2005 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.

484 product management and marketing professionals responded to the survey.

The survey was conducted during the period of November 7-24, 2005 using WebSurveyor.


Profile of a product manager

The average Product Manager is 36 years old;
87% claim to be 'somewhat' or 'very' technical;
33% are female, 67% are male;

90% have completed college and 46% have completed a masters program;
(see Does a masters degree make a difference?)

The typical product manager has responsibility for three products.

Organization

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

  • 46% report to a director
  • 28% to VP
  • 5% report directly to the CEO
  • 21% are in the Product Management department
  • 15% are in the Marketing department
  • 12% are in Development or Engineering
  • 5% are in a sales department

Impacts on Productivity

Product managers receive 50 emails a day and send about 25.

Product managers spend roughly two days a week in internal meetings (15 meetings/week).
But 50% are going to 15 meetings or more each week, and 27% attend 20 or more meetings!

Working with Development

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

  • 66% researching market needs
  • 54% preparing business case
  • 19% performing win/loss analysis
  • 79% monitoring development projects
  • 77% writing requirements (the 'what' document)
  • 52% writing specifications (the 'how' document)

Working with Marketing Communications and Sales

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

  • 49% writing promotional copy
  • 23% creating web content
  • 47% approving promotional materials
  • 16% working with press and analysts
  • 51% training sales people
  • 44% going on sales calls

Read more in Details of product management activity.


Compensation

Average US product management compensation is $90,610 salary
plus $10,961 annual bonus
(79% of product managers get a bonus)

Our bonuses are based on:

  • 60% company profit
  • 32% product revenue
  • 41% quarterly objectives (MBOs)

Almost 37% say the bonus does not motivate at all and only 12% say the bonus motivates a lot.

Regional impact on compensation

US region (1)


Female



Male



Overall



Salary

Bonus

Total

Salary

Bonus

Total

Salary

Bonus

Total

Midwest

$73,211

$6,500

$79,711

$90,280

$10,500

$100,780

$82,909

$9,088

$91,997

Northeast

89,944

11,000

100,944

98,556

11,563

110,118

95,685

11,439

107,124

Pacific

93,474

12,500

105,974

97,219

10,471

107,689

95,824

11,387

107,211

South

82,450

11,769

94,219

86,972

8,179

95,151

85,175

9,452

94,628

Southwest

80,000

6,667

86,667

98,375

21,667

120,042

90,500

16,667

107,167

West

103,200

16,600

119,800

92,583

11,778

104,361

94,414

12,826

107,240

Overall Average

$85,414

$10,857

$96,271

$93,516

$10,976

$104,491

$90,610

$10,961

$101,572

Canada (2)

63,002

8,501

71,503

75,000

7,958

82,958

70.909

8,139

79,048

(1) Midwest (IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI)
Northeast (CT, DE, MA, ME, NH, NJ, NY, PA, RI, VT)
Pacific (Alaska. CA, Hawaii, OR, WA)
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)

(2) Canada amounts requested in US$. We did not get adequate responses from other countries to report statistically valid data.


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
  • 6.0 Developers
  • 0.8 Development leads
  • 0.6 Product architects and designers
  • 0.4 Product marketing managers
  • 0.6 Marketing communications
  • 3.2 Sales people
  • 1.0 Sales engineers (pre-sales support)

Other ratios

  • 0.2 QA people per developer
  • 3.2 sales people per SE
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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