COMPREHENSIVE CONTENTS OF THE BOOK

Chapter 1: The Scope of Computer Marketing Aim of this book

Making policy work Realism Productivity Creativity in marketing

Organisation of the book Defining marketing

The customer's view of the marketing process Getting the customer to opt for or perceive more value Resource constraints Marketing and selling The marketing-orientation

The main marketing tasks The process in more detail

Corporate objectives Corporate strategy Internal and external environment Formulating marketing objectives and strategy

Objective Strategy

Marketing presence and financial objectives Profit measures Revenue objectives The competitive stance Product strategies Market strategies Product/market strategies Pricing and distribution strategies Operations strategies

The marketing mix Marketing implementation

The stages of implementation The marketing plan The marketing organisation Managing the marketing organisation Controlling marketing

Chapter 2: Strategic Overview Understanding the market dynamics

Variety in the market place Evolution of the market Shaping new markets through technology Cost effective solutions

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Case study 1: the airline industry 15 A wide-open market 15 Joint marketing 15 Account control 16 Developing secondary account control 16

Case study 2: the motor industry 16 Mainframe at the centre, mini at the periphery 16 Manufacturer approval 17 Benefits 17 Industry standards 17

Case study 3: the open systems opportunity 18 Do systems plug and play? 18 Working in partnership 18

Case study 4: secondary account control through bank terminal systems 19 Secondary control, the only option for terminal suppliers 19 Meeting market requirements 19 Market segmentation 19

Case study 5: introducing new technologies by building walls around old systems 20 Building walls around applications 20 Introducing new technologies for new business areas 20

Case study 6: selecting software as a basis of protecting investment 21 Release from hardware lock-in 21 Growing dependence on software product suppliers 21 Selecting the operating system 22 Selecting the database 22 Selecting the application 22 Other key products will also emerge 22

Case study 7: letting the dealer meet the user requirements 23 Marketaccess 23 Operating systems standards 24 Market heterogeneity 24 The changing advertising mix 24 The mature market 25 Distributor support 25 Matching the distributor's proactive role 26 Developing the after-market 27

The value of the after-market 27 Importance of marketing 27

Chapter 3: Strategic Alternatives for Suppliers 29 Purchasing process 29

Supplier affordability 30 An example of the specialisation 30 Options for different types of supplier 31

Mainframe supplier strategies 31 Major trends 31 Managing the network 31 System resilience 31 Information database 32 Maturity in the market 32 Working in partnership 32

Mid-range supplier strategies 33 Market segmentation 33 Developing and exploiting specialisation 33 Application strategies 34 Secondary control requirements 34

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Productivity tools Distribution channel support

Personal computers and workstation vendors Importance of focus Market of product complexity Distribution and sales costs

Software product developers and vendors Market focus Added value opportunities Getting the product to the market Differentiation is a major challenge

Computer services companies Outsourcing: a long or short term opportunity Systems integration Structuring the computer services market

Peripheral suppliers Product or subsystem supplier After-market opportunities

Dealers and distributors Dealer attitudes for successful selling Suppliers' attitudes to dealers

Strategic conclusions: understand your markets and capabilities

Chapter 4: Understanding the Market Understanding the customer

The value of information Sales interface information

· Overview of users' situation Customer perceptions of suppliers

Communicating commitment and quality Establishing credibility

Supplier evaluation procedures Evaluation criteria

The changing decision-making process Seniority of approval The buying centre

The structure of DP departments Personal computers in mainframe environments The slowly changing customer

Falling cost of computing Sales and marketing opportunities

The personal computer user Product/supplier factors Software and support Business factors

The role of user and distributor groups Benefits to the customer

Packaged or purpose-built software Document image processing Disappointing results Implementation approaches Purchase criteria and sales messages Why the problem?

Lessons for users Lessons for suppliers

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Defining the market Too narrow definition Too broad definition Instability in markets

Market size Measures of market size

Units or revenue Number of customers or outlets Number of decisions Life of market

Policy determines choice of measurement Market identity Market dynamics Market size and market share Modelling the market

Demand equations Market share equations Supply equations

Market forecasting Determinants of market size

Price Purchasing power of potential buyers Product availability Customer needs vs. supplier policies Systems standards Upgrade feasibility General economic situation

Market potential now Measuring the market Sizing the unsizeable Key questions in market sizing Markets over time

Market segmentation Reasons for segmenting Bases for and use of segmentation

Geographical Purchasing power Innovativeness as a buyer Price sensitivity Existing user of product class Existing user of supplier's products Use situation, applications, benefits Industry/sector Investment in manpower Access

Requirements for robust segmentation Market choice

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Definition of 'market' Choice criteria

Degree of concentration Market size Expected market share Minimum expected profit Market growth rate Difference from existing markets Opportunity in existing customers

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An example of market choice: the engineering industry Competitive analysis

The competitive structure Monopolies and barriers to entry Intense competition Focused vs. broad front competition Distribution channel competition Access to markets Bargaining power

International competition Defining away competition Substitutability

Researching the competition Competitive structure and strategy The field of research Costs Cross-checking sources Sense-testing Using the results

Market research Situation modelling Business modelling Research design Information sources Sources of error Interview methods Questionnaire design Interpreting research

Chapter 5: Product Policy Formulating product policy

Product policy in times of change Technology orientation Technical vs. market definition Need satisfaction Value in customer's process Unbundling the product

Guarding against technology hype Market for a true, working system Detailed summary The foundation of product policy Implications for market analysis

The product policy mechanism Quality of product policy mechanism Objectives in product development Need for trade-off rules Relevant objectives Importance of product policy in different situations The existing resources constraint How much do we want to change our product line? The need to change 1: the product life cycle

Consequences of phases Productivity and performance requirements Portfolio viability Using the cycle empirically

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The need to change 2: strategic untenability Your strengths vs. market growth Main options Limitation 1 - definition of market Limitation 2 - definition of business strength and market robustness Limitation 3 - making strategy work Key messages

The product planning process Results of research into industrial innovation Determinants of success

Process factors Initial marketing factors Inherent product factors Organisation factors

Generation of new product ideas Demand-pull versus technology-push

Balancing creativity with commercial realism Linking idea generation to feasibility Developing a clear view of the role of the product

Market picture Business picture

Generating product ideas The great leap forward The gap approach

Remember the non-technical dimension The product philosophy approach

Evaluating products The strategic approach The financial approach

Weakness of approach The factor weightings approach Factors used in the weightings approach

