Cobianchi & Associates
Marketing/Business Development
Dr. Thomas T Cobianchi
Consultant
Cobianchi & Associates
Summer 2013 (modified)
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Marketing/Business Development
Cobianchi & Associates
What is Marketing
Marketing Mix
Marketing Factors
Marketing Research GANTT Chart
Marketing Product Overview
Business Development Process
Program and Budgeting Process
Business Development Objective & Philosophy
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What is Marketing
Cobianchi & Associates
Marketing Definition (1) The act or process of buying and selling in a market.
(2) The commercial functions involved in transferring
goods from producer to consumer.
Market – A place where goods are offered for sale.
(Venues include – physical location, Internet, trade
show, customer’s office, etc.)
Source: The American Heritage Dictionary - 1985
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Marketing Mix
Cobianchi & Associates
The 4-Ps
- Price
- Product
- Promotion
- Place
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Price
Cobianchi & Associates
Price – Whatever the traffic will bear in a specific market
place for specific product/service and for a specific
period of time.
Price Factors - Competition, supply and demand, alternative
products/services, customer preferences,
quality, market location (only game in town)
Price Equation – Revenue vs. Expense
(SP x Q) = Vc + Fc + Profit
Vc = labor and material
Fc = heat, power, light, rent, insurance
Price vs. Cost – Customer concerned about price, not cost
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Product
Cobianchi & Associates
Product – The goods or services offered in a market based on a
company’s facilities and capabilities (core competency).
Product Development – R & D based upon core competency in
maintaining and/or improving customer interest and
appeal.
Product Development Factors –
Technology, design, manufacturing (production)
marketing mix, product cost, competition
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Promotion
Cobianchi & Associates
Promotion –
- Sales Force or Business Development Team
- Marketing Communications (MARCOM)
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Sales Force or Business Development Team
Cobianchi & Associates
Functions –
- Current and potential customer calls (visits)
- Present/demo company product offerings
- Investigate customer wants and needs
- Define customer requirements
- Collect competitive information (price, product, etc.)
- Provide inputs to product development
- Investigate the customer’s importance of price, delivery
quality and performance history (incumbency)
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Marketing Communications (MARCOM)
Cobianchi & Associates
Factors –
- Literature (sales brochures, technical date sheets, etc.)
- Product Demonstrations (video, application demo)
- Communication Vehicles (Advertising - TV, radio, print,
Internet websites, press releases, seminars, trade shows,
technical papers, endorsements, other advertising )
- Public Relations (promote company image and brand,
establish community relations, external spokes person, etc.)
- Marketing Research
- Primary Research – Customer interviews, focus
groups, seminar/trade show feedback,
- Secondary Research – Literature search, industry
market reports, industry experts (Adelphi group)
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Place
Cobianchi & Associates
Distribution Channel –
- End user (System)
- Original Equipment Manufacturer (OEM)
- System Integrator (Prime contractor – Raytheon)
- Distributor (Electrical supply house)
- Wholesale (Sam’s Club, COSTCO)
- Retail (Macy’s)
- Agent (Insurance salesman)
Note: In general, title passes from supplier to channel partner
upon product delivery and payment due with the exception of
system end user and prime contractor (progress payment)
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Marketing Factors
Cobianchi & Associates
Culture –
- Geographic Regions (Western, Eastern, Middle East, etc.)
- Religion (Christen or Non-Christen)
- Political Environment (Democracy vs. dictatorship)
- Economic Environment (Command vs. free market)
- Market Space (Defense, commercial, non-profit, retail)
Outsourcing –
- Manufacturing Costs (domestic vs. foreign – India/China)
- Transportation Costs (domestic vs. foreign)
- Import Duty/Tariff
- Exchange Rates (balance of trade)
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Marketing Research GANTT Chart
Cobianchi & Associates
VDC - Market Research Firm
Tom Cobianchi, Talla-Tech POC (850-580-8277) - David Krebs, VDC POC (508-6
Weekly Start Date:
20-Aug 27-Aug
Item Schedule (8-10 Weeks)
= Start
= Complete
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2
A Kick-Off Meeting
RPDA-57 and Tacter-31 Oriented Markets (Military and DHS)
B Define product lines
C (1) Current revenue forecast 2007 (DoD & non-DoD/DHS)
D (1) Projected revenue forecast 2008-2012 (DoD & non-DoD/DHS)
E Forcecast assumptions (model/metrics)
F Analysis by segment (end user, inegrator, OEM, distribution)
G (5) M arket growth vs. saturation (trends)
H Primary & secondary research model
