Project ManagementProject Management
4. Marketing and Project Management4. Marketing and Project Management
week 5
Anthony F. Tardugno; Thomas R. DiPasquale; Robert E.
Matthews (2000) IT Services: Costs, Metrics,
Benchmarking, and Market...
Why is marketing important?
• What is Marketing?
• Evolution of Marketing
• Implementing Marketing
• Market Classification
• Developing Marketing Stra...
• What is Marketing?
What is Marketing?
Marketing is a process of planning and executing the conception, pricing,Marketing is a process of plan...
What is Marketing?
Plan &
Execute
Exchange Satisfaction
Conception
Pricing
Promotion
Distribution
People &
Organisations
G...
8
SellingSelling BuyingBuying
Exchange
Distribution
TransportTransport StorageStorage
Selling
Buying
Selling
Buying
Transport
Storage
Facilitating functionsFacilitating functions
FinanceFinance
RiskRisk
TakingTaking
Standar...
Selling
Buying
Transport
Storage
Finance
Gather
Market
Info
8 Standardize
Risk
Taking
The marketing mix
Price Promotion Product Place
The marketing mix
Price Promotion Product Place
People Process Physicals
The marketing mix
Price Promotion Product Place
People Process Physicals
Personalization Peer to Peer Participation Predic...
2. Evolution of Marketing
19C WW1 20’s 30’s WW2 50’s 60’s 70’s 80’s 90’s Now
Advertising
industry
develops
Advertising
industry
develops
Customer
or...
Figure11.2Evolutionofthecustomerorientation
(Pride,Hughes&Kapoor,1998,p321)
20’s
30’s
50’s
60’s
19C
Now
Permission marketing
Now
The Marketing Concept
is a
business philosophy
that involves the
entire organization
in the
process of satisfying
customer...
The American Marketing
Association (AMA) states,
"Marketing is an
organizational function and
a set of processes for
creat...
3. Implementing Marketing
http://www.altadvertising.com/pdf%20files/salesvmarketing.pdf
Is Your Business "Sales" or "Marketing" Driven?
By Les Alten...
Understand
potential
and existing
customers
Identify
their wants
and needs
Look at the
market – are
their needs
being met?...
Organizations need to reflect on
implementation of marketing
concept
Ask questions:
Can the product be
improved?
Is it bei...
4. Market Classification
A group of individuals, organizations, or both that have needs for products in a given
category and the ability, willingne...
There are different types of marketsThere are different types of markets
ConsumerConsumer ResellerResellerIndustrialIndust...
ConsumerConsumer
Purchasers and/or household members whoPurchasers and/or household members who
intent to consume or benef...
Industrial
Purchases products for use in day-to-day operations or in making other products for
profit.
Producers consist o...
Resellers consist of intermediariesResellers consist of intermediaries
such as wholesalers, and retailerssuch as wholesale...
For the IT organization marketing entails
knowing primary internal markets
enterprise executives
operation and line managers
work-area managers
Production/end users
You need to predict their requirements,
develop feedback mechanisms for
performance, and services relevant to the
group
For example
Marketing to enterprise executives should focus on
governance issues
(e.g., decision making, funding, metrics, and archite...
Marketing to managers should focus on the changes and
possibilities caused by IT's impact on business and the
business's i...
5. Developing Marketing Strategies
A Marketing Strategy is a plan that will
enable an organization to make the best
use of its resources
Marketing Strategies
consist of
selection and analysis of
target market
&
creation and maintenance
of an appropriate
marke...
A target market is a group of
persons for whom a firm
develops and maintains a
marketing mix suitable for
their specific n...
How to select a Target Market
Examine potential markets for effects on
sales, costs and profits
Determine if you have sufficient resources
to produce marketing mix
Ensure fit with the organization’s overall
objectives
Analyze strength and number of competitor
already selling
Take either total market approach or
market segmentation approach
Figure 11.3Figure 11.3 General approaches for selecting target marketsGeneral approaches for selecting target markets
(Pri...
• Creating a Marketing Mix
– Common to use a wide variety of
segmentation bases (see Table 11.2)
– Organizations control i...
