A case study of customer needs identification in computer

A Case Study of Customer Needs Identification in Computer Technology

by

EDIP SENYUREK

Dissertation submitted in partial fulfillment of the requirements for degree

Magister Ingeneriae

in

Engineering Management

in the

FACULTY OF ENGINEERING

at the

RAND AFRIKAANS UNIVERSITY

SUPERVISOR: PROF. LEON PRETORIUS

July 2001 Johannesburg

Engineering Management Abstract

ABSTRACT

Nowadays successful companies realize that placing the customers' needs first is so

important that it must be an attitude of all departments within the business, an attitude

of everyone involved in the business and staff at large. They have to understand that

the success of a company depends on customers.

This research report will aim to emphasize that it is crucial for companies to satisfy

and meet customer needs. Thus, the identification of customer needs, the satisfaction

of customers and to satisfy the customers establishing product specifications are

emphasized.

The applications of the methods and techniques of the process of customer needs

identification of a commercial product will be demonstrated and compared on a

Turkish computer company and a South African computer company. As the market

place, the South African and the Turkish computer market, as the commercial product,

a computer and as the computer companies, the Surat computer company and the

Microstar computer systems company will be chosen in the case study. The results of

the case study will be presented in an integrated manner with the literature study.

This report will be based on a case study of customer needs identification in computer

technology.

Edip Senyurek

Engineering Management Acknowledgements

ACKNOWLEDGEMENTS

My first thanks go to my supervisor PROFESSOR LEON PRETORIUS for the

opportunity to do this research and for his patience, guidance, assistance,

encouragement, and moral support.

Thanks to my friends, Mr. Sakir Kucuk, Mr. Ahmet Mete Tras, Mr. Tarik

Curhan Imre, Mr. Zafer Soyertas, Mr. Ismail Bayindir, Mr. Faruk Turkmen,

Mr. Gokhan Uzun, Mr. Besim Ufuk Balci, Mr.,Mehmet Naci Kaya, Mr. Hain

Yurtsever and Ms. Lydia Moyimane for being helpful, encouraging, and supportive

during preparation of this research report.

Thanks to Microstar computer systems company for their permission to use the

research conducted by their company's executives in South Africa and my special

thanks to Mr. Iqbal Hassim whose knowledge I had access to.

Thanks to Surat computer company for their permission to use the research conducted

by their company's executives in Turkey and my special thanks to Mr. Seyfullah

Gene and Mr. Ahmet Cakar whose knowledge I had access to.

A special thanks to my dear mother Binnaz SENYUREK and my dear brother Eser

SENYUREK, for their prayers, supportive and encouragement from Turkey.

And, finally, thanks to my father ISMAIL SENYUREK, who has passed away on 5

May 1999, for his valuable contribution while he was alive.

Edip Senyurek 11

Engineer Management Abbreviations

ABBREVIATIONS

Fecom: Firat Electric, Electronic and Computers

CPU: Central Processing Unit

Su: Sunday

M: Monday

Tu: Tuesday

W: Wednesday

Th: Thursday

F: Friday

Sa: Saturday

Qtr: Quarter

JHB: Johannesburg

Edip Senyurek Ill

Engineering Management Contents

CONTENTS

ABSTRACT

ACKNOWLEDGEMENTS II

ABBREVIATIONS III

CONTENTS IV

LIST OF FIGURES VII

LIST OF TABLES X

CHAPTER 1: INTRODUCTION AND RESEARCH

PROPOSAL

1.1. INTRODUCTION 1

1.2. PROBLEM STATEMENT

1.3. INTRODUCTORY BACKGROUND 3

1.3.1. SURAT COMPUTER COMPANY 3

1.3.2. MICROSTAR COMPUTER SYSTEMS 4

1.4. STUDY OBJECTIVES 4

1.5. CHAPTER OUTLINE S

1.6. CONCLUSION 6

CHAPTER 2: IDENTIFYING CUSTOMER NEEDS 8

2.1. INTRODUCTION

2.2. CUSTOMER NEEDS AND WANTS

Edip Senyurek IV


2.3. CUSTOMER NEEDS IDENTIFICATION 11

2.3.1. DEFINE THE SCOPE OF THE EFFORT 12

2.3.2. GATHER RAW DATA FROM CUSTOMERS 14

2.3.3. INTERPRET RAW DATA IN TERMS OF CUSTOMER

NEEDS 18

2.3.4. ORGANIZE THE NEEDS INTO A HIERARCHY 20

2.3.5. ESTABLISH THE RELATIVE IMPORTANCE OF THE

NEEDS 22

2.3.6. REFLECT ON THE RESULTS AND THE PROCESS 30

2.4. CONCLUSION 31

CHAPTER 3: ESTABLISHING A PRODUCT

SPECIFICATION 33

3.1. INTRODUCTION 33

3.2. ESTABLISHING TARGET SPECIFICATIONS 34

3.2.1. PREPARE THE LIST OF METRICS 34

3.2.2. COLLECT SOME COMPETITIVE BENCHMARKING

INFORMATION 36

3.2.3. SET IDEAL AS WELL AS MARGINALLY ACCEPTABLE

TARGET VALUES FOR EACH METRIC 40

3.3. REFINING THE SPECIFICATIONS 41

3.3.1. DEVELOP TECHNICAL MODELS OF THE PRODUCT 41

3.3.2. DEVELOP A COST MODEL OF THE PRODUCT 42

3.3.3. REFINE THE SPECIFICATIONS, MAKING TRADE-OFFS

WHERE NECESSARY 45

3.3.4. REFLECT ON THE RESULTS AND THE PROCESS 45

3.4. CONCLUSION 46

Edip Senyurek V


CHAPTER 4: CUSTOMER ANALYSIS

48


4.2. CUSTOMER ANALYSIS 48

4.2.1. CATEGORIES OF CUSTOMERS 49

4.2.1.1. Consumer Customers 53

4.2.1.2. Business Customers 54

4.2.1.3. Nonprofit Customers 54

4.2.2. THE LOCATION OF THE PRODUCT 54

4.2.3. PRODUCT SALES TIME 57

4.2.3.1. Adapting to Customer Buying Patterns 61

4.2.4. CUSTOMERS BUY THEIR NEED AND WANTS 62

4.2.5. CUSTOMER BUYING PROCCESS 63

4.2.5.1. Recognition of Problem or Need 63

4.2.5.2. Search for Alternatives and Information 64

4.2.5.3. Purchase 65

4.2.5.4. Post-purchase Behavior 65

4.2.6. REASONS FOR SELECTING THE PRODUCT 66

4.2.7. BECOMING CUSTOMER ORIENTED 69

4.2.7.1. Customer Checklist 69

4.2.5.2. Plant Tours and Customer Visits 71

4.4. CONCLUSION

71

CHAPTER 5: CONCLUSION

73


5.2. OVERVIEW OF THE RESEARCH 74

5.3. CONCLUSION 75

REFERENCES

77

Edip Senyurek VI

Engineering Management List of Figures

LIST OF FIGURES

Figure 2.1. The marketing concept [1]

