A project has just kicked off and management expects the first iteration's deliverable to allow the marketing team to present the product prototype to potential customers. What should the project manager do?

The correct answer is to identify the minimum functionality required for the product. In an agile context, especially at the start of a project, the goal is often to deliver value quickly. By identifying the minimum viable product (MVP) or minimum marketable feature set, the project manager ensures the marketing team has a functional prototype for customer presentation as soon as possible. This aligns with agile principles of early and continuous delivery of value. Increasing the level of detail in the WBS is a traditional approach that might delay delivery and isn't inherently agile. Splitting the backlog into phases is a good practice, but the core issue is determining what goes into that first phase to meet the immediate need. Asking the sponsor to prioritize is also a good practice, but the project manager should first understand what "minimum functionality" means in this specific context to guide that conversation effectively.