PREFACE

The Dissertation presents a study of marketing practice followed by high

technology projects oriented medium scale industry.

To start any business the success entirely depends on the marketing

research done about the particular company and the consumer attitude

towards the product. Marketing research plays a vital role in a business to

make it success

Conventional Marketing concepts and methods those work best for

consumer products suits here, once technology has matured and

established itself in the market place. But for high technology products, in

the initial stages of market acceptance, what we term the supply-side

stages the same marketing concepts and techniques sometimes do not

work.

The same conventional marketing concepts and techniques that are so

largely responsible for the high standard of living enjoyed by mass

distribution societies need adaptation and sometimes refinement to fit the

specialized and often singular needs of companies engaged in high

technology.

In comparison to conventional marketing, selling a project poses unusual

challenges to the marketing team. Indeed, the development of high

technology that fulfils a significant human need or desire, present or

future, is a critical marketing task.

Adeptness depends not only on the collective ability of a nation’s

scientists to make head way in R&D but also the prowess of its business

people in making and developing incipient technologies into a commercial

success.

For the product line, which I have chosen that, is High Technology

Projects, normally a standard product does not exist rather they are

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configured/customized out of standard products according to customer’s

requirements.

Project marketing studied here, presents a customer defined, unique

solution envisaged by the user department.

Each project is unique in the sense that the requirement varies from

customer to customer and the environment in which the project is

expected to work.

The main objective of marketing in a high technology project/ product

oriented organization is to achieve customer acceptance and satisfaction,

before profitability can be aimed at.

Best acceptance of customer is achieved when his expectations are met

adequately and when the project best suits the purpose for which the

system is intended.

I was looking for an opportunity to study about marketing methodology of

high technology projects with reference to conventional marketing

concepts. Electronic Corporation Of India Limited is one such organization

I felt that will best suit for my study.

I have got myself associated with Security Systems Business Unit dealing

with products, which are prevailing in India, specifically designed for

varying environments.

As gathered, ECIL has been dealing with either individual System or

integrated configuration using two or more systems.

The report that follows reflects studies made by me after going into the

details of each activity and through my interactions with the officials

practicing them.

COMPANY PROFILE

BRIEF HISTORY

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ECIL was setup under the Department of Atomic Energy in the year 1967

with a view to generating a strong indigenous capability in the field of

professional grade electronics. The initial accent was on total self-reliance

and ECIL was engaged in the Design Development, Manufacture and

Marketing of several products emphasis on three technology lines viz.

Computers, Control Systems and Communications. Over the years, ECIL

pioneered the development of various complex electronics products

without any external technological help and scored several 'firsts' in

these fields prominent among them being country's

First Digital Computer

First Solid State TV

First Control & Instrumentation for Nuclear Power Plants

First Earth Station Antenna

The company played a very significant role in the training and growth of

high caliber technical and managerial manpower especially in the fields of

Computers and Information Technology. Though the initial thrust 

was on meeting the Control & Instrumentation requirements of the

Nuclear Power Program, the expanded scope of self-reliance pursued by

ECIL enabled the company to develop various products to cater to the

needs of  Defense, Civil Aviation, Information & Broadcasting,

Telecommunications, Insurance, Banking, Police, and Para-Military Forces,

Oil & Gas, Power, Space Education, Health, Agriculture, Steel and Coal

sectors and various user departments in the Government domain. ECIL

thus evolved as a multi-product company serving multiple sectors of

Indian economy with emphasis on import of country substitution and

development of products & services that are of economic and strategic

significance to the country.

Electronics Corporation of India LimitedPO.ECIL, HYDERABAD - 500 062, AP, INDIA

Phone: 91-40-27120131(10 lines) 

MISSION AND OBJECTIVES MISSION

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ECIL's mission is to consolidate its status as a valued national asset in the

area of strategic electronics with specific focus on Atomic Energy,

Defense, Security and such critical sectors of strategic national

importance.

OBJECTIVES

To continue services to the country's needs for the peaceful uses

Atomic Energy. Special and Strategic requirements of Defense and

Space, Electronics Security Systems and Support for Civil Aviation

sector.

To establish newer technology products such as Container Scanning

Systems and Explosive Detectors.

To explore new avenues of business and work for growth in

strategic sectors in addition to working for realizing technological

solutions for the benefit of society in areas like Agriculture,

Education, Health, Power, Transportation, Food, Disaster

Management etc.

To progressively improve shareholder value of the company.

To strengthen the technology base, enhance skill base and ensure

succession planning in the company.

To re-engineer the company to become nationally and

internationally competitive by paying particular attention to

delivery, cost and quality in all its activities.

To consciously work for finding export markets for the company's

products.

DIVISIONS

The COMPANY is organized into DIVISIONS serving various 

SECTORS, National and Commercial Importance.

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SECTOR DIVISIONS

Divisions serving 

Nuclear sector

Control & Automation Division (CAD)

Instruments & Systems Division (ISD)

Components Division (CD)

Divisions serving 

Defence sector

Communications Division (CND)

Antenna Products Division (APD)

Servo Systems Division (SSD)

Strategic Electronics Division (SED)

Special Products Division (SPD)

Divisions handling 

Commercial

Products 

Supervisory Control & Data Acquisition

Division (SCADA)

Business Systems Division (BSD)

Telecom Division (TCD)

Customer Support Division (CSD)

Computer Education Division (CED)

CONVENTIONAL MARKETING AND ITS CONCEPTS

Marketing is typically seen as the task of creating, promoting and

delivering Goods and Services to consumers and Businesses. It deals with

identifying and meeting human and social needs. Marketers are skilled in

stimulating demand for a company’s products.

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Marketing managers face a host of decision making challenges from

major ones such as what product features to design into a new product,

how many sales people to hire, or how much to spend on advertising etc.

Under product marketing, companies selling mass consumer Goods

and Services such as soft drinks, Tooth Paste, television sets and Air

Travel, spend a great deal of time trying to establish a superior brand

image.

This requires getting a clear sense of the target customers, what

needs their product will have to meet, and communicating brand

positioning forcefully and creatively.

Much of a brand’s strengths depend on developing a superior

product and packaging and backing it with continuous advertising and

reliable service.

Marketing is a societal process by which individuals and groups

obtain what they need and want through creating, offering and freely

exchanging products and services of value with each other.

It is an art of selling products.

