2004 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.

500 product management and marketing professionals responded to the survey.

The survey was conducted during the period of November 8-18, 2004 using WebSurveyor.


Profile of a product manager

The average Product Manager is 36 years old;
85% claim to be 'somewhat' or 'very' technical;
90% have completed college, 49% have some MBA classes,
and 38% have completed a masters program;
25% are female, 75% are male.

The typical product manager has responsibility for three products.

Organization

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

  • 45% report to a director
  • 32% to VP
  • 23% report directly to the CEO
  • 25% are in the Marketing department
  • 17% are in the Product Management department
  • 13% are in Development or Engineering
  • 8% are in a sales department

Impacts on Productivity

Product managers receive 60 emails a day and send about 28.

Product managers spend roughly two days a week in internal meetings (14 meetings/week).
But 48% are going to 15 meetings or more each week, and 29% attend 19 or more meetings!

Working with requirements

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

  • 70% researching market needs
  • 58% preparing business case
  • 23% performing win/loss analysis
  • 81% monitoring development projects
  • 83% writing requirements
  • 53% writing specifications

Working with marketing communications and sales

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

  • 48% writing promotional copy
  • 40% approving promotional materials
  • 18% working with press and analysts
  • 56% training sales people
  • 45% going on sales calls

Compensation

Average US product management compensation is
$90,545 salary
plus $11,810 annual bonus
(78% of product managers get a bonus)

Our bonuses are based on:

  • 60% company profit
  • 30% product revenue
  • 38% quarterly objectives (MBOs)

Almost 35% say the bonus does not motivate at all and only 9% say the bonus motivates a lot.

Regional impact on compensation



Female

Male

Overall
US Region(1) Salary Bonus Total Salary Bonus Total Salary Bonus Total
Northeast $ 88.533$ 17.556$ 106.089$ 95.354$ 13.125$ 108.479$ 93.730$ 14.098$ 107.828
Midwest78.00010.90988.90985.4849.73995.22382.93610.11893.054
South 82.800 9.538 92.338 89.150 9.529 98.679 87.033 9.532 96.565
Southwest 90.667 17.000 107.667 91.091 18.438 109.528 91.040 18.278 109.318
West 92.286 6.857 99.143 86.250 12.400 98.650 87.472 10.857 98.329
Pacific 85.900 8.846 94.746 101.288 12.300 113.588 97.014 11.453 108.467
All US Regions $84.790 $10.891 $95.681 $92.665 $12.139 $104.805 $90.545 $11.810 $102.355

(1) Northeast (CT, DE, MA, ME, NH, NJ, NY, PA, RI, VT)
Midwest (IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI)
South (AL, FL, GA, KY, MD, MS, NC, SC, TN, VA, WV)
Southwest (AR, LA, OK, TX)
West (AZ, CO, ID, MT, NM, NV, UT, WY)
Pacific (Alaska. CA, Hawaii, OR, WA)


Product Management ratios within the company

How are product managers allocated relative to other departments?

For each Product Manager (PM), we find:

  • 3.0 Products
  • 6.5 Developers
  • 0.9 Development Leads
  • 0.9 Product architects
  • 4.7 Sales people
  • 1.9 Sales Engineers/Pre-sales support (2.5 sales people per SE)

Product management technology environment

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

  • Windows XP (64%) or Windows 2000 Professional (26%)
    • [Windows 98 (5%) and Macintosh (2%)]
  • Internet Explorer (93%) [Note: Firefox represented 7.5% in 4Q04]
  • 1024 x 768 screen resolution or better (85%)
  • Java with cookies enabled (96%)
  • Plug ins installed
    • Shockwave Flash (98%)
    • Java plug-in (83%)
    • Adobe Acrobat [PDF] (78%)
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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