(Pride, Hughes & Kapoor, 1998, p325)(Pride, Hughes & Kapoor, 1998, p325)
Figure 11.4Figure 11.4 The marketing mix and the marketing environmentThe marketing mix and the marketing environment
(Pri...
6. Marketing Research
Marketing Research is the process of
systematically gathering, recording and
analyzing data concerning a particular
market...
Conducting marketing research:
1. define the problem
2. make a preliminary investigation
3. plan the research
4. gather fa...
Figure 11.5Figure 11.5 Marketing information systemMarketing information system
(Pride, Hughes & Kapoor, 1998, p331)(Pride...
Marketing Trends – Effect on IT Industry?
– Growth in prime spending group
– Decline in teenage population
– Increase in t...
7. Selling the Project
Buying and Buyers
Research shows buyers go through
identified stages when they buy
Figure 17.1 The buying cycle
(Cadle & Yates, 2005, p280)
Systems development projects have
buying committees and don’t often
follow the stages
Committee buying influences:
1. economic decision maker;
authority to spend
2. technical experts; evaluate
merit of soluti...
Selling is an asking process
People who are most successful in selling systems development project or
consultancy assignments ask lots of questions
Example:
customer’s situation
customer’s problems
implications of problems
payoff or benefit from meeting the
needs
Prepare proposal for a potential buyer.
When assessing proposals you should include:
1. terms of reference
2. technical de...
Who is the Target Market?
Review
• Marketing approaches have developed from a product-orientation
to a customer-orientation – IT industry slow to ca...
Next Week
Topic: Project Leadership.
Reading: Gray & Larson, 2006, Ch 10.
References
Pride, W., Hughes, R. & Kapoor, J. Bu...
http://flickr.com/photos/spine/272900992/
http://wendy.kinesisinc.com/
http://flickr.com/photos/7-how-7/95677126/
http://f...
BetterProjects.net
Title page pic care of rick & CC @ Flickr
http://flickr.com/photos/spine/272900992/
Week 05 - Marketing and Project Management
Week 05 - Marketing and Project Management
Week 05 - Marketing and Project Management
Week 05 - Marketing and Project Management
Week 05 - Marketing and Project Management
Week 05 - Marketing and Project Management
Week 05 - Marketing and Project Management
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  • This topic examines the following concepts:
    What is Marketing?
    Evolution of Marketing
    Implementing Marketing
    Market Classification
    Developing Marketing Strategies
    Marketing Research
    Selling the Project
  • This topic examines the following concepts:
    What is Marketing?
    Evolution of Marketing
    Implementing Marketing
    Market Classification
    Developing Marketing Strategies
    Marketing Research
    Selling the Project
  • What is Marketing?
    Def: Marketing is a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives
    Market process involves eight major functions and numerous activities (See Table 11.1)
  • What is Marketing?
    Def: Marketing is a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives
    Market process involves eight major functions and numerous activities (See Table 11.1)
  • Evolution of Marketing
    Production Orientation
    (industrial revolution-) emphasis placed on increased output and production efficiency
    Manufacturers could plan on selling nearly everything produced
    Marketing limited to taking orders and distributing finished goods
    (1920’s) production began to catch demand
    (1950’s) business people realized that enormous advertising and proven sales techniques were not enough
    (1950’s) … adopted a customer orientation. Organization’s determined what customer need and then developed goods and service that filled those needs
    Computer industry slow to catch on, eg. Software and hardware compatibility
  • Evolution of Marketing
    Production Orientation
    (industrial revolution-) emphasis placed on increased output and production efficiency
    Manufacturers could plan on selling nearly everything produced
    Marketing limited to taking orders and distributing finished goods
    (1920’s) production began to catch demand
    (1950’s) business people realized that enormous advertising and proven sales techniques were not enough
    (1950’s) … adopted a customer orientation. Organization’s determined what customer need and then developed goods and service that filled those needs
    Computer industry slow to catch on, eg. Software and hardware compatibility
  • This topic examines the following concepts:
    What is Marketing?