Marketing Management is the process of planning and executing

the conception, pricing, promotion and distribution of ideas, goods, and

services to create exchanges that satisfy individual and organizational

goals.

CONSUMER BUYING BEHAVIOUR

Understanding the buying behaviour of the target market is the essential

task of marketing management under marketing concept. The consumer

market consists of all the individuals and households who buy or acquire

good and services for personal consumptions. The buying behaviour tries

to find out the answers for the questions, who buys? How do they buy?

Where do they buy? Do they buy?

(A) FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR

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There are four major factors that influence the buying behaviour such as

cultural factors, social factors, personal factors, and psychological factors.

i. CULTURAL FACTORS: Culture is the most fundamental

determinant of a person wants and behaviour. Values, perceptions,

preferences, and behaviour are the main variable under culture of

an individual. Each culture contains sub-culture like nationality,

religious group, geographical area, and linguistic divisions etc.

ii. SOCIAL FACTORS: Consumer behaviour is also influenced by

social factors such as the consumer reference group family and

social roles and status.

iii. PERSONAL FACTORS: A buyer decision is also influenced by his or

personal characteristics, notably the buyers age, lifestyle,

occupation, economic circumstances etc.

iv. PSYCHOLOGICAL FACTORS: a person buying choice is also

influenced by four major psychological factors such as motivation,

perception, learning belief and attitudes.

(B) BUYING DECISION PROCESS

It includes buying roles, types of buying and steps in buying process.

I. BUYING ROLE

The buying role could be classified into four parts. These are initiator,

influencer, decider and buyer.

II. TYPES OF BUYING BEHAVIOR

Consumer decision taking varies with the type of buying decision. There

are four types buying behaviour such as Complex buying behaviour,

Habitual buying behaviour, Variety seeking buying behaviour.

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III. STAGES IN BUYING DECISION PROCESS

Here are five stages in buying decision process namely problem

recognition search, evaluation of alternatives purchase decision and past

purchase behaviour.

NEED RECOGNITION

The buying process starts with the buyer’s recognition of a problem of

need. The buyer senses a difference between his actual state and desired

state.

INFORMATION SEARCH

There are different sources from where a consumer can gather

information like personal sources commercial sources, experimental

sources.

EVALUATION OF ALTERNATIVES

After gathering information about different products the customer will be

in a fuss as to choose which product among the mainly alternatives

consumer usually evaluate the alternatives on traditional basis, on the

basis of utility function etc. from the many alternative consumers at last

choose the best one for him.

PURCHASE DECISION

A consumer who decides to execute purchase intention will be making up

to five purchase decisions.

POST PURCHASE BEHAVIOR

After purchasing the product and services the consumer will experience

some level of satisfaction or dissatisfaction with the product and services

that will influence subsequent behaviour. If consumer is satisfied he may

show the probability of buying the product the next time, satisfied

customer will say good thing about the product, proving the statement

that "satisfied customer is the best advertisement.” A dissatisfied

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customer may take some action against it. They may try to reduce the

dissonance by abandoning returning the product.

Understanding consumer needs and buying process is the foundation of

any company. By understanding how buyers go through problem

recognition, information search evaluation of alternatives, the purchase

decision and post purchase behaviour marketers can pick up many clues

as to how to meet buyers need.

LITERATURE REVIEW

MARKETING

Marketing is a societal process by which individuals and groups obtain

what they need and want through creating, offering and freely

exchanging products and services of value with others or otherwise it is

the process of planning and executing the conception, pricing, promotion

and distribution of ideas, goods, services to create exchanges that satisfy

individual and organizational goals.

MARKETING STRATEGY

Marketing strategy is a set of objectives, policies and rules that leads the

company's marketing efforts. It is the marketing approach to accomplish

the bread objective of the marketing approach to accomplish the bread

objective of the marketing plan. The various process of marketing

strategy are given below.

1. Selecting largest markets segmentation

2. Positioning

3. Product

4. Price

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5. Place

6. Promotion

7. Research and development

8. Marketing research

MARKET SEGMENTATION AND SELECTING TARGET MARKET

It is an effort to increase a company's precision marketing. The starting

point of any segmentation discussion is mass marketing. In mass

marketing, the seller engaged in the mass production, mass distribution

and mass promotion of one product for all buyers. Market segment

consists of a large identifiable group within a market with similar wants,

purchasing power geographical location, buying attitudes or buying

habita. It is an approach midway between mass marketing and individual

marketing. Through this the choice of distribution channels and

communication channels become much easier. The researchers try to

form segments by looking at consumer characteristics; geographic,

demographic, and psychographic. After segmenting the market then

target market selected.

2. POSITIONING: - The positioning is a creative exercise down with an

existing product. The well known products generally hold a distinctive

position in consumer's minds. The positioning requires that every tangible

aspect of product, price, place and promotion must support the chosen

positioning strategy. Company should develop a unique selling

proposition (USP) for each brand and stick to it, PPL consistently promotes

its DAP fertilizer by Higher yield at lower cost. As companies increase the

number of claims for their brand, they risk disbelief and a loss of clear

positioning. In general a company must avoid four major positioning

errors. Those are under positioning over positioning, confused positioning

and doubtful positioning.

3. PRODUCT: - A product is any offering that can satisfy a need or want.

The major types of basic offerings are goods, services, experiences,

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events, places, properties, organizations, information and ideas. The

company gives more importance in quality, packaging, services etc. to

satisfy the customers. The products has it's life cycle. The product

strategies are modified in different stages of product life cycle.

4. PRICE: - It is the most important aspect in company's point of view.

Price of the product will be decided by the company according to the

competitor's price.

5. PLACE: - This plays a major role in the entire marketing system. The

company emphasis on its distribution network. Proper distribution

network gives proper availability of the product.

6. PROMOTION: - Promotion is the one of the major aspects in

marketing strategies. By adopting various promotional activities the

company create strong brand image. It also helps in increasing the brand

awareness. It includes advertising, sales promotions and public relations

etc.

7. RESEARCH AND DEVELOPMENT: - after testing, the new product

manager must develop a preliminary marketing strategy plan for

introducing the new product in to the market. The plan consists of three

parts. The first part describes the target market's size, structure and

behaviour. The second part outlines the planned price, distribution

strategy and marketing budget for the first year. The third part of the

development describes the long run sales and profit goals and marketing

mix strategy over time.