Figure 2.2. The customer needs activity in relation to other concept

development activity [12] 11

Figure 2.3.a. The chart of results of the interviews in South Africa

for Microstar computer systems company 24

Figure 2.3.b. The chart of results of the interviews in South Africa


Figure 2.3.c. The chart of results of the interviews in South Africa


Figure 2.3.d. The chart of results of the interviews in South Africa


Figure 2.3.e. The chart of results of the interviews in South Africa


Figure 2.3.f. The chart of results of the interviews in South Africa


Figure 2.3.g. The chart of results of the interviews in South Africa


Figure 2.4.a. The chart of results of the interviews in Turkey for

Surat computer company 27

Edip Senyurek VII

Engineering Management List of Figures

Figure 2.4.b. The chart of results of the interviews in Turkey for


Figure 2.4.c. The chart of results of the interviews in Turkey for


Figure 2.4.d. The chart of results of the interviews in Turkey for


Figure 2.4.e. The chart of results of the interviews in Turkey for


Figure 2.4.f. The chart of results of the interviews in Turkey for


Figure 2.4.g. The chart of results of the interviews in Turkey for


Figure 3.1. The customer needs activity in relation to other concept

development activities [12] 33

Figure 3.2. The type of models adapted from 42

Figure 4.1.a. Categorization of customers 51

Figure 4.1.b. Categorization of customers 51

Figure 4.1.c. Categorization of customers 52

Figure 4.1.d. Categorization of customers 52

Figure 4.1.e. Categorization of customers 53

Figure 4.2. The location of Microstar computer systems company's customers 55

Edip Senyurek VIII


List of Figures

Figure 4.3. The location of Surat computer company's customers

56

Figure 4.4. Microstar computer systems company sales by quarter

58

Figure 4.5. Microstar computer systems company sales by day of week 59

Figure 4.6. Surat computer company sales by quarter 60

Figure 4.7. Surat computer company sales by day of week 61

Figure 4.8. Customer buying process [5] 63

Figure 4.9. Factors influencing problem recognition [5] 63

Figure 4.10. The search process [5] 64

Figure 4.11. The purchase decision [5] 65

Figure 4.12. Post-purchase behavior [5] 66

Figure 4.13. Customer focused marketing [20] 69

Edip Senyurek IX

Engineering Management List of Tables

LIST OF TABLES

Table 2.1. Mission statement for Microstar computer systems company

in South Africa [11] 13

Table 2.2. Mission statement for Surat computer company in Turkey [9] 14

Table 2.3. Customer data template filled in with sample customer

statements and interpreted needs in South Africa 16

Table 2.4. Customer data template filled in with sample customer

statements and interpreted needs in Turkey 17

Table 2.5. Interpreted guidelines for writing a need statement 19

Table 2.6. The results of the interviews in South Africa for Microstar

computer systems company 20

Table 2.7. Hierarchical list of customer needs for Microstar computer

systems company 21

Table 2.8. The results of the interviews in Turkey for Surat computer company 21

Table 2.9. Hierarchical list of customer needs for Surat computer company 22

Table 2.10. Example importance survey for Microstar computer systems

company and Surat computer company 23

Table 3.1. List of metrics for a typical personal computer 35

Table 3.2. The needs-metrics matrix for Microstar computer system company

and Surat computer company 35

Edip Senyurek X


Table 3.3.a. Interpreted competitive benchmarking chart based on

the metrics in South Africa 37

Table 3.3.b. Interpreted competitive benchmarking chart based on

needs in South Africa 38

Table 3.4.a. Interpreted competitive benchmarking chart based on

the metrics in Turkey 39

Table 3.4.b. Interpreted competitive benchmarking chart based on

needs in Turkey 40

Table 3.5. The marginal and ideal target values for each metric

of a personal computer 41

Table 3.6. A bill of materials with cost estimates for Microstar computer

systems company adapted from 43

Table 3.7. A bill of materials with cost estimates for Surat computer

company adapted from 44

Table 4.1. Categorization of customers 50

Table 4.2. The location of Microstar computer systems company's customers 55

Table 4.3. The location of Surat computer company's customers

56

Table 4.4. Microstar computer systems company sales by quarter 57

Table 4.5. Microstar computer systems company sales by day of the week 58

Table 4.6. Surat computer company sales by quarter 59

Table 4.7. Surat computer company sales by day of the week 60

Edit) Senyurek XI


Table 4.8. An example of a client survey [15], [17] 67

Table 4.9. Customer orientation checklist [19] 70

Edip Senyurek XII

Engineering Management Chapter I : Introduction and Research Proposal

CHAPTER 1

INTRODUCTION AND RESEARCH PROPOSAL

1.1. INTRODUCTION

The business mission and marketing strategies must be rethought by today's

companies urgently and critically. They work in a war zone of rapidly changing

competitors, technological advances, new laws, managed trade policies, and

diminishing customer loyalty, instead of operating in a marketplace of fixed and

known competitors and stable customer preferences [1].

Companies have changed their plan of operating. Companies today work on a

situation or on a very competitive area, with too much competition. Their main aim is

based on satisfying customer needs. This is very important as it puts forward true

needs. There are many ways that can link customers needs. To be able to meet

customer needs, a company has to work on the importance of identity and analyze its

current customers. Analysis simply refer to knowing who your customers are, where

they are located, when they do buy, and how the firm can become oriented. It is then

easy to determine the strategy of meeting customer needs [2].

Customer needs are expressed in benefits sought from a particular product or service

[3]. Different customers do not have same needs and thus attach different degrees of

importance to the benefits offered by different products. In the end, the product that

provides the best bundle of benefits, given the customer's particular needs, is mostly

likely to be purchased [4]. To be able to produce right product or good service the

company must know its customers very well. That's why the identification of

customer is very important.

Edip Senyurek

Engineering Management Chapter I: Introduction and Research Proposal

To identify customer needs the customers must be analyzed. The companies have to

find some information about their customers. To analyze customers the following

questions must be answered:

Why are customers important?

Who are the customers?

Where do the customers buy the product?

When do the customers buy the product?

What do the customers buy?

How do the customers choose?

Why do the customers select a product?

How does the company become customer oriented? [5].

To be successful, companies must target the satisfaction of their customers. The

owner of a company must think, "Instead of loosing one of my customers, let me

loose money".

1.2. PROBLEM STATEMENT

It is quite possible to develop products or services, which meet customer needs or lead

to customer satisfaction. Development of a product must ensure long term revenue

and profitability. New products should be based on comprehensive research into the

customers' needs and that provides mutual benefits. Existing products are not

unimportant. By enhancing those products or adding value to them with a range of

after market services, one can increase the customer appeal and improve the market

share [6].

In this research, customer needs identification will be discussed. This report will

identify customer needs in computer technology. As specific companies the Surat

computer company, which is situated in Turkey, a European country, and Microstar

computer systems company, which is situated in South Africa, are chosen.

Edip Senyurek 2

Engineering Management Chapter 1: Introduction and Research Proposal

In this research, the candidate will study the identification of customer needs in

Turkey and in South Africa and it will attempt to identify the appropriate computer

that will meet South African needs, as well as the development of the products,

computers or components of computers.

1.3. INTRODUCTORY BACKGROUND

There is a reality that a company gains a larger percentage of their earnings if it has

foreign operations. Especially in the latter half of the century, the internationalization

of business has emerged as one of the dominant trends. Other companies, which don't

have any foreign operations, are increasingly being threatened in their domestic

markets by the entry of foreign competition. Such trends imply an increased need for

information to keep an eye on such developments, to observe changes in world

markets, and to develop more effective strategies relative to worldwide marketing

activities. Companies involved in international markets need to collect information to

assess which countries, product markets and target segments offer the most attractive

opportunities, and to determine new resources, they should best be located to take the

advantage of such potential [7].

1.3.1. SURAT COMPUTER COMPANY

Fecom was established in 1989 in Istanbul, Turkey. It started to manufacture

computers in 1992. In 1994, Fecom started to manufacture, market, and distribute the

Quark computer systems. This growth made it the second biggest company that

exported computer systems in Turkey in 1994 and 1995. It is still continuing trade

internationally.

In Ankara and Izmir, two big cities of Turkey, regional branches of Fecom were

opened in 1996 and 1997. In addition, Fecom has more than 80 branches in the other

cities of Turkey. It aims to provide customer satisfaction by distributing and giving

technical support at the branches. Fecom changed its name to Surat computer

company in 1997. It gained the ISO 9001 international quality certificate and it started

to market the Quasar computer.

Edip Senyurek 3


Surat computer company's vision is to be the best company in the international arena,

in the fields of hardware, consulting and education software, network, and Internet.

The company's mission is healthy communication, professional management, and to

be the expert on web [8], [9].

1.3.2. MICROSTAR COMPUTER SYSTEMS

An associated cooperation enterprise was established in 1980 in Potchefstrom, South

Africa as retailer and system integrator. It started to manufacture computers and gave

the name to Microstar computer systems company in 1990. Microstar computer

systems company is trying to market good quality computers at low prices. It is also

importing and distributing computer components.

In Johannesburg, the biggest city of South Africa, in 1995 a regional branch was

opened. Primarily Microstar computer systems company markets to smaller dealers

and, large corporate clients. The mission of Microstar computer systems company is

to provide outstanding computer equipment at affordable prices [10], [11].

1.4. STUDY OBJECTIVES

The most important aspect of this research will be to emphasize the importance of

customers and meeting customer needs. Therefore in the research customer needs will

be identified and to identify customer needs the customers will be analyzed. Building

customer satisfaction is important too. To create customer satisfaction there are some

issues to be addressed. These issues will be discussed in the study as well. The main

objective of this research will be to emphasize that customer needs identification can

also be approached from an engineering view.

As a case study of identification of customer needs the Surat computer company will

be addressed from one of the developed European country, Turkey. Microstar

computer systems company, from South Africa, will also be addressed as another case

study. These companies have been chosen to emphasize the difference between

Edip Senyurek 4


Turkish customers and South African customers and their needs in computer

technology. In this report the candidate will also explain how to establish the

specifications of the computers that will meet Turkish customer needs and South

African customer needs.

1.1 CHAPTER OUTLINE

In the first chapter, introduction and research proposal, the objectives and

methodology have been highlighted. As introduction to the case studies a brief

explanation is given about the Surat computer company and Microstar computer

systems company.

Chapter two, identifying customer needs, deals with the customer needs identification.

Identifying customer needs involves six steps:

Defining the scope of the effort.

Gathering raw data from customers.

Interpreting the raw data in terms of the customer needs.

Organizing the needs into a hierarchy of primary and secondary needs.

Establishing the relative importance of the needs.

Reflecting on the results and the process [12].

The target of a company must be the satisfaction of the customer. To satisfy the

customers the company must provide a suitable product for the customers. That's why

after discussion of customer needs identification in the next chapter the establishing

product specifications and its steps will be discussed. The steps of the establishing

target specifications and the refining these specifications are:

Preparation the list of metrics

Collecting the competitive benchmarking information

For each metric setting ideal and marginally acceptable target value

Develop technical models of the product

Edip Senyurek 5


Develop a cost model of the product

Refine the specifications

Making trade-offs where necessary

Reflect on the results and the process [12].

In the fourth chapter, customer analysis and the types of customers will be discussed.

Especially, for choosing the right customer "what must be done?" will be discussed.

The last chapter, chapter five will be address conclusions and recommendations.

During this research methods and techniques will be addressed and applied on the

Surat computer company, from Turkey, and on the Microstar computer systems

company, from South Africa.

1.6. CONCLUSION

A company can be described as customer focused, when everyone in the company

understands their role in meeting customer needs [6]. A clear understanding of

customer needs and wants is essential in developing effective marketing strategies.

The marketing concept of a company is it driveway to success through customer

satisfaction. Marketing research provides information that firms need to practice the

market concept or to satisfy customer needs.

The Surat computer company intends to market, to export Quasar Computers in South

Africa. In this research, it will be explained how to address South Africans' needs and

wants in terms of computers.

The objectives of this research are to discuss the importance of customers, meeting

customer needs, and building customer satisfaction. Questions such as the following

will be posed: Who are the customers? What influences them? When are they buying?

If a company wants to be successful in a very competitive business environment, it

has to answer these questions. It has to listen the voice of the customers and it has to

lead to customer satisfaction. According to the marketing concept that will be

Edip Senyurek 6


addressed in the following chapter, to lead to customer satisfaction the customer

needs must be identified. That's why in the next chapter identification of customer

needs will be discussed.

Edip Senyurek 7

Engineering Management Chapter 2: Identifying Customer Needs

CHAPTER 2

IDENTIFYING CUSTOMER NEEDS

2.1. INTRODUCTION

From a particular product or service benefits can be sought and customer needs are

expressed in those benefits [3]. Different customers have different needs. In the end,

the product that provides the best bundle of benefits, given the customer's particular

needs, is mostly likely to be purchased [4]. The identification of the customer is very

important, as it helps in giving the company some information that can be used to lead

to customer satisfaction.

