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Chapter 13

Engineers in Marketing
and Service Activities
Advanced Organizer

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
Chapter Outline

Marketing & Engineers


• Types of Marketing Relationships
• Engineering Involvement in Marketing
• After Sales Service
Engineers in Service Organizations
• Importance of Service Industries
• Characteristics
Chapter Objectives

• Describe the need for engineers in


marketing

• Describe the various ways engineers work


in the service industry
Marketing

• Identifying customers
• Studying customer’s needs
• Obtaining opportunity to make an offer
• Closing a deal
Types of Marketing Relationships
(Length of Relationship, and Commitment)

• Transaction-based Relationships
• More Sustained Relationships
• Highly Committed Relationships
Marketing Functions

• Consumer products
– Mass production
– Major purpose of purchase: Consumption
– Uniform requirements (high substitutability)
– Small quantity
• Industrial products
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)
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)
Engineering Involvement
(Industrial products)

• Maintenance/Repair/Operating
– Consumed in process of production or use
– Parts/Schedule/Procedure/Methods (S)
• Services
– Incidental use
– Sell / Perform
After-Sales Service

• Installation
• Warranty
• Field service
• Documentation
• Training
• Provisioning & providing repair facilities
• Providing retrofit, rebuild, & overhaul
• Supplying spares & supplies
The 22 Immutable Laws of
Marketing
1. The Law of Leadership
– It’s better to be first than it is to be better.
– Hertz, IBM, Coca-Cola, Heineken, Times
2. 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
3. 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
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
The 22 Immutable Laws of
Marketing
7. The Law of the Ladder
– 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
– 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
– 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
The 22 Immutable Laws of
Marketing
10. The Law of Division
– Over time, a category will divide and become two or
more categories.
– Computer: PC, Workstations, Mainframe
11. The Law of Perspective
– Marketing effects take place over an extended period of
time.
– “Sales”, (short-term vs. long-term effects)
12. 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
The 22 Immutable Laws of Marketing: Violate Them at Your
Own Risk! --by Al Ries and Jack Trout
The 22 Immutable Laws of
Marketing
13. 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
14. 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
15. 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
The 22 Immutable Laws of
Marketing
16. The Law of Singularity
– In each situation, only one move will produce
substantial results.
– New Coke vs. Classic Coke
17. The Law of Unpredictability
– Unless you write your competitors’ plans, you can’t
predict the future.
– IBM: Micro-channel
18. 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
The 22 Immutable Laws of
Marketing
19. The Law of Failure
– Failure is to be expected and accepted.
– Wal-Mart (Ready, fire, aim), 3M (Champion system)
20. The Law of Hype
– The situation is often the opposite of the way it appears
in the press.
– New coke, USA Today, NeXt computer
21. 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
The 22 Immutable Laws of
Marketing

22. 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
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
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%)
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%)
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)
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