Download Marketing

Marketing
(It is about understanding how people make buying decisions
and using this information in the design, building, and selling
of products)
What is market?
Importance of marketing
Functions of marketing departments
What is market?
• A market is a collection of people who refer
to each other about their buying decisions.
• For many purchases we depend on
advertising or word of mouth
recommendations by friends. For major
appliances , we may consult references like
Consumer Reports.
Aspects of marketing
• There are two aspects of marketing
• First, Identification of customer needs, product
opportunities, and an understanding of market
segments.
• Acquiring this information is often called market
research.
• Second, Introduction of the product into
marketplace and the development of an ongoing
relationship with the customer.
Functions of marketing
department
• It creates and manages customer relationship
• Translates customer needs to product requirements
• Influences the creation of services that support the product and
customer
• Assisting with the introduction of the product into the marketplace by
performing customer test, field trials of the product, planning for test
marketing in restricted regions, advising on product packaging and
warning labels, preparing user instruction manuals and documentation,
arranging for user instruction, and advising on advertising.
• Marketing department does not make sales; that is the responsibility of
the sales department.
Marketing department performs
specific tasks
• Preliminary marketing assessment
• Quick scopoing of the potential sales,
competition, and market share
• Detail market study through interviews with
individuals and focus group
Market Research provides the
following information
•
•
•
•
•
Define the market segments
Identify the early adopters
Identify competitive products
Establish the market size ($)
Determine the breath of the product line and
number of versions
• Determine the product price-volume relationship
• Establish the customer needs and wants
Classification of Products Based
on Market
• Market Pull & Technology Push
• Market Pull is a situation where a product is
developed based on a response to an
identified market need
• In Technology Push company starts with a
new proprietary technology that looks for a
market in which to apply this technology.
Types of Products
• Platform Product: is built around a preexisting
technological subsystem. Examples include Apple Macintosh
operating system. This technology did not exist before but it was
technologically feasible.
• Customized Products: are those in which variations in
configuration and content are created in response to a specific order of
a customer. In a highly competitive marketplace, customization is one
of the major trends, so much so that futurists predict that we are
moving to a world of mass customization.
Organizational Chart for a manufacturing
company
A Functional Organization
(an example in next slide)
All research and engineering report to a
single vice president
All manufacturing activity is the
responsibility of another vice president
A chief characteristic of a functional
organization is that each individual has only
one boss
A simplified
Project
Organization
President
Vice-president of
research and engineering
Manager,
Project X
Manager,
Project Y
Manager,
Project Z
Engineering
Engineering
Engineering
Engineering
Support
Engineering
Support
Engineering
Support
Matrix Organization:
in this system each person has two supervisors, one a functional manager
and the other a project manager.
Concurrent Engineering
Concurrent engineering has three main elements:
Cross-functional teams: managers must empower cross-functional
teams for this to work
Parallel design : Also called simultaneous engineering, refers to each
functional area implementing their aspect of the design at the earliest possible
time, roughly in parallel.
Vendor partnering: Technical experties of the vendor for certain
components is employed as an integral member of the cross-functional design
team