Week 05 - Marketing and Project Management

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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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