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Chapter 13 Engineers in Marketing and Service Activities

Chapter 13 Engineers in Marketing and Service Activities. Managing Engineering and Technology. Management Functions. Managing Technology. Personal Technology. Planning. Research. Time Management. Design. Ethics. Decision Making. Production. Career. Organizing. Quality. Leading.

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Chapter 13 Engineers in Marketing and Service Activities

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  1. Chapter 13Engineers in Marketingand Service Activities

  2. Managing Engineering and Technology Management Functions Managing Technology Personal Technology Planning Research Time Management Design Ethics Decision Making Production Career Organizing Quality Leading Marketing Controlling Project Management Advanced Organizer

  3. Chapter Outline Marketing & Engineers • Types of Marketing Relationships • Engineering Involvement in Marketing • After Sales Service Engineers in Service Organizations • Importance of Service Industries • Characteristics

  4. Chapter Objectives • Describe the need for engineers in marketing • Describe the various ways engineers work in the service industry

  5. Marketing • Identifying customers • Studying customer’s needs • Obtaining opportunity to make an offer • Closing a deal

  6. Types of Marketing Relationships(Length of Relationship, and Commitment) • Transaction-based Relationships • More Sustained Relationships • Highly Committed Relationships

  7. Marketing Functions • Consumer products • Mass production • Major purpose of purchase: Consumption • Uniform requirements (high substitutability) • Small quantity • Industrial products

  8. Engineering Involvement (Industrial products) • Installation • Large, durable custom construction • Selling/design/cost estimation/supervision • Accessories • Short-lived capital goods (equipment) • Designing for general customer (S) • Raw materials • Extractive & agricultural products • Assessment of quality (B)

  9. Engineering Involvement (Industrial products) • Process materials • Goods that change form in production • Specifications (B) • Component parts • Goods that do not lose identity in production • Eng. Design (S) / Introduction to Users • Fabricated items • Custom-made items • Eng. Design/ Specifications (B) • Bids (S)

  10. Engineering Involvement (Industrial products) • Maintenance/Repair/Operating • Consumed in process of production or use • Parts/Schedule/Procedure/Methods (S) • Services • Incidental use • Sell / Perform

  11. After-Sales Service • Installation • Warranty • Field service • Documentation • Training • Provisioning & providing repair facilities • Providing retrofit, rebuild, & overhaul • Supplying spares & supplies

  12. The 22 Immutable Laws of Marketing • The Law of Leadership • It’s better to be first than it is to be better. • Hertz, IBM, Coca-Cola, Heineken, Times • The Law of the Category • If you can’t be first in a category, set up a new category you can be first in. • Miller Lite, Dell, Charles Schwab • The Law of the Mind • It’s better to be first in the mind than to be first in the marketplace. • IBM (Remington Rand) The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! --by Al Ries and Jack Trout

  13. The 22 Immutable Laws of Marketing • The Law of Perception • Marketing is not a battle of products, it’s a battle of perceptions. • Honda, Campbell’s soup, New - classic Coca-Cola • The Law of Focus • The most powerful concept in marketing is owning a word in the prospect’s mind. • Google, FedEx, Xerox, Coke, Kleenex • The Law of Exclusivity • Two companies cannot own the same word in the prospect’s mind. • DHL (worldwide) The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! --by Al Ries and Jack Trout

  14. The 22 Immutable Laws of Marketing • The Law of the Ladder • The strategy to use depends on which rung you occupy on the ladder. • Hertz/Avis/National • The Law of Duality • In the long run, every market becomes a 2-horse race. • Eveready/Duracell, Hertz/Avis, McDonald’s/Burger King, Nike/Reebok • The Law of the Opposite • If you’re shooting for 2nd place, your strategy is determined by the leader. • Coca-Cola/Pepsi, McDonald’s/Burger King The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! --by Al Ries and Jack Trout