Product Price Promotion Place

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Marketing Mix

Product

varietyList price

Sales

promotionChannels

Quality Discounts Advertising Coverage

Design Allowances Sales forcesAssortment

s

FeaturesPayment

period

Public

relationLocations

Brand

name

Credit

terms

Direct

marketingInventory

Packaging Transport

Sizes

Services

MARKETING HIGH TECHNOLOGY

Technology progress in any society is fostered ad facilitated by the

presence of three key ingredients-

1. Innovation and creative people,

2. An economic climate conductive to entrepreneurship and

3. The managerial know-how both for

a. Stimulating new concepts

b. Taking the promising ideas through successful initial

communication and beyond

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These three elements complement one another and produce synergies.

Innovation works best when all these ingredients are presents.

High technology oriented products, services, processes and projects

represent totally new concepts which are un heard and of break thoughts.

They are modified and configured in their lines with improvements of

existing products or projects according to the requirement of the

customer.

Technological innovation is managerial know-how to develop and market

high tech products.

There is a real need now for much more planned technological innovation

with in the corporate structure, rather than having society rely on the

single – person venture that has historically characterised technological

breakthroughs.

Technological research, development, and marketing simply require too

much capital and expertise for the single – venture entrepreneur.

Fortunately, marketing thought and practise has advanced and been

refined to the point where a great deal is known about enhancing the

success of high tech product endeavours. Marketing technology has kept

pace with engineering technology.

Yet in high technology firms there is too frequently an absence of

adequate marketing knowledge and skills, consequently the product

failure rate is higher than it should be or would be with the application of

appropriate marketing concepts and method. Marketing knowledge and

expertise is vital to the success of high technology projects oriented firms.

SUPPLY SIDE MARKETING

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Marketing concepts have traditionally been demand Side oriented and

have devoted most of it attention consumer products.

High technology marketing however, involves demand side

and supply side marketing expertise and pertains to industrial

and technical projects.

The supply – side concept has its origins in classical, pre-Keynesian

economic theory.

The idea that supply can create its own demand is known as

say’s law.

Supply side – marketing, then refers to any instance where a product

can create a market – in other words, the product is responsible for the

demand, rather than the demand being responsible for the product.

Supply – side marketing is a more aggressive approach to business

than its demand side counterpart.

It is founded on the entrepreneurial spirit, calculated but high-risk

taking, and the bent to exploit the unknown for great personal and/or

corporate gain.

Yet, supply side projects and divisions are disproportionately important

in auguring long term corporate profitability and more broadly, in

technological progress for society.

CHARACTERISTICS OF HIGH TECHNOLOGY ORIENTED PROJECTS

The business requires a strong scientific/technical basis.

New technology can obsolete existing technology rapidly

As new technologies come on stream, their application. Create or

revolutionize markets and demands.

No of players (sellers) in such business as usual more and the buyers

are few hence it is buyers market.

It represents an imperfect competition, in market structure.

Forward Company customer

Offers Customer company

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Requests

R AND D MARKETING FUNCTION

The role of high – technology marketing management is to apply

technology strategically in the market place so that the firm gains

competitive advantage.

The achievement requires close linkage between the high tech firms R

and D Marketing Functions.

THE NATURE OF HIGH TECH MARKETS

There is ample evidence pointing to specific ways in which high tech

markets are different from consumer package goods markets. Because

high tech companies exploit and create change rather than consolidate

and defend existing conditions the interdependence between marketing

and technology is of crucial importance. Companies regarded as low-tech

may basically adjust their marketing strategies to reflect relatively

unchanging technological conditions. High tech companies, however,

must recognize that both technological and marketing conditions are

rapidly changing (Nystrom 1990). This dynamic environment necessitates

stronger consideration for the marriage of marketing and technology.

Research and practice indicate that high tech markets are characterized

as dynamic and complex which results in a changing target market over

the life cycle (Abell 1978, Davidow 1986, Beard and Easing wood 1996).

The complexity of the product also impacts market acceptance in

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different ways in high tech markets (Davidow 1986). As high tech

products are more complicated, they require greater customer education

and more product information. This necessity results in greater effort on

the part of marketing to adequately convey the necessary information as

well as greater effort on the part of the consumer to digest the

information.

PROMINENT ISSUES IN HIGH TECH MARKETS HIGH TECH MARKETS:

• exploit and create change

• are complex

• need to be targeted carefully

• Exhibit risk

• require deliberate timing

• are extremely fast-paced

Consumers of high tech offerings, particularly those first to adopt a

technology, are extremely sophisticated and product/technology savvy

this means that you can ignore getting to know your customers while

focusing on product leadership. The level of sophistication prevalent in

high tech markets, however, demands developing an intimate knowledge

of the consumer in order to ensure that the offering is captures what the

customer considers being desirable.

Target marketing is another critical factor for firms introducing high tech

products. Easingwood and Lunn (1992) found that clearly targeted

products diffuse more rapidly than non-targeted products. Complicating

this factor is evidence that the customer base changes for each stage of

the product life cycle as different segments of the market become

interested in the product at different times (Davidow 1986).

Consequently, it is important to recognize the need to clearly identify and

profile a target market as well as take into account that the profile of the

target market will change over time.

PRODUCT LAUNCH PROCESSES

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Inherent in the adoption process concept is the notion that different

stages of adopters have different requirements. Combining these different

requirements with the emphasis on shorter development cycles and

shorter life cycles prevalent in high tech markets makes correctly

targeting each adopter category critical.

THE NEW PRODUCT DEVELOPMENT PROCESS

Models of new product development prescribe critical stages that

organizations should go through to have a successful product launch.

Regardless of the model, critical phases include: product idea generation,

idea screening, concept testing, business analysis, marketing mix

development, test marketing and commercialization. In theory, going

through these stages systematically helps organizations weed out the

potential failures.

Customer focus is an integral component of the product development

process that is often ignored. The need to incorporate the voice of the

customer (adopt the marketing concept) at every phase is imbedded in

these models of new product development, each phase contributing

additional knowledge as to what customers want. Yet concept testing and

test marketing are most often overlooked by new product development

teams as they rush to get their product to market before the competition.