Currently successful companies realize that placing emphasis on the customers' needs

is important. The customers' needs must be an attitude of all departments within the

business. Thus, all departments are involved in the product development process.

They have to understand that the success of a company depends on customers [13].

A market consists of all the customers sharing a particular need or wants [1].

Marketing must start with customer needs and should try to anticipate needs. What

goods and services are to be developed is determined by marketing. That includes:

decisions about product design and packaging

prices or fees

credit and collection policies

use of middle men

transporting and storing policies

advertising and sales policies

after the sale, installation, customer service, warranty, and disposal

policies [15].

Edip Senyurek 8


In figure 2.1 the starting point, focus, means, and ends of marketing concept that is

one of the five competing concepts under which companies conduct their marketing

activity are shown. As shown, the starting point of the marketing concept is the target

market, the focus is customer needs, the means is coordinated marketing, and the ends

is profits through customer satisfaction [1]. In this chapter customer needs are going

to be discussed. The customer satisfaction will be discussed in the following chapters.

Figure 2.1. The marketing concept [1]

Starting point Focus Means Ends

Profits Target Customer Coordinated Through Market Needs Marketing Customer

Satisfaction

A business may define its target market that is starting point of marketing concept, but

fail to fully understand the customers' needs. Therefore a company has to arrange

some market research. This will take the company to the ground where its customers

are. Customer oriented thinking requires the company to define customer needs from

the customer point of view. Every buying decision involves tradeoffs, and

management cannot know what these are without researching customers. Actually,

understanding customer needs and wants is not always a simple task [I]. The way of

researching customers is going to be discussed in the fourth chapter.

2.2. CUSTOMER NEEDS AND WANTS

Customer needs are usually described in the language of the customers. This simply

means a typical company providing a product or service has to separate them in a way

that can put them close to their customers. A development team should establish a set

of specifications, which explain in precise, measurable detail what the product has to

do because such descriptions, which are helpful in understanding what customers

want from the product, provide little specific guidance about how to design and

manufacture the product [12].

Edip Senyurek 9


A clear understanding of customer needs and wants is essential in developing

effective marketing strategies. The marketing concept of a company is it driveway to

success and profits through customer satisfaction as shown in figure 2.1. Marketing

research provides the information that companies need to practice the marketing

concept or to satisfy customer needs [14].

Needs are basic forces that drive customers to take action and engage in exchanges.

An unsatisfied need is a gap between a person's actual and desired states on some

physical or psychological dimension. Human beings have basic physical needs and

also social and emotional needs, such as food, drink, warmth, shelter, and sleep, and

security, belonging, love, esteem, and self-fulfillment. Those needs that motivate the

consumption behavior of individuals, however, are few and basic. Marketers or other

social forces do not create them. They flow from basic biological and psychological

makeup as human beings [17].

Most companies are very conscientious about managing the quality of their products.

They often don't view service to the customer as a product itself. From that view they

fail to realize a critical truth: the customer is your most valuable asset [15]. A business

must satisfy needs to get their survival and psychological well being. These needs

relate to the resource inputs, capital equipment, supplies, and services necessary to

meet the companies' strategic objectives.

Wants symbolize a person's desires or preferences for specific ways of satisfying a

basic need. Thus, a person wants particular products, brands, or services to satisfy an

unsatisfied need. A person is thirsty and wants a coke. A person is tired and wants a

holiday in Cape Town. A company needs office space and its top executives want an

office at a prestigious address in midtown Johannesburg [17].

Basic needs are few, but people's wants are shaped by social influences, such as their

life standard, past history, consumption experiences. Different people may have

different wants to satisfy the same needs. Everyone needs to have a transport facility,

for instance. But some people want to have their own car, while others prefer public

transport.

Edip Senyurek 10

Development Plan

D CONCEPT DEVELOPMENT

Mission Statement

Identify Establish Target

Specifications

Generate

Product Concept

Select a hoi. Product Concept

Refine Specifications Customer

Needs

A

Anal ze Compe itive

Products

Perfomi

Economic Analysis

V Plan

Remaining

Development

Proiect


2.3. CUSTOMER NEEDS IDENTIFICATION

A product development process is the sequence of steps or activities that an enterprise

employs to conceive, design, and commercialize a product. The five phases of the

generic development process are:

Concept development

System-level development

Detail design

Testing and refinement

Production ramp-up [12]

Concept development is one of the five phases of the generic development process.

The phases of identifying customer needs in relation to other concept development

activities, which collectively can be thought of as the concept development phase are

shown in figure 2.2 [12].

Figure 2.2. The customer needs activity in relation to other concept development

activity [121

Edip Senyvrek


A six-step methodology can be explained for identifying customer needs:

Defining the scope of the effort.

Gathering raw data from customers.

Interpreting the raw data in terms of the customer needs.

Organizing the needs into a hierarchy of primary and secondary needs.

Establishing the relative importance of the needs .

Reflecting on the results and the process [12].

2.3.1. DEFINE THE SCOPE OF THE EFFORT

In defining the scope of the development effort the company determines a particular

market opportunity and plans the aims and objectives for the project. This information

is formalized as a mission statement. The mission statement may include following

information:

Product description

Key business goals

Primary and secondary market

Assumptions

Stakeholders [12].

The mission statements for two computer companies in South Africa and Turkey are

shown in table 2.1 and table 2.2.

Edip Seuyurek 12


Table 2.1. Mission statement for Microstar computer systems company in South

Africa 1111

Mission Statement: To provide outstanding computer equipment at affordable prices

Product Description: Intel, Gigabyte, Seagate, Western Digital

Key Business Goals: To capture a significant market of the corporate business in

South Africa and to become a solution based company

Primary Market: Corporate and government sector

Secondary Market: Export into neighboring states

Assumptions: Affordable, cutting edge technology

Stake holders: User, Retailer, Warehouse, Delivery, Production, Legal

Department, Marketing

Edip Senyorek 13


Table 2.2. Mission statement for Surat computer company in Turkey [9]

Mission Statement: To be a best company in international arena in the fields of

hardware, consulting, educational software, network and internet

Product Description: Asustek, Kfc, Mustek, Cent, Mylex, Tdk, Ezkey

Key Business Goals: To capture a significant market of the corporate business in

Turkey, to become a solution based company, and to be an

international authority company on hardware and software

Primary Market: Corporate and government sector

Secondary Market: Export into other countries

Assumptions: Affordable, reliable, cutting edge technology

Stake holders: User, Retailer, Warehouse, Delivery, Production, Legal

Department, Marketing

2.3.2. GATHER RAW DATA FROM CUSTOMERS

Gathering .raw data involves contact with customers and experience with the user

environment of the product. There are three methods that are typically used [12]:

Interviews: A member of the development team can discuss with a customer about

the needs of customer. For example, one of the members of the development team of

a computer company can demonstrate the computer that is sold to the customer. While

he is demonstrating he may ask a few questions to find out whether the customer likes

the computer or not.

Edip Senyurek 14


Focus groups: A special room can be arranged that can have a video camera to

videotape or it can have two-way mirror to observe the group by a few member of

development team. For example, a computer laboratory can be prepared with video

camera and two-way mirror. The customers can be put in the laboratory and follow

what the customer is doing.

Observing the product in use: The company has the information of the customer

such as telephone number, address, email etc. (discussed in chapter 4). If the company

wants to manufacture a new product, before that it can observe the customer's use of

existing products or perform a task for which a new product is intended can reveal

important details about customer needs.

Interviews are recommended as primary data collection because focus groups is more

expensive than interviews and an interview often allows the product development

team to experience the user environment of the product [12].

Identifying customer needs is primarily a qualitative research task. It is typical for

some team members to observe each interview. So the question, which is how many

people must be interviewed, must be answered [16].

For this research study, 50 people were interviewed in South Africa and

approximately 50 people were interviewed in Turkey, information as supplied by [9].

The following typical questions are posed to customers:

What do you like about the existing products?

What do you dislike about existing products?

What issues do you consider when purchasing the product?

What improvements would you make to the product?

To organize the methods for documenting interaction with customers a data template

can be filled at. An example of a template is shown in tables 2.3 and table 2.4.

Edip Semurek 15


Chapter 2: Identifying Customer Needs

Table 2.3. Customer data template filled in with sample customer statements and

interpreted needs in South Africa

Customer Name: Pricilla Makonde Interviewer: Edip Senyurek

Address: 1 Eastwood Street, cnr Peter Date: 24 May 2000

Wessels Turffontein Johannesburg Currently uses: Planet computer

Telephone: +27 11 434 5234 Type of use: Office Computer

Question Prompt Customer Statement Interpreted Needs

for Microstar

Typical uses I need the computer faster Computers are faster

I need a computer that can store

much data

Computers can store

huge amount of data

Likes I like the shape of computer Computers are

fashionable

Dislikes When I would like to shut the

computer down I don't like waiting

to press a power button until it

finished all operations

Computers have ATX

case that is shuts

down itself The user

does not need to wait

until finishes all

operations

The speakers are not fixed. They

are moving on the table and

creating an untidy image

Speakers are fixed to

the screen

Suggested

improvements

It is difficult to find older

configuration of computer like

Pentium 166 or 486 DX4-100 CPU

Older configuration of

computer is available

now.

Edip Senyurek 16



Table 2.4. Customer data template filled in with sample customer statements and

interpreted needs in Turkey

Customer Name: Ismail Bayindir Interviewer: Edip Senyurek

Address: Huzurevler Mahallesi 1661 Sokak Date: 14 June 2000

Seyhan Adana Turkey Currently uses: Escort computer

Telephone: +90 322 233 2074 Type of use: Home Computer

Question Prompt Customer Statement Interpreted Needs for

Surat

Typical uses I need the computer faster Computers are faster

I need a computer that can store

much data

Computers can store

huge amount of data

Likes I like the shape of computer Computers are

fashionable

Dislikes When I would like to shut the

computer down I don't like

waiting to press a power button

until all operations have been

finished

Computers have ATX

case that shuts down by

itself. The user does not

need to wait until it

finishes all operations

The speakers are not fixed. They

are moving on the table and

creating an untidy image

Computers have the

speaker that is fixed on

top of the Cd-Rom Drive

Suggested

improvements

A computer is part of life and it

is used almost everyday. It

should have components that are

good quality

Computers have good

quality components and

gain the quality

certificate ISO 9001

The color of the computer is

almost always beige

Computer is black,

green, blue, brown and

yellow color on the

market now

Edip Senyurek 17


2.3.3. INTERPRET RAW DATA IN TERMS OF CUSTOMER NEEDS

After gathering raw data from customers, raw data should be interpreted. Customer

needs can typically be stated as written statements and may be the result of

interpreting raw data. The followings are typical guidelines for interpreting raw data:

State the need in terms of what the product must do

State the need as specifically as the raw data .

