Blackblot Product Management Glossary
Many perspectives abound as to what the marketing and product management disciplines are responsible for and how to define them. These interpretations vary significantly to a point where job titles and their associated responsibilities are interpreted very differently by different companies. This diversity also influences the professional terminology that shapes corporate processes.
It is therefore useful to have a set of clear definitions that help establish a common understanding. The following are Blackblot’s definitions as they are used throughout all of Blackblot’s course materials and PMTK.
Blackblot views product management as an occupational domain that holds two professional disciplines: product planning and product marketing. Product management, product planning, and product marketing are three key terms defined by Blackblot as follows:
- Product Management - occupational domain which contains two professional disciplines: product planning and product marketing.
- Product Planning - ongoing process of identifying and articulating market requirements that define a product’s feature set.
- Product Marketing - outbound activities aimed at generating product awareness, differentiation and demand.
Based on the premise of the above key terms and their definitions, Blackblot has developed a list terms that it uses in its training programs and material. For a comprehensive list of Blackblot’s product management terms and their definitions, please view the scroll box below.
Download the Blackblot Product Management Glossary in PDF format and in BGL format (for use with Babylon).
Actual Relative ValueThe ratio of benefits and costs[customer] the product factually delivers to customers.
Actual Resultant ValueA fixed combination of gains in time, cost and status the product factually delivers to customers.
Actual ValueThe measured and validated worth that the customer or similar customers factually obtain from owning and using the product.
Actual Value FormulaActual value = actual resultant value + actual relative value
AdvertisingNon-personal communication from an identified sponsor using mass media.
Allowances (Pricing)A conditional refund only in form of a deduction from the list price in exchange for customer action. Allowances are often accomplished in two forms: Trade-in (Pricing) - An item of property given in part payment upon purchase. Rebate (Pricing) - Customer receives reimbursement for a portion of the purchase price, in exchange for customer information.
Analyst RelationsThe bi-directional information exchange with financial analysts and industry analysts to inform and favorably influence them.
Bait PricingPricing that aims to attract customers with low prices with intent to sell higher priced items.
Base Price Initial price of a product before any alteration.
BDM Buyer"Business Decision Maker" buyer. The person who has the ultimate decision making power to purchase a product or not.
BenefitsProduct features that are desirable to the customer.
Blackblot Product Frames ModelA descriptive model that demonstrates how product functionality is built and how, in total, the product solves the market problem.
BrandAn identity, made of symbols and ideas, which portray a specific offering from a known source.
Business CaseExamination of a potential market opportunity on a product level.
Business CompetenceSet of professional skills and knowledge that relate directly to performing product management.
Business DevelopmentActions that improve the performance of the enterprise, its access to markets, and its ability to compete by creating strategic relationships with logistical, content and technological partners.
Business PlanExamination of a potential business opportunity on a company level.
Business ProductsProducts intended for resale, for use in producing other products, or for providing services in an organization. Business Products are used for making money.
Business StrategyDecisions that support being a leader, follower or innovator in a specific line of business.
Business To BusinessThe transaction of goods or services between businesses (B2B).
Business To ConsumerThe transaction of goods or services between businesses and private individuals (B2C).
Buyer The entity that decides to obtain the product.
Captive Product (Pricing Tactic)An imbalanced price ratio between product’s components which are sold separately. The main system component is under-priced and the consumables or support services are over-priced. The "Captive Product" pricing tactic can be quickly and easily accomplished via product system decoupling.
Company Core CompetencyA company’s unique ability to deliver value, while differentiating itself from the competition.
Competitive AdvantageA depiction that the company or its products are each doing something better than their competition in a way that could benefit the customer.