Unfortunately, this can lead to fatal errors when customer expectations

are extremely high - or when dealing with a sophisticated customer - as is

the case for high tech products. One of the ways to understand how

different types of customers respond to new product offerings is to

examine Rogers’ Diffusions of Innovation model (Rogers 1962).

DIFFUSION OF INNOVATIONS AND ITS ROLE IN HIGH TECH DIFFUSION

Developing the belief that individuals differ in their readiness to adopt

new products, Rogers describes five types of individuals innovators, early

adopters, early majority, late majority and laggards (Table 3). These types

differ in terms of their timing to adopt a new product and the sources of

information they rely on to adopt new products.

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Understanding the differences in the five adopter groups presents a way

to successfully reach individuals at various stages of adoption as the main

uses of research on characteristics of adopter categories is to provide a

basis for audience segmentation strategies..." (Robinson, Fornell and

Sullivan 1992).

As the requirements for success change as the market evolves (Abell

1978), this widely accepted adopter classification system should cause

the innovative firm to research the characteristics of the innovators and

early adopters and direct introductory marketing strategies specifically at

them.

Adopter Categories Category Characteristics Role in Diffusion

Innovators willing to take risks

impersonal and

scientific information

"gatekeeper"

Early Adopters accept new ideas

early

rely on multiple

sources of information

opinion leaders

Early Majority risk adverse;

rely on company-

generated

promotional

information and word-

of-mouth

don’t purchase until

late growth stage

Late Majority and

Laggards

require early

categories to "test

drive" the product

this is an advantage

for companies who

enter during

maturity (Dell

Computer, AMA

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1988)

R&D - MARKETING FUNCTION

The role of high–technology marketing management is to apply

technology strategically in the market place so that the firm gains

competitive advantage.

The achievement requires close linkage between the high tech firms R

and D Marketing Functions.

THE R & D EFFORT PORT FOLIO GRID

In this grid, the high tech company’s products can be classified into

several “effort warranted” categories, according to the degree of

technical/market fir:

Heavy emphasis – deserving full support, including basio R and D

Selective opportunistic emphasis – may be good or may be bad, requires

a careful approach and top management attention.

Limited defensive support – merits only minimum support.

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SelectiveEmphasis

HeavyEmphasis

HeavyEmphasis

LimitedSupport

SelectiveEmphasis

HeavyEmphasis

LimitedSupport

LimitedSupport

SelectiveEmphasis

Tech

nolo

gy

Opport

unit

y

H

igh

Mediu

mlo

w

Marketing Opportunity

NEED FOR A MARKETING AND R AND D INTERFACE

Marketing – R and D interface is essential because both groups play

critical roles in the product development process especially in high tech

firms.

First, it must be recognised that the new product or process tends to be

extremely complex and often has a number of potential uses.

Some of these applications may be determined by marketing during the

process of positioning the new product or process in an appropriate

industry or niche with in an industry.

Each group has special expertise to contribute in the introductory stage of

the products development, and one or the others absence from such

deliberation can produce redundancy of effort, as well as numerous false

starts.

Second, it needs to be remembered that high tech products, unlike other

industrial or consumer goods, tend to be supply – generated.

The conventional marketing concept or purely demand oriented product

development results in product nuance, not product breakthroughs.

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Low Moderate High

Since the high tech product or process break through represents truly

new developments, R and D tend to dominate the firm in its early stage of

development.

Thus, the need to involve R and D and marketing in product development

or application efforts is essential.

DEVELOPMENT OF MARKETING – R AND D INTERFACE

There have been various organisational arrangements suggested for

ensuring continued interaction between R and D and Marketing.

An approach to new product development is the use of venture team.

This group typically includes rep’s from marketing, R and D, production

etc, involved in product development task from idea generation to

marketing introduction.

MARKETING DECISION VARIABLES

The elements that the marketing manager has under his or her control

and can manipulate are referred to in marketing parlance as the 4Ps –

Product, Price, Place (distribution), and Promotion (advertising, personal

selling, sales promotion, and public relation)

Collectively, when integrated into and overall marketing program for a

company, these marketing decision variables are known as the

company’s marketing mix.

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The marketing mix decision is extremely critical because it is instrumental

in determining the degree of success experienced by a company in the

market place vis – a – vis its organisation.

The true test of the marketing executive is low cost is allocated among

the marketing mix variables and ultimately what performance results in

the market place.

STRATEGIC MARKET PLANNING

The high – technology firm operates in an environment that can change

almost overnight with the discovery or application of new technology

which obsoletes the old.

Strategic planning is even more imperative in high – tech firms than in

companies doing business in more predictable mature markets.

This is because conditions are evolving so rapidly – conditions that can

literally make or break a company quickly. The high – tech organisation

can be proactive.

PRODUCTIVE DEVELOPMENT:

There are various identifiable stages of development in any industry or

form of industry evolution.

In the supply – driven, introductory phase, the emphasis in the firm

continues to come from R and D, as the new improvements and

applications tend to push them on the market.

The industry itself has not really been totally sorted out, as the number of

producers continues to grow.

In this immature industry sitting, the emphasis is on R and D technically

skilled sales people who must demonstrate how the product or process

can be applied. The perspective of managers involved in developing new

products often seems to be at odds with the perspectives of customers

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(Table 1). When selecting products, consumers focus on features, what

the consequences are from using those features and how the

consumption experience fits into their values (Gutman 1982; Gardial,

Clemons, Woodruff, Schumann, and Burns 1994). Product adoption is

smoother when the product is easy to operate and does not require

behavioral changes (Davidow 1986). To get people to adopt a new

technology, it should possess unique qualities which current offerings

cannot deliver (Porter 1980). Last, but not least, their goal is to fulfill

unmet needs.

TABLE Customer Focus versus Managerial Focus

Customer Focus Managerial Focus

Features Design Consequences, values Cost Ease of operation Ease of production Unique qualities Unique technologies Consumption Production

In the supply – driven, introductory phase, the emphasis in the firm

continues to come from R and D, as the new improvements and

applications tend to push them on the market.

The industry itself has not really been totally sorted out, as the number of

producers continues to grow.

In this immature industry sitting, the emphasis is on R and D technically

skilled sales people who must demonstrate how the product or process

can be applied.

In the supply driven stage, the shift is to applications and to product

modifications that will maintain its state of art.

The company’s purpose will be to demonstrate its ability in the field.

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R and D will still receive significant attention in the organisation, but it will

now be coupled with marketing applications and considerable attention

will be focused on determining which applications will be most productive.

