AIPMM- CPM EXAM QUESTIONS AND CORRECT ANSWERS(VERIFIED ANSWERS)

Product Management - ANSWER- process of conceiving, planning, developing, testing, launching, delivery and withdrawing products in the market. PMF - Product Management Framework - ANSWER- Product lifecycle (Product Development + Commercialization) stages plus their phases and gates. PMF Benefits (5) - ANSWER- 1. define common language 2. provides standards for launching a products in each phase 3. allows product teams to develop and communicate mutual product plan commitments 4. empowers product team to execute based upon agreed upon objectives and schedules 5. facilitates continuous improvements to products and processes. Prodbok (body of knowledge) - ANSWER- strategies, methodologies, concepts, terms and activities that make up the product mgmt. and marketing domains as defined by AIPMM. Applies to any product or portfolio, across industries, throughout each phase of the product lifecycle. X-Axis PLC Stages (6) - ANSWER- 1. New product dev/acquisition 2. introduction 3. growth/maturity/decline 4. withdrawal 5. commercialization 6. manufacturing operations X-Axis phases of PLC (7) - ANSWER- *go/no-go gates between each phases 1. conceive 2. plan 3. develop 4. qualify (test) 5. launch 6. delivery 7. retire Phases - ANSWER- prescribed, concurrent activities in PLC cross-functional gate precedes each phase successive phases require more resource commitment Gates - ANSWER- decision points (go, no go, Hold, Recycle)QC checkpoints Investment control checkpoints *Facilitate screening - evaluating new product ideas to reduce them into a smaller set. Y-Axis Key players on a product team (8) - ANSWER- 1. Product Manager 2. Product Mktg. Manager 3. Project Manager 4. Business Analyst 5. Dev Manager 6. QA MAnager 7. Customer Support Mgr. 8. Sales Manager X/Y - ANSWER- X=time Y=your focus XY cell = details of your focus at that time Y-Axis Knowledge Areas (5) - ANSWER- 1. Business 2. Market 3. Customer 4. Product 5. Organization Product Life Cycle - PLC - ANSWER- Manages stages that products go through from development to withdrawal from market. Helps you take the right action at the right time. Integrates people, data, processes and business system New Product Development + Commercialization Product Life Cycle Characteristics - ANSWER- 1. Determines if each product has a different life cycle 2. Determines revenue earned 3. Contributes to strategic marketing plan Product Life Cycle Benefits - ANSWER- 1. helps forecast and manage cash flow 2. helps identify when a product needs support, redesign, reinvigorated, or withdrawn. 3. helps in new product development and planning Product Portfolio - ANSWER- range of products a company has in development or available for marketplace at one time Business Portfolio - ANSWER- collection of businesses and products that make up a company. Portfolio Analysis - ANSWER- tool which helps mgmt. identify and evaluate the various businesses which make up the companyStrategic Business Unit - ANSWER- unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses New Product Development (NPD) - 1st half of PMF - ANSWER- complete process of bringing a new product to market. Includes first 4 steps - conceive, plan, develop, qualify. For: 1. new product in new markets 2. new product in existing markets not previously targeted 3. enhance current product in existing product line. *2 parallel paths = idea generation, product design, and detail engineering + market research and analysis NPD New Product Development Steps (4) - 1st half of PMF - ANSWER- 1. conceive 2. plan 3. develop 4. qualify Key Deliverables in conceive and plan phase (7) - ANSWER- 1. Strategic Plan 2. Competitive analysis 3. Market Trends 4. Mktg requirements doc 5. Business Case 6. Product Requirements doc 7. Product roadmap Key deliverables in Develop and test phase (5) - ANSWER- 1. Marketing strategy 2. Beta program 3. Launch plan 4. Marketing plan 5. Product Retirement plan Acquisition - ANSWER- act or process by which ownership is achieved by: 1. acquiring brand/product 2. purchase entire company 3 ways to get new product - ANSWER- 1. develop 2. acquire 3. license Commercialization - 2nd half stage of PMF - ANSWER- process of introducing a new product into the market Commercialization phases (3) - 2nd half stage of PMF - ANSWER- 1. launch 2. deliver3. retire Commercialization Steps w/in PLC (5) - ANSWER- 1. launch/production 2. Growth, Maturity/saturation, decline 3. withdrawal 4. commercialization 5. manufacturing operations Launch - phase 1 of commercialization - ANSWER- process of introducing a new product to market.. Gain awareness analysis = increase familiarity, expand market share stages of launch (4) - ANSWER- 1. internal communication 2. pre-launch activities (distribution and ensures distribution partners have resources and knowledge) 3. external communications (PR, advertising) 4. pricing strategies strategies of launch/introduction (commercialization) (5) - ANSWER- 1. competition = none 2. product = one 3. price = skimming or penetration 4. promotion = inform, educate 5. place = limited Growth - phase 2 of commercialization - ANSWER- 2nd stage of PLC during which sales are increasing at an increasing rate, profits are increasing, and competitors enter the market analysis = focus on marketing product improvement and product diversification strategies of growth (commercialization) (5) - ANSWER- 1. competition = growing 2. product = more versions 3. price = gain share, deal 4. promotion = stress competition 5. place = more outlets Maturity - phase 3 of commercialization - ANSWER- primary goal is to maintain market share and extend the product life cycle. Most profitable stage. analysis = defense of market share and product modifications necessary strategies of maturity (commercialization) (5) - ANSWER- 1. competition = many 2. product = full product line 3. price = defend share, profit 4. promotion = reminder oriented differences 5. place = maximum outlets