What Does a Product Manager Do

In today's dynamic and ever-evolving technological landscape, the role of the product manager has become increasingly crucial. Modern product managers are multidisciplinary individuals who wear many hats, requiring a diverse skill set to navigate in the complex world of product development.

In this article we tried to explore the essential skills needed to thrive as a product manager in the modern era, highlighting the importance of market awareness, data analysis, business, customer empathy, and more.

1. Market and Industry

A deep understanding of the market and the industry your product operates within is fundamental. This includes knowledge of the competitive landscape, customer needs and trends, market size and growth potential, and relevant regulations. Conducting thorough market research and competitive analysis allows product managers to make informed decisions about product positioning, pricing, and development roadmaps.

In addition to understanding the competitive landscape, a modern product manager must be adept at forecasting industry trends and anticipating shifts in consumer behavior. This foresight enables the development of products that not only meet current demands but also adapt to future market changes. Engaging with industry experts, attending relevant conferences, and staying updated with industry publications are practices that can help deepen this knowledge.

Here are some tools, publications, and research agencies we love, that could help you as a product manager to navigate through the markets, industries, and their trends:

Market Research Firms

Technology News

Business Insights

Web analytics, statistics and trends

2. Data Analysis and Metrics

In today's data-driven world, the ability to analyze data and interpret key metrics is crucial for product success. Modern product managers must be comfortable collecting, analyzing, and interpreting data from various sources, including user engagement data, marketing analytics, and product usage data. This allows them to measure product performance, identify areas for improvement, and make data-driven decisions about product development and marketing strategies.

Beyond basic data analysis, a product manager should also be skilled in advanced analytical techniques like predictive analytics and user segmentation. These skills facilitate the identification of emerging patterns and potential market segments, allowing for more targeted product development and marketing efforts. Proficiency in tools and various business intelligence platforms is increasingly important. This expertise not only helps in understanding the current state of the product but also in predicting future trends and user behaviors. Here are some tools we love for data analytics.

For metrics check our article: “What are key metrics every startup should track.”?

3. Business

Understanding the business side of product development is essential for product managers. This includes knowledge of financial modeling, cost analysis, pricing strategy, and revenue generation models. Product managers need to be able to demonstrate the financial viability of their product and make informed decisions about resource allocation, budget management, and pricing strategies.

The product manager’s business acumen extends to understanding and influencing the product's broader economic ecosystem. This includes comprehension of supply chain dynamics, the regulatory environment, and the broader economic factors impacting the product. Effective product managers can thus align their strategies with larger business objectives, contributing to sustainable growth and profitability. Additionally, they should be adept at scenario planning and risk management, enabling them to navigate uncertain business environments effectively.As for the practical advice for doing business development activities and understanding the environment, we think it could be really helpful to attend different local and international product, startup events, conferences and summits. Some of them are:

As Marty Cagan said in his book Inspired: “Successful products are not only loved by your customers, but they work for your business”

4. Customer Empathy and User-Centric Approach

A product cannot succeed without a deep understanding of its target audience. Modern product managers must be able to put themselves in the shoes of their customers, understand their needs and challenges, and develop products that solve their problems in a meaningful way. This involves conducting user research, gathering feedback, and iterating on product features based on user data and insights.

Cultivating customer empathy involves more than just gathering user feedback; it requires a mindset of continuous user engagement and an iterative approach to product design and development. This includes creating user personas, conducting user interviews, and employing human-centered design principles. By fostering a deep connection with the user’s experience, product managers can champion products that not only solve problems but also resonate emotionally with the target audience, leading to higher user satisfaction and loyalty.

To do a more deep dive on this matter you can find really amazing literature on our product bookshelf.

5. Communication and Collaboration

Effective communication and collaboration are essential for product managers to succeed. They need to be able to clearly communicate both verbally and written the product vision and strategy to stakeholders, collaborate effectively with cross-functional teams, and provide feedback and guidance to team members. Strong communication skills allow product managers to build trust with stakeholders, motivate teams, and effectively manage expectations.

Effective product managers excel in stakeholder management, balancing and aligning the diverse interests of different groups involved in the product life cycle. This includes negotiating with suppliers, managing relationships with partners, and advocating for user needs with internal teams. The ability to navigate organizational politics and build coalitions is crucial. Additionally, product managers should be proficient in remote collaboration tools and techniques, as distributed teams become more common in the global business landscape.

6. Adaptability and Resilience

The product development process is rarely linear and often requires flexibility and adaptability. Product managers need to be able to adjust to changing market conditions, overcome unforeseen challenges, and make quick decisions based on new information. This requires resilience, a positive attitude, and the ability to learn from mistakes and adapt to new situations.

In an environment where technological disruption is the norm, the ability to pivot quickly in response to new technologies and competitive threats is vital. This adaptability extends to embracing agile methodologies, being open to feedback and criticism, and fostering a culture of experimentation and learning within the team. Resilience in a product manager manifests as the ability to maintain focus and morale in the face of setbacks, using them as opportunities for growth and innovation.

7. Familiarity with UI/UX or Programming

While not always required, having a basic understanding of UI/UX design principles or even some programming knowledge can be a significant asset for product managers. This allows them to better understand the technical feasibility of product features, communicate effectively with design and development teams, and contribute to the overall user experience.

For product managers in the tech industry, understanding the basics of coding, software development life cycles, and architectural frameworks can significantly enhance collaboration with technical teams. This knowledge helps in setting realistic timelines, prioritizing technical debt, and understanding the implications of technical decisions on the user experience and product scalability. Familiarity with design thinking and prototyping tools further enables PMs to contribute more effectively to the product design process.

Final Notes

By mastering these essential skills, modern product managers can effectively navigate the complex world of product development and build products that are successful, user-centric, and meet the needs of the market. Remember, the journey to becoming a successful product manager is a continuous learning process. Embrace the challenges, stay curious, and constantly strive to improve your skills to thrive in this exciting and ever-evolving field.

The journey of a product manager is one of continuous adaptation and growth. Embracing the evolving nature of technology, market trends, and consumer behavior is key. By continuously refining these skills, product managers can lead their teams in creating innovative, user-centric products that drive business success and resonate deeply with their target audience. This ongoing evolution is not just a professional mandate but also a personal journey, filled with learning opportunities and challenges that enrich the product manager's expertise and perspective.

Ben Frunjyan