08 Marketing in Technical Organizations, 28pp.pdf

8/10/2019 08 Marketing in Technical Organizations, 28pp.pdf

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MarketingIn

Student Handout

Management of Technical Organizations

Joe Suter

April 2009


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Learnin Ob ectivesThe role of marketing within an organization

The value proposition of products and servicesYour role as an executive in identifying intellectualproper y an ow o pro ec

Addressing market need-

Quiz questions

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The Im ortance of Marketin

create a customer.

The business enterprise has two and only two basic

functions: Marketing and innovation. Marketing and .

Peter Drucker

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Marketin Basics

Who is the customer?What does the customer need?The Value Proposition

Shaping the Environment

What changes can an organization make to the environment tomake their product/service of greater value?

Branding

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Marketin Satellite Navi ationWhat is the value proposit ion?

In the 1950-s?Now?

Can one stil l be innovative in this field?

2000-s

5

-s


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CustomersDoes your organization have different customers?

Are there strategic differences in your customer base?Valued customers -- who to serve

organizational strategy identify as valued?

Why?Value proposition -- What to offer?

What attributes, that our industry takes for granted, should beeliminated?Which new attributes should be created that the industry hasnever offered?

--

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Wa s to Market Innovation

the industrys offerings or are not being served at all?

American automobile companies

Can we offer a value proposition that delivers

dramatically higher benefits or lower prices, compared

Can we radically redefine the value network for theindustry with much lower costs?

How about GM and Chrysler?Japanese car competition

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Ways to Market Innovation: the first steps

PatentCopyrightTrademark ProtectionTrade Secret

Have interested customers si n a Non-Disclosure AgreementPerform a market analysis

Technology PullTechnology Push

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Novel technology, concepts, processes, materials,ev ces, so ware, e c. n nven on

Patents, Copyrights, Trademarks, Trade Secrets

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Valued Customer Who are our valued customers?

Are there customers who are unhappy with all thecurrent offerings of the industry?

the industry?

Are we trying to reach customers who are unaware thatthey need our product/service?

If so, how are we going to create the need?

objectives?What is the growth rate of the target segment?

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Value Pro osition

a are e core nee s we are ry ng o a ress wour value proposition?

customers?

What benefits are we actually delivering to thecustomer?Is our value proposition different from that of the

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The Electronic Book: Son s Reader List three intellectual property

emsWhat is the value proposition?Is there a market?Who needs it?Who can afford it?

Easy to read display - e-paper displaywith quicker page turnsPremium design - Simple, yetso histicated with easier navi ation

Compact and lightweightIntegrated eBookstore with 20K titlesUp to 7,500 page turns on full charge

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Sha in The EnvironmentWhat is the environment for your organizations market?

What else influence the decision to buy?What about the competition?

customer?

Are there partners necessary to deliver the product/service? Are different product/services delivered to different customers viadifferent paths?

How does the organization shape the environment?What is the organizations presence in the community

us omersPartnersCompetitors

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Value NetworkCan we serve the valued customers with the value

organizations requirement?Do we have the necessary capabilities to deliver theva ue propos on

If not, could we acquire or partner with someone who does?

Would servin the valued customers have ne ativeconsequences on our existing customer or business?

If so, how are we going to control this?

- - - eliminated, reduced, or outsourced in our value network?How different is our value network from the rest of the

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HD DVD versus Blue Ray: the power of value

networksToshiba Manufactures High-Definition Digital Versatile Disc (HD DVD)

la ers startin in late 1990sHD DVD promotion group ~ 200 members Led by Toshiba includedtechnology, content, and distribution collaborators

Intel, Microsoft, HP, etc. , , ,

Japanese content providers, etc.Sony Manufactures Blue Ray (2002) same underlying technology, but

slightly more expensive and (in early production) less rugged ,

content, and distribution collaboratorsMatsushita, Pioneer, Phillips, Apple, HP, etcWalt Disney, Warner Brothers, 20 th Century Fox, etc

e y arner rot ers e ruary many content prov ersannounced that they would no longer distribute their films on HD DVDToshiba announced they would no longer manufacture HD DVD (February 2008)HD DVD romotion rou announced dissolution March 2008

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The Nike Stor

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Com anies: sales market or customer driven A sales-driven organization views marketing as a tool

.Public utilities, monopolies, and some large manufacturers

Marketing and selling are interchangeable

Market-driven organizations develop appropriateproducts and the desired image for their target segmentsbased on market research.

Market-driving organizations go for radical innovation Apple, Google, Amazon

Customer-driven com anies tar et se ments of oneand conduct relationship marketing to delivercustomized value configurations.

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Market-Driven Culture

something new? Are processes in place to capture learning from failures ? Are people encouraged to share their failures?

Do we learn from our failures?

Do we tolerate mavericks and allow space for innovationcham ions to flourish?

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Market-Driven Staff

Do we mix people on teams to increase creativity? Are novices included on important projects to questionassumptions?

Do we have entrepreneurs?

recognized and rewarded?

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Market-Driven ProcessesDo we allow for long payback horizons?

Do we accept alternatives in obtaining funding andapproval for market-driven ideas?o we ave processes a move eas rom e

development stage to commercialization?Do we run com etitions to enerate radical newconcepts?

DARPA Grand Challenge

-Do we ensure that radical ideas have adequateresources?

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Marketin : Basics 101Brand equity

Have we truly differentiated our products/services in a clearlyvisible way that matters to customers?

Are we generating profits (value to our stakeholders) for us?Does our price premium reflect the additional value delivered tocustomers?

Are we servicing our customers better?Do our people understand how we create value for our

Customer loyaltyWill we have repeat customers?

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Role of senior leadershi

The organizations senior leadership should be thecustomer champion

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Develo in Creative Environments

Ensure R&D autonomyProvide exposure to other creative

eo le Allow ideas to cross-pollinate

Make jobs intrinsically interestingSet your own creative goalsSupport creativity at high organizationallevels

Communicate this regularly throughout thecompany

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Innovation

The successful implementation of creative ideaswithin an organization

Motivation to innovate

Resources to innovateHaving innovative staff Managements role:

Set oalsGive rewardsSet schedules

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relevance


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Common Marketing Mistakes to Avoid (1)

Not Marketing to a Defined Group : Find your target

audience.Inconsistency in Your Marketing Efforts : You need tohave the same look and feel across all of your ads,promotions, and overall marketing plan.

,print or on the Internet alone will reach only a portion ofyour potential customers.

Not Focusing on Repeat Business : Repeat businesstypically makes up 80 percent of customers in most

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. Af ter : Small Business Solutions:

http ://www.allbusiness.com/marketing-advertis ing/1974-1.html


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Common Marketing Mistakes to Avoid (2)

Starting Too Late : Time your marketing campaigns to, ,

sales or an upcoming event that will attract business.Not Having a Clear Marketing Message : Marketingmessages that are contrived, confusing, too subtle ortoo long can easily miss the target market entirely.

do focus groups. Don't launch it without getting somefeedback first.

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er: ma us ness o u ons:http://www.allbusiness.com/marketing-advertising/1974-1.html


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Attributions

reen erg ec ure no esGlen Fountain and previous instructors material

Amazon.com Web SiteThe Movie: Office S ace

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Further Readin sMarketing Book, Fifth Edition by Michael Baker

Small Business Solutions:http://www.allbusiness.com/marketing-advertising/1974-.

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08 Marketing in Technical Organizations, 28pp.pdf

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