Use positive, not negative, phrasing.

State the need as an attribute of the product.

Avoid the words must and should [12].

Table 2.5 shows how these criteria may be used to write needs statements. In table 2.5

the customer statements are from the same customers whose information are written

in table 2.3 and table 2.4.

Edip Senyurek 18



Table 2.5. Interpreted guidelines for writing need statement

Guideline Customer

Statement

Need Statement

Right

Need Statement

Wrong

Express the need

in terms of what

the product has

to do, not in

terms of how it

might do it.

"why don't you put

light filter in front

of screed'

The screen protects

eyes itself

The screen has

this and that

Express the need

as specifically as

the raw data.

"my computer is

next to window.

The sun shines on

it during the day"

The computer

operates normally

even if the sun

shines or even if it

is cold

The computer

reflects lights

Use positive, not

negative,

phrasing.

"my computer must

store huge amount

of data"

The computer has a

big hard drive.

The computer

hasn't got a small

hard drive.

Express the need

as an attribute of

the product.

"I'd like to play

games as well"

Games can be

played with the

computer. It has a

joystick

Computer allows

one to play

games.

Avoid the words

must and should.

When I would like

to shut the

computer down I

don't like to wait

and to press power

button when the

computer has

finished all turning

off operations

Computers have an

ATX case that

shuts it down. The

user does not need

to wait until all

turning off

operations have

been finished

Computers

should have an

ATX case that

shuts it down.

The user does not

need to wait until

all turning off

operations have

been finished

Edip Senyurek 19


2.3.4. ORGANIZE THE NEEDS INTO A HIERARCHY

A list should be organized for the needs. The detailed needs can be used in subsequent

development activities. It may not be easy to summarize them, if the number of

detailed needs increases [12].

For Microstar computer systems company the hierarchical list of customer needs is

shown in table 2.7 which has been prepared by using table 2.6. For Surat computer

company the hierarchical list of customer needs that has been prepared by using table

2.8 is shown in table 2.9.

Table 2.6. The results of the interviews in South Africa for Microstar computer

systems company

Scale

5 4 3 2 1

Cu

sto

mer

nee

ds

Computers are reliable 41 9 0 0 0

Computers are affordable 37 10 2 0 1

Computers are upgradeable 14 20 12 3 1

Computers are packaged nicely 2 4 10 19 15

Computers are delivered quickly 6 7 22 11 4

Computers are fashionable 4 6 13 18 9

Computers are light in weight 1 3 12 20 14

Edip Setryurek 20


Table 2.7. Hierarchical list of customer needs for Microstar computer systems

company

Customer needs

Importance Ratings

Microstar

Computers are reliable

5

Computers are affordable

5

Computers are upgradeable

4

Computers are delivered quickly

3

Computers are packaged nicely

2

Computers are fashionable

2

Computers are light in weight

2

Table 2.8. The results of the interviews in Turkey for Surat computer company

Scale

5 4 3 2 1

Cu

sto

mer

ne

eds

Computers are reliable 39 11 0 0 0

Computers are affordable 21 27 2 0 0

Computers are upgradeable 15 22 11 1 1

Computers are packaged nicely 1 2 5 18 24

Computers are delivered quickly 8 6 21 9 6

Computers are fashionable 2 3 23 17 5

Computers are light in weight 1 1 8 24 16

Edip Senyurek 21


Table 2.9. Hierarchical list of customer needs for Surat computer company

Customer needs Importance Ratings

Surat

Computers are reliable 5

Computers are affordable 4

Computers are upgradeable 4

Computers are delivered quickly 3

Computers are fashionable 3

Computers are light in weight 2

Computers are packaged nicely 1

2.3.5. ESTABLISH THE RELATIVE IMPORTANCE OF THE NEEDS

Customers have different needs. For Microstar computer systems company and Surat

computer company the importance ratings of customer needs are illustrated in table

2.7 and table 2.9 that have been prepared by using the ranging scale given in table

2.10. Table 2.6 shows the results of the interviews in South Africa and table 2.8

shows the results of the interviews in Turkey. Table 2.6 and table 2.8 show the

number of people who have answered in the scales of 1 to 5. The graphs prepared by

using the table 2.6 can be seen in the figures 2.3 for South Africa. Similar graphs

prepared by using the table 2.8 can be seen in the figures 2.4 for Turkey.

Edip Senyurek 22


Table 2.10. Example importance survey for Microstar computer systems

company and Surat computer company

For each of the following computer features, please indicate on a scale of 1 to 5 how

important the feature is to you. Please use the following scale:

Feature is

undesirable

not important

would be nice to have

highly desirable

critical

Computers are reliable

Computers are affordable

Computers are upgradeable

Computers are packaged nicely




Edip Senyurek 23



Figure 2.3.a. The chart of results of the interviews in South Africa for Microstar

computer systems company

Figure 2.3.b. The chart of results of the interviews in South Africa for Microstar


Edip Senyurek 24

Computers are upg radeab le

.sonitabil•



Figure 2.3.c. The chart of results of the interviews in South Africa for Microstar


Figure 2.3.d. The chart of results of the interviews in South Africa for Microstar


Edip Senyurek 25


On, er.l•




Figure 2.3.e. The chart of results of the interviews in South Africa for Microstar


Figure 2.3.f. The chart of results of the interviews in South Africa for Microstar


Edip Senyurek 26


tr ti<21 hp.v a-j, „bk



Figure 2.1g. The chart of results of the interviews in South Africa for Microstar


Figure 2.4.a. The chart of results of the interviews in Turkey for Surat computer

company

Edip Senyurck 27

Computers •re upgradeabla

PiTO.rn,

.0.1dr4rdCt tC3I

ripydellrabl•



Figure 2.4.b. The chart of results of the interviews in Turkey for Surat computer

company

Figure 2.4.c. The chart of results of the interviews in Turkey for Surat computer

company

Edip Senyurek 28

Comp eeeee aro p•clisped Mc•ly



Figure 2.4.d. The chart of results of the interviews in Turkey for Surat computer

company

Figure 2.4.e. The chart of results of the interviews in Turkey for Surat computer

company

Edip Senyurek 29


tnmite:1 •

etnt.z,t


e.rib,31



Figure 2.4.f. The chart of results of the interviews in Turkey for Surat computer

company

Figure 2.4.g. The chart of results of the interviews in Turkey for Surat computer

company

2.3.6. REFLECT ON THE RESULTS AND THE PROCESS

Reflect on the results and the process is the last step in the methodology of customer

needs identification. Some typical questions to be answered by the team are: [12]

• Have we interacted with all of the important types of customers in our target

market? (Examples of typical customers are manager, engineer, teacher,

Edip Senymek 30


secretary, builder, housewife, university student, high school student and so

on)

For this research, almost all types of customers were interviewed such as a manager, a

few engineers, teacher, builder, university and high school students, caretaker,

housewife, cook, taxi driver, gardener.

Are there areas of inquiry we should pursue in follow-up interviews or

surveys?

For this research, the reliability, affordability, upgradeability, delivered on time, and

fashionable were asked during the interview of the customers to establish their needs.

Which of the customers we spoke to would be good participants in our

ongoing development efforts?

For this research, managers, engineers, and university students were good

participants.

How might we improve the process in future efforts? [12]

The after sale support of computer can be improved and some questions can be added

to questionnaire for interview

2.4. CONCLUSION

The importance of identifying customer needs can be seen, upon inspection of figure

2.2. The process of identifying customer needs that includes six steps is part of the

larger product development process. It is important in terms of guiding the product

development team in establishing product specifications.

Edip Senyurek 31


Six steps of the process of identifying customer needs have been addressed and

supplemented by some statistical data on computer technology needs for use by a

South African and a Turkish company.

Even though customer needs are important they only provide little guidance on how

to design and manufacture the needed product. That's why the product development

team needs to establish the specifications for the product. In the next chapter

establishing a product specification is going to be discussed.

Edip Senyurek 32

Engineering Management Chapter 3: Establishing a Product Specification

CHAPTER 3

ESTABLISHING A PRODUCT SPECIFICATION

3.1. INTRODUCTION

The term product specification is the clear description of what the product, which is to

be developed, has to do. A specification consists of a metric and unit. The product

specifications are basically the set of specifications.

Figure 3.1. The customer needs activity in relation to other concept development

activities 112]

Mission Statement

Establish —4* Tnrget

Specifications

Refine —I> Specifications

Identify

Customer Needs

Generate

Product Concept

Select a Product Concept

Analyze Competitive

Products

Perform Economic Analysis

Plan

Remaining Development

Proiect

CONCEPT DEVELOPMENT

Development Plan

D

As seen figure 3.1 target specifications are set by the team after identifying the

customer needs. The team must make hard trade-offs among different desirable

characteristics of the product for setting the refined specifications [12].

Edip Senyurek

33


3.2. ESTABLISHING TARGET SPECIFICATIONS

The process of establishing target specifications is seen to consist of some steps as

follows:

Prepare the list of metrics

Collect some competitive benchmarking information

Set ideal as well as marginally acceptable target values for each metric [12].

3.2.1. PREPARE THE LIST OF METRICS

The degree to which the product satisfies the customer needs is shown by the useful

metrics. That's why list of metrics should be prepared. To prepare the list of metrics

each need must be through in turn. Measurable characteristic of the product can be

reflected in the degree to which the product satisfies that need. Ideally, there should

be only one metric for each need. However in practice, this is not always possible

[12].

A list of metrics for a typical personal computer is shown in table 3.1. The needs

numbers, are quoted from table 3.2, the need-metric matrix, and the relative

importance of each metric is determined by using the ranging scale given in table

2.10. A simple needs-metrics matrix shows the relationship between needs and

metrics and ensures that all the needs are taken into consideration [2]. A simplified

needs-metrics matrix for Microstar computer systems company and Surat computer

company is shown table 3.2.

Edip Senyurek 34


Chapter 3: Establishing a Product Specification

Table 3.1. List of metrics for a typical personal computer

Metric

No

Need

Numbers

Metric Impacts Units

1 1,2,3,6 Speed 5 MHz.

2 1,2,3,6 Type of CPU 5 Intel, Amd

3 3,4,6 Style 4 Desktop, Minitower,

Miditower

4 1,2,6 Quality 4 Brand new, second hand

5 4,5,6,7 Mass • 3 kg

6 6 Colour 3 All colours

Table 3.2. The needs-metrics matrix for Microstar computer system company

and Surat computer company

Need

Metric

1 2 3 4 5 6

Sp

eed

nk U 6. o a? 0. >

, i-.

si? 7., . en Q

ua

lity

rn

it Co

lou

r

1 Computers are reliable • • •

2 Computers are affordable • • •

3 Computers are upgradeable • • •

4 Computers are packaged nicely • •

5 Computers are delivered quickly •

6 Computers are fashionable • • • • • •

7 Computers are light in weight •

Edip Senyurek 35


3.2.2. COLLECT SOME COMPETITIVE BENCHMARKING

INFORMATION

Collecting some competitive benchmarking information is the second step of

establishing target specifications. Companies must know their competitors who are

competing in the same marketplace. In addition, they must estimate the other potential

competitors which are not in the market now but which may be in the future. That's

why it is very important to collect information from the products of the competitors

[2].

In this research, as the main competitors of the Microstar computer systems company

in South Africa, Planet Peripherals computer company and Rectron computer

company are considered. In Turkey, as the main competitors of the Surat computer

company, Etap computer company and Sevgi computer company are considered.

The competitive benchmarking chart for the computer in South African market based

on the metrics and based on the needs is illustrated in table 3.3.a and table 3.3.b. In

table 3.4.a and table 3.4.b, the competitive benchmarking chart for the computer in

Turkish market based on the metrics and based on the needs is illustrated.

Edip Senywek 36


Table 3.3.a. Interpreted competitive benchmarking chart based on the metrics in

South Africa

Metrics Microstar

Computer

Systems

Planet

Peripherals

Computers

Rectron

Computers

Speed 300, 333, 366, 400,

450, 466, 500, 533,

550, 600, 700,

1000 MHz.

450, 500, 550, 600

MHz.

300, 333, 366, 400,

450, 466, 500, 533,

550, 600 MHz.

Type of CPU Intel P2, P3, Amd

K6, K7

Intel P3 Intel P2, P3

Style Desktop,

Minitower,

Miditower

Desktop,

Minitower

Minitower

Quality Brand new, second

hand

Brand new Brand new

Mass Between 30-50 kg Between 35-50 kg Between 30-55 kg

Colour Beige, black,

green, blue, brown,

yellow

Beige, Pattern

Beige and black

Beige only

Edip Senyurek 37


Table 3.3.b. Interpreted competitive benchmarking chart based on needs in

South Africa

Needs

Microstar

computer

systems

company

Planet

Peripherals

computer

company

Rectron

computer

company

Computers are reliable ••• •• oo

Computers are affordable coo oo •

Computers are upgradeable coo oo coo

Computers are packaged nicely •• 00 no

Computers are delivered quickly •• • •••

Computers are fashionable coo 0• oo•

Computers are light in weight 0 0 ••

Edip Senyurek 38


Table 3.4.a. Interpreted competitive benchmarking chart based on the metrics in

Turkey

Metrics Surat computer

company

Etap computer

company

Sevgi computer

company

Speed 300, 333, 366, 400,

450, 466, 500, 533,

550, 600, MHz.

300, 333, 366, 400,

450, 466, 500, 533,

550, 600, 700,

1000 MHz.

400, 450, 500, 550,

600, 700, 1000

MHz.

Type of CPU Intel P2, P3 Intel P2, P3, Amd

K6, K7

Amd K6, K7

Style Desktop,

Minitower,

Miditower

Minitower,

Miditower

Desktop,

Minitower,

Miditower

Quality Brand new only Brand new only Brand new, second

hand

Mass Between 25-50 kg Between 30-55 kg Between 25-45 kg

Colour All colours,

flowered design

and patterned

colors

Only beige All colours

Edip Senyurek 39


Table 3.4.b. Interpreted competitive benchmarking chart based on needs in

Turkey

Needs

Surat

computer

company

Etap

computer

company

Sevgi

computer

company

Computers are reliable 000 ••• 00

Computers are affordable 50 • 000

Computers are upgradeable 000 000 •

Computers are packaged nicely 000 00 00

Computers are delivered quickly 00 000 00

Computers are fashionable 000 000 00

Computers are light in weight oi) 00 000

3.2.3. SET IDEAL AS WELL AS MARGINALLY ACCEPTABLE

TARGET VALUES FOR EACH METRIC

The third step of establishing target specifications is to set ideal as well as marginally

acceptable target values for each metric. In this step, the team analyzes the existing

information to set the target values for the metrics. The marginal and ideal target

values for each metric of computer that are to be sold in South Africa and Turkey are

shown table 3.5.

Edip Senyurek 40


Table 3.5. The marginal and ideal target values for each metric of a personal

computer

Metric

Number

Need

Numbers

Metric Units Marginal

Value

Ideal Value

1 1,2,3,6 Speed MHz 1000 1000

2 1,2,3,6 Type of

CPU

Intel, Amd Amd K7 Amd K7

3 3,4,6 Style Desktop,

Minitower,

Miditower

Desktop or

Minitower

Miditower

4 1,2,6 Quality Brand new,

second

hand

Second

hand

Brand new

5 4,5,6,7 Mass kg 25 kg 30 kg

6 6 Colour All colours Beige Beige

3.3. REFINING THE SPECIFICATIONS

The process of refining the specifications contains four steps:

Develop technical models of the product

Develop a cost model of the product

Refine the specifications, making trade-offs where necessary

Reflect on the results and the process [12].

3.3.1. DEVELOP TECHNICAL MODELS OF THE PRODUCT

A tool for predicting the values of the metrics for a particular set of design decisions

is called a technical model. By using design variables as model inputs, the models can

Edip Senyurek 41

The mass of Case The mass of monitor The mass of components

Analytical Model . Mass

Support Geometry Material Properties

Material Properties The type of CPU

Design Variables (Model Input) Metrics (Model Output)

Analytical Model D. Style

D. Quality I> Physical Model


be typically analytical or physical models. The metrics appears as model outputs.

Figure 3.2, shows some model inputs and outputs.

Figure 3.2. The type of models adapted from

3.3.2. DEVELOP A COST MODEL OF THE PRODUCT

The aim of this step of the process is to make sure that the products' cost is

reasonable. Table 3.6 and table 3.7 show the bills of materials with cost estimates for

Microstar computer systems company and Surat computer company.

Edip Scnyurek 42


Table 3.6. A bill of materials with cost estimates for Microstar computer systems

company adapted from

Component Quantity High

(R/ea)

Low

(R/ea)

High Total

(Rand)

Low Total

(Rand)

Mainboard 1 760 345 760 345

RAM 1 1465 250 1465 250

Hard Disk 1 985 495 985 495

Monitor 1 1595 665 1595 665

Display Card 1 425 185 425 185

Sound Card 1 100 69 100 69

Speaker 2 79 24 158 48

CD-Rom 1 295 165 295 165

Floppy 1 95 45 95 45

Keyboard 1 65 59 65 59

Mouse 1 115 27 115 27

Case 1 295 115 295 115

SoftwareW98 1 595 595 595 595

CPU 1 2750 475 2750 475

Assembly and installation,

@ R 90/hr

80min 45min 120 67.5

Overhead at 25% of direct cost 2424.5 959.5

Total (R) 12242.5 4865

P.S. The date is 4 June 2000 $1 ----R7.2

Edip Senyurek 43


Table 3.7. A bill of materials with cost estimates for Surat computer company

adapted from

Component Qty High

(BTL/ea)

Low

(BTL/ea)

High Total

(Thousands

Turkish

Liras)

Low Total

(Thousands

Turkish

Liras)

Mainboard 1 207194 40266 207194 40266

RAM 1 79077 15616 79077 15616

Hard Disk 1 465880 45074 465880 45074

Monitor 1 168575 70625 168575 70625

Display Card 1 195547 10712 195547 10712

Sound Card 1 52718 10099 52718 10099

Speaker 2 12612 915 25224 1830

CD-Rom 1 31876 22972 31876 22972

Floppy 1 7969 7969 7969 7969

Keyboard 1 7969 4904 7969 4904

Mouse 1 12260 1839 12260 1839

Case 1 19003 19003 19003 19003

SoftwareW98 1 54102 54102 54102 54102

CPU 1 229875 50879 229875 50879

Assembly and

installation, @ BTL

7600/hr

80min 45min 10135 5700

Overhead at 25% of direct cost 389317.25 88972.5

Total (BTL) 1956721.25 450562.5

P.S. The date is 4 June 2000 $1=BTL 613

Edip Senyurek 44


3.3.3. REFINE THE SPECIFICATIONS, MAKING TRADE-OFFS

WHERE NECESSARY

Refining the specifications and making trade-offs where necessary is the third step of

the process. In an iterative fashion, the team converges on the specifications, which

will most favorably position the product relative to the competition and will best

satisfy the customer needs [12].

3.3.4. REFLECT ON THE RESULTS AND THE PROCESS

The last step of refining the specifications is reflecting on the results and the process.

