This document discusses marketing and project management. It begins with definitions of marketing as planning and executing the conception, pricing, promotion, and distribution of goods and services to create exchanges that satisfy objectives. It describes the evolution of marketing from an emphasis on advertising to a customer-oriented approach. It discusses implementing marketing through understanding customers and competitors. It covers market classification and developing marketing strategies through selecting target markets and creating appropriate marketing mixes. It also discusses the importance of marketing research and selling projects by understanding buying committees and stages of buying. The overall summary is that marketing is important for project management by understanding customers and competitors to effectively plan and sell projects.
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
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. What is Marketing?
Plan &
Execute
Exchange Satisfaction
Conception
Pricing
Promotion
Distribution
People &
Organisations
Goods and
Services
22. The Marketing Concept
is a
business philosophy
that involves the
entire organization
in the
process of satisfying
customers needs
while achieving organizational goals
23. 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
27. 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
28.
29. 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
31. 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?
32. There are different types of marketsThere are different types of markets
ConsumerConsumer ResellerResellerIndustrialIndustrial
ProducerProducer
GovernmentGovernment
InstitutionalInstitutional
33. 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
34. 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
35. 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
36. For the IT organization marketing entails
knowing primary internal markets
55. 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)
56. • 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
60. Marketing Research is the process of
systematically gathering, recording and
analyzing data concerning a particular
marketing problem
61. 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
62. Figure 11.5Figure 11.5 Marketing information systemMarketing information system
(Pride, Hughes & Kapoor, 1998, p331)(Pride, Hughes & Kapoor, 1998, p331)
63. 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
68. 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
72. 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
78. 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…
79. 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.
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