    Evolution of Marketing
    Implementing Marketing
    Market Classification
    Developing Marketing Strategies
    Marketing Research
    Selling the Project
  • What is the Marketing Concept?
    Def: the business philosophy that involved the entire organization in the process of satisfying customers’ needs while achieving the organization’s goals
    Adopted by many most successful business firms:
    Apple
    Ford
  • What is the Marketing Concept?
    Def: the business philosophy that involved the entire organization in the process of satisfying customers’ needs while achieving the organization’s goals
    Adopted by many most successful business firms:
    Apple
    Ford
  • To implement the marketing concept:
    Obtain information about customers and potential customers
    Determine what customers needs are
    Determine how well those needs are being satisfied by current products on the market – both its own and competitors
    Ascertain how its products might be improved
    Ascertain what customers think of the firm and its marketing efforts
    Use previous to pinpoint specific needs of potential customers to direct its marketing activities and resources
    Mobilize marketing resources to:
    provide a product that will satisfy customers
    price it at a level that is acceptable to buyers and that will yield a profit
    promote the product so that potential customers will be aware of its existence and it ability to satisfy their needs
    distribute product so that it is available to customers where and when needed
  • Organizations need to reflect on implementation of marketing concept
    Once again obtain marketing information
    Ask questions:
    Can the product be improved?
    Is it being promoted properly?
    Is it being distributed efficiently?
    Is the price too high?
    Make modifications on basis of this feedback
  • This topic examines the following concepts:
    What is Marketing?
    Evolution of Marketing
    Implementing Marketing
    Market Classification
    Developing Marketing Strategies
    Marketing Research
    Selling the Project
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • What is a Market?
    Def: group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products
    Markets are classified as:
    Consumer: purchasers and/or household members who intent to consume or benefit from the purchased products and who do not buy products in order to make a profit
    Industrial: purchases products for use in day-to-day operations or in making other products for profit:
    producer: consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
    government: all levels, purchase goods and services to maintain operations and to provide citizens with products such as; roads, education, water, defense
    institutional: include churches, civic clubs, charitable groups. Not driven by profit, ROI
    Reseller: consist of intermediaries such as wholesalers, and retailers who buy finished products and sell them for profit.
    For the IT organization, marketing entails knowing primary internal markets; enterprise executives, operation and line managers, work-area managers, and production end users investigating
    Need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    For example:
    marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    marketing to business managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
  • This topic examines the following concepts:
    What is Marketing?
    Evolution of Marketing
    Implementing Marketing
    Market Classification
    Developing Marketing Strategies
    Marketing Research
    Selling the Project
  • Total Market Approach:
    When a company designs a single marketing mix and directs it at the entire market for a particular product, it is using a total market approach. This approach assumes that individual customers in the target market for a specific kind of product have a similar needs, and therefore the organization can satisfy most customers with a single marketing mix.
    Market Segmentation Approach:
    A firm that is marketing 40-foot yachts would not direct its marketing effort toward every person in the total boat market. Some might want kayak or a canoe. Others might want a speed boat. Instead the firm would direct its attention toward a particular portion, or segment, of the total market for boats.
  • This topic examines the following concepts:
    What is Marketing?
    Evolution of Marketing
    Implementing Marketing
    Market Classification
    Developing Marketing Strategies
    Marketing Research
    Selling the Project
  • This topic examines the following concepts:
    What is Marketing?
