Product Manager vs Project Manager: What’s the Difference?

It’s sometimes challenging to differentiate a Product Manager from a Project Manager because some tasks do overlap for both positions. However, the roles do have distinct differences in terms of their goals and focus, helping you to identify one from the other.

While these two professionals work together frequently to deliver successful projects, it’s essential to know which is which. If you’re a newcomer (whether a fresh grad or someone who wants to transition) torn between Product Manager vs Project Manager, this is the article to help you decide.

What is a Product Manager?

A Product Manager has several tasks that span from the beginning of the product lifecycle all the way to launching. These tasks include driving the roadmap, gathering customer data, identifying metrics for product success, communicating with cross-functional teams and stakeholders, and more.

The main goal for a Product Manager is to launch a product that’s going to prove useful to target users. To get to that point, product strategy and addressing product needs to become a priority.

Because the work environment can be dynamic and fast-paced, no one day is ever the same when you are a Product Manager. But, to give you an idea of what a conventional day might be like, you can check: The Typical Day of a Product Manager.

General Responsibilities:

• Understanding and representing user needs
• Monitoring the market and developing competitive analyses
• Defining a vision for a product
• Aligning stakeholders around the vision for the product
• Prioritizing product features and capabilities
• Creating a shared brain across larger teams to empower independent decision-making

Note: the responsibilities listed here are general representations. The specific responsibilities of a Product Manager vary depending on the company, the industry it is in, and the product or service it is offering.

What is a Project Manager?

A Project Manager is someone who focuses more on the execution side of the project. From the initiation phase to the closing phase, it’s the Project Manager’s job to keep the team focused, accountable, and on track. The end goal is a project that’s completed on time, on budget, and meets the requirements set by the company.

In between, a Project Manager can evaluate the project’s scope, timeline, and budget. The role also does a good amount of communication with teams that are involved (usually updating stakeholders with the progress of the project), making sure that everything is going according to schedule.

General Responsibilities:

• Planning and developing the project idea
• Leading the project team
• Monitoring the progress of the project
• Setting deadlines
• Addressing issues that arise
• Managing the monetary resources
• Ensuring that stakeholders are well informed and satisfied
• Evaluating the project performance

Product Manager vs Project Manager: Main Differences

Now that we understand the overview of both roles, as well as the main goal that each position aims to fulfill, let’s look at other differences that can help distinguish the roles. We’ve listed down four major differences below:

Product vs Project

The focus for each role is very different. For Product Managers, the focal point is the product, which is an item or service that satisfies the need of a specific market. Products can be anything from software to entertainment equipment. It’s always evolving and being iterated until it becomes fit to launch. 

On the other hand, Project Managers are centered around completing a project. A project is a set of tasks that accomplish a goal. That goal could be anything from setting up an IT infrastructure, manufacturing a physical product, or even launching a marketing campaign. Each project has a strict timeline to follow with a well-defined outcome.

Because each role is focused on two different aspects or goals of a business, it goes without saying that most responsibilities are also different. 

Salary

When it comes to compensation, who has the higher earnings and why? 

According to Indeed, a popular job listing website, the average salary of a Project Manager is around $82K annually. There are bonuses and other incentives that can augment the base amount, although it’s not as significant as the fringe benefits a Product Manager typically receives. $82K is considered an entry-level salary but, of course, factors like location (state), years of experience, and size of the company affect the annual salary of a Project Manager.

Meanwhile, a Product Manager, according to Indeed, can earn $102K on average per year. $102K is also an entry-level salary but can have additional bonuses like stock, profit sharing, or tips. Just like the salary of a Project Manager, Product Manager salaries can also be affected by location, specialty, and years of experience.

There’s no mistake that both professionals are authorities in their respective fields. However, Product Managers have a higher salary range because of their expertise – product-focused strategic and analytical thinking, in-depth industry knowledge, and a keen product sense.  

Ideal Starting Points

Both roles don’t necessarily require a specific degree to be qualified. In addition, both roles have very similar skill set requirements like problem-solving skills, communication skills, analytical thinking, and more. But, the point that they differ in is the ideal starting point for each candidate with no experience in the respective fields.

For example, for someone who may want to break into Product Management, the ideal first step would be to build a product by voluntarily joining a team. This way, the candidate with zero experience as a Product Manager can have a relevant project to present during an interview. Of course, it won’t always be the case as some opt to join programs that allow professionals with zero Product Management experience to enroll, learn, and eventually become full-fledged employees of the company as Product Managers. 

You may read about this in our guides for the Google APM Program and Facebook RPM Program.

For Project Managers, it would be recommended to work in the desired industry under a non-managerial position, for starters. This kind of immersion allows a candidate to understand the inner workings of a specific sector, allowing a deeper understanding of how to achieve goals – a skill that can be very useful when progressing to becoming a Project Manager.