I
J
K
L
M
N
O
P
Q
Market Environment
Technology factors, trends/issues (HW/SW)
(1)Trends in industry R1/P1 military and DHS spending
Barriers to entering and continuing in market (invest/risk)
(5) Growth potential (opportunities)
(7) Restrictions (threats/constraints)
(4) Next generation of products (technology/market demmand)
(6) Factors influencing demand
Qualify rugged PDA/Tacter (Mil-Spec/Std)
Qualify rugged PDA/Tacter (DHS)
R
S
T
U
V
W
Market Penetration Strategy
Current component supplier
Structure (teaming, joint venture, SA, merger, acquisition)
Outsourcing
(7) Competitors strength & weakness
Similar Talla-Tech competitors
Specific competitors
X
Y
Z
AA
BB
CC
DD
EE
FF
GG
HH
II
JJ
KK
LL
Competitive Factors & Competition
(3) Price points, price sensivity and trends
Deliver lead time
Performance
Quality
Customer Service (response & commitment history)
Business/personal relationships
(2) M arket share
Business Development
Engineering
R&D
Market Channels (industrial/DHS)
(8) Recommendations
Weekly Conference Calls
Bi-Weekly Situation (Status) Reports
Final Report Delivery
MM Payment Schedule ($25K@start - $25K@final report delivery)
3-Sep 10-Sep 17-Sep 24-Sep
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4
5
6
1-Oct
7
8-Oct
8
15-Oct 22-Oct
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10
N/A
N/A
N/A
N/A
N/A
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N/A
N/A
Marketing Product Overview
Cobianchi & Associates
Rugged Personal Digital Assistant (RPDA-57)
OVERVIEW
General Dynamics C4 Systems (GDC4S) is pleased to
announce the Rugged Personal Digital Assistant
(RPDA-57); the latest product in the CHS-3 arsenal of
rugged computing devices. The RPDA-57 is a
ruggedized PDA that hosts Windows CE 5.0 as an
operating system. The RPDA-57 has been engineered to
survive the rigors of the tactical battlefield, and has
incorporated extensive soldier feedback into its design.
The resulting product is a computing device that will be
readily accepted by the deployed warfighter and
homeland defenders.
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Business Development Process
Cobianchi & Associates
Program Oriented:
- Define customer – End user, OEM, systems integrator. Etc.
- Program structure – Incumbent, follow on, new open competition,
- Customer organization – R&D, Labs, Program Management, User
- Define customer mission/objective/ problem (program/application)
- Program funding – (funded-define budget/unfunded-define status)
Marketing/Management Oriented:
- Who are the competitors?
- Who is the program manager/engineering manager/contracts specialist, user?
- Who is the decision authority and who influences decisions?
- What is the key selection criteria?
- What mission does this product support?
Technical Factors:
- Technical Spec (requirement defined or undefined)
- Define customer perceived technical requirement(s) requiring a solution
- Technical parameters
General Inputs:
- What is the customer trying to accomplish?
- What are his/her perceived problems or issues?
- How is the problem/issue being addressed today?
- What options are being considered or evaluated to resolve the problem/issue?
- Who is the driving force behind this requirement?
Customer Service Evaluation Factors:
- Price
- Delivery
- Commitment
- Performance
- Quality
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Cobianchi & Associates
Business Development Process (Continued)
DoD
Perceived Need
Product P3I
Replacement/Threat
Technology Drivers
Cost Drivers
DoD Program
Drivers
Procurement
Environment
Product Line
Systems
Communication (RF & Telecom)
Radar ( Airborne & Ground)
Command & Control
Computer Science
Cyber Technology
Information Technology
Requirements
SON
Technology
Availability
LWIR
Laser
Power Systems
Optical
Software
Request For
Proposal (RFP)
Mission Requirement
Defense Guidance
Technically Acceptable
High Priority Funded Program
Threat
Past Performance/Acceptable Risk
Resolves Need
DoD Mission Objectives
Cost Competitive
Political & User Support
Technical Requirements
Best Total Value to Gov’t 15
Cobianchi & Associates
Program and Budgeting Process
Jan
Pres
Budget
Feb
Defense
Guidance
FYDP
Major
Issues
Aug
Sept
PDM
BES
FYDP
POM : Program Objective memorandum
JPAM: Joint Program Assessment memorandum
PDM: Program Decision memorandum
Source: DCSIP Plans & Programs - USAF
Mar
Jul
POM
ISSUES
JPAM
FYDP
Oct/Dec
PBP
Major
Issues
Jan
Pres
Budget
FYDP
BES: Budget Estimate Submittal
PBD: Program Budget Decision
PPBS: Planning, programming, & Budget System
PPBS = Threat = Strategy = requirements = Funds
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Cobianchi & Associates
Business Development Objective & Philosophy
Objective:
Develop and maintain professional and personal customer relationships
Collect competitive marketing intelligence
Collect initial information on customer technical and mission requirements
Promote company product and services (cost push)
Assist customer in converting technical requirements into a RFP (demand pull)
Philosophy:
Match the customers’ funded technical requirements with the company’s core competency
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