Project Management4. Marketing and Project Managementweek 5Anthony 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 5James Cadle and Donald Yeates (2004) Project Management for Information Systems, Pearson Education, ISBN 0 273 68580 5, Chapter 17Why is marketing important?What is Marketing?Evolution of MarketingImplementing MarketingMarket ClassificationDeveloping Marketing StrategiesMarketing Research Selling the ProjectWhat is Marketing?What is Marketing?Marketing is a process of planning and executing the conception, pricing, Marketing is a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectivesthat satisfy individual and organizational objectivesWhat is Marketing?Plan & ExecuteExchangeSatisfactionConceptionPricingPromotionDistributionPeople &OrganisationsGoods and Services8SellingBuyingExchangeDistributionTransportStorageSellingBuyingSellingBuyingTransportStorageFacilitating functionsFinanceRiskTakingStandardizeGatherMarketInfoSellingBuyingTransportStorageFinanceGatherMarketInfo8StandardizeRiskTakingThe marketing mixPricePromotionProductPlaceThe marketing mixPricePromotionProductPlacePeopleProcessPhysicalsThe marketing mixPricePromotionProductPlacePeopleProcessPhysicalsPersonalizationPeer to PeerParticipationPredictive models2. Evolution of Marketing19CWW120s30sWW250s60s70s80s90sNowAdvertising industry developsCustomer orientationWhat Next?Industrial RevolutionDemand outpaced supplyProduction exceeds supplyMarketing Mix(4 Ps)Figure 11.2 Evolution of the customer orientation (Pride, Hughes & Kapoor, 1998, p321)20s30s50s60s19CNowPermission marketingNowThe Marketing Conceptis abusiness philosophythat involves the entire organization in the process of satisfying customers needs while achieving organizational goalsThe 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.marketingpower3. Implementing Marketingaltadvertising/pdf%20files/salesvmarketing.pdf Is Your Business Sales or Marketing Driven?By Les AltenbergUnderstand potential and existing customersIdentify their wants and needsLook 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 storiesMobilize your resourcesBuild and sell your productOrganizations need to reflect on implementation of marketing conceptAsk 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 feedback4. Market ClassificationA group of individuals, organizations, or both that have needs for products in a given category and the ability, willingness, and authority to purchase such productsWhat is a Market?There are different types of marketsConsumerConsumerResellerResellerIndustrialIndustrialProducer Producer GovernmentGovernmentInstitutionalInstitutionalConsumerConsumerPurchasers and/or household members who Purchasers and/or household members who intent to consume or benefit from the intent to consume or benefit from the purchased products and who do not buy purchased products and who do not buy products in order to make a profitproducts in order to make a profitConsumerResellerIndustrialProducer GovernmentInstitutionalIndustrialPurchases 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 productsGovernments at all levels, purchase goods and services to maintain operations and to provide citizens with products such as roads, education, water, defenseAnd institutional organizations include churches, civic clubs, charitable groups. Not driven by profit, ROI ConsumerResellerIndustrialProducer GovernmentInstitutionalResellers consist of intermediaries Resellers consist of intermediaries such as wholesalers, and retailers such as wholesalers, and retailers who buy finished products and sell who buy finished products and sell them for profit.them for profit.ConsumerResellerIndustrialProducer GovernmentInstitutionalFor the IT organization marketing entails knowing primary internal markets enterprise executivesoperation and line managers work-area managersProduction/end usersYou need to predict their requirements, develop feedback mechanisms for performance, and services relevant to the group For exampleMarketing 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 ITs impact on business and the businesss impact on IT 5. Developing Marketing StrategiesA Marketing Strategy is a plan that will enable an organization to make the best use of its resourcesMarketing 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 preferencesHow to select a Target MarketExamine potential markets for effects on sales, costs and profitsDetermine if you have sufficient resources to produce marketing mix Ensure fit with the organizations overall objectivesAnalyze strength and number of competitor already sellingTake either total market approach or market segmentation approachFigure 11.3 General approaches for selecting target markets Figure 11.3 General approaches for selecting target markets (Pride, Hughes & Kapoor, 1998, p324)(Pride, Hughes & Kapoor, 1998, p324)Creating a Marketing MixCommon 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 mixproduct; design, brand name, packaging price; base price, discountsdistribution; storage, transportationpromotion; information(Pride, Hughes & Kapoor, 1998, p325)(Pride, Hughes & Kapoor, 1998, p325)Figure 11.4 The marketing mix and the marketing environment Figure 11.4 The marketing mix and the marketing environment (Pride, Hughes & Kapoor, 1998, p327)(Pride, Hughes & Kapoor, 1998, p327)6. Marketing Research Marketing Research is the process of systematically gathering, recording and analyzing data concerning a particular marketing problemConducting marketing research:define the problemmake a preliminary investigationplan the researchgather factual informationinterpret the informationreach a conclusionFigure 11.5 Marketing information system Figure 11.5 Marketing information system (Pride, Hughes & Kapoor, 1998, p331)(Pride, Hughes & Kapoor, 1998, p331)Marketing Trends Effect on IT Industry?Growth in prime spending groupDecline in teenage populationIncrease in the number of senior citizensBetter educated population, with greater purchasing powerGreater number of women workingShorter workweek; more leisure time7. Selling the ProjectBuying and BuyersResearch shows buyers go through identified stages when they buyFigure 17.1 The buying cycle (Cadle & Yates, 2005, p280)Systems development projects have buying committees and dont often follow the stagesCommittee buying influences:economic decision maker; authority to spendtechnical experts; evaluate merit of solutionend-users; indirect effect on purchase, concerned about affect on themchampion or coach; assist in preparing solutionSelling is an asking processPeople who are most successful in selling systems development project or consultancy assignments ask lots of questionsExample:customers situationcustomers problemsimplications of problemspayoff or benefit from meeting the needsPrepare proposal for a potential buyer. When assessing proposals you should include:terms of referencetechnical details of the solutionoutlines advantagesaimed at all readers/buyersclear diagramscross-references and navigational aidssummarized statement of costsexecutive summaryWho is the Target Market?ReviewMarketing 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 WeekTopic:Project Leadership.Reading:Gray & Larson, 2006, Ch 10.References Pride, W., Hughes, R. & Kapoor, J. Business (2nd ed.). 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