segments. Let’s say all 20 products have three market segments in common. Your organization now has 43 total market segments to serve. As a native New Yorker would say, “fuhgeddaboudit.”
Most companies can’t serve that many markets and do it well. Furthermore, it dilutes the strategic value of your portfolio to the three common markets that use all products together the way you intended.
In B2B, you’re usually better off to build your growth strategy on the three common markets until you reach critical mass in terms of market share, wallet share and customer success. Collectively, they create ongoing momentum that keeps the revenue flowing in and the competition in the rear-view mirror.
Once you reach that point, it’s easier to grow systematically in to other markets because you’ll have the resources to achieve the same level of market and customer success.
Check out our product management training courses to learn more about portfolio product management for B2B and how it can benefit your organization.
In the Next Edition (2 of 5)…
Market/Business Requirements & Customer Problems