Lecture 3 Problem Identification Part 1

Lecture 3 Problem Identification – Part 1

Recall… Recognition of Need Becoming Informed Problem Definition Concept Generation Concept Selection Embodiment Optimization Fabrication 2

Recognition 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? 3 Recognition of Need Becoming Informed Problem Definition

Need ¤ Who defines NEED? n n n User – custom-designed Available technology – computer technology, communication tech, military, automotive, aero Market trend – fashion, automotive ¤ Is NEED nicely defined? ill defined? n n Not all Viability is an issue. ¤ How to define and analyze NEED? n n Market analysis Background analysis ¤ What is the effect if NEED is misinterpreted? n Product failure to market 4

Some example of NEED ¤ A wheelchair that can go up and down the stairs ¤ An air-conditioned shirt ¤ Cooling/Exhaust fan for cars 5

Perimeter of the Problem ¤ User Analysis – n n n n n 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 6

Initial Processes ¤ Recognition of Need n n “Identifying Opportunities” In Industry, often Marketing Department ¤ Becoming Informed n n n LEARN ABOUT THE PROBLEM! – background analysis Literature Searches Patent Searches Web Searches Talk with “experts” and “customers” 7

Marketing Overview (Ref: Principles of Marketing by P. Kotler & G. Amstrong, Prentice Hall ¤ Nature & core concepts of marketing ¤ The marketing management process 8

Misconceptions 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 9

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) 10

Core Concepts Products Needs, wants, and demands Markets Core Marketing Concepts Value, satisfaction, and quality Exchange, transactions, and relationships 11

Important elements of Marketing ¤ Consumer behaviour ¤ Market research ¤ Segmentation ¤ The 4 P’s 12

Marketing & Sales Concept Contrasted Starting Point Focus Factory Existing Products Means Ends Selling and Promoting Profits through Volume The Selling Concept Market Customer Needs Integrated Marketing Profits through Satisfaction The Marketing Concept 13

The Societal Marketing Concept Society (Human Welfare) Societal Marketing Concept Company (Profits) Consumers (Satisfaction) 14

Managing the Marketing Plan & Planning Process 15

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Step 2: Environmental Analysis ¤ 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 17

Step 3: Marketing Goal/Objectives ¤ Specific, quantitify, benchmark, realistic, time-frame, target, update n n n 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 18

Step 4: Target Market Selection Demand Forecasting Market Segmentation § § (culture, geog, sex, age, income) Market Targeting (which segments to attack? ) Market Positioning (product position in the mind of consumer) 19 Locate new opportunity Position brand favorably

Step 4: Target Market Selection ¤International marketing more difficult: n n quality & quantity of data decrease variables more: 228 nations, race, language, religious, customs, culture 20

Step 5: Developing the marketing mix Product Price Target Customers Intended Positioning On Sale! Promotion 21 Place

Step 5 : Developing the Marketing Mix ¤Four Ps n n ¤Four Cs Product Price Place Promotion n n Customer needs & wants Cost to customer Convenience Communication ¤Synergy ¤Global approach/localised approach 22

¤ Step 6: Action program & budget ¤ Step 7: Evaluation & control 23

Marketing Plans Executive Summary Current Marketing Situation Threats and Opportunities Objectives and Issues Marketing Strategy Action Programs Budgets Controls 24

Classic Product Life Cycle Introduction Growth Mature Decline Sales $ Profits TIME 25