Problem Identification – Part Problem Identification – Part 11

Lecture 3Lecture 3

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Recall…Recall…

Recognition of Need

Becoming Informed

Problem Definition

Concept Generation

Concept Selection

Embodiment

Optimization

Fabrication

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Recognition of NeedRecognition of Need

Who defines NEED? Is NEED nicely defined?

ill defined? How to define and

analyze NEED? What is the effect if

NEED is misinterpreted?

Recognition of Need

Becoming Informed

Problem Definition

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NeedNeed

Who defines NEED? User – custom-designed Available technology – computer technology,

communication tech, military, automotive, aero Market trend – fashion, automotive

Is NEED nicely defined? ill defined? Not all Viability is an issue.

How to define and analyze NEED? Market analysis Background analysis

What is the effect if NEED is misinterpreted? Product failure to market

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Some example of NEEDSome example of NEED

A wheelchair that can go up and down the stairs

An air-conditioned shirt Cooling/Exhaust fan for cars

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Perimeter of the ProblemPerimeter of the Problem

User Analysis – Does the need exist? Who are the potential users? Physical attributes

(age, gender, size, reach, visual angles, etc…) Physical work places

(table height, sound levels, lighting, software version…) Perceptual abilities

(hearing, vision, heat sensitivity…) Cognitive abilities

(memory span, reading level, musical training, math…) Personality and social traits

(likes, dislikes, preferences, patience…) Cultural and international diversity

(languages, process flow, symbols…) Special populations, (dis)abilities

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Initial ProcessesInitial Processes

Recognition of Need “Identifying Opportunities” In Industry, often Marketing Department

Becoming Informed LEARN ABOUT THE PROBLEM! – background

analysis Literature Searches Patent Searches Web Searches Talk with “experts” and “customers”

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Marketing OverviewMarketing Overview(Ref: Principles of Marketing by P. Kotler & G. Amstrong, Prentice (Ref: Principles of Marketing by P. Kotler & G. Amstrong, Prentice

HallHall

Nature & core concepts of marketing

The marketing management process

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MisconceptionsMisconceptions of Marketing of Marketing

Marketer create needs, manipulate people to buy something they don't want

Marketing = selling = advertising Marketing = shoes polishing Customer will favour those products

that offer the most quality, performance & innovative feature

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What is Marketing ?What is Marketing ?

A social & managerial process by which individuals & groups obtain what they need & want through creating & exchanging values with others

Marketing ( management ) is the process of planning & executing the production, pricing, promotion & distribution of ideas, goods & services to create exchange that satisfy individual & organizational goals. ( integrated marketing activities)

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ProductsNeeds, wants,and demands

Exchange, transactions,and relationships

Markets

CoreMarketingConcepts

CoreMarketingConcepts

Value, satisfaction,and quality

Core Core ConceptConcept

ss

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Important elements of Important elements of MarketingMarketing

Consumer behaviour Market research Segmentation

The 4 P’s

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FactoryExistingProducts

Sellingand

Promoting

ProfitsthroughVolume

MarketCustomer

NeedsIntegratedMarketing

Profitsthrough

Satisfaction

The Selling ConceptThe Selling ConceptThe Selling ConceptThe Selling Concept

The Marketing ConceptThe Marketing ConceptThe Marketing ConceptThe Marketing Concept

StartingPoint Focus Means Ends

Marketing & Marketing & Sales Concept Sales Concept

ContrastedContrasted

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Society(Human Welfare)

Society(Human Welfare)

Consumers(Satisfaction)Consumers

(Satisfaction)Company(Profits)

Company(Profits)

SocietalMarketingConcept

SocietalMarketingConcept

The Societal Marketing The Societal Marketing ConceptConcept

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Managing the Marketing Managing the Marketing Plan & Planning ProcessPlan & Planning Process

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Step 1: Refer to Step 1: Refer to business business missionmission

MarketOrientedMarket

Oriented

DistinctiveCompetencies

DistinctiveCompetencies

VisionVision RealisticRealistic

MotivatingMotivating SpecificSpecific

Characteristicsof Good Mission

Statements

Characteristicsof Good Mission

Statements

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Step2: Environmental Step2: Environmental AnalysisAnalysis

Macro & micro scan by market research on market, competitive, product situation

Identify opportunity & threat & match with strength & weakness

The world is getting smaller, different countries are at different stages of economic & technological development, customers have different need at different place

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Step 3: Marketing Goal/Objectives

Specific, quantitify, benchmark, realistic, time-frame, target, update e.g. customer a/c: increase usage from 30% to

80% i.e. 400,000 a/c form 96-97 corporate a/c: open up the mkt of those

medium to large size companies in 6 months sales volume: increase by 120%. i.e.59 million

minutes

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Step 4: Target Market Step 4: Target Market SelectionSelection

DemandForecasting

DemandForecasting

MarketSegmentation

(culture, geog, sex, age, income)

MarketSegmentation

(culture, geog, sex, age, income)

MarketTargeting

(which segments to attack?)

MarketTargeting

(which segments to attack?)

MarketPositioning

(product position in the mind of consumer)

MarketPositioning

(product position in the mind of consumer)

Locate new opportunity Position brand favorably

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Step 4: Target Market Selection

International marketing more difficult: quality & quantity of data decrease variables more: 228 nations, race, language,

religious, customs, culture

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TargetCustomersIntended

Positioning

ProductProduct PricePrice

PromotionPromotion PlacePlace

OnSale!

Step 5: Developing the marketing mix

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Step 5 : Developing the Marketing Step 5 : Developing the Marketing MixMix

Four Ps Product Price Place Promotion

Four Cs Customer needs &

wants Cost to customer Convenience Communication

Synergy Global approach/localised

approach

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Step 6: Action program & budgetStep 6: Action program & budget Step 7: Evaluation & controlStep 7: Evaluation & control

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Executive Summary

Current Marketing Situation

Threats and Opportunities

Objectives and Issues

Marketing Strategy

Action Programs

Budgets

Controls

Marketing Marketing PlansPlans

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Classic Product Life Cycle

Introduction Growth Mature Decline

Profits

Sales

TIME

$