2003 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 560 responses.

The survey was conducted during the period of November 25-30, 2003 using WebSurveyor.


Profile of a product manager

The average Product Manager is 36 years old; 
84% claim to be 'somewhat' or 'very' technical;
94% have completed college, 56% have some MBA classes,
and 47% have completed a masters program; 
30% are female, 70% are male.

The typical product manager has responsibility for three products.

Organization

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

  • 43% report to a director
  • 33% to VP
     
  • 27% report directly to the CEO
  • 23% are in the Marketing department
  • 15% are in Development or Engineering
  • 10% are in the Product Management department
  • 10% are in a sales department

Impacts on Productivity

Product managers receive 65 emails a day and send about 33.

Product managers spend roughly two days a week in internal meetings (14 meetings/week).
But 30% are going to 15 meetings or more each week and 25% attend 19 or more meetings!

Working with requirements

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

  • 72% researching market needs
  • 55% preparing business case
  • 24% performing win/loss analysis
     
  • 85% monitoring development projects
  • 79% writing requirements
  • 50% writing specifications

Working with marcom and sales

Product managers also spend time providing technical content for marcom and sales.

  • 49% writing promotional copy
  • 38% proofing promotional communications
  • 38% talking to press and analysts
     
  • 53% training sales people
  • 35% going on sales calls

Compensation

Average product management compensation is
$91,650 salary
plus $11,363 annual bonus
(as in 2002, 78% of product managers get a bonus)

Our bonuses are based on:

  • 57% company profit
  • 30% product revenue
  • 42% quarterly objectives (MBOs)

Almost 40% say the bonus does not motivate at all and only 10% say the bonus motivates a lot.

Regional impact on compensation

Compensation
Female

Male

Overall
(in US$)SalaryBonusTotalSalaryBonusTotalSalaryBonusTotal
 Mid Atlantic $85,154$10,900 $96,054 $92,278$10,286 $102,563$89,290$10,542 $99,832
 Midwest   75,941   6,818   82,759   82,404 11,649   94,053   80,688 10,542   91,229
 North East   87,600 15,625 103,225   99,070 12,194 111,264   94,853 13,250 108,103
 Pacific Northwest   86,667   4,000   90,667   87,563   7,333   94,896   87,421   6,857   94,278
 South   83,100 12,000   95,100   89,647 11,174 100,821   88,159 11,367   99,526
 Southwest   93,250   9,200 102,450   83,333 11,250   94,583   86,783 10,647   97,430
 West Coast   90,452   6,421   96,873 106,571 14,537 121,108 101,255 11,967 113,222
 US Average$86,252  $9,914   $96,167   $94,097  $11,943  $106,040    $91,650  $11,363  $103.013
 Canada (in US$)   77,556   3,500   81,056   74,750 12,500   87,250   75,432 11,115   86.548
 Canada (in CN$)$102,916   $4,645 $107,561$99,193 $16,588 $115,781$100,099 $14,750 $114.849

Click to review Minimums, maximums, and international responses


What should the company know about the role of product management?

  • PM role is more strategic than tactical
  • I don't have time to do all that I can contribute strategically
  • We tend to be understaffed
  • Product management is not sales support.
  • I need to visit the market to be a good product manager

    (read the full list of 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.

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.”

 

To learn more about our courses and join the growing international community of more than 150,000 product management and marketing professionals trained by Pragmatic Institute, please click here.

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