In the supply driven stage, the shift is to applications and to product

modifications that will maintain its state of art.

The company’s purpose will be to demonstrate its ability in the field.

R and D will still receive significant attention in the organisation, but it will

now be coupled with marketing applications and considerable attention

will be focused on determining which applications will be most productive.

MARKETING ORGANISATION

When evaluating the marketing organisational arrangement in any

organisation, there are a number of rather fundamental avenues that

need to be explored. They are

1. The reporting level of marketing

2. The interface between R and D and marketing

3. The relationship between marketing and sales

4. The locus of marketing decision making

Positioning and the selection of Target Markets

POSITIONING –

Positioning seems to best describe the steps that the high – tech marketer

needs to follow if it is to identify correctly the firms target markets and to

place them is priorities.

Positioning connotes a degree of flexibility that allows the marketer to

contemplate a broad range of users or applications for its products or

process.

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The process of positioning allows the high tech marketer to determine the

various industries or buying groups that can use the product and away

them in an ordered fashion.

As a result of its positioning of forts, a high – technology company should

be able to indicate which industries offers it greatest potential, which firm

in those industries would benefit most from its product or process and

which markets (in rank order) it will attempt to exploit.

Stages in positioning for the high – technology marketer

Proceeding through the stages of positioning, the company should be able

to identify most of the opportunities and potential target markets for it

product or processes.

Stage 1 R and D Breakthrough(Multipurpose product or process)

Stage 2 Intra corporate Applications Analysis(Industry)

Stage 3 Formal Market opportunityIdentification Analysis

Stage 4 Market priorityAssessment

Stage 5 In depth Marketing ResearchIn priority industry

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Stage 6 Selection and Ranking Of Target Market(s)

Stages in positioning for Targeting high – tech Markets

Product life cycle for High tech companies

The product life cycle can be the key to successful and profitable product

management, from the introduction of new products to profitable disposal

of obsolescent products.

A company’s positioning and differentiation strategy changes as the

product, market, competitors change over the product life cycle.

Bell shaped curve that represents the four stages of PLC (Introduction,

Growth, Maturity, and Decline) is of little value to managers in high tech

companies.

The traditional product life cycle concept suggests market conditions and

sales volume as means to ascertain when a product is growing, maturing

and absolution.

But, sales volume of high tech products can be misleading when used as

a processor of life cycle evolution.

The revenues or units sold of a product associated with a particular

technology typically reach an apex after a competing superior technology

is introduced that ultimately renders the old product obsolete.

So, in addition to general market conditions and sales volume

performance, astute high – tech executives will also closely monitor

technology life cycles. This approach will lead to more effective

marketing and technical decisions.

In introductory market phases, there is usually enough growth to

accommodate most of the pioneering competitors, and entrepreneurial –

type executives thrive.

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There is nearly undivided focus on technical competence and

inventiveness.

But a markets mature, competitors intensely war with one another for

share and as a result, executive with different orientation and expertise

are required.

The emphasis in the market will have shifted away from technical

innovation to distribution, advertising and sales promotion, and pricing.

Man --- hours Invested

Technological Life Cycle

The horizontal axis designates units of effort that have been expended on

a technology to date, such as the total R and D man-years or dollars

spent.

The vertical axis refers to the most crucial measure of products and

process performance.

More Technology A starts out slowly, because of intense and heavily

financed R and D efforts performs markedly better, and finally plateaus as

the technology reaches its performance limits.

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Limit of particular technology

Technology B

Technology A

On set of effort

Prod

uct a

nd P

erfo

rman

ce

At technology A’s performance capacity, the new Technology B is already

wending its way through its own s – curve, a curve that starts out at a

performance level far above technology A’s origin. For a while the

technologies compete (theirs – curves overlap), until the superior

Technology B eventually wins out and captures the market.

The high tech company that is successful in staying on the cutting edge of

its industry’s technology must spend more time analysing technology life

cycles than on studying experience curves.

28

The Typical New Product Development Process in the Successful High – Tech firm

Marketing involvement R and D Involvement

Begins Begins

29

Obtain new product idea and concept test

Identify prospective customers

Conduct market Research

Estimate Demand

Develop and test prototype

Make product Introduction Decision

Final Product development

Test Marketing

Commercialisation

The dotted line indicates that

the test marketing in

process high – tech companies is neither typical

nor atypical

First, both Marketing and R and D are involved in the formative stages.

Second, demand estimate are considered at best estimates of market

potential and are not sophisticated projections normally associated with

nature markets.

Third, leading high tech firm are calculated risk takers. There is a

noticeable lack of test marketing where usually a product is marketed

in a limited geographic area or with a small number of buyers before a

full – fledged communication effort is made.

In many market situations, particularly in mature consumer products

industries, test marketing is the rule.

In high tech industries, test marketing neither the rule nor the exception.

Test marketing of high tech products runs the risk of providing

competitors with the time and technological information it needs to react.

As technological secrecy and surprise cue key elements of

innovativeness, test marketing is not considered as rule for high

technology projects.

High technology oriented companies rely on a great deal of customer

identification, demand forecasting and marketing research.

30

MARKETING STRATEGIES AT ECIL

A leader in Indian electronic industry, Electronic Corporation of India Ltd

has been in the fore front of many breakthroughs in the field of

electronics. Backed by a strong R & D team, ECIL developed a unique

capability to configure, manufacture, install, commission, maintain and

gain customer satisfaction for tailor made systems is the field of

information technology, controls, communication and instruments.

Here the industry understands the customers requirement and shows then

how their technology is beneficial over other business players.

Unlike conventional marketing practices for consumer products which use

heavy expenses on promotional activates, ECIL in order to make the

customer aware of the product uses road show and mail shots and gather

feedback information, based on promotion program.

With progressive awareness, apparently lucrative security system market

has been attracting more and more players, which has created a

competitive environment. The competition is becoming fiercer as there

are few buyers and many suppliers for high technology oriented projects.

so, to sustain in such a market ECIL tries to achieve competitive

advantage by earning more and more credentials from customers and by

gaining better customer satisfaction in return.

