Developing your roadmap and deciding what products or services to invest in can be a daunting task. The challenge is evaluating which products have the highest market attractiveness (i.e., more significant reach and impact on revenue), and greater ease of implementation. This Product/Service Prioritization decision model rates each product based on these two criteria, making prioritization easier and more meaningful for product managers.
This model follows three steps:
1) Rate the products/services based on market attractiveness and ease of implementation.
2) Display and discuss results.
3) Assign owner and indicate the timing priority of each product/service.
The product/service prioritization decision model can be used by marketing managers, new product development leaders, and product managers.
Product/service prioritization on the basis of market attractiveness and ease of implementation helps product managers identify which products or services can achieve a higher market share and higher profit margins balanced against organizational effort. In the case of new products, market attractiveness is important: products targeted at more attractive markets are far more successful than those who are not targeted towards high revenue market (Cooper, 1999). Measuring market attractiveness helps organizations measure marketplace potential to yield impact on revenue and sales (McDonald & Keegan, 2002).
1) MULTI-CRITERIA RATE each product/service based on market attractiveness and ease of implementation. In the comments section, provide rationale for why each product was rated the way it was.
2) SHARE AND DISCUSS RESULTS: Discuss results and display a heat map graph to participants.
3) ACTION PLAN: Assign owners and indicate the timing priority of each product/service.
- Alignment on the product roadmap
- List of products prioritized based on market attractiveness and ease of implementation
BENEFITS & IMPACT
This exercise will enable:
Quality – Product prioritization decisions are informed and based on well thought out evaluation criteria.
Efficiency – An effective product prioritization process will ensure resources are directed to the right projects.
Engagement – Smart anonymity provides a safe space for stakeholders to offer their candid comments about each product. Easily engage the right stakeholders in the prioritization process with the ability to provide anonymous ratings and candid feedback.
Agility – Focusing on products with high market attractiveness that are easier to implement will result in faster speed to market with improved market share and revenue.
McDonald, M. & Keegan. W. (2002). Marketing plans that work. Woburn: Butterworth-Heinemann.
Cooper, R. (1999). Winning at new products: Creating value through innovation. New York: Basic Books.