Financial Production/technical Marketing and service General management and personnel Use of factors prior to evaluation

The product development process: summary Identification of opportunity Evaluation of opportunity Defining the product development goals and project timetable

Marketing strategy plan Development and testing Product introduction Full marketing Maintenance Termination

Aim of the staged approach Doing it efficiently

Chapter 6: Prices and Costs Pricing in changing markets

The need for information Pricing research Costs

Marginal costs

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96 96 96 96 96 97

Contribution margin Which costs? Marketing's contribution to keeping costs down

Determinants of price Determining the effective premium or discount

Use of feature/value comparisons Degree of market leadership

Building leadership Getting the message over Losing leadership

Newness of product Newness of product category for prospective users New category for supplier New for buyer and supplier Pricing and time Rental Problems of establishing rental competitiveness Terminating products

Discriminating between customers Price sensitivity The problem of large customers Segmenting by responsiveness Using different pricing rules Account pricing Charging costs to the account

Discounts Information system Target profitability Using a discount budget Managing discounts When to use discounts Quantity discounts

Negotiating Marketing in negotiation situations

Distribution channel discounts Pricing and competition

Barriers to market entry Barriers to customer entry Responsive pricing Importance of product differentiation Penetration pricing Exploiting short-term opportunities

Invoicing problems

Chapter 7: Marketing Communications Establish a marketing communications strategy

Setting objectives Defining the role of marketing communications Defining tasks and the target audience Evolving the approach Understanding the customer

Motivation Stimulus-response Reference groups and personal influence Opinion leaders The buying centre

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No potted solutions Stages in the purchasing process

Oversimplified view Diminishing returns in marketing communications Marketing communications implications of different stages Segmenting by stage of purchasing process

Contending with other influences Threshold and saturation effects Clarity of objectives (again!)

The message Create and reinforce the image The personal computer market

Confusing approaches Collective impact

Large systems Fixing the brand image Buyers' self-images

Reference group influence Role of market research in message design

Cheaper research Requirements for a 'good' message Approaches to message design

Media choice Kinds of channel Media available

Media advertising Public relations Discounts and promotional add-ons Dealer/retail site promotions Exhibitions Sponsorship

Database marketing Media choice

Choice criteria Choice algorithms

Choosing the advertising agency Doubts and uncertainties What kind of agency? The role of agencies

Maintaining contact Spend and dedication Soulmates Contact and education

Educating the client The PR perspective

Planning, design, preparation, media choice and budgeting Management skills and processes

Consultancy International policy

Budgeting Affordability Marginal productivity Share of spend

Share vs. effectiveness Measuring the effectiveness of marketing communications

Delayed effects

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Interdependence with other supplier policies Competitive and other changes Do we need to measure effectiveness? The use of database marketing Measures of effectiveness

Recall and recognition Consumer techniques

How customers avoid marketing communications Selective exposure Message distortion Selective retention

Phasing of marketing communications policy

Chapter 8: Distribution Channels Impact of change

Trend to third party distributors Increased availability of distributors

No 'end-point' General impact of distribution channels Operational and strategic impacts Choosing and managing distribution channels Main distribution options

Distribution channels and marketing strategy Adding value to the product Partnership in channels The 'optimum' channel? Change in channels

· Innovation in channels Distributor network support services

Active role of channels Defining the division of labour

Marketing roles and tasks The 'business opportunities package'

Information - a central element in the BOP Risks of leaked information The BOP- the supplier's value added in marketing Converts to the BOP! The BOP for the direct sales force

Policy implications Organisation strategy The BOP in pull marketing

Channel options Retailing Retail tasks Service through less service Measures of success Combining performance and productivity Productivity and control systems How suppliers can help Customer orientation Image Retailers' strategy

Image and character take time to change The retailer as customer

Number of sites

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128 128 128 128 129 129 129 129 130 130 130 131 131 131 132 132 132 132 132 133 134 134 134 135 135 135 135 136 136 136 136 136 137 137 137 138 138 138 138 138 139 139

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Average selling space per site Product range Average list price Discount Number of customers entering stores (traffic) Average spend per customer Fixed site cost Cost of goods Cost of obtaining, holding, displaying and selling products

The evolution of retail computer marketing Chaotic first stage Rationalisation stage Purchasing and service An example

The retail selling process Types of computer retailers Expectations about suppliers

Product Marketing Administration Support and training

Dealers and Distributors Similarity with retailing

Dealers Personal computer dealers

Developing from office origins Unlearning bad sales lessons!

New entrants Importance of product range Types of dealer Requirements of suppliers

Computer distributors Buyer and seller roles Dealers' needs

Industrial distributors Value added resellers

Types of customer Relationships with suppliers

The direct sales force

310

The customer's perspective The quasi-showroom Advantages of the DSF How to evaluate the sales force option Available margin for selling cost The investment approach

Total sales force time acquired Quality of DSF time Working time produced per DSF hour Customer-related time produced per working hour Potential customers accessed per customer-related hour Available business per customer accessed Proportion of available business gained Average revenue per product Profit margin on revenue Level of investment per unit of sales force time

Using the analysis

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Commission agents Database marketing

Channel marketing support Characteristics of database marketing Requirements for success Limitations

Criteria for channel policy decisions Supplier's main requirement Channel choice and management under uncertainty

Using a mix of channels Risk of maladjustment Consequences of maladjustment Anticipating changes in effectiveness

Determinants of policy Relative effectiveness

Turnover Asset usage Performance Channel choice Costs of focus

Channel structure Allocation of roles and tasks

Channel management Targets and controls

Other determinants of channel policy Market coverage Customer attitudes to the channel Image Control of what the channel does Rationality Exclusivity and territoriality Consistency Complementarity with supplier skills Skills, knowledge and resources (for each marketing role) Stability and commitment Risk Support requirements Availability of institution or channel members Contractual arrangement required Negotiation Severity of competition in the sector Quality of information on the market and channels

Managing channels How many channel members? Recruiting channel members

'Spray and pray' Focused recruitment Stability through focus

Nature of agreement Nature of the contract Managing the channel relationship

The channel manager Review and evaluate the relationship Communications programme Use the channel member's business plan

Changing the distribution channel

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Chapter 9: Selling and Account Management Identifying prospects and deciding the account mix

Being proactive about prospect mix The need to improve the quality of the prospect list Qualifying prospects Quantifying chances of success Using the matrix Adjusting for selling cost The filter approach Combining filter and probability approaches Searching for prospects

Personal filters The prospecting check-list

Customer requirements Possible solutions Budgets Competition Purchasing process Profit

The first approach Researching the customer

Kind of data Business Organisation Purchasing situation

Purpose of data How much data? Sources of data The customer database Analysing the data

The account plan The account project The account plan format

Developing a sales approach Sales strategy Simple view of sales process The consultative sale Clarifying the route to the sale Significant events map Prioritising opportunities within the account Simple versus complex sales Distinguishing the two Handling simple and complex sales Simple sales turning complex

Levels of the sale

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Understanding hierarchies Using business information Current problems and opportunities

Strategies for reaching critical units/managers Nature of involvement

Opposition Indifference Supporter: words only Supporter: deeds Advisor

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How and when to reach them Obtaining sponsorship Timing the movement

What to do with them Using the right language

Analysing account needs The perceived dimension Type of analysis

Personal needs of customer's staff Learning from the account The customer questionnaire Introduction and statement of purpose Interview begins Clarification of respondent status Department activities and role in company Size of department Current working practices of staff Current equipment Satisfaction with current equipment Envisaging change Budgetary questions Perception of equipment suppliers Introduction of your equipment and references (where relevant) Close interview

Closing the sale Get the customer to agree general needs Translate general needs into a solution you can provide Translate benefits into practical terms

Dealing with problems Creativity in selling

Negotiating the sale Preparing the ground Putting together options Timing the negotiation Planning negotiation Importance of understanding the customer

Preparing arguments related to your strengths Behaviour during negotiation Personal behaviour during negotiation The post negotiation phase Team negotiations

Reviewing and controlling the selling process Aim of control Aim of review Nature of review and control Collection of information Measurement of achievement and performance

Salesforce activity inputs Intermediate performance Final performance Relating measures to business objectives

Reporting the figures Account review and redirection

Teamwork in account development Managing a mix of projects

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The account interface Teamwork with customers

The changing interface Types of interface

Degree of formality Level of seniority Directness Integration/centralisation in larger accounts Support staff

Relationship between sales staff and programmer/analysts Complaints handling

Chapter 10: Customer Care, Support and Service Looking after your customers

Benefits of customer care Why so many organisations forget their customers

Split responsibilities Customer service and customer care

Focusing on customers The role of customer care policy

The role of planning Hi-tech and hi-touch

The marketing concept - where the customer fits The 7Ps

Competitive strategy and customer care Creating markets Professionalism in marketing Emulation versus differentiation

Customer care and the product The customer and the service system Branding Quality The impact of service The demand for service

Importance of information on the use situation Role of the salesman

Understanding the use situation The market Service market size

Specific aspects of demand for service Understanding customer dependence Value factors

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Cost of operation Objective and subjective costs

Attitudes towards downtime Customer causes of downtime Definition of reliability Perceived reliability Reliability requirements

Attitudes towards response time Impact of new modes of service Acceptability of different service products Attitudes to teething problems Attitudes to source of service Attitudes to service interface Service market research procedures and approaches

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Service products and prices Is a contract necessary? Operator training Software support

Marketing effects of the search for service efficiency Service centres

Bring-in incentives Loaners

Design modifications and product policy Pricing options

Zone charges Increased sensitivity to customer needs Customer support

Third party maintenance (TPM) and third party distribution Reasons for growth in TPM

Proliferation of small suppliers Increased ease of entry into the service business Profitability and higher price of service from major suppliers Slow improvement in efficiency and performance of major suppliers

Range filling by TPM companies Falling parts costs as proportion of total cost Limits to TPM penetration Hardware vs. after-market profits Exposure to TPM competitiveness Competitive third party services and size of installed base Installed base growth Addiction to service contracts Third party distributors Developing outsourcing services Keeping hold of the service market

Chapter 11: New Product Marketing Strategies Product marketing

Staying flexible, but firming up Importance of direction for the distribution channel Risk of product, not market orientation

The main marketing options Spray and pray Rifle shot MIRV Phased Volume Matrix of possibilities

Choosing between strategies Intersegment differences and similarities Adoption of new products Suspicion of test marketing Geographical factors Vulnerability to competitive attack Time taken to develop specialisation programmes Skills required Customer feedback Organising marketing specialisation Role of venture opportunities Marketing communications Financial implications

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216 216 216 216 216 217 217 217 217 217 218 218 218 218 218 220 220 220 221 221 221 221 221 221 222

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Product replacements 222 Production implications 222 Service implications 222 Support implications 223

Strengths and weaknesses of different options 223 Spray and pray 223

Strengths 223 Weaknesses 223

Rifle shot 224 Strengths 224 Weaknesses 224

MIRV 225 Strengths 225 Weaknesses 225

Phased 225 Strengths 225 Weaknesses 225

Volume 226 Strengths 226 Weaknesses 226

Combining options 226 Choice criteria for specialisation options 227

Types of specialisation 227 Hardware 227 Operating system software 227 Applications software 227 Marketing 227 After-sales service 228 Customer care and support 228

Definition of marketing options 228 Applications marketing 228 Departmental marketing 228 Occupational marketing 228 Vertical marketing 228 Geographical marketing 228 Product marketing 228 Account marketing 228 Implications 228

Sourcing options 229 In-house sourcing 229 Joint development 229 Structured out-house sourcing 229 Pre-agreed ad hoc sourcing 229 Total ad hoc sourcing 229

Deciding on specialisation 229 Specialisation and sourcing choices to be made 229

Overall company strengths 230 Long-term company objectives and strategy 230 Marketing strategy 230 Size of opportunity in particular segments 230 Current/expected future marketing strengths and weaknesses 231 Availability/willingness to co-operate with other product sources 231

Difficulties and costs of moving to and operating the specialised position 232 Competitors' strategies, policies and resources 232 Availability of channels of distribution 232 Applications marketing 232

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Stage 1 Stage 2 Stage 3 Stage4

Implications for suppliers Vertical marketing

Not just a product question Relative intersegment differences Customer perceptions Risks of claiming vertical specialisation Modularity as a solution

Software product issues Software or hardware as king? Software vs. hardware product policy Leap-frogging Software pricing Software pricing: an after market issue

Chapter 12: Database Marketing What is database marketing?

Creating customer information Characteristics of database marketing

Automating the marketing process The strengths of database marketing The strategic role of database marketing Competitive superiority

Customer relationships Alternative sales channels Barriers to market entry

New products and services Guidelines for strategic appraisal

Target opportunities Incremental revenue from database marketing Quantification of cost effects

Contact strategies Revenue and cost review The decision conference

Chapter 13: Marketing Objectives and Plans Definition and purpose of marketing planning

Degree of formality of the planning process Impact of predictability Predictability matrix Examples of unpredictability

Planning objectives Importance of realistic and operational objectives Organisational influences Historical influence Testing feasibility of objectives

Return on sales Stance relative to the dominant supplier Market share objectives for new products

The market Our sales

An iterative process Need for higher level of treatment of marketing objectives

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Breaking marketing objectives down into goals Formulating the plan

Style of documentation Creativity in planning

Creativity in stable markets Impact of marketing planning cycle Formal introduction of creativity Importance of relevant creativity

Tight and loose marketing planning Advantages of tight planning Problems with weak data Rigidity of process Lack of toleration of uncertainty Cost of planning resources Overcentralised marketing

A looser planning approach Nature of control High level of skill and motivation required

Bottom-up planning The choice Room for experimentation in the planning process

Chapter 14: Marketing Organisation Avoid reorganising!

No organisation is perfect Consequence of lack of foresight Relation to marketing strategy Responsibilities of the organisation

Key structural decisions Division of responsibility between marketing and other functions

Historical influences Product and market orientation

What the division of responsibilities must achieve The arm's length solution The centralised solution Hybrid solutions Choosing between systems A possible solution Importance of rationale of system The marketing function

Targeting system Marketing's responsibility Importance of commitment

The manufacturing function Relationship with marketing

Product management/R & D functions Multinational transfer pricing problems

Origin of the problem Emergence of strong competitive pressure Extreme exchange rate changes Effect of factory automation Importance of clear manufacturing strategy What is your strategy?

The internal organisation of the marketing function The commercial logic of the organisation

The military model

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261 261 261 261 261 262 262 263 263 263 264 264 264 265 265 265 266 266 267 267 267 267 268 268 268 269 269 269 269 270 270 270 270 270

Product logic Account or segment logic Strategic logic Inherent organisational logic

Making the decision Organisation by market segment

Need for a simple rationale Too many objectives?

No solution in over-resourcing Prioritising objectives

Customer purchasing structure The three-way see-saw

The changing market Using project teams Matrix solutions Balancing effort in a multi product company Local resource flexibility

Should marketing be separate from sales? The company life cycle Different cultures Co-ordination and understanding

Levels of organisation and spans of control Organisational cost The 'review syndrome' Performance impact Manageable units in marketing

Allocation of decisions between international levels Feasible role of headquarters Creativity Productivity

Human resources in the marketing organisation The company life cycle again Maturity's problems Foresight is crucial The need for adaptation mechanisms Using the matrix of marketing tasks The training planning matrix Dealing with the training gap

Gap prevention Gap curing

Chapter 15: Managing and Controlling Marketing Managing and objectives

Setting detailed performance objectives Development and defence of existing accounts vs. new business

Impact of technical change Effect of stage of market development Account base protection Need for cross-functional co-ordination

Targeting the field sales operation Product targeting

Selling against the market Production constraints Local decisions

Target variations by area or salesman Revenue targets

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280 280 280 280 280 281 281 281 282 282 282 282 282 282 283

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Mode of target allocation 283 Separating targeting from budgeting 283 Need for short-term pressure 284

Developing selling strategies to achieve objectives 284 The sales force must understand the strategy 284 Commission structure in the sales strategy 285

The manager's role in sales strategy 285 Breaking down objectives into tasks 285 Skills required in sales management 285 Effect of market changes 285 What sales managers should know 286 How should the manager be managed? 286

Purpose and method of control 286 Underperformance and overperformance 286 Choice of measures 287 Realism in the marketing plan 287 Distinguishing policy and individual success and failure 287 Need for detailed investigation 288 Frequency of control 288 Importance of balance in control procedures 288 Impact of market maturity 288

Sales force turnover 288 Avoiding high turnover rates 289

Customer base management 291 Options for the customer base 291 Principles of customer base management 291

One face to the customer? 291 Productmanagement 292 Expanding the account base 292

After-sales service aspects 292 Customer interface check-list 292

Stabilise marketing organisation (central and field) 292 Unification of interface 292 Economy 292 Control variables 293 Staffing 293 Marketing mix 293 Service 293 Marketing planning 293

Marketing budgeting 294 Contribution productivity 294 Field and account budgeting 295 Margin management 295

Forecasting trap 295 Functionalisation 295 The way tasks are delegated down the organisation 295 Lack of recognition of market/competitive phases and product differences 295 Relationship of costs, margins and asset turn over 296 Marginal margin vs. average margin 296

Marketing productivity 296 Defining productivity 296 Average and marginal productivity 296 Performance distribution tables 296 Different productivity measures 297 Input/input and output/output ratios 297 Chain of marketing tasks 297

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The need for balance Market immaturity Need to combine performance and productivity targets Overhead productivity Limits to productivity No best approach Exploitation of technological advance Productivity initiatives Marketing management's productivity

The middle management barrier Supervisor productivity

When productivity needs improving

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321

access to markets 23-4, 68 segmentation and 64

account base see customer base accountbudgeting 295 account control 16, 147

form 191 secondary 16, 19-20,34

account logic 271 account marketing 228 account needs see customer needs account plan 169-70

format 170, 171 account pricing 102 account review process 191-2 achievement, measurement of 190

see also performance ad hoc sourcing 229 adaptation mechanisms 277--8 added value

distribution channels 130-1 software 37--8 supplier's 134-5 see also Value Added Resellers

administration 142-3 adoption of new products 218-19 advancement, feeling of 289-90 advertising

changing mix 24-5 media 117 see also communications

advertising agencies 120-3 role 121-2 tasks 122-3

advisors 177 affordability

communications budgeting 123-4 supplier 30

after-market 213 opportunities 41 software pricing 237 see also customer care; service

after-sales problems 84, 207 agency systems 150 agreement, distribution 159 airline industry 15-16 analysts 194 application selection 22 application strategies 34 applications, segmentation by 63 applications marketing 228, 232-4 applications software specialisation 227 arm's length approach 264

INDEX

asset-based marketing 4 asset usage 153 automation

factory 269 of marketing 240-3 office 53

available business 149

bank terminal systems 19-20 bargaining power 68-9 barriers to entry 68, 106, 245 behaviour during negotiation 185--8 benefits, segmentation by 63 bottom-up planning 260 brand image/branding 115, 202 bring-in incentives 209 broad front competition 68 budgeting

communications 123-5 marketing 294-6 sales targeting and 283-4

budgets, customer 166 business information 167, 17~ business modelling 72 business objectives 6, 190, 230

see also objectives business opportunities package (BOP) 133-6 business PCs 35 business picture 88 business plans 161 business strength 82, 230 buyers see customers buying centre 47, 111

centralisation accounts 194 marketing 259,264-5

channel choice see distribution channels channel managers 160 channel mix 1 52 choice algorithms 120 client contact 121, 122 closing the sale 182-3 commerciallogic 270-1 commercial realism 86 commission agents 150 commission/grading structure 285, 289-90 commitment 45, 267

distribution channels 156 commodity markets 36 communication

product policy and 85, 95 sales force 290

323

communications, marketing 109-27 budgeting 123-5 channels 117-19 database marketing 150, 151 distribution channels 160 establishing strategy 109-13 evolving the approach 110 measuring effectiveness 125-7 media choice 116-20 message 113-16 new product marketing 221 phasing of policy 127 selection of advertising agency 120-3 role definition 109 tasks 109-10

company life cycle 274, 277 company objectives 6, 190,230

see also objectives company strategy 6-7,230 company strengths 82, 230 competition

analysis of 67-9 competitive stance 8 database marketing 241-3 defining away 69 distribution channels 68, 157 marketing communications 125 multinational transfer pricing 269 pricing and 106-7 rental pricing l 00 researching 70-l selling 166 specialisation 232 TPM 213-14 vulnerability in new product marketing 220

competitive forces 241 competitive strategy 70

and customer care 200-l competitive structure 68-9,70 competitive superiority 241-2 complaints handling 195 complex sales 173-5 computer distributors 144-5 computer services companies 39-40 concentration 65 concessions, preparing 185 consistency 156 consultancy 123 consultative selling 167, 172 consumer-oriented techniques 126 contact strategies 248-9 contracts

distribution channels 159 service 208, 214

contribution margin 97 contribution productivity 294 control, marketing 12

distribution channels 155 DSF 147 purpose and method 286-8 retailing control systems 137-8 selling process 189-92 spansof 27~ types of 288 see also account control; managing

324

co-operation 231 corporate objectives 6, 190, 230

see also objectives corporate strategy 6-7, 230 cost effective solutions 14-15 costs

charging to the account l 02 competitive research 70 database marketing 247-8,248 falling costs of computing 48 offocus 154 margin management 29~ organisational 275 parts 212 print and 96-7,102 segmentation and 222 selling 36-7, 140, 148, 164-5,243-4 service 205

coverage, market 155 creativity 2

Multinational decision-making 276 planning 256-8 product development 86 in selling 183

credibility 4~ critical path analysis 170 critical units/managers 175

strategies for reaching 176-7 cross-checking sources 71 cross-functional co-ordination 282 culture 274 customer base

management 291-3 protection 281-2

customer care 196-202, 228 benefits of 196 competitive strategy and 200-1 customer service and 197-8 policy 198-9 and the product 201-2 see also service

customer database 169 customerdependence 204 customer discounts 102-4 customer feedback 221 customer information, creating 238-9

see also database marketing customer interfaces 45, 192-4, 292-3 customerneeds 59, 76,77,83,178-82,210

dealers meeting 23-8 customer orientation 4, 138 customer questionnaire 180-2 customer-related time per working hour 149 customer relationships 83, 243-5 customer service see service customer support 27, 210-11, 228 customers

attitudes towards service 205-7 avoidance of marketing communications 126-7 and distribution channels 155 distributors as 145 DSF: attitudes towards 146-7; evaluation 149 existing users see existing users/customers internal 202 language 178

number as market size measure 56 organisational level and sales 175-8 pricing and 101-2; discriminating between

101-2; entry barriers 106; problem of large 101

purchasing structure 272-3 reassigning 290 researching 167-9 retailers as 139-40 self-images 115 understanding 44-54; benefits to 50-3;

communications policy 110-13; empathising 45; perceptions of suppliers 45-6; and sales negotiation 185, 185-6; slowly changing 48-9

VARs and 146 and vertical marketing 235 view of marketing process 3 see also users

data analysis 169 data laundry services 245 data management 245 data requirements matrix 168 data vending/enhancement 245 database marketing 119, 150-l, 238-49

automation of marketing process 240-3 characteristics 151, 23~0 competitive superiority 242-3 contact strategies 248-9 customer relationships 243-5 defining 238 effectiveness of marketing communications 125-6 limitations 151 new products/services 245-6 strategic appraisal guidelines 246-8 strategic role 241 strengths 240-1

databases customer 169 mainframe supplier strategies 32 selection 22

deadlocks 187 dealer promotions 118 dealers 41-3

attitudes to customers 42 distribution channel 143-4, 145 meeting user requirements 23-8 suppliers' attitudes to 42-3

decision conference 249 decision making 47

multinationals 276-7 number of buying decisions 56

dedication 121 delayed responses 110, 125 demand-pull products 86 departmental marketing 228 dependence, customer 204 design modifications 210 differentiation

customer care 201 market 66 product 38-9, 107

diminishing returns 112 direct sales force (DSF) 146-50

advantages 147 BOP 135 evaluation 147-8 investment approach 148-50 see also field sales operation; sales force

directness 194 discipline, personal 172 discount budgets 103 discounu 98,118,139

customer 102-4 distributor 105-6

distribution channels 41-3, 109, 128-61 active role 132 availability 232 changing 161 choice 129-30, 152-3, 154 competition 68, 157 computer distributors 144-5 criteria for policy decisions 151-7 database marketing 150-1 dealers 143-4 direction 216 discounu 105-6 DSF 146-50 general impact of 129 impact of change 128-9 industrial distributors 145 main options 130 management 152-3, 154-5, 157-61 and marketing strategy 130-6 recruiting members 157-9 retailing 136-43 structure 154 support 25-6,34-5,132,156 VARs 145-6

distribution costs 36-7 distribution strategies 9 distributor groups 49-50 division of labour 132-3 division of responsibilities 263-8

approaches 264-5 historical influences 263-4 manufacturing function 267-8 marketing function 266-7 product management and R&D 268

document image processing (DIP) 20, 50-1 documentation 256 dominant supplier 254 downtime, attitudes towards 205-6 DP departments 47-8 drama 116

earnings estimates 289 educating clienu 122 educating users 84 effectiveness

distribution channels 153, 153-4 measures 52-3 of spend on communications 124-5

efficiency, service 209-11, 211 Electronic Data Interchange (EDI) standards 17 electronic shopping 245 emulation 201 engineering industry 67 entry barriers 68, I 06, 245

325

environment, company 7 error, sources of 73 evolution of the market 14 exchange rate 269 exclusivity of territory 156 exhibitions 118-19 existing resources constraint 79 existing users/customers 63, 66

effort allocation between new and 280-2 expenditure see spend experimental error 73 external communication 85

facilities management 32, 39-40 factor weighting approach 91-2 factory automation 269 fear 116 feasibility, idea generation and 86-7 feature/value comparisons 98 feedback, customer 221 field budgeting 295 field sales operation 242-3, 282-4

see also direct sales force; sales force filter approach 165 financial approach to product evaluation 90 financial objectives/strategies 7-8 flexibility, resource 274 focus

distribution channels 154, 158-9 supplier strategies 35--6, 37

focused competition 68 forecasting

margin management 295 market 58 sales 84

foresight 261, 277 formality 193

planning 250-1 functionalisation 295

gap approach 88-9 general economic situation 59--60 geographical marketing 228 geographical segmentation 62 goals 255

see also objectives great leap forward 88

hardware and after-market profits 213 lock-in 21 product policy 236 specialisation 227

headquarters, MNC 276 hierarchies 175--6 hi-tech customer care 199 hi-touch customer care 199 human resources 64, 277-9 humour 116 hybrid organisational systems 265

IBM 105 idea generation 86-9 identification of opportunity 93 image 114

brand 115, 202

326

distribution channel 155 store 138, 138-9

immature markets 297 implementation

marketing I 0-12 new technology 51-2

incentives, bring-in 209 indifference 176 industrial distributors 145 industrial innovation 83 industry, segmentation by 64 industry standards 17 information

availability and segmentation 65 BOP 134 customer 238-9; see also database marketing customer research 167-9; requirements matrix

168; sources 168-9 distribution channel policy 157 pricing and 96, I 02 problems of weak and planning 258 sources for market research 72-3 understanding the customer 44-5 on use situation 203

inherent organisational logic 271 in-house sourcing 229 innovation

distribution channels 132 industrial 83

innovativeness, buyer 62 input/input ratios 297 inputs 179 instability, market 55 installed-base growth

product marketing options 220 TPM 214

integration 194 intense competition 68 interfaces, customer 45, 192-4,292-3 internal communication 85 international competition 69 interviewing 73-4

customer questionnaire 180-2 investigation, detailed 288 investment

approach to DSF 148-50 in manpower 64

invoicing problems I 07-8 iterative processes 255

joint development 229 joint marketing 15-16

lagged responses 110, 125 language, customer's 178 large systems 114-15

see also mainframes launch readiness (Alpha) test 94 leadership, market 98-9 leads, spend and 294 leaked information 134 leap-frogging 236 life cycle

company 274,277 product 80-1

loaners 210

local decisions 282 local resource flexibility 274 loose planning 259--60

mainframes 15 PCs in mainframe environments 47-8 supplier strategies 31-3

maintenance 197 product development 94 third-party (TPM) 211-15 see also customer care; service

maladjustment 152-3 manageable units 275-6 management productivity 299 management skills 123 managing marketing 280-99

budgeting 294-6 customer base 291-3 and objectives 280-2 productivity 296-9 sales force turnover 288-90 sales strategy 285-6; manager's role 286-7 targeting field sales 282-4 see also control

manpower see human resources manufacturer approval 17 manufacturing function 266, 267-8 manufacturing strategy 270 margin management 295-6 marginal costs 97 marginal productivity 124, 296 market access 23-4, 68 market analysis 78 market attractiveness 82 market choice 65-7

see also segmentation; specialisation market complexity 36 market coverage 155 market creation 200 market definition 54-5, 75-6, 82 market development 281 market dominance 67 market dynamics 13-15,56-7 market entry barriers 106, 245 market evolution 14 market growth 66

share/growth matrix 81-3 market identities 56 market leadership 98-9 market map 130 market orientation 4, 263-4 market picture 87 market potential 60 market presence 7-8 market recognition 38 market research 71-4, 243

design 72 information sources 72-3 interpreting 7 4 and message design 115-16 service 208 sources of error 73

market sectors 13-14 market segmentation see segmentation market share 57, 66

objectives for new products 254-5 share/growth matrix 81-3

market size 55-61, 65-6 determinants of 58--60 and market share 57 measures of 55-6

marketing definition 3-4 selling and 4

marketing communications see communications marketing effort 84 marketing function 266, 266-7, 268

internal organisation 270-1 marketing implementation 10-12 marketing mix 9-10

customer base management 293 customer care 199-200 service 208

marketing objectives see objectives marketing opportunities 48-9 marketing organisation see organisation marketing plan 11, 250-60

customer base management 293 cycle 257 definition and purpose 250 experimentation 260 formality 250-1 format 257 formulation 256-60 objectives 252-5 predictability 251-2 realism 287

marketing policy 1-2 customer needs vs. 59 failure 287 interdependence 125 international 123 and market size measurement 56 negotiation 104

marketing roles 132-3 marketing strategy 7-9

distribution channels and 130-6 organisation and 261 specialisation 230

marketing strengths/weaknesses 231 marketing tasks 4-9

distribution channels 132-3 objectives and strategies 6-9 organisational matrix 262, 278 productivity measures 297

matrix organisations 273 mature markets 25, 32, 288 maturity, personal 277 media advertising 117 media avoidance 126 media choice 116-20 media spend, share of 124-5 message 113-16

design 115-16 distortion 127

mid-range systems 16-17 supplier strategies 33-5

middle management barrier 299 military model 270 minicomputers see mid-range systems MIRV 217,219,220,225

