1. Chapter 13 Engineers in Marketing and Service Activities

2. Advanced Organizer Managing Engineering and Technology Decision Making
Planning
Organizing
Leading
Controlling
Management Functions
Research
Design
Production
Quality
Marketing
Project Management
Managing Technology
Time Management
Ethics
Career
Personal Technology
Managing Engineering and Technology

3. Chapter Outline Marketing & Engineers Types of Marketing Relationships
Engineering Involvement in Marketing
After Sales Service
Engineers in Service Organizations
Importance of Service Industries
Characteristics

4. Chapter Objectives Describe the need for engineers in marketing
Describe the various ways engineers work in the service industry

5. Marketing Identifying customers Studying customer’s needs
Obtaining opportunity to make an offer
Closing a deal

6. Types of Marketing Relationships (Length of Relationship, and Commitment)
Transaction-based Relationships
More Sustained Relationships
Highly Committed Relationships

7. Marketing Functions Consumer products Industrial products
Mass production
Major purpose of purchase: Consumption
Uniform requirements (high substitutability)
Small quantity
Industrial products

8. 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)

9. 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)

10. Engineering Involvement (Industrial products)
Maintenance/Repair/Operating
Consumed in process of production or use
Parts/Schedule/Procedure/Methods (S)
Services
Incidental use
Sell / Perform

11. After-Sales Service Installation Warranty Field service Documentation
Training
Provisioning & providing repair facilities
Providing retrofit, rebuild, & overhaul
Supplying spares & supplies

12. The 22 Immutable Laws of Marketing
The Law of Leadership
It’s better to be first than it is to be better.
Hertz, IBM, Coca-Cola, Heineken, Times
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
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

13. The 22 Immutable Laws of Marketing
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
The Law of Focus
The most powerful concept in marketing is owning a word in the prospect’s mind.
Google, FedEx, Xerox, Coke, Kleenex
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

14. The 22 Immutable Laws of Marketing
The Law of the Ladder
The strategy to use depends on which rung you occupy on the ladder.
Hertz/Avis/National
The Law of Duality
In the long run, every market becomes a 2-horse race.
Eveready/Duracell, Hertz/Avis, McDonald’s/Burger King, Nike/Reebok
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

15. The 22 Immutable Laws of Marketing
The Law of Division
Over time, a category will divide and become two or more categories.
Computer: PC, Workstations, Mainframe
The Law of Perspective
Marketing effects take place over an extended period of time.
“Sales”, (short-term vs. long-term effects)
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
Microsoft: OS, Programming, Office, game, internet
The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! by Al Ries and Jack Trout

16. The 22 Immutable Laws of Marketing
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
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
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

17. The 22 Immutable Laws of Marketing
The Law of Singularity
In each situation, only one move will produce substantial results.
New Coke vs. Classic Coke
The Law of Unpredictability
Unless you write your competitors’ plans, you can’t predict the future.
IBM: Micro-channel
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

18. The 22 Immutable Laws of Marketing
The Law of Failure
Failure is to be expected and accepted.
Wal-Mart (Ready, fire, aim), 3M (Champion system)
The Law of Hype
The situation is often the opposite of the way it appears in the press.
New coke, USA Today, NeXt computer
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

19. The 22 Immutable Laws of Marketing
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

20. 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

21. 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%)

22. 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%)

23. 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)

24. 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