In this step, the team should find the answer to the following questions:

* Is the new developed product, a potential winner?

The newly developed product by Microstar computer systems company or Surat

computer company can be a potential winner in South African or Turkish Markets.

However, if Microstar computer systems company develops a computer that has

different and better quality components than the competitors' product, Microstar

computer systems company's computer market share may increase in South Africa.

Microstar computer systems company also tried to assemble speakers fixed to the

monitor to tidy the appearance of the computers.

Surat computer company tried a similar approach by assembling a Taiwanese speaker

on top of the CD-ROM. In doing this, they gained the space for the speaker and for its

cable.

• Is the chosen concept suited to the target market?

The specifications of the computers to be developed are established to meet the needs

of the target market segment, as will be shown in the next chapter [12], [2] .

Edip Senyurek 45


3.4. CONCLUSION

The product development team needs to establish the specifications for the product

because the aim of the team is to satisfy the customer by developing the right product

for customer needs or wants. In order to be successful in the marketplace, the

specifications will describe what the product has to do. The specifications must reflect

the customer needs, and differentiate the product from the other existing products.

These specifications must be technically and economically noticeable. For example,

Microstar computer systems company is assembling speakers fixed to the monitor to

tidy the appearance of the computers. Surat computer company is also assembling a

Taiwanese speaker on top of CD-ROM to have some more space for the speaker and

for its cable. The process of establishing the target specifications for computer

technology consists of some steps, as discussed in the chapter:

Preparation of the list of the metrics of the computer

Collecting benchmarking information for the computer

Setting ideal and marginally acceptable target values for each metric for

the computer [12].

After establishing target specifications, there is another important concept, namely

refining the specifications that have been set by the team. The steps of refining the

specifications for computer technology are typically as follows:

Develop technical models of the computer

Develop a cost model of the computer

Refine the specifications, make trade-offs where necessary

Reflect on the results and the process [12]

Another important step in the process of the development and marketing of a

commercial product such as a computer, is to analyze the customers for the product,

to find out who the customers are, where they are located, when they buy, what they

buy, how they choose, why they select a product, and how a company can meet their

Edip Senyurek 46


needs and wants. In the next chapter, these questions will be answered and then the

satisfaction of customers will be addressed.

Edip Semlirek 47

Engineering Management Chapter 4: Customer Analysis

CHAPTER 4

CUSTOMER ANALYSIS

4.1. INTRODUCTION

The specifications of a product are very important. The specifications of the product

are describing what the product has to do. To be successful, the business must target

the satisfaction of its customers. The owner of a company must think, "Instead of

loosing one of my customers, let me loose money".

Theodore Levitt says, "the purpose of an enterprise is to create and keep a customer"

[5]. Who does the firm sell its products to, if there is no customer? The answer to that

question is "no . one". That's why the company must have customers. The most

important ingredient in the success of any company is a satisfied customer. To have

customers and satisfy them, the firms must first analyze their customers.

4.2. CUSTOMER ANALYSIS

The company can be in business, if the customers think about its products and

services, otherwise the company will not be in business long and if it was in business

it will start to die. The company's business exists because of a customer. To analyze

the customers the following questions should be answered for computer technology:

Who are the customers buying computers?

Where do the customers buy the computer?.

When do the customers buy the computer?

What type of computer do the customers buy?

How do the customers choose computers?

Why do the customers select a computer?

Edip Senyurek 48


How does the company become customer oriented? [5]

4.2.1. CATEGORIES OF CUSTOMERS

The customer is the most valuable asset of the company. A definition of customer is

someone who comes to a company and buys its product or service and who expects

quality of service as well as product quality in return for his or her investment [15].

The company can't improve the performance of marketing without detailed

knowledge of the current customers. The aim of the company should be to categorize

its current customers or potential customers. The following are some questions that

may be used to categorize customers.

Age?

Marital Status?

Annual income?

Gender?

Ethnic group?

Profession or occupation?

Owner of a home?

Media preferred? and so on [17].

Surat computer company's and Microstar computer systems company's customers

have been categorized using the above-mentioned guidelines in the form of a

questionnaire. The results are shown in table 4.1 and figure 4.1. Table 4.1 shows the

number of people interviewed, in total 50 from each company.

Edip Senyurek 49


Table 4.1. Categorization of customers

Age <20 21-30 31-40 41-50 51< Total

Surat 3 20 15 10 2 50

Microstar 2 19 21 7 1 50

Annual Income (1000 $) <3 3-10 10-25 25-36 36< Total

Surat 2 31 8 7 2 50

Microstar 2 28 4 11 5 50

Gender M F Total

Surat 27 23 50

Microstar 29 21 50

Marital Status Married Single Total

Surat 18 32 50

Microstar 29 21 50

Z Z ...., z.; vz

`.. os:, -It E

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Edip Senyurek 50

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Surat computer company Microstar computer systems company

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Surat computer company

Microstar computer systems company

9 <3 g 3-10 910-25 9 25-36 9 36< x $1,000


Chapter 4: Customer Analysis

Figure 4.1.a. Categorization of customers

Figure 4.1.b. Categorization of customers

Edip Senyurek 51

27 21

29 23

Marital Status

Surat computer company Microstar computer systems

company The n

um

be

r o

f p

eo

ple

in

terv

iew

ed

0 Married Eg Single


Figure 4.1.c. Categorization of customers

Gender

40

30 -

20 -

10 -

0

Surat computer company Microstar computer systems company

l o Male gg Female

Figure 4.1.d. Categorization of customers

Edip Senyurek 52

il

Profession

13 15

Su at computer company Micros ar computer systems company

0 Engineer El University student El High school student0 Teacher El Housewife EICaretaker

13 Manager 0 Builder El Cook El Taxi driver O Gardener

The

num

be

r o

f in

terv

iew

ers



Figure 4.1.e. Categorization of customers

There are typically three kinds of customers:

consumer customers

business customers

nonprofit customers [5].

Companies that try to be all things to all customers may fail because they lack specific

resources to get the right job done. A good strategic plan in product development and

marketing should determine whom the company expects too work with, both now and

in the future. Then it should focus on this specific group of customers and succeed by

becoming a specialist on these customers [2].

4.2.1.1. Consumer Customers

Consumer buyers include all those who purchase goods for their own or family

members' consumption. Companies that sell low priced products often focus their

attention on the final buyer. The computer companies, which focus their attention on

the final buyer and understand consumer preferences for features such as speed, type

Edip Senyurek 53


of CPU, mass, style, color and price of the computers, are in a better position to create

more attractive computers and do better business [2].

4.2.1.2. Business Customers

There are typically two difficult issues about business customers. The first difficult

issue is identifying the right customer is very difficult. The identity of the components

and services is often lost when selling to business buyers. That's why the importance

of products is decreased and the role of specifications, timely delivery, and price is

increased. Another difficult issue is that decision-makers are buying committees. As

these committees may be secret, the identity and buying criteria of key business

customers may not be present [5].

4.2.1.3. Nonprofit Customers

These customers are community organizations, hospitals, schools, credit unions,

public radio and television stations and so on. A local board of directors manages

each one of these organizations. The companies that want to sell their products to

these organizations must have a very good relationship with the people who make

purchase decisions in these organizations [2].

4 2 2 THE LOCATION OF THE PRODUCT

The locations of products are very important and can be useful in marketing. There

are some ways to find out where the customers buy the product. The first way is to

look at the invoices. By looking at the invoices the current customers can be

sometimes traced. Another way, to find the customer location, is warranty cards [5].

For Surat computer company and Microstar computer systems company location of

their customers is determined by looking at the customer's invoices that were given to

them when they bought a computer. The companies then send brochures and

catalogues to show new products.

Edip Senyurek 54

The location of customers

`S 75 -

& ,_ 60 -m o c E 45 -0 o 0 ,.. ( es 4 30 0 = :fr.' 15 .c I— 0

65

Potchefstroom JHB

Cities

0 1998 El 1999 IN 2000


Microstar computer systems company doesn't give any warranty card for their

computers. The customers' warranty card is the invoice paper. However, Surat

computer company gives them a warranty card. The customer should fill out this card

and then provide address information.

Table 4.2 and table 4.3 show the location of Microstar computer systems company's

and Surat computer company's customers.

Table 4.2. The location of Microstar computer systems company's customers

Proportion of Shipment to:

Year Potchefstroom JHB Total

1998 45% 55% 100%

1999 50% 50% 100%

2000 65% 35% 100%

Figure 4.2. The location of Microstar computer systems company's customers

As seen in figure 4.2 the number of Microstar computer systems company's

customers is increasing in Potchefstroom and it is decreasing in JHB. To find the

reason for the decreases of the number of customers in JHB, the company should

Edip Senyurek 55

35 35 35

Istanbul Ankara Izmir Other cities

The location of customers

1̀6 40

rn 30 ea a) t

a 0 E 20

CD 7 0. t 10

L 0

Cities

Et 1998 21999 E2000

30

20 25 25 25

20 15


address the questions what is wrong with the computers and whether there is a

marketing problem. The company may consider more focus on distribution and

marketing in the JHB market. They may even establish that many new companies are

opening in JHB.

Table 4.3. The location of Surat computer company's customers

Proportion of Shipment to:

Year Istanbul Ankara Izmir Other cities Total

1998 30% 20% 15% 35% 100%

1999 35% 25% 20% 20% 100%

2000 35% 25% 25% 15% 100%

Figure 4.3. The location of Surat computer company's customers

As seen in figure 4.3 the number of Surat computer company's customers increased in

Istanbul and in Ankara in the last year. It can be seen that the Izmir market is

promising as the amount of computers sold per year has been increasing for the last

three years. The company may also consider more focus on distribution and

marketing in the Izmir market.

Edip Senytirek

56


4.2.3. PRODUCT SALES TIME

Sales of the Microstar computer systems company by quarter are shown in table 4.4

and figure 4.4. Sales of the Microstar computer systems company by day of week are

also shown in table 4.5 and figure 4.5. Sales are low in the second and third quarters

and high in first and fourth quarters. Sales are relatively higher on Mondays,

Tuesdays, and Wednesdays compared to the other days of the week.

