Marketing of ERP

7/31/2019 Marketing of ERP

1/30


2/30

Approach to ERP

To develop a business model comprising the

business process or activities & showing the

interconnection & sequence of the business subsystemsor processes that derive it


3/30

BusinessStrategy

BusinessModel

BusinessProcess

Organizations

MIS

Databases


4/30

Money People FacilitiesMaterial

INPUT WORKFLOW OUTPUT

Information Information

F/B & control

C


5/30

Contract w t pac agevendorValue of the s/w & conditions of payment

List of deliverables

Condns & concessions for acquiringcomplementary modules in future

Cost of implementation trainingAnnual 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


6/30

Contract with consultants

Profile of the consultant teamConsulting 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 deliverablesReporting mechanism to the company

management

Project monitoring & status reporting systems


7/30

ontract w temployees

Should not put the company in a positionwhere the smooth running of ERP system isinterrupted

Train another person before leaving

Should give prior notice before leaving

Company should retain employees byOffering competitve salaries

Challenging work environment

Stock options


8/30

Market dynamics &

competitive strategyWhat is ERPs current competitive position?

Is it market leader or is it challenger?

Is it seeking a strong or dominant industryposition

How does one position ERP


9/30

Marketing of ERPManaging the ERP marketing strategy process

From industry choice to positioning

Segmenting Targetingpositioning

- Objective: To serve the customers &outperform competitors by focusing thecompanys competencies appropriately


10/30

Marketing of ERPAnalysis of competitive positioning

Customer purchase criteriaCustomer preference concerning service or

product on each criterion

Customer perceptions of competing vendor &

their products on each criterion


11/30

Customer purchase criteriaPrice ( purchase price, discounts, multisite license price)

Performance ( scalability, upgradability, supportfacilities)

Psychological

Quality

Delivery schedule

Warranty providedAfter sales service

Credit terms

Implementation strengths

Analysis of competitive positioning

A l i f i i


12/30

Analysis of competitivepositioning

Customer preferences

- map customer preferences on each criterionidentified

- provides benchmarks related to which anERP & related service offeringspositioned

Customer perceptions on competing products- How the different ERPs differ

Go for com etitive ositionin decision


13/30

promotionImage

Identity what it is & what it is intended to

provideDecide USP

Marketing concept target market, customerneeds, integrated marketing & profitability


14/30

Marketing strategy or Businessplan

Target market : To identify industry sectors

Positioning : define & emphasize USP ofmarket

Product line : Add on products

Price : competitive price

Distribution : synergy with h/w or s/w

vendorsSales force : to expand by 10%

Service : To provide widelyavailable & quick service by

competing professionals


15/30

Marketing strategy or Businessplan

Advertising : To develop a new advertisingcampaign that supports the positioning

Seminars / tradeshows : To participateStrategy : 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


16/30

15/11/2007 16

Action ProgrammesElaboration of each marketing strategyelementWhat will be done?

When will it be done?

Who will do it?

How much will it cost?

Buyers consciousnessBuyers characteristics

Making purchase decisions


17/30

Criteria for selecting an ERP system


18/30

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


19/30

15/11/2007 19

Actual Sales Cycle Prospecting

Generate prospects

Develop relationships with managementconsultants

Qualification of prospect Assessment of seriousness of prospects


20/30

15/11/2007 20

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


21/30

15/11/2007 21

Simulation of some of companysbusiness processesMapping business processes to ERP software and

demonstrationHelps the vendor in implementation and to gain

confidence with the organization

Closing the sale Finalizing price, discounts, pre and post

implementation support etc.


22/30

ERP FAMILY

Enterprise planning

Supervisory control

Supply chain managementExecutive systems

Maintenance management

Planning scheduling

Warehouse management

Decision support


23/30

15/11/2007 23

Managing the ERP Marketing

Strategy Process

Deep understanding of the market and theproduct and know all about the process of

managing marketing strategy from theorganization's point of view.


24/30

15/11/2007 24

Relationship Marketing-TheKey

Convert many of its qualified prospects intofirst-time customersConvert those satisfied first-time customers

into repeat 'customersBoth first-time and repeat customers may

continue to buy from competitors as well.The company then acts to convert repeat

product categories


25/30

15/11/2007 25

The next challenge is to turn clients intoadvocates, customers who praise thecompanyThe ultimate challenge is to turn advocates

into partners, where the customer and thecompany actively work together


26/30

15/11/2007 26

Value creation and deliverysequence

The first phase, choosing the value,represents the "homework" that themarketing personnel must do before actually

positioning the ERP in the market.The ERP's specifications and services must

be detailed, a target price established, andthe product made and distributed.

The task in the third phase entailscommunicating the value.


27/30

27

Developing MarketingStrategies

ERP with premium price or at medium price withlimited functionality?

Positioning strategy to be changed at differentstages of product life cycle

Strategy choice depends on organization's rolein the market, global opportunities andchallenges


28/30

15/11/2007 28

Planning Marketing

ProgrammesDecisions to be made on marketing

expenditures, marketing mix and marketing

allocationLevel of marketing expendituresAllocation of marketing budget to ERP, channels,

promotion media, etc.

Promotion most important marketingprogramme


29/30

15/11/2007 29

Participants in the ERP

Buying ProcessVary in number and type for differentproducts

Ranges from 3-4 or team based buying

Participants could beThose who initiate proposalThose who will use the software or serviceTechnical personnel

People with formal authority to purchaseHigh level mangers for negotiations


30/30

15/11/2007 30

Who Will Require

ERP ?Organizations

With a vision for leadership

That are customer-service driven

That are under tremendous competitivepressure

In which business processes are too complexrequiring coordination among employees

Marketing of ERP

Documents

Transcript of Marketing of ERP