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Marketing Strategies For Erp

This document discusses marketing strategies for enterprise resource planning (ERP) software. It begins by outlining the importance of understanding customer needs and competitive positioning when developing an ERP marketing strategy. The document then describes key steps for competitive positioning, including identifying important customer purchase criteria, mapping customer preferences, and detailing competitors' perceived positions. Armed with this information, a company can choose how to position its ERP offering relative to customer preferences and competitors. The document concludes by noting some example marketing strategy considerations, such as price point, functionality, target markets, and modifying positioning over the product lifecycle.

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40 views

Marketing Strategies For Erp

This document discusses marketing strategies for enterprise resource planning (ERP) software. It begins by outlining the importance of understanding customer needs and competitive positioning when developing an ERP marketing strategy. The document then describes key steps for competitive positioning, including identifying important customer purchase criteria, mapping customer preferences, and detailing competitors' perceived positions. Armed with this information, a company can choose how to position its ERP offering relative to customer preferences and competitors. The document concludes by noting some example marketing strategy considerations, such as price point, functionality, target markets, and modifying positioning over the product lifecycle.

Uploaded by

aneesjunaid
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Volume : 4 | Issue : 4 | April 2015 ISSN - 2250-1991

Research Paper MANAGEMENT

Marketing Strategies for Erp

S. K. Patel Institute of Management & Computer Studies (MBA)


Parnika Jha Sarva Vidyalaya Campus, Sector -23, Gh – 6 Road, Gandhinagar,
Gujarat – 382023
The use of Enterprise resource planning (ERP) solutions is now becoming prevalent worldwide. ERP solutions have been
implemented in most companies due to its advantages like increase their performance in terms of cost, quality, speed and
ABSTRACT

services. There are a few limitations associated with the implementation of an ERP. One of the major limitations of ERP
system with respect to the Indian scenario is awareness in terms of the long term benefits, thereby making marketing of
an ERP solution a challenge. In order to market an ERP package, an in-depth understanding of the marketing strategies
is mandatory. This paper discusses the know-how of strategies that may be that implemented for positioning ERP in the
market.

KEYWORDS Enterprise Resource Planning, competitive positioning, marketing strategy

Introduction customer’s favoring an ERP, but also because an appreciation


A theoretical study of the dynamics of the ERP market, how of the nature and use of these criteria is fundamental to the
they evolve through number of stages, and the characteristics positioning decision. Evaluative criteria are usually best con-
of competitive behavior, provides a basis for assessing mar- ceived as benefits sought by customers from competing prod-
ket attractiveness and assists the ERP marketing personnel to ucts or services. The identification of such criteria which cus-
choose the market, the market segment and to position them- tomers will use in making their evaluations not only allows the
selves competitively. Marketing activities of an ERP, no matter seller to understand their decision-making but also makes it
how positively taken up, is unlikely to be of much use unless possible to segment the market in terms of customers requir-
it is set in a strategic contest. The marketing manager’s fore- ing a suitable ERP-based solution.
most job is to manage the marketing strategy process. This
primarily means making the correct choice of markets and in- Steps for Competitive positioning
dustry segments. Making this choice is a complex endeavor. The first step in formulating a positioning approach is to com-
The manager must select at a broad generic level between po- plete a basic listing of the criteria important to the target
sitioning the ERP and the implementation or service to meet customers through formal research or, at the least, through
the specialized needs of one segment, positioning additional personal questioning of buyers and reflection on experience
products and services also to meet the needs of several sep- in marketing to them successfully. Some prospects will re-
arate segment and positioning the ERP to provide general ap- quire the ERP sales people to give them the confidence that
peal across many segments. they understand their needs. It is very important for the ERP
salesperson to take control of the discussions because the cus-
Managing marketing strategies tomer will ultimately never gain confidence, if he is allowed to
Before any marketing strategy is developed for the selling of stick to his explicit idea, technology and environment without
ERP, clear cut answers are required for questions like what is any initiative from the vendor.
the organization’s and the ERP’s current market position?, is it
leading the market or is it still to reach the top?, is it seeking After the criteria have been identified, the next step is to iden-
a strong or dominant industry position or is it merely seeking tify customer preferences concerning ERP performance on
to win a small but profitable industry sector?, does the stage each criterion. A map of customer preference is of enormous
of market maturation strongly suggest or preclude certain importance, as it documents explicitly an ideal service from
competitive initiatives? These questions help in creation of tar- the customer’s viewpoint. In doing so, it provides one of the
get markets. The selection of a target niche results in a clear essential benchmarks relative to which an ERP and related ser-
identification of the target group with which the organization vice offering may then be positioned.
wishes to develop a market relationship. The bifurcation anal-
ysis leading to this decision yields an essential profile of target The next step that must be taken before making a positioning
customers in terms of their buying needs and relevant individ- decision is to detail the perceived position of each competing
ual or organizational characteristics. When the target custom- product on each criterion. Significant marketing implications
er group has been chosen, the managerial challenge becomes of the analysis now begin to appear. How the different ERPs
that of positioning the company and its ERP or services relative differ is readily visible as is their ability to match customer
to the preferences and acceptability of the target group. The preferences.
objective of this exercise is to serve the customer and to out-
perform competitors by focusing the company’s competencies Armed with such information the marketing team then de-
in an appropriate manner. To make a competitive positioning cides how to position its ERP offering in the market. The po-
decision, the manager must know the customer purchase cri- sition chosen is of a relative nature. The position is chosen
teria, customer preference regarding service or product perfor- relative to the identified customer preferences and competitor
mance on each criterion and customer perceptions of compet- performance on each important criterion and relative to the
ing vendor and their products on each criterion. company’s capabilities