327

modelling the market 57-8 market research 72

modularity 236 monopolies 68 motivation

customer 110 mangers 260

motor industry 16-17 MS-DOS 22, 24 multinational corporations (MNCs)

advertising agencies 123 allocation of decisions 276-7 transfer pricing problem 268-70

multi-product companies 273-4 MVS 22

need satisfaction 76 negotiation 170, 183-8

behaviour during 185-7 distribution channels 157 marketing aspects 104-5 personal behaviour 187-8 planning 184-5 post negotiation phase 188 team 188 timing 184

network management 31 new products 216-37

choice criteria for specialisation options 227-9 choosing between strategies 218-23 creation by database marketing 245-6 deciding on specialisation 229-34 market share objectives 254-5 marketing options 217-18, 219; combining

options 226; strengths and weaknesses 223-6

pricing 99-100 software product issues 236-7 vertical marketing 234-6

non-technical dimension 89

objectives 7-9 account plan 169 breaking down into tasks 285 communications 109, 113 company 6, 190, 230 managing and 280-2 planning 252-5 prioritising 272 product development 78-9 sales strategies to achieve 284-5

occupational marketing 228 office automation 53 office equipment 143 open systems 15, 18 Open Systems Foundation 24 opening position 186 operating systems

selection 22 software and specialisation 227 standards 17, 22, 24, 59

operational objectives 252 operations need 77 operations strategies 9 operator training 208-9 opinion leaders Ill

328

opportunity/opportunities evaluation 93 identification 93 prioritising 173

opportunity costs 97 opposition 176 organisation, marketing 11,261-79

allocation of decisions between international levels 276-7

distribution channels 135 division of responsibilities 263-8 human resources 277-9 internal organisation of marketing function 270-1 levels and spans of control 275-6 multinational transfer pricing problems 268-70 and planning 253 responsibilities 262 segmentation and 271-4 separation of marketing from sales 274-5 structural decisions 262-3

organisation information 167 outlet promotions 118 outlets, number of 56 output/output ratios 297 outputs 179 outsourcing 39-40, 229

services 214-15 overhead productivity 298 overperformance 286 overstaffing 95

packaged software 50 parallel development strategies 87 partnership

distribution channels 131 supplier strategies 18, 32-3

penetration pricing 107 perceived dimension 179 performance 275

combining with productivity 137,298 control 286-7 distribution channels 153 measurement in sales 190 objectives 280 requirements 81

performance distribution tables 296 peripheral suppliers 40-1 personal behaviour 187-8 personal computers (PCs) 15

communications 114 dealers 143-4 in mainframe environments 47-8 supplier strategies 35-7 users 49

personal discipline 172 personal filters 165 personal influence 111 phased marketing 217-18, 219, 220,225-6 planning/plans

account 169-70, 171 customer care 198 marketing see marketing plan negotiation 184-5 product 83-5 training 278-9

Porter, Michael 200,241 portfolio viability 81

pre-agreed ad hoc sourcing 229 predictability 251

matrix 251, 252 premium 98 pressure, short-term 284 price advantages 84 price sensitivity 62-3, 101 pricing 96-108

in changing markets 96-7 and competition 106-7 customer discounts 102-4 determinants of price 98-101 discrimination between customers 101-2 distributor discounts 105-6 invoicing problems 107-8 market size 58 negotiation 104-5 retailing 139 service efficiency 210 software 237 strategy 9 transfer pricing problem 268-70

prioritising objectives 272 prioriti&ing opportunities 173 processes 179 product advantages 84 product availability 58-9 product complexity 36 product definition 75-7 product development 75-95

defining goals 93-4 design modifications 210 evaluation 89-92 idea generation 86-9 objectives in 78-9 parallel development strategies 87 planning process 83-5 policy formulation 75-8 policy mechanism 78-83 stages 92-5

product development team 86-7 product differentiation 38-9, 107 product introduction 94 product life cycle 80-1 product logic 271 product management 292

function 266, 268 product/market matrix 79-80 product/market strategies 9 product marketing 216,228

see also new products product need 77 product orientation 4, 216, 263-4 product philosophy approach 89 product placement control 147 product planning process 83-5 product policy see product development product range 139,144,273-4 product replacements 222 product strategies 8 product targeting 282 producttermination 95, 100-1 production 85

constraints 282 marketing options and 222

productivity 2, 280, 296-9 average 296

combining with performance 137,298 control systems and 137-8 definition 296 initiatives 298 limits to 298 marginal 124, 296 measures 297 MNCs 276-7 in need of improvement 299 requirements 81

productivity tools 34 products

acceptability of service products 206-7 customer care and 201-2 getting to market 38 new see new products retailers' expectations 142

professionalism 201 profit/profitability 166

DSF 149 measures 8 minimum expected 66 target 102-3 TPM 211,213

programmers 194 project teams 273 project timetable 93-4 promotional schemes 118 prospect evaluation matrix 164 prospects 162-7

check-list 165-6 evaluation 163-5 first approach 166-7 mix 162 searching for 165

public relations (PR) 117, 122 pull marlceting 136 purchase criteria 52-3 purchasing power 58

segmentation by 62 purchasing process 29-31, 166

customer purchasing structure 272-3 retailing 141 stages 112-13

purchasing situation information 167 purpose-built software 50 'push-selling' 174

quality customer care 202-3 DSFtime 148

quantity discounts 103-4 quasi-showroom 147 questionnaires 74, 180-2

range filling 212 rationality 156 realism 2

commercial and creativity 86 marketing plan 287

realistic objectives 252 recall and recognition tests 126 recognition, market 38 recruitment of distribution channels 157-9 reference groups 111, 115 reinforcement of message 127

329

reliability 205-6 requirements 206

rental pricing 100 reorganisation 261 replacement policies 222 reporting system 190-1 research

competition 70-1 customer 167-9 market see market research pricing 96 service market 208

research and development (R&D) 85, 266, 268 resource constraints 4 resources

allocation to achieve tasks 285 local flexibility 27 4 over-resourcing 272 source of advantage 67

response error 73 response time 206 responsibilities, division of see division of

responsibilities responsive pricing 107 responsiveness, segmentation by 101 retail site promotions 118 retailing 136--43

evolution of computer marketing 140-1 expectations about suppliers 142-3 retailer as customer 139-40 selling process 141 strategy 138-9 support and training 143 tasks 136 types of computer retailer 142 see also selling/sales

retention, selective 127 return on sales 253-4 revenue

average per product 149 database marketing 247,248 distribution channel effectiveness 153 factors in profitability 139-40 margin management 295-6 measures of market size 55 objectives 8 targets 283