    Evolution of Marketing
    Implementing Marketing
    Market Classification
    Developing Marketing Strategies
    Marketing Research
    Selling the Project
  • Selling Process
    Selling is an asking process
    People who are most successful in selling systems development project or consultancy assignments ask lots of questions
    Example:
    customer’s situation
    customer’s problems
    implications of problems
    payoff or benefit from meeting the needs
    Prepare proposal for potential buyer. Assess proposal, should include:
    terms of reference
    technical details of the solution
    outlines advantages
    aimed at all readers/buyers
    clear diagrams
    cross-references and navigational aids
    summarized statement of costs
    executive summary
  • Selling Process
    Selling is an asking process
    People who are most successful in selling systems development project or consultancy assignments ask lots of questions
    Example:
    customer’s situation
    customer’s problems
    implications of problems
    payoff or benefit from meeting the needs
    Prepare proposal for potential buyer. Assess proposal, should include:
    terms of reference
    technical details of the solution
    outlines advantages
    aimed at all readers/buyers
    clear diagrams
    cross-references and navigational aids
    summarized statement of costs
    executive summary
  • Selling Process
    Selling is an asking process
    People who are most successful in selling systems development project or consultancy assignments ask lots of questions
    Example:
    customer’s situation
    customer’s problems
    implications of problems
    payoff or benefit from meeting the needs
    Prepare proposal for potential buyer. Assess proposal, should include:
    terms of reference
    technical details of the solution
    outlines advantages
    aimed at all readers/buyers
    clear diagrams
    cross-references and navigational aids
    summarized statement of costs
    executive summary
  • Selling Process
    Selling is an asking process
    People who are most successful in selling systems development project or consultancy assignments ask lots of questions
    Example:
    customer’s situation
    customer’s problems
    implications of problems
    payoff or benefit from meeting the needs
    Prepare proposal for potential buyer. Assess proposal, should include:
    terms of reference
    technical details of the solution
    outlines advantages
    aimed at all readers/buyers
    clear diagrams
    cross-references and navigational aids
    summarized statement of costs
    executive summary
  • Apple, Microsoft Internet Explorer, Ne Traverse, Wipro
  • Apple, Microsoft Internet Explorer, Ne Traverse, Wipro
  • Apple, Microsoft Internet Explorer, Ne Traverse, Wipro
  • Apple, Microsoft Internet Explorer, Ne Traverse, Wipro
  • Apple, Microsoft Internet Explorer, Ne Traverse, Wipro
  • Transcript of "Week 05 - Marketing and Project Management"

    1. 1. Project ManagementProject Management 4. Marketing and Project Management4. Marketing and Project Management
    2. 2. week 5
    3. 3. Anthony F. Tardugno; Thomas R. DiPasquale; Robert E. Matthews (2000) IT Services: Costs, Metrics, Benchmarking, and Marketingby Prentice Hall, ISBN- 10: 0-13-019195-7Print ISBN-13: 978-0-13-019195-3, Chapter 5 James Cadle and Donald Yeates (2004) Project Management for Information Systems, Pearson Education, ISBN 0 273 68580 5, Chapter 17
    4. 4. Why is marketing important?
    5. 5. • What is Marketing? • Evolution of Marketing • Implementing Marketing • Market Classification • Developing Marketing Strategies • Marketing Research • Selling the Project
    6. 6. • What is Marketing?
    7. 7. What is Marketing? Marketing is a process of planning and executing the conception, pricing,Marketing is a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchangespromotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectivesthat satisfy individual and organizational objectives
    8. 8. What is Marketing? Plan & Execute Exchange Satisfaction Conception Pricing Promotion Distribution People & Organisations Goods and Services
    9. 9. 8
    10. 10. SellingSelling BuyingBuying Exchange
    11. 11. Distribution TransportTransport StorageStorage Selling Buying
    12. 12. Selling Buying Transport Storage Facilitating functionsFacilitating functions FinanceFinance RiskRisk TakingTaking StandardizeStandardize GatherGather MarketMarket InfoInfo
    13. 13. Selling Buying Transport Storage Finance Gather Market Info 8 Standardize Risk Taking
    14. 14. The marketing mix Price Promotion Product Place
    15. 15. The marketing mix Price Promotion Product Place People Process Physicals
    16. 16. The marketing mix Price Promotion Product Place People Process Physicals Personalization Peer to Peer Participation Predictive models
    17. 17. 2. Evolution of Marketing
    18. 18. 19C WW1 20’s 30’s WW2 50’s 60’s 70’s 80’s 90’s Now Advertising industry develops Advertising industry develops Customer orientation Customer orientation WhatNext?WhatNext? Industrial Revolution Demand outpacedsupply Industrial Revolution Demand outpacedsupply Production exceedssupply Production exceedssupply MarketingMix (4Ps) MarketingMix (4Ps)
    19. 19. Figure11.2Evolutionofthecustomerorientation (Pride,Hughes&Kapoor,1998,p321) 20’s 30’s 50’s 60’s 19C Now
    20. 20. Permission marketing Now
    21. 21. The Marketing Concept is a business philosophy that involves the entire organization in the process of satisfying customers needs while achieving organizational goals
    22. 22. The American Marketing Association (AMA) states, "Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” www.marketingpower.com
    23. 23. 3. Implementing Marketing
    24. 24. http://www.altadvertising.com/pdf%20files/salesvmarketing.pdf Is Your Business "Sales" or "Marketing" Driven? By Les Altenberg
    25. 25. Understand potential and existing customers Identify their wants and needs Look at the market – are their needs being met? Can you deliver the goods? Can you do it well, fast or cheap? How do customers feel about your brand image? Look at specific customer stories Mobilize your resources Build and sell your product
    26. 26. Organizations need to reflect on implementation of marketing concept Ask questions: Can the product be improved? Is it being promoted properly? Is it being distributed efficiently? Is the price too high? Make modifications on basis of this feedback
    27. 27. 4. Market Classification
    28. 28. A group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such products What is a Market?