The importance of understanding the customer purchase cri- Understanding the advantages and the limitations of the ERP,
teria used in evaluating the alternative ERPs and services is the company should target those prospects that will possibly
stressed, not only because of their central role in explaining look at what it is contributing. Those companies perform best

4 | PARIPEX - INDIAN JOURNAL OF RESEARCH


Volume : 4 | Issue : 4 | April 2015 ISSN - 2250-1991

which define their target markets carefully and prepare a tai- • Sales force : To expand by 10% and intro-
lored marketing programme. A company can define its target duce a national account-management system to provide wide-
market but fail to fully understand customer needs. The ven- ly available and quick service by competent
dor must closely look into the five basic types of needs name- professionals
ly, stated needs, real needs, unstated needs delight needs and
secret needs. Responding only to the customer’s stated need • Service : To develop a new advertising campaign that sup-
may not meet his expectations. Customer-oriented thinking ports the positioning
requires the company to define customer needs from the
customer’s point of view. Every buying decision involves an • Advertising : To participate in trade shows and semi-
exchange, and management cannot know what these are nars
without researching the customers. Responding only to the
customer’s stated need may not meet his expectations. • Strategy : To emphasize USP in the advertisements and com-
mercials; increase the advertising budget by 20%
Developing Marketing Strategies
Should the organization offer the ERP at a premium price with Conclusion
excellent service that is well-advertised and aimed at high- The marketing concept rests on four pillars: target market,
er-end markets? Or should it aim for a product to be offered customer needs, integrated marketing, and profitability. As for
at a medium price with limited functionality? After launch, the any product, the fundamental selling concept for an ERP takes
ERP positioning strategy will have to be modified at different an inside-out perspective. It starts with organization, focuses
stages in the product life cycle: introduction, growth, matu- on the company’s existing strengths, and calls for heavy selling
rity, and decline. Moreover, the strategy choice will depend and promoting to produce sales. The marketing concept takes
on whether the organization plays the role of market leader, an outside-in perspective. It starts with a well-defined market
challenger or follower. Finally, strategy will have to take into focused on customer needs, integrates all the activities that
account changing global opportunities and challenges. To will affect customers, and produces sales by satisfying those
transform marketing strategy into marketing programmers, needs.
marketing managers must take basic decisions on expendi-
tures, mix, and allocation. The organization must first decide
the level of their marketing expenditures in their marketing
budget as a percentage of the sales goal. Second, the com-
pany also has to decide how to divide the total marketing
budget among the various tools in the marketing mix. Final-
ly, marketers must decide on the allocation of the marketing
budget to the ERP, channels, promotion media, direct mail
advertising versus trade-magazine advertising or any support
service that can provide a competitive advantage in the com-
petitive marketplace. A critical marketing mix tool includes
the various activities. It must identify, recruit, and link various
marketing synergies with the management consultants to
help recommend the ERP and services efficiently to the target
corporate. Promotion includes all the activities the company
carries out to communicate and promote its products in the
target market. The organization has to employ, prepare, and
inspire salespeople. It has to lay down communication and
promotion programmes consisting of advertising, sales promo-
tions, public relations, and direct and online marketing.

Application of marketing strategy


The product manager is required to outline the broad market-
ing strategy that he or she will use to accomplish the plan’s
objectives. The marketing strategy is often presented in list
form:

• Target market : To identify industry sectors

• Positioning : Define and emphasize USP of the prod-


uct

• Product line : Add-on products

• