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ProjectManagement
4.MarketingandProjectManagementweek5AnthonyF.Tardugno;ThomasR.DiPasquale;RobertE.Matthews(2000)ITServices:Costs,Metrics,Benchmarking,andMarketingbyPrenticeHall,ISBN-10:0-13-019195-7PrintISBN-13:978-0-13-019195-3,Chapter5
JamesCadleandDonaldYeates(2004)ProjectManagementforInformationSystems,PearsonEducation,ISBN0273685805,Chapter17Whyismarketingimportant?WhatisMarketing?EvolutionofMarketingImplementingMarketingMarketClassificationDevelopingMarketingStrategiesMarketingResearch
SellingtheProjectWhatisMarketing?WhatisMarketing?Marketingisaprocessofplanningandexecutingtheconception,pricing,promotion,anddistributionofideas,goodsandservicestocreateexchangesthatsatisfyindividualandorganizationalobjectivesWhatisMarketing?Plan&ExecuteExchangeSatisfactionConceptionPricingPromotionDistributionPeople&OrganisationsGoodsandServices8SellingBuyingExchangeDistributionTransportStorageSellingBuyingSellingBuyingTransportStorageFacilitatingfunctionsFinanceRiskTakingStandardizeGatherMarketInfoSellingBuyingTransportStorageFinanceGatherMarketInfo8StandardizeRiskTakingThemarketingmixPricePromotionProductPlaceThemarketingmixPricePromotionProductPlacePeopleProcessPhysicalsThemarketingmixPricePromotionProductPlacePeopleProcessPhysicalsPersonalizationPeertoPeerParticipationPredictivemodels2.EvolutionofMarketing19CWW120’s30’sWW250’s60’s70’s80’s90’sNowAdvertisingindustrydevelopsCustomerorientationWhatNext?IndustrialRevolutionDemandoutpacedsupplyProductionexceedssupplyMarketingMix(4Ps)Figure11.2Evolutionofthecustomerorientation
(Pride,Hughes&Kapoor,1998,p321)20’s30’s50’s60’s19CNowPermissionmarketingNowTheMarketingConceptisabusinessphilosophythatinvolvestheentireorganization
intheprocessofsatisfyingcustomersneeds
whileachievingorganizationalgoalsTheAmericanMarketingAssociation(AMA)states,"Marketingisanorganizationalfunctionandasetofprocessesforcreating,communicatinganddeliveringvaluetocustomersandformanagingcustomerrelationshipsinwaysthatbenefittheorganizationanditsstakeholders.〞3.ImplementingMarketing
IsYourBusiness"Sales"or"Marketing"Driven?ByLesAltenbergUnderstandpotentialandexistingcustomersIdentifytheirwantsandneedsLookatthemarket–aretheirneedsbeingmet?Canyoudeliverthegoods?Canyoudoitwell,fastorcheap?Howdocustomersfeelaboutyourbrandimage?LookatspecificcustomerstoriesMobilizeyourresourcesBuildandsellyourproductOrganizationsneedtoreflectonimplementationofmarketingconceptAskquestions:Cantheproductbeimproved?Isitbeingpromotedproperly?Isitbeingdistributedefficiently?Isthepricetoohigh?Makemodificationsonbasisofthisfeedback4.MarketClassificationAgroupofindividuals,organizations,orboththathaveneedsforproductsinagivencategoryandtheability,willingness,andauthoritytopurchasesuchproductsWhatisaMarket?TherearedifferenttypesofmarketsConsumerResellerIndustrialProducerGovernmentInstitutionalConsumerPurchasersand/orhouseholdmemberswhointenttoconsumeorbenefitfromthepurchasedproductsandwhodonotbuyproductsinordertomakeaprofitConsumerResellerIndustrialProducerGovernmentInstitutionalIndustrialPurchasesproductsforuseinday-to-dayoperationsorinmakingotherproductsforprofit.ProducersconsistofindividualsandbusinessorganizationsthatintendtomakeaprofitbybuyingcertainproductstouseinthemanufactureofotherproductsGovernmentsatalllevels,purchasegoodsandservicestomaintainoperationsandtoprovidecitizenswithproductssuchasroads,education,water,defenseAndinstitutionalorganizationsincludechurches,civicclubs,charitablegroups.Notdrivenbyprofit,ROIConsumerResellerIndustrialProducerGovernmentInstitutionalResellersconsistofintermediariessuchaswholesalers,andretailerswhobuyfinishedproductsandsellthemforprofit.ConsumerResellerIndustrialProducerGovernmentInstitutionalFortheITorganizationmarketingentailsknowingprimaryinternalmarketsenterpriseexecutivesoperationandlinemanagerswork-areamanagersProduction/endusersYouneedtopredicttheirrequirements,developfeedbackmechanismsforperformance,andservicesrelevanttothegroupForexampleMarketingtoenterpriseexecutivesshouldfocusongovernanceissues(e.g.,decisionmaking,funding,metrics,andarchitecture)MarketingtomanagersshouldfocusonthechangesandpossibilitiescausedbyIT'simpactonbusinessandthebusiness'simpactonIT5.DevelopingMarketingStrategiesAMarketingStrategyisaplanthatwillenableanorganizationtomakethebestuseofitsresourcesMarketingStrategiesconsistofselectionandanalysisoftargetmarket&creationandmaintenanceofanappropriatemarketingmix.AtargetmarketisagroupofpersonsforwhomafirmdevelopsandmaintainsamarketingmixsuitablefortheirspecificneedsandpreferencesHowtoselectaTargetMarketExaminepotentialmarketsforeffectsonsales,costsandprofitsDetermineifyouhavesufficientresourcestoproducemarketingmixEnsurefitwiththeorganization’soverallobjectivesAnalyzestrengthandnumberofcompetitoralreadysellingTakeeithertotalmarketapproachormarketsegmentationapproachFigure11.3Generalapproachesforselectingtargetmarkets
(Pride,Hughes&Kapoor,1998,p324)CreatingaMarketingMixCommontouseawidevarietyofsegmentationbases(seeTable11.2)Organizationscontrolimportantelementsofmarketingwhichmustcombineinawaytoreachthetargetmarket(marketingmix)Organizationscanvaryelementsofthemarketingmixproduct;design,brandname,packaging…price;baseprice,discountsdistribution;storage,transportationpromotion;information
(Pride,Hughes&Kapoor,1998,p325)Figure11.4Themarketingmixandthemarketingenvironment
(Pride,Hughes&Kapoor,1998,p327)6.MarketingResearch
MarketingResearchistheprocessofsystematicallygathering,recordingandanalyzingdataconcerningaparticularmarketingproblemConductingmarketingresearch:definetheproblemmakeapreliminaryinvestigationplantheresearchgatherfactualinformationinterprettheinformationreachaconclusionFigure11.5Marketinginformationsystem
(Pride,Hughes&Kapoor,1998,p331)MarketingTrends–EffectonITIndustry?GrowthinprimespendinggroupDeclineinteenagepopulationIncreaseinthenumberofseniorcitizensBettereducatedpopulation,withgreaterpurchasingpowerGreaternumberofwomenworkingShorterworkweek;moreleisuretime7.SellingtheProjectBuyingandBuyersResearchshowsbuyersgothroughidentifiedstageswhentheybuyFigure17.1Thebuyingcycle
(Cadle&Yates,2005,p280)Systemsdevelopmentprojectshavebuyingcommitteesanddon’toftenfollowthestagesCommitteebuyinginfluences:economicdecisionmaker;authoritytospendtechnicalexperts;evaluatemeritofsolutionend-users;indirecteffectonpurchase,concernedaboutaffectonthemchampionorcoach;assistinpreparingsolutionSellingisanaskingprocessPeoplewhoaremostsuccessfulinsellingsystemsdevelopmentprojectorconsultancyassignmentsasklotsofquestionsExample:customer’ssituationcustomer’sproblemsimplicationsofproblemspayofforbenefitfrommeetingtheneedsPrepareproposalforapotentialbuyer.
Whenassessingproposalsyoushouldinclude:termsofreferencetechnicaldetailsofthesolutionoutlinesadvantagesaimedatallreaders/buyerscleardiagramscross-referencesandnavigationalaidssummarizedstatementofcostsexecutivesummaryWhoistheTargetMarket?ReviewMarketingapproacheshavedevelopedfromaproduct-orientationtoacustomer-orientation–ITindustryslowtocatchon.Marketsaregroupsthathaveneedsforproductsandcanbeclassifiedas;consumer,industrial,andreseller.Marketingstrategyisaplantomakethebestuseofresources,andconsistsofthetargetmarket,andmarketingmix.Marketingresearch
canprovidevaluableinformationsuchas;education,retirementage,birthratesetc…toprojectmanagers.Buyersprogress
throughstageswhentheybuy,theseinclude;need,options,concerns,implementationandchange.LargeITprojectshavebuyingcommittees.Sellingisaprocess
ofasking,andincludescreationofproposalforbuyerincludes;terms,details,advantages,diagramsetc…NextWeekTopic:ProjectLeadership.Reading:Gray&Larson,2006,Ch10.ReferencesPride,W.,Hughes,R.
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