In table 4.6 and figure 4.6 sales of the Surat computer company by quarter are shown.

In table 4.7 and figure 4.7 sales of the Surat computer company by day of week are

shown. Sales are low in the second and fourth quarters and high in first and third

quarters. Sales are relatively higher on Mondays, Tuesdays, and Wednesdays

compared to the other days of the week. By studying these figures the companies

should adapt production and distribution systems to meet these customer demands.

Table 4.4. Microstar computer systems company sales by quarter

Quarter

Year 1 2 3 4 Total

1998 35% 5% 15% 45% 100%

1999 35% 5% 20% 40% 100%

2000 40% 5% 15% 40% 100%

Edip Senyurek 57

2nd Qtr 3rd Qtr 4th Qtr 1st Qtr

Product sales time

45 40 40 40

35 35 50 -1 40 30 -20 -10 -

0

Quarters 01998 g 1999 g 2000


Figure 4.4. Microstar computer systems company sales by quarter

Table 4.5. Microstar computer systems company sales by day of the week

7 .Day of Week

Year &V M Tu W Th F S a Total

1998 - 25% 25% 20% 15% 15% - 100%

1999 - 25% 25% 20% 15% 15% - 100%

2000 - 35% 20% 20% 15% 10% - 100%

Edip Senvurek 58

35

252520 202020

151515 151510

2525

0 0 0

50 -

40 -

30 -

20 -

10 -I

0 0 0 0


Figure 4.5. Microstar computer systems company sales by day of the week

Product sales time

Su M Tu W Th F Sa

Days ij 1998 81999 2000

Table 4.6. Surat computer company sales by quarter

Quarter

Year 1 2 3 4 Total

1998 35% 5% 45% 15% 100%

1999 30% 10% - 40% 20% 100%

2000 40% 5% 45% 10% 100%

Edip Senyurek 59



Figure 4.6. Surat computer company sales by quarter

Product sales time

50

CO 40 o

CD E 30 o

E in 20

10

0

1st Qtr

2nd Qtr 3rd Qtr

4th Qtr

Quarters 1998 Ei 1999 g 2000

Table 4.7. Surat computer company sales by day of the week

Day of the Week

Year Su M Tu W Th F Sa Total

1998 - 20% 25% 20% 10% 15% 10% 100%

1999 - 20% 20% 25% 15% 15% 5% 100%

2000 - 25% 25% 20% 10% 10% 10% 100%

Edip Senyurek 60



Figure 4.7. Surat computer company sales by day of the week

4.2.3.1. Adapting to Customer Buying Patterns

When a company has established the customer buying times, the company should

adapt itself for the production, marketing, promotion and distribution of the product in

this time period [2]. In any case if the company can't adapt itself; most probably the

customers would be lost. Other companies, which can adapt themselves, in the

market, may gain these customers. In order not to loose customers the detailed data on

the time of customer purchase should be recorded on a daily basis used to make

seasonal adjustment in sales forecast and marketing plans [18].

As seen in the table 4.4 the Microstar computer systems company sells the specific

computers mostly in the first and fourth quarter. Marketing managers in Microstar

computer systems company should therefore adapt the company for production,

marketing, promotion, and distribution of the computers during first and fourth

quarter. January is the beginning of the year and most of the companies are upgrading

their computer systems. Beginning of December especially the parents are purchasing

new computers for their children as a gift because the beginning of December is the

end of academic year. At the end of June is the beginning of the midterm holiday

again the parents may purchase new computers.

Edip Senyurek 61


According to the day of the week, as seen in the table 4.5 that Microstar computer

systems company is closed on Saturdays and Sundays but it is selling rather heavily at

the beginning of the week.

The Surat computer company's specific computers are mostly sold in the first and

third quarter, as seen table 4.6. Marketing managers in Surat computer company

should therefore adapt the company for production, marketing, promotion, and

distribution of the computers during first and third quarter. The reason is the same as

the Microstar computer systems company. In Turkey, as the beginning of the year,

most of the companies are waiting until January to upgrade their computer systems.

The schools have two terms in Turkey, the first term starts in September and ends in

February, the second term starts in the middle of February and ends in June. Most of

the time if a student has been successful, the student's parent may buy a computer at

end of the term.

According to day of the week, as seen in the table 4.7 Surat computer company is

closed on Sundays but it is selling relatively large numbers of computers in the

beginning of the week.

4.2.4. CUSTOMERS BUY THEIR NEED AND WANTS

Customers buy the satisfaction of their needs and wants. They don't really buy .a

product [17]. Thus, the satisfaction of the customer is very important. For the

computer market, the most important thing is the after sales service. In this phase, a

company should establish whether there are problems with the computer, what the

problem is and how the company can assist the customer to solve this problem.

In this respect Microstar computer systems company and Surat computer company are

typically using telephonic, letters or email as medium of communication with

customers.

Edip Senyurek 62


4.2.5. CUSTOMER BUYING PROCESS

How the customers choose is typically the most complex one in customer analysis. To

observe how choices are made is difficult. In figure 4.8 a simplified model of the

decision-making process is shown.

Figure 4.8. Customer buying process 151

Recognition of problem

or need

Search for alternatives

and information

Purchase

Post-purchase behavior

As shown in the figure 4.8 the procedure is sequential and time constrained. Each step

is influenced by internal or external factor [5].

4.2.5.1. Recognition of Problem or Need

The customer decision process starts with recognition of problem. Experiences and

basic motives may influence the problem recognition. Another factor that influences

customers' needs is membership in various reference groups, such as the family and

their friends. Advertising also can activate problem recognition. The figure 4.9 shows

the factors influencing problem recognition [5].

Figure 4.9. Factors influencing problem recognition 151

Problem Recognition

Memory

Advertising

Lifestyle Reference groups

Family

Motives

Edip Senvurek 63

V External Sources Memory Exposure

N!, Perception

Retention

A

Search

Market opinion leaders

A

Recognition of problem


Surat computer company is advertising actively to activate the customers' problem

recognition and the company also can give a useful toy to the children if their parents

buy a computer. Microstar computer systems company is giving a dinner for two

people. Computer sales from Microstar computer systems company are also

influenced by family members or friends of existing customers.

4.2.5.2. Search for Alternatives and Information

The second step is the search for alternatives and information in the decision process.

This step is intended to gather information on products and alternative solutions to the

customer's problem. Figure 4.10 shows the typical search process.

Figure 4.10. The search process [5]

If a customer doesn't have enough information, the customer would try to find

information by consulting with the other people such as friends, neighbours, relatives,

or people at school. Customers have to be exposed to external sources' messages, for

them to be effective [5].

Microstar computer systems company is distributing pamphlets and putting wall

papers to take customers' attention. It is sending celebration cards for the existing

customers' birthdays, wedding days, and so on for reminding its name.

Edip Senyurek 64


Surat computer company is also distributing pamphlets and putting wall papers. It is

also giving full page advertisement to the newspaper to take the customers' attention.

4.2.5.3. Purchase

The third step of the decision process is the purchase. The purchase of the customer

can be influenced by the customer's intention and other special conditions that exist in

the marketplace. The purchase decision is illustrated in figure 4.11 [5].

Figure 4.11. The purchase decision [5]

Intention

Purchase

Store or distributor location Skill of salesperson

Availability of credit

As seen in figure 4.11, the store or distributor location is influencing the purchase. For

example, if a customer wants to buy a computer and a computer company is situated

far from the customer, this customer doesn't buy the computer from that company.

Microstar computer systems company opened another branch in JHB because its

place was in Potchefstroom and it couldn't enter the computer market in JHB. For a

similar reason Surat computer company also opened branches all around the Turkey.

Another influence the purchase of customer is the skill of salesperson. Microstar

computer systems company gives 1% commission to the salesperson to make him a

part of company. Thus the salesperson is thinking if he sells a computer he will earn

more money and he will try to improve his skills. Surat computer company

approaches this similarly and gives the commission to its salesperson.

4.2.5.4. Post-purchase Behavior

The last step of the decision process is post-purchase behavior that is shown in figure

4.12. After buying the product the customer may or may not be satisfied with the •

Edip Senyurek 65


product. If the customer is satisfied with the product, the customer may carry on to

buy from same company otherwise, the customer can complain to federal trade

commission, or other government agency. The customer can return the product for

exchange or repair, as well [5].

When Surat computer company finds a possible dissatisfaction of a customer they

would typically try to establish what the problem is. If possible a technician visits the

customers' place to fix the problem in the computer. If this is not possible, customers

may also to return the computer to have it fixed. Surat computer company has a

system support department for this purpose. By establishing system support

department Surat computer company would like to reduce the dissatisfaction of the

customer.

Figure 4.12. Post-purchase behavior 151

Purchase

Return for exchange, repair,

or allowance

A

Satisfaction

V Post-purchase

behavior

V

Dissatisfaction

Complain to federal trade commission, or

other government agency

4.2.6. REASONS FOR SELECTING THE PRODUCT

Why do the customers select the product? If a company can find the answer to this

question it can really prosper [17]. Typically the following questions need to be

addressed when a survey is done:

Edip Senyurek 66


Where did you hear of our shop/product/service?

What would you like us to offer?

How can we serve you better?

The following survey, table 4.8, is an example of establishing the answer to some of

these questions. For the computer market, the customers are buying the computer to

upgrade their old computers, to give as a gift to someone, to use in an office

environment, to use it at home, to play games, to surf in the Internet, and so on.

Table 4.8. An example of a client survey [15], [17]

To our valued clients:

Please take a few minutes to complete this short questionnaire. Our aim is to give you

the service you need, want and deserve. Your honest answers to these questions can

help us serve you better. Thank you for taking the time to help.

1. How would you rate the quality of work we have performed for you in the past?

Excellent Good Fair Poor

1.A. If not excellent, please explain.

2. How would you rate the salesperson that sold you this product?



Edip Senyurek 67


How would you rate the timeliness of the work we perform for you?



What service would you like us to perform for you that we do not offer?

