2006 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.

Over 500 product management and marketing professionals responded to the survey which was conducted during the period of October 22 through November 23, 2006 using WebSurveyor.

Summary Report (.pdf)


Profile of a product manager

The average Product Manager is 36 years old;
88% claim to be 'somewhat' or 'very' technical;
29% are female, 71% are male;

91% have completed college and 39% have completed a masters program; (see Does a Masters Degree Make a Difference?)

The typical product manager has responsibility for 3 products.

Organization

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

  • 38% report to a director
  • 35% to VP
  • 8% report directly to the CEO or COO
  • 19% are in the Product Management department
  • 21% are in the Marketing department
  • 10% are in Development or Engineering
  • 7% 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 (14 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.

  • 71% researching market needs
  • 51% preparing business case
  • 18% performing win/loss analysis
  • 82% monitoring development projects
  • 80% writing requirements (the 'what' document)
  • 54% writing specifications (the 'how' document)

Working with Marketing Communications and Sales

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

  • 44% writing promotional copy
  • 41% approving promotional materials
  • 9% working with press and analysts
  • 49% training sales people
  • 42% going on sales calls

Read more in Details of product management activity.


Compensation

Average US product management compensation is
$93,682 salary
plus $14,875 annual bonus
(79% of product managers get a bonus)

Our bonuses are based on:

  • 55% company profit
  • 32% product revenue
  • 45% quarterly objectives (MBOs)

Over 25% say the bonus does not motivate at all and only 16% say the bonus motivates a lot.

Regional impact on compensation

US Region


Female



Male



Salary

Bonus

Total

Salary

Bonus

Total

Midwest

78.583

11.857

90.440

85.140

13.361

98.501

Northeast

95.862

19.263

115.125

103.872

17.974

121.847

Pacific

90.536

11.250

101.786

103.855

18.816

122.670

South

77.227

9.462

86.689

91.511

12.472

103.983

Southwest

76.778

11.500

88.278

98.381

17.222

115.603

West

88.167

10.750

98.917

97.519

12.000

109.519

Overall

$84.841

$12.630

$97.471

$94.663

$16.819

$111.482

Canada

73.133

9.455

82.588

83.800

10.636

94.436

Europe

90.250

10.000

100.250

103.313

18.714

122.027

Averages, Maximums and Minimums

 US Region  


Avg 



Max



Min


Salary

Bonus

Total

Salary

Bonus

Totals

Salary

Bonus

Totals

Midwest

83,643

13,045

96,688

150,000

78,000

228,000

25,000

2,000

27,000

Northeast

100,649

18,288

118,937

157,000

100,000

257,000

55,000

3,000

58,000

Pacific

99,361

16,207

115,568

159,000

155,000

314,000

43,000

-

43,000

South

86,957

11,673

98,630

160,000

50,000

210,000

36,000

-

36,000

Southwest

92,000

15,960

107,960

130,000

47,000

177,000

50,000

2,000

52,000

West

95,818

11,773

107,591

133,000

30,000

163,000

64,000

2,000

66,000

Overall

$93,682

$14,875

$108,557

$155,000$25,000$315,000$25,000-$25,000










Canada

81,525

11,000

92,525

155,000

40,000

195,000

46,000

1,000

47,000

Europe

100,700

18,133

118,833

200,000

47,000

247,000

50,000

-

50,000

Note: Salary and bonus amounts requested in US$.

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)


Product Management ratios within the company

How are product managers allocated relative to other departments?

For each Product Manager (PM), we find:

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

Other ratios

  • 0.3 QA people per developer
  • 4.0 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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