The Marketing GearBox

Two Situations .

Situation 1 Period : 1987 to 1992 Company : IBM Production cycle time reduced by 50% Installation time for a new product variant reduced to 16 hrs from 1 week ‡ Yet. one of the greatest losses in shareholder value in it s business history! ‡ ‡ ‡ ‡ .

Why? .

Situation 2 ‡ ‡ ‡ ‡ ‡ ‡ Period : 1981 to 1990 Sector : Retail Store size increased by 47% New items annually at the rate of 800% Limited shelf space Delete 1 or more old items on shelf for 1 new item .

How to tackle this problem? .

Solution exists with the company ‡ The 3 elements of marketing ± Product ± Sales ± Service .