Project Management5. Marketing and Project Management
week 5
Anthony F. Tardugno; Thomas R. DiPasquale; Robert E.
Matthews (2000) IT Services: Costs, Metrics,
Benchmarking, and Marketingby Prentice Hall, ISBN-
10: 0-13-019195-7Print ISBN-13: 978-0-13-019195-3,
Chapter 5
James Cadle and Donald Yeates (2004) Project
Management for Information Systems, Pearson
Education, ISBN 0 273 68580 5, Chapter 17
Why is marketing important?
What is Marketing?
Evolution of Marketing
Implementing Marketing
Market Classification
Developing Marketing Strategies
Marketing Research
Selling the Project
What is Marketing?
What is Marketing?
Marketing is a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges
that satisfy individual and organizational objectives
What is Marketing?
Plan &
ExecuteExchange Satisfaction
Conception
Pricing
Promotion
Distribution
People &
Organisations
Goods and
Services
Selling Buying
Exchange
Distribution
Transport Storage
Selling
Buying
Selling
Buying
Transport
Storage
Facilitating functions
FinanceRisk
Taking
Standardize
Gather
Market
Info
Selling
Buying
Transport
Storage
Finance
Gather
Market
Info
Standardize
Risk
Taking
The marketing mix
Price Promotion Product Place
The marketing mix
Price Promotion Product Place
People Process Physicals
The marketing mix
Price Promotion Product Place
People Process Physicals
Personalization Peer to Peer Participation Predictive models
2. Evolution of Marketing
19C WW1 20s 30s WW2 50s 60s 70s 80s 90s Now
Advertisin
g
industry
develo
ps
Custo
mer
orie
nta
tion
What N
ext?
Industria
l
Revolu
tion
Dem
and
outp
aced su
pply
Pro
ductio
n
exceeds su
pply
Mark
etin
g M
ix
(4 P
s)
Fig
ure
11.2
Evolu
tion o
f th
e c
usto
mer
ori
enta
tion
(Pride,
Hughes &
Kapoor, 1
998, p321)
20s
30s
50s
60s
19C
Now
Permission marketing
Now
The Marketing Concept
is a
business philosophy
that involves the
entire organization
in the
process of satisfying
customers needs
while achieving organizational goals
The American Marketing
Association (AMA) states,
"Marketing is an
organizational function and
a set of processes for
creating, communicating
and delivering value to
customers and for managing
customer relationships in
ways that benefit the
organization and its
stakeholders.
www.marketingpower.com
3. Implementing Marketing
http://www.altadvertising.com/pdf%20files/salesvmarketing.pdf
Is Your Business "Sales" or "Marketing" Driven?
By Les Altenberg
Understand
potential
and existing
customers
Identify
their wants
and needs
Look at the
market are their needs
being met?
Can you
deliver the
goods?
Can you do
it well, fast
or cheap?
How do
customers
feel about
your brand
image?
Look at
specific
customer
stories
Mobilize
your
resources
Build and
sell your
product
Organizations need to reflect on
implementation of marketing
concept
Ask questions:
Can the product be
improved?
Is it being promoted
properly?
Is it being distributed
efficiently?
Is the price too high?
Make modifications on
basis of this feedback
4. Market Classification
A group of individuals, organizations, or both that have needs for products in a given
category and the ability, willingness, and authority to purchase such products
What is a Market?
There are different types of markets
Consumer ResellerIndustrial
Producer
Government
Institutional
Consumer
Purchasers and/or household members who
intent to consume or benefit from the
purchased products and who do not buy
products in order to make a profit
Consumer ResellerIndustrial
Producer
Government
Institutional
IndustrialPurchases products for use in day-to-day operations or in making other products for
profit.
Producers consist of individuals and business organizations that intend to make a profit by buying certain products to use in the manufacture of other products
Governments at all levels, purchase goods and services to maintain operations and to provide citizens with products such as roads, education, water, defense
And institutional organizations include churches, civic clubs, charitable groups. Not driven by profit, ROI
Consumer ResellerIndustrial
Producer
Government
Institutional
Resellers consist of intermediaries
such as wholesalers, and retailers
who buy finished products and sell
them for profit.
Consumer ResellerIndustrial
Producer
Government
Institutional
For the IT organization marketing entails
knowing primary internal markets
enterprise executives
operation and line managers
work-area managers
Production/end users
You need to predict their requirements,
develop feedback mechanisms for
performance, and services relevant to the
group
For example
Marketing to enterprise executives should focus on
governance issues
(e.g., decision making, funding, metrics, and architecture)
Marketing to managers should focus on the changes and
possibilities caused by IT's impact on business and the
business's impact on IT
5. Developing Marketing Strategies
A Marketing Strategy is a plan that will
enable an organization to make the best
use of its resources
Marketing Strategies consist of
selection and analysis of target market
&
creation and maintenance of an appropriate marketing mix.