  15. The 22 Immutable Laws of Marketing • The Law of Division • Over time, a category will divide and become two or more categories. • Computer: PC, Workstations, Mainframe • The Law of Perspective • Marketing effects take place over an extended period of time. • “Sales”, (short-term vs. long-term effects) • The Law of Line Extension • There’s an irresistible pressure to extend the equity of the brand. • IBM: copiers, satellite, prodigy, OS/2, Lotus/WP • Microsoft: OS, Programming, Office, game, internet The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! --by Al Ries and Jack Trout

  16. The 22 Immutable Laws of Marketing • The Law of Sacrifice • You have to give up something in order to get something. (Product line, target market, constant change) • Dept. stores vs. Toys “R” Us, Limited, The Gap • The Law of Attributes • For every attribute, there is an opposite, effective attribute. • Coke-classic, Pepsi-younger generations • McDonald’s-young kids, Burger King-teens • The Law of Candor • When you admit a negative, the prospect will give you a positive. • “Avis is No.2 in rent-a-car”, “Joy, the most expensive perfume” The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! --by Al Ries and Jack Trout

  17. The 22 Immutable Laws of Marketing • The Law of Singularity • In each situation, only one move will produce substantial results. • New Coke vs. Classic Coke • The Law of Unpredictability • Unless you write your competitors’ plans, you can’t predict the future. • IBM: Micro-channel • The Law of Success • Success often leads to arrogance, and arrogance to failure. • DEC: PC, Open System, RISC The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! --by Al Ries and Jack Trout

  18. The 22 Immutable Laws of Marketing • The Law of Failure • Failure is to be expected and accepted. • Wal-Mart (Ready, fire, aim), 3M (Champion system) • The Law of Hype • The situation is often the opposite of the way it appears in the press. • New coke, USA Today, NeXt computer • The Law of Acceleration • Successful programs are not built on fads, they’re built on trends. • Cabbage Patch Kids vs. Barbie doll The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! --by Al Ries and Jack Trout

  19. The 22 Immutable Laws of Marketing • The Law of Resources • Without adequate funding, an idea won’t get off the ground. The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! --by Al Ries and Jack Trout

  20. Engineers in ServiceOrganizations • Employment in “Goods producing” sector remain basically the same level (total #) from ‘86 to ‘96, and 2006 (projected), which represents 22.0%, 18.5% and 16.2% respectively • Employment in “Service producing” sector increased from 74M (‘86) to 94M (‘96), and 112M (2006, projected), which represents 66.6%, 71.2% and 74.1% respectively

  21. Top 10 Industries in Projected Employment Growth • Computer & data processing services (7.6%) • Health services (5.3%) • Management & public relations (4.8%) • Misc. transportation services (4.8%) • Residential care (4.8%) • Personnel supply services (4.3%) • Water & sanitation (4.2%) • Individual & misc. social services (4.1%) • Offices of health practitioners (3.9%) • Amusement & recreation services (3.5%)

  22. Top 10 Industries in Projected Employment Declining • Coal mining (-6.0%) • Watches, clocks, and parts (-4.0%) • Footwear, except rubber and plastic (-4.0%) • Search & navigation equipment (-3.8%) • Crude petroleum, natural gas (-3.7%) • Luggage, handbags, & leather products (-3.6%) • Tobacco products (-3.1%) • Metal cans & shipping containers (-3.1%) • Tires & inner tubes (-2.9%) • Photographic equipment & supplies (-2.6%)

  23. Technical Employment in Service Sector • About 22% of engineers worked in service producing industries (educational, research, consulting, hospitals & computing) • About 14% of engineers worked for government (highway & other public works, DOD, DOE, NIST) • About 6% of engineers worked in transportation, communication, & public utilities • About 5% of engineers worked in wholesale, retail trade, & FIRE (finance, insurance, & real estate)

  24. Characteristics of Service Sector • More intangible • Performed in real-time (scheduling) • Most professional & consulting services are customized, personalized, & labor intensive • Infrastructure (electricity, transportation, communication, etc.) providers are capital intensive

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