Career Path

Another key difference between the two roles is their respective career paths. Those who want to break into Project Management commonly start by working in the field they are interested in but in a non-managerial position, as mentioned earlier.

Then, the candidate can apply for an entry-level Project Management position. The next progression would be Project Manager, Senior Project Manager, Director of Project Management, then eventually VP of Operations or Chief Operations Officer (COO).

As for Product Management, a candidate can start as an Associate Product Manager, then to Product Manager. The next level would be Senior Product Manager, Product Leader, Head of Product, then Chief Product Officer (CPO). To read more about these different levels of the Product Manager role, read: Product Manager Career Path.

Summary

Product Manager	Project Manager
Focus: Product Strategy	Focus: Project Coordination
$102K annual average (commonly with cash and non-cash benefits)	$82K annual average ((commonly with cash and non-cash benefits)
Goal: deliver a product that addresses the needs of the target market	Goal: ensure that the project is done on time, within budget, with the correct requirements
Associate Product Manager to CPO	Non-managerial Position to COO
Start by building a product	Start by understanding the industry

Product Manager vs Project Manager: Industry Realities

Which role is more in demand in 2022? The answer is Product Manager. Currently, job listings or openings are abundant for this position. From a candidate perspective, the competition for Project Manager positions is steep because Product Managers and Operations Managers are also qualified to step into the role.

Although Project Management can also be dynamic and fulfilling, there’s less specialty which can be limiting career-wise. 

On the other hand, specific to being a Product Manager, we talked about this in one of our blogs which answers the question: Are Tech Companies Still Hiring Product Managers in 2022?

It’s important to take note that Product Managers don’t just exist in the tech sector. However, it’s the sector of business that has a direct need for product experts and product leaders.

Currently, what we see is that Project Managers who would want to work in a top tech company like Google, transition to becoming Product Managers. The transition is also a good way for non-tech Project Managers to break into a tech company because Product Managers don’t necessarily have to have tech skills to be qualified for a company in the tech role.

Conclusion: Which role is right for you?

The right role will bring a sense of fulfillment even if a typical day in that role is hectic. It will be up to you to weigh and decide which position you can grow, learn, and succeed in. Aside from job fulfillment, you’d also have to consider factors such as salary, work-life balance (WLB), career path, and more.

You can choose to become a Project Manager who is in charge of the completion of a project. Or you could choose to become a Product Manager that works on products that are truly useful and impactful. 

If you choose to become the latter, the very first obstacle that you have to hurdle is the Product Manager interview. To a newcomer, it’s crucial to keep in mind that this process is unlike the usual interviews that candidates go through. 

Potential Product Managers will need to answer product-specific, problem-solving, or behavioral questions. Other categories of questions include product sense, analytic thinking, strategic thinking, and more. It typically takes 4 to 6 weeks to prepare for the Product Manager interview, but with the right resources, your preparation will likely run smoother.

How do you prepare for your Product Manager interview? Here are some of our suggestions:

• Familiarize yourself with the Product Manager Interview process
• Go through a Self-Paced PM Interview course
• Learn how to answer Product Manager Interview Questions
  • Pick one category at a time
  • Practice answering PM Interview Questions
• Do several mock interviews
• Repeat the course and move to a new category when you feel more confident

If you’d like to learn about the process in detail, check out Product Manager Interview Prep: 2022 Guide.

Additionally, the following resources may aid you in your preparation:

• At PM Exercises, we’ve put together a Product Manager Interview Course. 
• We also have 2000+ Product Manager Interview Questions with sample answers from our PM community.
• You can also find a section labeled Practice where you can find other Product Managers who are also prepping for their interviews to practice with.

FAQ

Project Manager vs Product Manager, which is better?

Not one is better than the other in a general sense. The choice will depend upon several factors such as desired career path and job fulfillment. If you’re someone who thrives in a fast-paced environment that works on products that can potentially have a positive impact on the lives of many, then Product Management may be better for you. If your interest is in producing the best possible project outcome, then Project Management might be more up your alley. 

Can a Project Manager become a Product Manager?

Yes, A Project Manager can become a Product Manager with perhaps a minimal period of adjustment since most skills are related and transferable.  

Which salary is higher?

The Product Manager’s salary is generally higher than the Project Manager’s. This is because the Product Manager has to have specific expertise to do the job excellently. The expertise include business acumen, deep industry knowledge, a keen product sense and, in some cases, technical knowledge. Contrastingly, the Project Manager skills are centered on getting things done to wrap the project up as efficiently and effectively as possible.

Can a Product Manager be a Project Manager?

Yes, a Product Manager can take on some Project Manager responsibilities. Because both roles are fairly new, they can sometimes be interchanged in startups and smaller companies.