2002 Annual Product Management and Marketing Survey

By Pragmatic Institute December 31, 2008

Each year Pragmatic Institute conducts a survey of product managers and marketing professionals. Our objective is to provide you with information about compensation as well as the most common responsibilities for product managers and other marketing professionals.

The survey was mailed to 5000 marketing professionals with 981 responses.

The survey was conducted during the period of November 11-25, 2002 using WebSurveyor.


Profile of a product manager

The average Product Manager is 35 years old;
84% claim to be 'somewhat' or 'very' technical;
92% have completed college, 51% have some MBA classes,
and 40% have completed a masters program;
35% are female, 65% are male.

The typical product manager has responsibility for three products.

Organization

The typical product manager reports to a director in the marketing department.

  • 49% report to a director
  • 28% to VP
  • 27% are in the marketing department
  • 15% report to the CEO
  • 10% are in the Product Management department
  • 10% are in Development or Engineering
  • 7% are in a sales department

Impacts on Productivity

Product managers receive 63 emails a day and send about 30.

On average, product managers attend 12 internal meetings each week.
But 38% are going to 15 meetings or more each week and 20% attend more than 20 meetings!

Working with requirements

The majority of product managers are researching market needs, writing requirements, and monitoring development projects.

  • 69% researching market needs
  • 55% preparing business case
  • 77% writing requirements
  • 48% writing specifications
  • 86% monitoring development projects

Working with marcom and sales

Product managers still spend a lot of time providing technical content for marcom and sales.

  • 57% writing promotional copy
  • 49% proofing promotional communications
  • 58% training sales people
  • 47% going on sales calls
  • 23% performing win/loss analysis

Compensation

Average product management compensation is
$88,496 salary
plus $8,092 annual bonus
(78% of product managers get a bonus)

  • Females
    $84,663
    base salary
    plus $7,548 bonus
  • Males
    $90,685
    base salary
    plus $8.418 bonus
    (All amounts in $US)

Our bonuses are based on:

  • 59% company profit
  • 27% product revenue
  • 40% quarterly objectives (MBOs)

More than 40% say the bonus does not motivate at all and only 11% say the bonus motivates a lot.

Regional impact on compensation

Compensation


Female



Male



Overall


(All amounts in US $)

Salary

Bonus

Total

Salary

Bonus

Total

Salary

Bonus

Total

Mid Atlantic

92.400

4.667

97.067

91.697

9.429

101.126

91.860

8.270

100.131

Midwest

79.270

6.586

85.856

78.550

6.733

85.283

78.825

6.579

85.404

North East

84.596

8.325

92.921

95.548

9.000

104.548

91.258

8.722

99.980

Pacific Northwest

82.385

9.333

91.718

80.690

6.957

87.646

81.214

7.625

88.839

Southeast

84.414

6.522

90.936

86.500

7.571

94.071

85.540

7.245

92.785

Southwest

83.769

8.706

92.475

89.553

10.500

100.053

87.493

9.878

97.371

West Coast

88.977

7.900

96.877

100.627

8.500

109.127

96.651

8.304

104.955

US Average

84.663

7.548

92.211

90.685

8.418

99.103

88.496

8.092

96.588

Canada

75.400

8.200

81.200

72.450

8.700

81.150

73.800

8.530

82.330











Comments for the VP of Sales

Product managers offered this feedback to the VP of sales:

  • Product management is not sales support
  • Give us access to customers and customer information
  • Let product management manage the products
    (ie., quit interfering).
  • Stop the rampant discounting
  • Sell what we have (and stop selling product futures)
  • Read what we publish

Read all the comments


Product Management ratios within the company

How are product managers allocated relative to other departments?

For each Product Manager (PM), we find:

  • 2.7 Products
  • 0.7 Product Lines
  • 1.0 Services
  • 13.3 Developers
  • 1.7 Development Leads
  • 1.7 Sales Engineers/Pre-sales support
  • 5.0 Sales people

For companies with both product managers and product marketing managers, the average is 3.82 product managers and 2.63 product marketing managers for 13.84 products.


Product management technology environment

Product managers use a fairly standard computing setup, usually a laptop running Office XP, with these operating system characteristics:

  • Windows 2000 Professional (50%) or Windows XP (25%)
  • Internet Explorer 6.x (94%)
  • 1024 x 768 screen resolution (65%) or better
  • 16-bit color or better (98%); 32-bit color (50%)
  • Java with cookies enabled (95%)
  • Plug ins installed
    • Shockwave Flash (95%)
    • Adobe Acrobat [PDF] (70%)
    • Real Player (50%)
    • Quicktime (20%)
Pragmatic Institute

Pragmatic Institute

Pragmatic Institute (formerly Pragmatic Marketing) has continuously delivered thought leadership in technology product management and marketing since it was founded in 1993. Today, we provide training and present at industry events around the world, conduct the industry’s largest annual survey and produce respected publications that are read by more than 100,000 product management and marketing professionals. Our thought-leadership portfolio includes the Pragmatic  Framework, eBooks, blogs, webinars, podcasts, newsletters, The Pragmatic magazine and the bestseller “Tuned In.”

 

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