    29. 29. There are different types of marketsThere are different types of markets ConsumerConsumer ResellerResellerIndustrialIndustrial ProducerProducer GovernmentGovernment InstitutionalInstitutional
    30. 30. ConsumerConsumer Purchasers and/or household members whoPurchasers and/or household members who intent to consume or benefit from theintent to consume or benefit from the purchased products and who do not buypurchased products and who do not buy products in order to make a profitproducts in order to make a profit Consumer ResellerIndustrial Producer Government Institutional
    31. 31. Industrial Purchases products for use in day-to-day operations or in making other products for profit. Producers consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products Governments at all levels, purchase goods and services to maintain operations and to provide citizens with products such as roads, education, water, defense And institutional organizations include churches, civic clubs, charitable groups. Not driven by profit, ROI Consumer ResellerIndustrial Producer Government Institutional
    32. 32. Resellers consist of intermediariesResellers consist of intermediaries such as wholesalers, and retailerssuch as wholesalers, and retailers who buy finished products and sellwho buy finished products and sell them for profit.them for profit. Consumer ResellerIndustrial Producer Government Institutional
    33. 33. For the IT organization marketing entails knowing primary internal markets
    34. 34. enterprise executives
    35. 35. operation and line managers
    36. 36. work-area managers
    37. 37. Production/end users
    38. 38. You need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group
    39. 39. For example
    40. 40. Marketing to enterprise executives should focus on governance issues (e.g., decision making, funding, metrics, and architecture)
    41. 41. Marketing to managers should focus on the changes and possibilities caused by IT's impact on business and the business's impact on IT
    42. 42. 5. Developing Marketing Strategies
    43. 43. A Marketing Strategy is a plan that will enable an organization to make the best use of its resources
    44. 44. Marketing Strategies consist of selection and analysis of target market & creation and maintenance of an appropriate marketing mix.
