Marketing of ERP

Business Modeling for ERP

Approach to ERP

To develop a business model comprising the business process or activities & showing the interconnection & sequence of the business subsystems or processes that derive it

Business Strategy

Business Model

Business Process

Organizations

MIS

Databases

Money

People

Facilities

Material

Information

Information

INPUT

WORKFLOW

OUTPUT

F/B & control

Business as a system

Contract with package vendor

Value of the s/w & conditions of payment List of deliverables

Condns & concessions for acquiring complementary

modules in future Cost of implementation training Annual maintenance fee Warranty or guarantee terms Terms & condns for the receipt of new versions & upgrades Details of technical support on site Terms & condns for customization Profile of vendor team Other specific responsibilities assigned to vendor

Contract with consultants

Profile of the consultant team Consulting fee & payment conditions Time schedule & the implementation budget Time required for showing the results Implementation methodology Terms & conditions of knowledge transfer & employee

training List of deliverables Reporting mechanism to the company management Project monitoring & status reporting systems

Contract with employees

Should not put the company in a position where the

smooth running of ERP system is interrupted Train another person before leaving Should give prior notice before leaving Company should retain employees by Offering competitve salaries Challenging work environment Stock options

Market dynamics & competitive strategy

What is ERPs current competitive position? Is it market leader or is it challenger? Is it seeking a strong or dominant industry position How does one position ERP

Marketing of ERP
Managing the ERP marketing strategy process
From industry choice to positioning

Segmenting

Targeting

positioning

- Objective: To serve the customers & outperform

competitors by focusing the companys competencies appropriately

Marketing of ERP
Analysis of competitive positioning
Customer purchase criteria Customer preference concerning service or product on

each criterion Customer perceptions of competing vendor & their products on each criterion

Analysis of competitive positioning

Customer purchase criteria

Price ( purchase price, discounts, multisite license price)
Performance ( scalability, upgradability, support facilities) Psychological Quality Delivery schedule Warranty provided After sales service Credit terms Implementation strengths

Analysis of competitive positioning

Customer preferences

- map customer preferences on each criterion identified - provides benchmarks related to which an ERP & related service offerings positioned Customer perceptions on competing products - How the different ERPs differ

Go for competitive positioning decision

promotion
Image
Identity what it is & what it is intended to provide Decide USP Marketing concept target market, customer needs,

integrated marketing & profitability

Marketing strategy or Business plan

Target market : To identify industry sectors Positioning

: define & emphasize USP of market Product line : Add on products Price : competitive price Distribution : synergy with h/w or s/w vendors Sales force : to expand by 10% Service : To provide widely available & quick service by competing professionals

Marketing strategy or Business plan

Advertising : To develop a new advertising campaign that

supports the positioning Seminars / tradeshows : To participate Strategy : To emphasize USP in the advt & commercials : Increase the advt budget by 20%
Each mkg. Strategy must be elaborated to answer questions like

What will be done?

When it will be done? Who will do it? How much will it cost?

Action Programmes
Elaboration of each marketing strategy element
What will be done? When will it be done? Who will do it?

How much will it cost?

Buyers consciousness
Buyers characteristics
Making purchase decisions

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Criteria for selecting an ERP system

Actual sales cycle - ERP

Prospecting Qualification of the prospect

Corporate marketing presentation

Demonstration of the key features of the s/w

Simulation

Close the sale

Actual Sales Cycle

Prospecting

Generate prospects Develop relationships with management consultants

Qualification of prospect

Assessment of seriousness of prospects

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Corporate marketing presentation

Presentation on companys mission, culture, customers Explaining the features and benefits of the product

Demonstration of key features of the software

Relating business process of organizations to key ERP features Participation of decision makers and users groups

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 Simulation of some of companys business

processes

Mapping business processes to ERP software and demonstration Helps the vendor in implementation and to gain confidence with the organization Finalizing price, discounts, pre and post implementation support etc.

Closing the sale

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ERP FAMILY
Enterprise planning
Supervisory control Supply chain management Executive systems Maintenance management Planning scheduling Warehouse management Decision support

Managing the ERP Marketing Strategy Process

Deep understanding of the market and the product and know all about the process of managing marketing strategy from the organization's point of view.

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Relationship Marketing-The Key

Convert many of its qualified prospects into first-time

customers Convert those satisfied first-time customers into repeat 'customers Both first-time and repeat customers may continue to buy from competitors as well. The company then acts to convert repeat product categories

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 The next challenge is to turn clients into advocates,

customers who praise the company The ultimate challenge is to turn advocates into partners, where the customer and the company actively work together

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Value creation and delivery sequence

The first phase, choosing the value, represents the

"homework" that the marketing personnel must do before actually positioning the ERP in the market.

The ERP's specifications and services must be

detailed, a target price established, and the product made and distributed. the value.

The task in the third phase entails communicating

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Developing Marketing Strategies

ERP with premium price or at medium price with limited

functionality?
Positioning strategy to be changed at different stages of

product life cycle

Strategy choice depends on organization's role in the

market, global opportunities and challenges

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Planning Marketing Programmes

Decisions to be made on marketing expenditures,

marketing mix and marketing allocation

Level of marketing expenditures

Allocation of marketing budget to ERP, channels,

promotion media, etc.

Promotion most important marketing programme

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Participants in the ERP Buying Process

Vary in number and type for different products Ranges from 3-4 or team based buying Participants could be Those who initiate proposal Those who will use the software or service Technical personnel People with formal authority to purchase High level mangers for negotiations

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Who Will Require ERP ?

Organizations With a vision for leadership That are customer-service driven That are under tremendous competitive pressure In which business processes are too complex requiring coordination among employees

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