ECIL differentiates itself from other market players as it deals with product

which are prevailing in India , having wide range of customers, engaged

in strategic& nationally important activities like

1) space research

2) nuclear research

3) thermal power research generator

4) Nuclear power generator

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5) Cement industry

6) Steel industry and its modernisation

7) Defense sector’s instrumentation

8) Oil sector’s exploratory efforts

9) Govt establishments and institutions asset management etc.

Business on this line is performed in ways unique to project marketing

improvising upon certain conventionally practised steps.

Business activities/ projects initiates in either of following.

i. Forward way: - The Company in order to publish tries to make the

customer aware of the product /technology through the road shows,

advertising mail shots etc.

ii. Backward way: - seeking expression of internet (EOI) from

interested and capable entities who and user releases an

advertisement can fulfil his requirement. Based on fulfilments of

qualifying criteria presented by the tendered, his shortlists the

respondents for further progress in the matter.

1. Awareness – exploring in taped market and personal contact.

2. Enquiry - purchase order- order acknowledgement

3. Release of work order- Q AP- Dispatch

4. Installation – Release of Payments – sale compacts

5. After sale service – PBG – maintenance- clearance certificate –AMC offer.

All products services or projects/processes represent totally new concepts,

are unheard- of breakthrough.

Which are modified and configured in their lines with improvements of

existing products or projects according to the requirement of the

customers?

Sin conisation of specific customization and the offered system that

fulfils the customer requirement is the dynamic challenge of making

manager.

32

Marketing research techniques if adapted and developed especially for

evaluating the future market feasibilities of technological breakthrough

it’s can at least do a better job of producing improved linkage between R

and D and the marketing team.

The project team and marketing team present their skills in designing a

project in such a way that it has adaptability and upgradeability to meet

the customer requirements.

From exploring to the unknown market by promotional activities such as

technical exhibitions, demonstration etc. to the after sale service and

gaining value in return in form of customer feedback is typical marketing

task.

33

Reach EOI

through

Road shows Mail shots (In order to generate Personal contacts customer awareness)

(Making the requirement

Felt by Customer)

What is expected?

34

Market prospect/marketing team

Target Market

Selection

Address potential customers

Threat perception Analysis

Gather feedback from prospect customer

Initial contract proposal

Prospective Supplier Receives enquiry

Respond to Enquiry

Building technology that fulfils the

Customer requirement

Technical negotiations

Revised technical Requirement

PROCESS DESCRIPTION:-

The product or system is categorized as

a) Catalogue or standard product or system, which are offered based on

published data sheets for technical aspects and commercially operated

approved price list. As input requirements and expected outputs are

clearly defined for such instruments there is a likelihood of presence of

fair degree of competition.

b) Custom built product or system where the product/system is

manufactured based on inputs and requirements from the customer.

Majority of projects come under this category, is the sense that each

project/system is unique and is tailor-made to serve specific purpose of

user.

c) Joint venture products /systems where the technical and commercial

aspects are governed by MOU (Memorandum of Understanding) entered

in to by both the companies. Such ventures are normally enacted through

amalgamation of strength of each and every individual partner.

Initially, customer and supplier may/may not know each other. If they don’t know

each other, then seller has to try hard to position their product/technology in the

customers’ notice. In order to target the untapped market, he tries to create

awareness among customers and try to influence them by using certain

promotional activities such as road shows, mail shorts, advertising in selected

papers and journals

In Road shows, equipments, or technical products are brought out or

exhibited in public place, in order to persuade prospective customers by showing

their effectiveness and utility.

Technical journals, Indian security, space security journals are used

specifically at security systems. Business unit for advertising.

Personal contacts: Awareness among potential users can be spread even

by using corporate relationships and contact network is society.

All these are expected to be a major cornerstone in the firms position

BUSINESS DEVELOPMENT INITIATIVE35

Company’s success and survival depends not only on its continued ability

to develop new products and processes but also on its ability to make its

target markets aware of their availability at right price.

This phase of business activity usually aims to:

36

ECIL MESSAGE (S)

Personal communications

Personal contacts Old customers Direct contact Seminars

Non Personal Contact

Public relations Advertising

News papers Journals Technical magazines

Road shows Mail shots Industrial Exhibitions/

Trade shows

Tar

get M

arke

t Dev

elop

men

t

Create awareness among untapped market

Provide customers or potential customers with information.

Presecuren the potential customers via the media selection.

Provide leads by stimulating interest in the product or process.

Assist in forming and/or enhancing the company’s image or

reputation.

Increase the public and prospectuses customer awareness of the

company and its products or process.

Through this process of communication to untapped market, free

company gains value in form of feedback in return.

Depending on feedback information collected, the product /project is

moulded and modified.

APPRAISAL: It is done to gain the customers attention positioning the

company’s performance, value, nature in terms of quality, leadership,

R&D, excellence and product attributes using credentials like order

copies, performance certificates, awards and companies reputation etc.

this is to show their presence in market and to ensure their excellence in

market to develop further business deals with customer.

PRESENTATION AND DEMONSTRATIONS:

In order to differentiate its Technology and prowess from other players in

customers view; company presents an efficient demonstration, proving its

uniqueness and excellence in fulfilling the customer requirements.

Presentation embodies all the planned external and internal contact that

occurs between the company and its targeted public.

The sort of targeted public that the firm may wish to contact plausibly

includes its customers and prospective customers, its shareholders,

37

decision maker, the broader financial community, key government

officials, event employers.

In every instance, the contact is carefully planned so that it is consistent

with the desired objective of quality the firm seeks to project.

Depending on customer’s requirement, study of site and threat

perception analysis, the company gives presentation explaining the

parameters, on what basis, this technology has been selected, the

uniqueness, the benefits what the customer acquires, etc.

Decision makers of Customers Company react accordingly. If they had a

position impact they would further by forwarding an enquiry to

prospective supplier.

HIGH LEVEL INTERACTION:

After the prospective customer is identified and targeted, the

communication between the prospective customer and the designer or

indenter of company is strengthened by high level interactions.

Company communicates with old customers through courtesy calls, for up

gradation reporting and expansion proposals. This is two – way interaction

program that brings out interest of old customer to fulfil their

requirement.

Making the requirement felt by the customer is the immediate job of the

marketing R & D team.

38

This team supports and if feasible assists the customer in framing

requirements, because the customer may not have full knowledge about

the technical specifications and their importance.

It is this team’s duty to give complete information regarding the product,

its uses, combinations, its types and from etc.