Please feel free to give us any constructive criticism you feel we could use.

We plan to begin a seminar series in the not too distant future. What areas would

you like to see covered in these seminars?

6.A. How interested would you be in attending our seminars?

Very Somewhat Little Not at all

Additional comments:

Customer Signature:

Edip Senyurek 68


4.2.7. BECOMING CUSTOMER ORIENTED

Workers, receptionist, service people or any other person in the company should

understand their roles in building sales and profits. This is a task of the marketing.

These employees, workers, receptionist, service people, etc. are involved in marketing

and they contribute to customer satisfaction. An Australian public transportation

company used a new plan instead of old one that is shown in figure 4.13. This new

plan focused everybody on satisfying customers and the marketing managers were

free to concentrate on strategy development and implementation by empowering

front-line staff to make decisions. The company noticed that customer complaint

letters dropped by 30 percent after the introduction new program [20].

Figure 4.13. Customer focused marketing [20]

Customers

Frontline Staff

Management

Customers

Process driven Slow decision making Customer low priority Low trust

CEO

Action and results driven Encourages initiative Increases role of staff to customer Builds trust

4.2.7.1. Customer Checklist

To be more customer oriented managers need more information about present and

potential customers and prepare a checklist, as shown in the table 4.9, to monitor how

well they were doing in their drive. The most common way to get data for the items

on this checklist is customer surveys. Questionnaires can be distributed to the samples

of customers and results are summarized in reports [19].

Edip Senyurek 69


Table 4.9. Customer orientation checklist 1191

Are we easy to do business with?

Easy to contact?

Fast to provide information

Easy to order from?

Make reasonable promises

Do we keep our promises?

On product performance?

Delivery?

Installation?

Training?

Service?

Do we meet the standards we set?

Specifics?

General tone?

Do we even know the standards?

Are we responsive?

Do we listen?

Do we follow up?

Do we ask "why not" not "why"?

Do we treat customers as individual companies and individual people?

Do we work together?

Edip Senyurek 70


Share blame?

Share information?

Make joint decision?

Provide satisfaction?

Another way to gather customer information is through some form of direct contact,

such as phone, letter, fax or e-mail.. The company can phone each of its customers to

as certain problem can also send a fax, a letter or an e-mail to let the customers know

about new products or services. This also lets customers know they are important [5].

4.2.7.2. Plant Tours and Customer Visits

Mother way to learn about customers is to invite them in for a tour of the company's

facilities and some informal discussions. Microstar Computer Systems' marketing

manager is visiting the customer himself and if there is a problem with the computer

systems or network systems he can see at the customer's office. After that he sends

technical people to that place to fix the problem. If there is no problem at least he has

communicates informally with the customer and he does the informal discussion [9].

Surat Computer Company has groups that include one technical person and one

marketing person. These groups go to customers' office. The marketing person

introduces the new product or other useful product for customer. The technical person

fixes the problem if there is a problem with their computer [11].

4.4. CONCLUSION

The most important factor in the success of any organization is a satisfied customer.

That's why it is important to look at service from the customer's point of view. The

company must know who the customers are, what the customers want, how, when and

where the customers buy. The company who understands how customers make

Edip Senynrek 71


purchase decision are in a better position to design products and more effective

marketing programs.

Profits could change in a particular year for many reasons, including rising costs,

falling prices, major new investments, and so on, but the ultimate sign of a healthy

company is that its customer satisfaction index is high and keeps rising. Customer

satisfaction is the best indicator of the company's future profits.

Edip Senyurek 72

Engineering Management Chapter 5: Conclusion

CHAPTER 5

CONCLUSION

5.1. INTRODUCTION

Companies must satisfy their customers and meet their needs. The primary objective

of any company should be the customers' satisfaction. Thus the company has to be

aware of who its customers are, where they are located, whom they buy the products

from, when they buy the product, how they do choose, and how the company can

become a customer oriented. A company creates a product or service. Once the

customers are satisfied with this product or service, that company can survive and

succeed in the market place. Once the customers are dissatisfied with a company's

product, the company would die [6].

It is very expensive and difficult to gain new customers. It is also difficult to keep

existing customers. Company's product should be different from the others' product

and should satisfy the customers' needs and give them value for money to ensure that

they return to the company [35].

Any company should follow three goals, in order to ensure an acceptable level of

success:

Currently and in the future a company should make money

For employees a company should provide secure and satisfying

environment

Thirdly, the company must provide the market with satisfaction of the

customer now and in the future [21].

Edip Senyurek 73


Once a company identifies its customers' needs it should develop products that meet

these needs that will provide the company with a competitive and economical

advantage in the market place.

This research aims to present the principles of introduction to product development

concept with identifying customer needs and establishing product specifications. The

aims of this research were therefore to emphasize the importance of customers,

customer analysis, and meeting customer needs.

5.2. OVERVIEW OF THE RESEARCH

This research began with emphasizes on the importance of customers, and meeting

customer needs in the success of a company. In Chapter 2, customer needs

identification has been discussed.

Each management has the key objectives such as identifying customer needs,

establishing the specifications of the product to meet these needs, and developing and

marketing these products. Customer needs are usually expressed in the language of

the customer. What do customers want and expect from a product? Identification of

customer needs can answer this question. Customer needs can be helpful how to

manufacture the product. The product development team usually establishes a set of

specifications, measurable detail what the product has to do to satisfy customers [12].

In the third chapter, establishing the product specification has been discussed.

A company has to get to know the customers well. Who are they? What are their

needs? What will motivate them to buy and buy again? What will make them

satisfied? [37] To answer these questions, chapter 4 addressed customer analysis.

A case study to show the applications of the methods and techniques of the

identification customer needs in computer technology was chosen from two computer

companies. As the computer companies, to compare them, Surat computer company,

from Turkey, and Microstar computer systems company, from South Africa, were

chosen.

Edip Senyurek 74


5.3. CONCLUSION

Customer satisfaction must be the primary consideration for companies. To satisfy

customers they must be analyzed and meet their needs. Marge Connelly, senior VP of

domestic card operations, says:

"If I an; a phone associate, my mission is to meet my customer's needs." [22]

As discussed in chapter 4, analyzing customer impacts the satisfaction of customers.

Jory Berson, VP of marketing and analysis, says:

"I want us to become the place where people go to find anything they want to

buy." [22]

As discussed in this research report, the South African computer market is promising.

If Microstar computer systems company develops computers, from specifications

such as those which were established in chapter 3, and apply the marketing strategy,

they are likely to be successful in the South African market. The computer market is

changing in time. The configurations of a computer can be old in two three months.

As seen in table 2.6 and figures 2.3 for computers, reliability, affordability and

upgradability are very important in South Africa. Microstar computer systems

company is considering to close down the JHB branch, because the computer market

is very difficult in JHB and they will focus on Potchefstrom branch. They may deliver

to JHB as well.

Microstar computer systems company must assemble computers that are reliable and

affordable especially in the first and fourth quarters. By that time they can give some

promotions such as joystick, some games in compact discs, or educational compact

discs, because the first and fourth quarters are directly linked to the major school

holidays and the parents may consider buying computers for their children as

presents.

Edip Senyurek 75


When it comes to Surat computer company, as seen in table 2.8 and figures 2.4,

computers must be reliable, affordable and upgradeable. In table 4.6 and in figure 4.6,

the first and third quarters' sales are the highest as seen, similar reasons for then

phenomena exist on these discussed.

Edip Senyurek 76

Engineering Management References

REFERENCES

Philip Kotler, Marketing Management Analysis, Planning, Implementation, and

Control, Prentice-Hall International, Inc., 1994

Sakir Kucuk, An Engineering Approach to Development and Marketing of a

Commercial Product, RAU University, 1999

Russel I. Haley, Benefit Segmentation: A Decision-oriented Research Tool,

Journal of Marketing, July 1968.

Orville C. Walker, Harper W. Boyd, Jean-Claude Larreche, Marketing Strategy

Planning and Implementation, Richard D. Irwin, Inc., 1992

Douglas J. Dalrymple, Leonard J. Parsons, Basic Marketing Management, John

Wiley & Sons Inc., 1995

Ian Smith, Meeting Customer Needs, Biddies Ltd. Guilford and King's Lynn, 1997

Susan P. Douglas, C. Samuel Craig, International Marketing Research, Prentice-

Hall International Editions, 1983

http://nnvw.surat.comtr

Surat Computer Company, Kusbakisi Caddesi, No:4, 81190 Altunizade-

Istanbul/TURKEY, Tel: +90 216 342 9496

http://www.microstar.co.za

Microstar Computer Systems, 43-16th Road, Tillbury Business Park, Unit Al,

Block 5 Randjiespark, Midrand-Johannesburg/SOUTH AFRICA, Tel: +27 11 314

4134

Edip Senyurek 77

Engineering Management References

Karl T. Ulrich, Steven D. Eppinger, Product Design and Development, McGraw-

Hill Inc., 1995

Gail Freeman-Bell, James Balk-will, Management in Engineering Principles and

Practice, Prentice Hall, 1996

William R. Dillon, Thomas J. Madden, Neil H. Firtle, Essential of Marketing

Research, Richard D. Irwin, Inc., 1993

Karl Albrecht, Lawrance J. Bradford, The Service Advantage How to identify and

Fulfill Customer Needs, Richard D. Irwin, Inc., 1990

Susan Hart, New Product Development: A Reader, The Dryden Press, 1996

David H. Bangs, Practical Marketing a Step by Step Guide to Effective

Planning, Kogan Page Ltd., 1989

Sheila Wright, The Financial Times Marketing Case Book, Pitman Publishing,

1995

Benson P. Shapiro, What the Hell is Market Oriented?, Harvard Business

Review, November-December 1988

Peter Daw, Empowering Employees Drives Australian Transportation Customer

Service, Services Marketing Today, July-August 1992

Goldratt E.M., It's not luck: Great Barrinton, The Northriver Press, 1994

Charles Fishman, This is a Marketing Revolution, Fast Company, May 1999

Edip Senyurek 78

Documents

A case study of customer needs identification in computer