What is Product portfolio management?& From stock market to marketing and product?

The portfolio or portfolios for individuals who are active in the stock exchange, is very familiar; But the concept of portfolio is used in many places and is not only related to the stock market and its stories!

For example, marketing portfolio, product and project, which in this article we will get acquainted with each of them. But the stock market portfolio, known as the portfolio, has become more popular, especially these days when the stock market and stock markets are so hot.

” Portfolio ” is a practical and important concept in marketing and capital management, the choice, management and arrangement of which has a great impact on the development of a business.

If you agree, join us in the continuation of the article to examine the concept of portfolio and its types …

What is Product portfolio management?

Before we get into the concept and uses of portfolio, let’s talk a little bit about the word itself and its lexical roots. You may be interested to know that the word portfolio has an Italian origin and comes from the word Portfolio‌.

The word in Italian means quality that has been used to carry documents.

It is true that the meaning of portfolio in managerial and financial matters is very different from its past meaning, but as you can see below, it is not very irrelevant.

Let’s go to the definition of portfolio:

“A portfolio is a set of works, projects, plans, products or products of a business that are managed together and pursue the same goal.”

To put it simply, a portfolio is a set of several components that can be stocks for investment, product, or projects of a large company that come together as a package for specific economic purposes.

For example, if we put several projects running in a company together, a project portfolio is created. Also, if we buy several different shares in the stock market, we have formed a portfolio or investment portfolio. In this case, it is possible to better manage them.

One of the main features of a standard portfolio is that its components are measurable. This means that we should not include qualitative and incalculable parameters in the portfolio; For example, the number of shares purchased on the stock exchange, the stock price, the number of factory products and the number of projects of a company can be measured and compared, and by putting them together, a portfolio can be formed.

In addition, the portfolio components must be centrally arranged to achieve the ultimate goal, and all of them must move in the same direction. For example, if the goal of a factory is to export its products abroad, it should form a product portfolio whose components include products that are profitable to export and that are basically possible to export.

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Well, as we said at the beginning, the portfolio is not just for the stock market! Rather, we have several well-known portfolios that we may have overlooked.

In this section, we are going to get acquainted with the types of portfolios and their characteristics and see what purpose each of them is created and presented.

Some types of portfolios include:

1- Investment portfolio

Portfolio in the stock market means a basket or a set of securities! That is, instead of buying the shares of a company, they buy several shares of different companies to reduce the risk of profit and loss; They do not put all their eggs in one basket, so that their capital is suddenly lost as the price goes down.

Many people may also want to invest in a variety of fields such as bank deposits, gold, foreign exchange markets, stock exchanges, etc.; Do you think it is not difficult to manage these assets? How can all of them be analyzed simultaneously and their benefits and losses determined?

We tell you that this is exactly what an investment portfolio is designed to help you manage your capital more easily. This type of portfolio is also known as stock investment portfolio and usually includes different types of capital such as bank deposits, cash, stocks purchased on the stock exchange and so on.

Why stock portfolio?

Variety! This diversity is the most important part of investing!

Markowitz was the first to scientifically articulate the portfolio and its diversification. Then, for lovers of numbers, he quantitatively proved how creating a set of stocks would reduce investment risk.

Since no investor is sure of the future and does not know what is going to happen in this turbulent market, building a portfolio reduces the potential risks. That is, instead of putting all their capital in one share and losing all of their capital when it falls, they buy a portfolio of shares (PORTFOLIO) to split its profits and losses between shares.

This is from a portfolio or investment portfolio that had a familiar face to you.

2- Product portfolio

Product portfolio is one of the most widely used portfolios in marketing, the main focus of which is on products produced by the organization. The definition of this type of portfolio states:

“A set of products or services offered by a company that are categorized based on a specific strategy or target market is called a product portfolio.”

The product portfolio can be categorized based on different product lines, different product models, target market, growth rate and market share.

Imagine owning a home appliance factory; In this factory, products such as refrigerators, gas, washing machines, etc. are usually produced in different models. Now, if we put all the refrigerator models or all the gas models in a separate category, we have created a product portfolio. By doing this, we can examine the sales of different models as well as their profit and loss.

Now what do you think is the reason for building a product portfolio?

Expert studies have shown that to be successful in sales and marketing, the variety of products must be high, and their market share must be different. Also, the balance in the type of products and services must be observed. Therefore, product portfolio design and management seem necessary and important.

After categorizing products, how should we analyze our products? Which product is worth investing in? How much should we pay for a particular product?

Every company may have a specific portfolio for its products based on its goals! But we want to review one of the most famous important product categories, which has its own name and tradition.

How to design a product portfolio?

In order to have a suitable portfolio for products, a few points should be considered:

As we have said, the components of a portfolio must be quantitative and measurable; This rule is also observed for the product portfolio and all information such as final profit, costs, sales volume, production volume, etc. will be recorded.

This will make the company more agile and make better decisions in managing the organization. In addition, the services are organized according to their profitability and as a result, the company’s efficiency will increase.