A target market is a group of persons for whom a firm develops and maintains a marketing mix suitable for their specific needs and preferences
How to select a Target Market
Examine potential markets for effects on
sales, costs and profits
Determine if you have sufficient resources
to produce marketing mix
Ensure fit with the organizations overall objectives
Analyze strength and number of competitor
already selling
Take either total market approach or
market segmentation approach
Figure 11.3 General approaches for selecting target markets (Pride, Hughes & Kapoor, 1998, p324)
Creating a Marketing Mix Common to use a wide variety of
segmentation bases (see Table 11.2)
Organizations control important elements of marketing which must combine in a way to
reach the target market (marketing mix)
Organizations can vary elements of the marketing mix
product; design, brand name, packaging price; base price, discounts distribution; storage, transportation promotion; information
(Pride, Hughes & Kapoor, 1998, p325)
Figure 11.4 The marketing mix and the marketing environment (Pride, Hughes & Kapoor, 1998, p327)
6. Marketing Research
Marketing Research is the process of
systematically gathering, recording and
analyzing data concerning a particular
marketing problem
Conducting marketing research:
1. define the problem
2. make a preliminary investigation
3. plan the research
4. gather factual information
5. interpret the information
6. reach a conclusion
Figure 11.5 Marketing information system (Pride, Hughes & Kapoor, 1998, p331)
Marketing Trends Effect on IT Industry?
Growth in prime spending group
Decline in teenage population
Increase in the number of senior citizens
Better educated population, with greater purchasing power
Greater number of women working
Shorter workweek; more leisure time
7. Selling the Project
Buying and Buyers
Research shows buyers go through
identified stages when they buy
Figure 17.1 The buying cycle
(Cadle & Yates, 2005, p280)
Systems development projects have
buying committees and dont often follow the stages
Committee buying influences:
1. economic decision maker;
authority to spend
2. technical experts; evaluate
merit of solution
3. end-users; indirect effect on
purchase, concerned about
affect on them
4. champion or coach; assist in
preparing solution
Selling is an asking process
People who are most successful in selling systems development project or
consultancy assignments ask lots of questions
Example:
customers situationcustomers problemsimplications of problems
payoff or benefit from meeting the
needs
Prepare proposal for a potential buyer.
When assessing proposals you should include:
1. terms of reference
2. technical details of the solution
3. outlines advantages
4. aimed at all readers/buyers
5. clear diagrams
6. cross-references and navigational aids
7. summarized statement of costs
8. executive summary
Who is the Target Market?
Review
Marketing approaches have developed from a product-orientation to a customer-orientation IT industry slow to catch on.
Markets are groups that have needs for products and can be classified as; consumer, industrial, and reseller.
Marketing strategy is a plan to make the best use of resources, and consists of the target market, and marketing mix.
Marketing research can provide valuable information such as; education, retirement age, birth rates etc to project managers.
Buyers progress through stages when they buy, these include; need, options, concerns, implementation and change. Large IT
projects have buying committees.
Selling is a process of asking, and includes creation of proposal for buyer includes; terms, details, advantages, diagrams etc
Next Week
Topic: Project Leadership.
Reading: Gray & Larson, 2006, Ch 10.
References
Pride, W., Hughes, R. & Kapoor, J. Business (2nd ed.). Boston, MA.: Houghton
Mifflin.
http://flickr.com/photos/spine/272900992/
http://wendy.kinesisinc.com/
http://flickr.com/photos/7-how-7/95677126/
http://flickr.com/photos/missrogue/115899126/in/photostream/
http://flickr.com/photos/liveu4/134980839/
http://flickr.com/photos/liveu4/133041494/in/photostream/
http://flickr.com/photos/roadsidepictures/225771856/
http://flickr.com/photos/furnari/126438084/
http://flickr.com/photos/untitlism/2609684221/
http://flickr.com/photos/jek-a-go-go/1235462170/
http://flickr.com/photos/26158685@N04/2767676288/
http://flickr.com/photos/edyson/516871444/
http://flickr.com/photos/dunechaser/160405659/
http://flickr.com/photos/peterkaminski/860512054/
http://flickr.com/photos/mateus27_24-25/2224073271/
http://flickr.com/photos/storeyland/343438012/
http://flickr.com/photos/mattandbecky/28052539/
http://flickr.com/photos/calavera/65098350/
www.dualibra.com
Title page pic care of rick & CC @ Flickrhttp://flickr.com/photos/spine/272900992/