2010 Annual Product Management and Marketing Survey

By Pragmatic Marketing May 18, 2011

Note: When making decisions, remember this summary describes typical practices, not best practices. For best practices in product management and marketing, attend a Pragmatic Marketing seminar.

 


    • Average age is 39
    • Responsible for 3 products and work in a department of 6 people
    • 92% claim to be “somewhat” or “very” technical
    • 33% are female, 67% are male
    • 93% have completed college and 43% have completed a masters program

 


The typical product manager reports to a Director or Vice President in the product management department.

Reporting to Title

    • 39% report to a director
    • 31% report to a vice president
    • 21% report to a manager
    • 9% report to a CXO

Reporting to Department

    • 29% directly to CEO or COO
    • 31% in Product Management
    • 20% in Marketing
    • 14% in Development or Engineering
    • 7% in Sales

 


When looking at staffing, it’s often helpful to see how ratios of product managers compare from your company to the industry norm.

For each product manager, we found:

    • 0.6 Product marketing managers
    • 0.5 Marketing Communications
    • 2.1 Salespeople
    • 0.6 Sales engineers (pre-sales support)
    • 0.4 Development leads
    • 2.0 Developers
    • 0.1 Product architects and designers

Other ratios of interest

    • 1.8 developers per QA manager
    • 3.0 salespeople per sales engineer

 


For product management and product marketing titles, the average compensation is $96,580 salary plus $12,960 annual bonus. 77% of product managers and marketers get a bonus. Bonuses are based on (multiple responses were permitted):

    • 69% company profit
    • 26% product revenue
    • 59% quarterly objectives


Geographic impact on compensation (in US $)

 

Base salary

Bonus

 Africa

$76,000

$22,500

 Asia

$83,392

$5,058

 Australia/New Zealand

$104,625

$11,163

 Canada

$89,934

$10,747

 Central/South America

$81,000

$12,000

 Europe

$87,239

$12,257

 Middle East

$109,334

$15,000

 United States

$102,960

$14,173

 

 

US regional impact on compensation (in US $)

 

Base salary

Bonus

 Midwest

$91,157

$10,965

 Northeast

$109,415

$16,179

 Pacific

$113,880

$15,221

 South

$100,375

$15,477

 Southwest

$110,285

$16,973

 West

$98,926

$12,496

 

 

Compensation by experience (in US$)

 

Base salary

Bonus

 Less than 1 year

$98,968

$13,593

 1-2

$93,383

$13,891

 3-5

$98,628

$12,715

 6-10

$103,969

$14,059

 11-15

$113,374

$16,009

 More than 15

$121,734

$12,896

 

 

Compensation by education (in US$)

 

Base salary

Bonus

 Bachelors degree

$94,763

$12,260

 Masters in Business

$105,031

$15,581

 Masters in Engineering

$103,144

$11,696

 Other Masters degree

$101,005

$13,546

 

 

Compensation by title (in US$)

 

Base salary

Bonus

 Product Manager

$100,964

$13,235

 Product Marketing Manager

$96,470

$14,912

 Product Owner

$104,701

$17,182

 Technical Product Manager

$91,841

$9,845

 

 

Compensation by technical ability (in US$)

 

Base salary

Bonus

 I am non-technical

$94,204

$12,962

 I am somewhat technical

$99,082

$13,584

 I am very technical

$101,973

$13,448

 



  

Responsibilities and job titles


We looked at responsibilities for each of the 37 activities on the Pragmatic Marketing Framework™. So, for example, 73% of people with product management and product marketing titles claim responsibility for an understanding of market problems while only 24% claim responsibility for win/loss analysis.


Here we see the activities and percentages sorted from most to least, showing “Product roadmap,” “Requirements,” and “Market problems” are the most common activities claimed by those with product management and product marketing titles while, at 15%, “lead generation” is least cited.

 

Responsibilities


Here we see the same information--activities and percentages--grouped by discipline:
Business, Technical, Marketing, and Sales support.

Activities

 

Contrasting the titles ‘product manager’ and ‘product marketing manager’

Titles are a mess in our industry. What one company calls a product manager, another calls a product marketing manager. In general, when both titles are present in one organization, product managers are focused on technical and business activities while product marketing managers are focused on go-to-market activities. 


In the following charts, we’ve highlighted five representative documents to help contrast product management and product marketing: product roadmap, requirements, positioning, marketing plan, and sales tools. For those with a title of Product Manager, we found these responsibilities:

 

Activities

 

As you can see, product roadmap and requirements are the responsibility for over 80% of those with a title of Product Manager


Looking at the same data in groups, it’s clear that product managers tend to focus on the technical activities shown in the purple boxes below; however 70% of product managers also claim responsibility for positioning.

 

Activities

 

While product managers tend to focus on technical activities, Product Marketing Managers are more inclined to focus on go-to-market activities. Positioning, sales tools, and marketing plan all rate greater than 70% while requirements and product roadmaps (which were rated very high for product managers) are less than 50% for product marketing managers.

 

Activities

 

 

Activities

 

Companies with both Product Manager and Product Marketing Manager titles tend to orient product managers to business and technical activities while product marketing managers focus on go-to-market and sales support activities.

 


 

Job Changed

 

Do more with less

    • I am doing three jobs at the same time.
    • A million more tasks.
    • Fewer people to support my products, in all parts of the company: Marketing, Engineering and Operations.

Agile

    • Agile has rolled out further through the company.
    • Agile development teams, much more reporting to executive team
    • Development process has moved to Agile model necessitating a change in how requirements are communicated. In general I believe that this is actually more in line with the Pragmatic approach so I’m ready!

Good news

    • Greater C-level focus on product management including additional budget and staff (a good thing)
    • A lot more responsibility and new focus on growing the business
    • More market oriented with increased customer interaction.

 


If you could say one thing to your company president without fear of reprisal, it would be…

 

Say to Pres

 

    • Focus the business on a few key strategic initiatives
    • Focus on the customer's problems (the “Tuned In” philosophy)
    • Our short-term orientation means less focus on long-term strategies.
    • We’re focused more on detail and less on big picture
    • We’re constantly whipsawed by the urgent needs of the next sales presentation or inside-out product idea.
    • Company strategy needs to be created, communicated and measured throughout implementation.
    • A strategic vision is only helpful if you stick to it. (Or at least make a very good case why the vision has changed.)
    • Product expertise and industry awareness must be expected within all departments of the company.
    • Allow more control from employees below upper management in doing their own jobs.

 

 


Steve Johnson is a recognized thought-leader on the strategic role of product management and marketing. Broadly published and a frequent keynote speaker, Steve has been a Pragmatic Marketing instructor for more than 10 years and has personally trained thousands of product managers and hundreds of company senior executive teams on strategies for creating products people want to buy. Steve is the author of the Product Marketing blog.
Contact Steve at  sjohnson@pragmaticmarketing.com.

 

 

Pragmatic Marketing

Pragmatic Marketing

Pragmatic Marketing, LLC 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 Marketing Framework, eBooks, blogs, webinars, podcasts, newsletters, The Pragmatic Marketer magazine and the bestseller “Tuned In.”

 

To learn more about our courses and join the growing international community of more than 125,000 product management and marketing professionals trained by Pragmatic Marketing, please click here.

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