ENQUIRY:-

DETERMINATION OF REQUIREMENTS RELATED TO THE

PRODUCT/SYSTEM:

1) CATALOGUE AND STANDARD PRODUCT/SYSTEM:

On receipt of enquiry or an obtaining tender documents, latest

datasheet/ catalogue will be considered or review covering all the

aspect.

2) CUSTOM BUILT PRODUCT/SYSTEM:

On receipt of enquiring or an obtaining tender document, incharge

marketing and project leader of the respective business unit

determine the product or system requirement/ specifications

covering all the aspects in consultation with incharges,

manufacturing and quality assurance or any other process owner as

required.

Product/system specifications are decided depending on the

technical negotiations between the prospectus customer and

supplier.

PRODUCT SPECIFICATION COVERS:

1) Requirements specified by the customers, including the

requirements for delivery and post-delivery activities.

2) Requirements not stated by the customers but necessary for

specified or intended use.

3) Statutory and regulatory requirements related to the product.

4) Any additional requirements determined by the project

leader.

39

Product/system specifications are configured according to the

customer’s enquiry so as to meet their requirements and to

achieve fitness for the purpose which the project is intend for.

TENDER REVIEW:

1) CATALOGUE AND STANDARD PRODUCT/SYSTEM.

Incharge marketing section reviews the tender with the project

leader whether the customer requirements are completely met.

The observations of the review are recorded in tender/contract

review form and quotation is sent based on the price list or suitable

letter and customer supplied form.

Quotation is a written statement by the supplier that includes

technical details of product/ project/service, price details incidental

charges like insurance and transport validity period and also the

delivery time details.

Normally a quotation is to response of an enquiry of customer.

Quotation is of three types:-

1) One part quotation

2) Two part quotation

3) Three part quotation

One part quotation includes total technical terms and commercial and

price information and certain other documents towards proving suppliers

suitability, experience etc.

TWO PART QUOTATION INCLUDES :

1) TECHNICAL PART: detailed technical information of the product/

products offered, compliance statement towards proving that the

item offered is the best possible match to their requirement. List of

items offered with quantities but without price. Terms and

40

conditions of sale also forms a part of the technical offer also called

as techno-commercial offer.

2) PRICED PART: in this part of quotation only the prices of items

offered are mentioned. This part of quotation may undergo changes

when a changed system or enhanced quantity of delivery is decided

between the seller and the buyer in course of technical negotiation.

THREE PART QUOTATION INCLUDES :

1) Experience and credentionals of company

2) Technical part

3) Priced part

Then, a sale lead number is allotted to the offer and the same is

posted in sale lead register.

CUSTOMER BUILT PRODUCT OR SYSTEM:

After obtaining clarifications(if any) and understanding the

requirement of customers, incharge marketing and project leader shall

organize review with all concerned departments as required to

consider the following before preparing cost estimates for the enquiry.

1) Whether quality requirements of the customer can be met,

2) Special standards to be applied

3) Special manufacturing facilities required

4) Documentation supply needs

5) Special inspection and test equipment requirements

6) Commercial terms and conditions

Presenting Quotation (Price Promotion)

(1part / 2part / 3part)

Price Revision

41

Price Negotiations

Rejected to order accepted to order

Delay in ordering

Once purchase order is received, the prospective supplier becomes ultimate supplier or authorised seller

The observations of the review are recorded in tender or contract review

form.

After preparation of cost estimates, it is verified by quotation review

committee (QRC). Consisting of representatives from manufacturing

department, marketing department, finance and accounts department.

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Quotation validity expires

Revalidation of Quotation

Purchase order

Contract review Comm. Req terms Quality Req Tech. spec Completeness of

order Rate of taxes Delivery period Other cond’s to run

the project

Discrepancy / mistakes

Verify and modify the contract

Contract review

Order acknowledgment

Production / project team activity starts

STOP

Based on quotation review committee, recommended estimates haed of

business group/competent authority will finalize the price to be quoted.

Incharge marketing section prepares and submits the bid in the required

format as provided in the tender or in the standard quotation form under

covs of a suitable forwarding. Quotations are normally kept valid for

customer acceptance for a definite period or (for period during which

drastic changes are not anticipated) or on enquiry o0f validity period or

earlier than that a customer may ask for extension to complete his

inhouse procedure. On receipt of such request for extension the

marketing section reviews the possibility with respect to current cost up

and on ascertaining the feasibility, revalidates the quotation for the

desired period. Sometimes, extended validity is offered to wean back a

prospective buyer or as a means of customer support program.

PURCHASE ORDER:

A purchase order (PO) is a commercial document issued by a buyer to

a seller, indicating types, quantities, and agreed prices for products or

services the seller will provide to the buyer. Sending a PO to a supplier

constitutes a legal offer to buy products or services. Acceptance of a PO

by a seller usually forms a one-off contract between the buyer and seller,

so no contract exists until the PO is accepted.[1]

POs usually specify terms of payment, incoterms for liability and freight

responsibility required delivery date, and specifications and reference or

part numbers of the items to be purchased, with quantities and prices.

When accepted by the seller, it forms an agreement between the buyer

and seller.

From an internal control perspective, Purchase Orders are the end result

of an authorization process that is traditionally triggered by the creation

43

of a Purchase requisition. An internally authorized Purchase requisition is

normally converted into a PO

CONTRACT REVIEW:

1. Contract review for catalogue and standard products or systems and

customer based product:

The details of scope of contract and its technical aspects in the

customers order is compared with the quotation by project leader.

The details of commercial aspects in the customer order are

compared with the quotation of marketing section.

The observation of the review is recorded in the tender or contact

review.

Only after completion of these activities, the deviations if any are

listed and suitable amendment to the order is requested through

order acknowledgment sent to customer by incharge marketing.

Contract/ purchase order is registered in order booking register.

At this stage all the preorder documents are transferred to a

separate order file according to order acknowledgment numbers.

The relevant data regarding the contract/ purchase order are noted

in contract profile form.

The contract profile provides details to monitor the status of the

contract at any given time.

2. Contract review for joint ventures product system:-

when order or letter of interest is received from customer, in

charge marketing and project leader review the order whether the

technical and communicable aspects are as per memorandum of

understanding and recorded the observations in tender or contract

review form and the details are registered in the order booking system.

RELEASE OF WORK ORDER:-

1) for catalogues and standard products and systems:-

Marketing section operates an annual production plan.

