Chapter 13

Engineers in Marketingand Service Activities

Advanced Organizer

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

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

Chapter Outline

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)

• 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

Engineering Involvement (Industrial products)

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, 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

8. The Law of Duality– In the long run, every market becomes a 2-horse

race.– Eveready/Duracell, Hertz/Avis,

McDonald’s/Burger King, Nike/Reebok9. 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– Microsoft: OS, Programming, Office, game,

internetThe 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 Gap14.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 computer21.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