Transcript Engineering Management

Chapter 13
Engineers in Marketing
and Service Activities
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Advanced Organizer
Managing Engineering and Technology
Management Functions
Planning
Decision Making
Organizing
Leading
Controlling
Managing Technology
Personal Technology
Research
Time Management
Design
Ethics
Production
Career
Quality
Marketing
Project Management
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Chapter Outline
Marketing & Engineers
• Types of Marketing Relationships
• Engineering Involvement in Marketing
• After Sales Service
Engineers in Service Organizations
• Importance of Service Industries
• Characteristics
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Chapter Objectives
• Describe the need for engineers in
marketing
• Describe the various ways engineers work
in the service industry
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Marketing
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Identifying customers
Studying customer’s needs
Obtaining opportunity to make an offer
Closing a deal
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Types of Marketing Relationships
(Length of Relationship, and Commitment)
• Transaction-based Relationships
• More Sustained Relationships
• Highly Committed Relationships
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Marketing Functions
• Consumer products
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Mass production
Major purpose of purchase: Consumption
Uniform requirements (high substitutability)
Small quantity
• Industrial products
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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)
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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)
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Engineering Involvement
(Industrial products)
• Maintenance/Repair/Operating
– Consumed in process of production or use
– Parts/Schedule/Procedure/Methods (S)
• Services
– Incidental use
– Sell / Perform
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After-Sales Service
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Installation
Warranty
Field service
Documentation
Training
Provisioning & providing repair facilities
Providing retrofit, rebuild, & overhaul
Supplying spares & supplies
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The 22 Immutable Laws of
Marketing
1. The Law of Leadership
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It’s better to be first than it is to be better.
Hertz, IBM, Coca-Cola, Heineken, Times
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If you can’t be first in a category, set up a new category
you can be first in.
Miller Lite, Dell, Charles Schwab
2. The Law of the Category
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3. The Law of the Mind
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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
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The 22 Immutable Laws of
Marketing
4. 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
5. The Law of Focus
– The most powerful concept in marketing is owning a
word in the prospect’s mind.
– Google, IBM, FedEx, Xerox, Coke, Kleenex
6. 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
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The 22 Immutable Laws of
Marketing
7. The Law of the Ladder
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The strategy to use depends on which rung you occupy
on the ladder.
Hertz/Avis/National, AT&T/MCI/Sprint
8. The Law of Duality
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In the long run, every market becomes a 2-horse race.
Eveready/Duracell, Kodak/Fuji, Hertz/Avis,
McDonald’s/Burger King, Nike/Reebok
9. The Law of the Opposite
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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
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The 22 Immutable Laws of
Marketing
10. The Law of Division
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Over time, a category will divide and become two or
more categories.
Computer: PC, Workstations, Mainframe
11. The Law of Perspective
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Marketing effects take place over an extended period of
time.
“Sales”, (short-term vs. long-term effects)
12. The Law of Line Extension
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There’s an irresistible pressure to extend the equity of
the brand.
IBM: copiers, satellite, prodigy, OS/2, Lotus/WP
The 22 Immutable Laws of Marketing: Violate Them at Your
Own Risk!
--by Al Ries and Jack Trout
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The 22 Immutable Laws of
Marketing
13. The Law of Sacrifice
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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
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For every attribute, there is an opposite, effective attribute.
Coke-classic, Pepsi-younger generations
McDonald’s-young kids, Burger King-teens
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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”
14. The Law of Attributes
15. The Law of Candor
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The 22 Immutable Laws of Marketing: Violate Them at
Your Own Risk!
--by Al Ries and Jack Trout
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The 22 Immutable Laws of
Marketing
16. The Law of Singularity
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In each situation, only one move will produce
substantial results.
New Coke vs. Classic Coke
17. The Law of Unpredictability
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Unless you write your competitors’ plans, you can’t
predict the future.
IBM: Micro-channel
18. The Law of Success
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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
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The 22 Immutable Laws of
Marketing
19. The Law of Failure
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Failure is to be expected and accepted.
Wal-Mart (Ready, fire, aim), 3M (Champion system)
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The situation is often the opposite of the way it appears
in the press.
New coke, USA Today, NeXt computer
20. The Law of Hype
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21. The Law of Acceleration
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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
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The 22 Immutable Laws of
Marketing
22. The Law of Resources
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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
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Engineers in Service Organizations
• 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
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Top 10 Industries in Projected
Employment Growth
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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%)
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Top 10 Industries in Projected
Employment Declining
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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%)
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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)
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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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