Respective marketing section of business unit prepares and issues

44

annual work order to PPC- production planning and control for

preparation of annual plan.

2) for customer based product /system :-

Marketing section prepares the detailed scope of supply,

delivery schedule and other relevant data required for the extension

of order/contract and sends a letter along with a copy of purchase

order to PPC for allotment of job number. PPC issues the job number

allotment letters to various sections for initiating necessary

manufacturing actions

For joint venture products, in charge marketing places the requirements

as and when the order received.

AMENDMENT TO CONTRACT ORDER:

1) Any amendment that is required from customers before or during

execution of orders are discussed and communicated to all relevant

departments.

2) Any variations during execution of contract are tak4en up with

customers and project leader obtains clearances/approvals for the

variation before proceeding with the further work.

CUSTOMER COMMUNICATION:

Product information:

Incharge marketing of concerned business unit posts or updates the

product information.

Incharge marketing of concerned project leader uses effective

communication to contact customer at different stages regarding

enquires, contracts or orders including amendments.

Components test by QC Test Req. – plan

45

Quality control tests

Supplier generates Quality Assurances Plan

Pre Despach Inspection

Neg

ative

resu

lts

corr

ectiv

e ac

tions

in p

roje

ct s

ysby

pro

ject

team

Test report authenticity has to be given

After 3rd party Inspector approves (consignment note

for transport)

QUALITY ASSURANCE PLAN:

After the production activity completes, the systems sent for the quality

tests. Quality assurance plan and approval will be given by the supplier to

the customer depending in quality test performed.

Inspection clearances certificate is forwarded to supplier from

customer on basis pf pre-dispatch inspection.

This gives an approval or authorization to ship. Shipment order is

released by the customer asking the supplies to deliver the system.

The delivery of the goods as per contract is made through delivery

challan.

46

Approval /Authorisation to ship finished system

Release Payment

Ownership transfers to buyers

The materials required for installation and commissioning the other

items required for field work are delivered through general delivery

challan.

Consignment note for transportation is given.

System installation commissioning starts at the customer site. After

completion, the customer gives system acceptance certificate to

the suppliers.

The claim for payment of the contract amount is made through invoice,

and the customers are followed up for the payments due.

Submission of bills that includes even the installation and

transportation charges, by the supplier to the customers. The

customer releases the payments through bank/DD/cash. This results in

transfer of ownership from supplier to the customer. Then the

customer forward commissioning certificate saying the system is here

by accepted. Thus a sale completes and after sales service function

takes its roles.

Supplier gives guarantee in form of PGB- performance Bank

guarantee and commitment to keep the system in working state for

guaranteed period.

On basis of the maintenance service given by the supplier;

customer gives a clearance or performance certificate which

becomes a creditionals for the company.

Contract closure:

Receipt of the clearance certificate results in the contract closure.

If the customer wants the maintain service by the supplier to be

continued, he may be proceed for annual maintenance contract

with supplier.

47

AFTER SALES

Becomes credential Performance certificateto win more customers.

Optional

CUSTOMER FEEDBACK AND CUSTOMER COMPLAINTS:

48

Supplier – commitment to keep the system in working state

Maintenance and guarantee for agreed a year period

Clearance certificate

Maintenance contract

In charge marketing sends customer feedback forms to each

customer and obtains the satisfaction level on rendered services or

product supplied by ISD. The customer satisfaction level is

computed and corrective actions will be initiated where require as

per procedure.

In charge marketing of respective business unit receives and enters

in customers complaints register:

a) The complaints received from customer.

b) Complaints received but cannot be attended by branch office, and

forwards to the concerned project leader.

Respective project leader analyses the complaints involves action

plan and schedule for attending customer complaint

Respective business unit in charge/project leader ensures all

necessary follow-up action to attend customer complaints

satisfactorily.

If any additional work is involved and there is need for offering

commercial proposal, in charge marketing initiates and

communicates the same to the customer.

After the complaint is attended, in charge marketing of respective

business unit closes the complaint in the register.

In charge marketing of respective business unit sends the status of

the customer complaints to in charge customer complaints cell

every week for review.

Based on this information, the in charge customer complaints cell

complies the pending complaints monthly and quarterly on

customer complaints compliance review committee.

Customer complaints are reviewed quarterly by customer

complaints review committee and conveyed by customer

complaints cell in which all business units in charges and quality

department incharge are the members. The minutes of meeting will

be circulated to all the concerned for implementation.

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SWOT ANALYSIS:

The strengths, weaknesses, opportunities, and treats of ECIL are:

1. Reputation, goodwill skilled manpower

2. Shot length of manufacturing line

3. Ability to source components globally

4. Long-term relationship with suppliers

5. Vendor development programme

WEAKNESSES:

1. The decision making is widely dispersed in the organization. As a result

of this no one has absolute authority to take quick, independent

decisions. There are too many checks and watch dogs like internal audits,

statutory audit, government audit and vigilance dept etc.

2. Users expectations or aspirations are notional, they need to be met to

add satisfaction. But it becomes difficult for marketing personal to meet

50

that requirement under same expectations and satisfaction as day by day

there may be in technology and also the customer requirements.

3. Because of govt policy even in the favourable market conditions the

company could not charge higher price to increase profits.

EPILOGUE:

It is a universal truth that at the extremities if a venture- small or big,

there are eager buyer and motivated seller. This holds well for across the

country business, consultancy, corporate business, promoting various

social activities, entertainment.

Fun making, leisure industry, tourism promotion and many more stoking

of human attributes of eagerness and motivation promoters business,

progress of the society, industrialization, prosperity, international

corporation and many more.

In course of my academic life, I set my eyes on a career in marketing as I

am fascinated with the knowledge of overall progress made over the

centuries by mankind, pursuit of excellence that always goes on in human

brain and shows up in various innovations reported all over the world.

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Over and above the study of MBA (marketing) which normally imitates as

to general marketing concepts, I have developed desires to know the

application aspects of acquired knowledge in practiced field.

As my first step, I have tried to understand the psyche of the entities

involved and modalities followed by an elite business house in promoting

business in project conceptualization, design, manufacturing, and

implementation.

Study based on exposure in the activities and interaction with the

marketing team members, forming a part of my curriculum is dedicated

to my institute and to my fellow an future colleagues to refer to.

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