    45. 45. A target market is a group of persons for whom a firm develops and maintains a marketing mix suitable for their specific needs and preferences
    46. 46. How to select a Target Market
    47. 47. Examine potential markets for effects on sales, costs and profits
    48. 48. Determine if you have sufficient resources to produce marketing mix
    49. 49. Ensure fit with the organization’s overall objectives
    50. 50. Analyze strength and number of competitor already selling
    51. 51. Take either total market approach or market segmentation approach
    52. 52. Figure 11.3Figure 11.3 General approaches for selecting target marketsGeneral approaches for selecting target markets (Pride, Hughes & Kapoor, 1998, p324)(Pride, Hughes & Kapoor, 1998, p324)
    53. 53. • Creating a Marketing Mix – Common to use a wide variety of segmentation bases (see Table 11.2) – Organizations control important elements of marketing which must combine in a way to reach the target market (marketing mix) – Organizations can vary elements of the marketing mix • product; design, brand name, packaging … • price; base price, discounts • distribution; storage, transportation • promotion; information
    54. 54. (Pride, Hughes & Kapoor, 1998, p325)(Pride, Hughes & Kapoor, 1998, p325)
    55. 55. Figure 11.4Figure 11.4 The marketing mix and the marketing environmentThe marketing mix and the marketing environment (Pride, Hughes & Kapoor, 1998, p327)(Pride, Hughes & Kapoor, 1998, p327)
    56. 56. 6. Marketing Research
    57. 57. Marketing Research is the process of systematically gathering, recording and analyzing data concerning a particular marketing problem
    58. 58. Conducting marketing research: 1. define the problem 2. make a preliminary investigation 3. plan the research 4. gather factual information 5. interpret the information 6. reach a conclusion
    59. 59. Figure 11.5Figure 11.5 Marketing information systemMarketing information system (Pride, Hughes & Kapoor, 1998, p331)(Pride, Hughes & Kapoor, 1998, p331)
    60. 60. Marketing Trends – Effect on IT Industry? – Growth in prime spending group – Decline in teenage population – Increase in the number of senior citizens – Better educated population, with greater purchasing power – Greater number of women working – Shorter workweek; more leisure time
    61. 61. 7. Selling the Project
    62. 62. Buying and Buyers Research shows buyers go through identified stages when they buy
    63. 63. Figure 17.1 The buying cycle (Cadle & Yates, 2005, p280)
    64. 64. Systems development projects have buying committees and don’t often follow the stages
    65. 65. Committee buying influences: 1. economic decision maker; authority to spend 2. technical experts; evaluate merit of solution 3. end-users; indirect effect on purchase, concerned about affect on them 4. champion or coach; assist in preparing solution
    66. 66. Selling is an asking process
    67. 67. People who are most successful in selling systems development project or consultancy assignments ask lots of questions
    68. 68. Example: customer’s situation customer’s problems implications of problems payoff or benefit from meeting the needs
    69. 69. Prepare proposal for a potential buyer. When assessing proposals you should include: 1. terms of reference 2. technical details of the solution 3. outlines advantages 4. aimed at all readers/buyers 5. clear diagrams 6. cross-references and navigational aids 7. summarized statement of costs 8. executive summary
    70. 70. Who is the Target Market?
    71. 71. Review • Marketing approaches have developed from a product-orientation to a customer-orientation – IT industry slow to catch on. • Markets are groups that have needs for products and can be classified as; consumer, industrial, and reseller. • Marketing strategy is a plan to make the best use of resources, and consists of the target market, and marketing mix. • Marketing research can provide valuable information such as; education, retirement age, birth rates etc… to project managers. • Buyers progress through stages when they buy, these include; need, options, concerns, implementation and change. Large IT projects have buying committees. • Selling is a process of asking, and includes creation of proposal for buyer includes; terms, details, advantages, diagrams etc…
    72. 72. Next Week Topic: Project Leadership. Reading: Gray & Larson, 2006, Ch 10. References Pride, W., Hughes, R. & Kapoor, J. Business (2nd ed.). Boston, MA.: Houghton Mifflin.
    73. 73. http://flickr.com/photos/spine/272900992/ http://wendy.kinesisinc.com/ http://flickr.com/photos/7-how-7/95677126/ http://flickr.com/photos/missrogue/115899126/in/photostream/ http://flickr.com/photos/liveu4/134980839/ http://flickr.com/photos/liveu4/133041494/in/photostream/ http://flickr.com/photos/roadsidepictures/225771856/ http://flickr.com/photos/furnari/126438084/ http://flickr.com/photos/untitlism/2609684221/ http://flickr.com/photos/jek-a-go-go/1235462170/ http://flickr.com/photos/26158685@N04/2767676288/ http://flickr.com/photos/edyson/516871444/ http://flickr.com/photos/dunechaser/160405659/ http://flickr.com/photos/peterkaminski/860512054/ http://flickr.com/photos/mateus27_24-25/2224073271/ http://flickr.com/photos/storeyland/343438012/ http://flickr.com/photos/mattandbecky/28052539/ http://flickr.com/photos/calavera/65098350/
    74. 74. BetterProjects.net Title page pic care of rick & CC @ Flickr http://flickr.com/photos/spine/272900992/

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