3- Project portfolio

Management rules and standards in previous years have been such that they have focused a lot on products or products; For this reason, they were called product -based perspectives. But over time, that is likely to change, with experts concluding that the focus should be on the project rather than the product. The project-based approach (Project-based) were taken into account.

This situation changed the views from products to projects and added a section to various project portfolios. In defining a project portfolio, we must point out that all projects defined in the form of an economic organization can be a portfolio.

The important point is that the project portfolio components, just like any other portfolio, need to move towards a goal and be prioritized.

Project portfolio management (Project Portfolio Management)

One of the important points for organizing projects is project portfolio management or PPM‌, which has an impact on economic progress and development. In the definition of PPM‌ we must say that:

” Knowledge and art of using different techniques and tools to collect projects and bring them to the main goal of a business is called project portfolio management.”

The main goal in project portfolio management is to increase the company’s efficiency; But how is this possible? When projects are properly categorized and capital is distributed among them in principle, project returns will increase, and this is exactly what we expect!

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4- Marketing portfolio

A marketing portfolio is exactly what everyone needs to think about in order to succeed in their career. In this type of portfolio, instead of putting products, services, projects and investments together, we try to show our talents and job abilities.

In fact, the marketing portfolio of an album includes a portfolio of a person with which he can prove his professional competence to the employer and find a new job.

Or a company puts its portfolio together on its own site for customers to see and get new projects.

Here are 5 interesting techniques for designing a marketing portfolio.

  1. A) Think of part-time jobs to have a portfolio

To have a good portfolio, you must first write down your work experience; But many people do not have much experience in different jobs and their portfolio seems empty. In this situation, it is best to look for part-time or freelance jobs.

These jobs may not be the same as full-time jobs in terms of income and salary, but they are great for gaining experience and enriching your portfolio.

  1. B) Look for NGOs and NGOs

Many non-profit organizations have been established today that may not have much power in information and marketing. Attending these organizations and demonstrating your capabilities can be the best opportunity to gain experience; So, do not miss it simply!

  1. C) List the courses you have taken and the skills you have learned

If you are a student and you want to write a marketing portfolio, it is better to use the courses taken at the university instead of your work experience. Just keep in mind that these courses are directly related to the job you are looking for; For example, if you want to submit a marketing portfolio for a content production job, the courses mentioned should be relevant.

  1. D) Be greedy to show your abilities

One of the most important things in designing a marketing portfolio is to demonstrate your capabilities to the highest quality. For this reason, try to list all your skills and talents and do not be afraid of it.

  1. E) Use graphic elements in the design of the marketing portfolio

Each portfolio is a showcase of your abilities! So, it is better to take the time to present it and use graphic elements. In this case, the impact of the portfolio will be greater.

It was like a resume!

After getting acquainted with the marketing portfolio, the question probably came to your mind that what is the difference between a portfolio and a resume? Apparently, they are both one and the same.

To answer this question, it must be said that your resume merely reflects your characteristics and experiences; A portfolio, on the other hand, shows an album of your work and all your skills together. Therefore, it will be more effective.

In addition, the marketing portfolio is much more accurate than the resume and takes more time to write. Resumes are usually written on one or two pages, but a portfolio often requires a binder.

Portfolio management

One of the reasons for using different portfolios is to better manage all the subdivisions and components of an organization or business. In fact, if we can put together the types of projects, investments and products of one company and evaluate the impact of each on the other, the percentage of risk will be reduced, and they will be easier to manage.

Experience has shown that for the development of an economic organization, portfolio management must be done in the best possible way. This creates coordination between the different components and makes it easier to make economic decisions. It will also prevent the company from wasting resources and potential talents.

Portfolio management helps us identify resources and spend them in subcategories. In addition, it identifies the company’s priorities and allocates budget and time to each part of the portfolio based on its rate of return. To manage a portfolio, you need to go through two steps, which are:

Step 1: Prioritize portfolio components and execute them

At this stage, the company’s goals are usually identified, and the portfolio is formed based on these goals. The various components are then categorized according to their importance and prioritized.

Step 2: Monitor and evaluate the performance of the subsets

One of the main parts of portfolio management is performance monitoring and evaluation, which is done after the portfolio is formed. At this stage, the efficiency of the components should be determined, and a decision should be made to modify the portfolio.

The last word…

In this article, we got acquainted with the term portfolio and its roots and talked about the importance of portfolio management. After that, we reviewed the portfolio types and their applications together.

Our goal in designing a portfolio is to better manage the various subsets and departments of an economic organization; Interestingly, portfolio types are also divided into four sections based on these sub-categories: investment portfolio, product portfolio, marketing portfolio and project portfolio.

Now, in your opinion, what effect can design a portfolio have on developing and increasing the efficiency of businesses? Have you ever had portfolio writing experience? How you ever buy website traffic to boost your portfolio? What challenges have you faced along the way? You can share your answers and views with your other friends in the comments section of this article; We are waiting for you …