'review syndrome' 275 rifle shot 217,219,220,224 risk 156

sales force activity inputs 190 control 286-8 discounts 103 relationship with programmers/analysts 194 role of salesman 203-4 and sales strategy 284-5 structure 290 targets 282-3 turnover 288-90 see also direct sales force; field sales operation

sales managers 285-6, 289 sales-orientation 4 saturation advertising 113 SCAD strategy 9

330

secondary account control 16, 34 through bank terminal systems 19-20

sector, segmentation by 64 segment logic 271 segmentation 61-5

banking market 19-20 bases for and uses of 61-4 mid-range supplier strategies 33 organisation by 271-4 reasons for 61 relative intersegment differences 235 requirements for robust 64-5 by responsiveness 101 size of opportunity 230-l specialisation and see specialisation by stage of purchasing process 113

selective exposure 126 selective retention 127 selling/sales 162-95

account plan 169-70 against the market 282 analysing account needs 178-82 closing the sale 182-3 costs 36-7, 140, 148, 164-5, 243-4 developing sales approach 170-5 distributor's role 145 effort 84 forecasting 84 identifying prospects 162-7 levels of the sale 175-8 market size measures 56-7 marketing and 4 negotiation 183-8 opportunities 48-9 process 172 researching the customer 167-9 retail selling process 141 review and control 189-92 separation of marketing from 274-5 simple and complex sales 173-5 strategy 171,284-5 teamwork in account development 192-5 see also retailing

selling space 139 seniority 4 7, 193 sense-testing 71 service 202-11

acceptability of products 206-7 customer base management 292, 293 and customer care 197-8 database marketing 245-6 demand for 203-4, 204-9 efficiency 209-11 market size 204 new modes 206 protection of service market 215 purchasing and 141 specialisation and 222-3, 228 staff and sales negotiations 194

service centres (SCs) 209-10 service contracts 208, 214 service interface 207 'servuction' 202 share-growth matrix 81-3

see also market share share of media spend 124-5

short-term opportunities I 07 short-term pressure 284 showroom, quasi- 147 significant events map 172-3 simple sales 173-5 situation modelling 72 skills 260, 285 small suppliers 211 social-technical systems approach 51-2 software

distributor support 25 packaged or purpose-built 50 product issues 236-7 selection and investment protection 21-3 specialisation and 227 support 209

software product developers/vendors 37-9 'soulmates' 121 sourcing options 229-30 specialisation 9

customer care 196-7 new product marketing 217-36; choice criteria

227-34; definition of options 228-9; operational difficulties 232; organising 221; types of 227-8; vertical marketing 234-6

retailer strategies 138 supplier strategies 30, 32-3, 33--4 see also segmentation

spend/expenditure 121 leads and 294 share of media spend 124-5

sponsorship 119, 177 spray and pray 158,217,219,220,223--4 stability

creativity and 256 distribution channels 156, 158-9 market 55

standard operation systems 17, 22, 24, 59 stimulus-response II 0-11 stores

image 138, 138-9 number of 139 selling space 139

strategic appraisal 246-8 strategic approach to product evaluation 89-90 strategic logic 271 strategic untenability 81-3 substitutability 69 supervisor productivity 299 supplier-customer relationship 83, 243-5 supplier evaluation procedures 46 supplier strategies 29--43

attitudes to dealers 42-3 computer services companies 39--40 dealers and distributors 41-3 effectiveness 53 mainframes 31-3 mid-range 33-5 new products 99-1 00 PC and workstation vendors 35-7 peripheral suppliers 40-l proactive role 26-7 purchasing process 29-31 requirements of distribution channels 152 and retailers 138, 142, 144

software product developers/vendors 37-9 VARsand 146

support customer 27, 210-11, 228 distributor 25-6, 34-5, 132, 156 retailer 143 sales force 290 software 209 specialisation and 223

supporters 176-7 systems integration 32, 40 systems market 36 systems standards 22, 24, 59

targeting system 267 targets

audience 109-10 budgets and 283--4 distribution channels 155 field sales operation 282--4 opportunities in database marketing 246 product 282 profitability 102-3 revenue 283

team negotiations 188 teamwork, account development 192-5 technical definition 75-6 technical need 77 technologically-driven approach 51-2 technology

exploitation of advance 298 hype 77 impact of technical change 281 implementation approaches 51-2 introducing new by building walls around old

systems 20 shaping new markets 14

technology orientation 75 technology-push products 85, 86 teething problems 84, 207 telemarketing 242-3 terminal suppliers 19 termination of products 95, l 00-l territoriality 156, 290 test marketing 220 testimonial 116 testing 94 third party distributors (TPDs) 214

trend to 128 see also distribution channels

third party maintenance (TPM) 211-15 limits to penetration 212-13 range filling 212 reasons for growth 211-12

threshold effects 113 tight planning 258-9 time

evaluation of DSF time 148-9, 150 markets over 60-l pressure and negotiation 186 specialisation programmes 221

timing negotiations 184 sales effort 177

toleration of uncertainty 259 total business management systems 26

331

total sales force time 148 total system support 214-15 trade-off rules 78 training

gap 279 operators 208-9 planning matrix 278-9 retailers 143 sales force 290

transfer pricing problems 268-70 trust 186 turnover see revenue

unbundling the product 76-7 uncertainty

distribution channel choice/management 152-3 toleration of 259

undennining, segmentation and 64 underperfonnance 286 Unique Selling Proposition 116 units sold 55 Unix 15, 22, 24 untenability, strategic 81-3 upgrade feasibility 59

332

use situation 63, 203, 204 user groups 49-50 users

educating 84 existing see existing users/customers see also customers

value customer's process 76 of service 205

value added see added value Value Added Resellers (V ARs) 41, 145-6 value/feature comparisons 98 venture opportunities 221 vertical marketing 228, 234-6 volume marketing 218, 219, 220, 226

walls around applications 20 word processing 51-2 working system 77 working time produced per DSF hour 148-9 workstation vendor strategies 35-7

zone charges 210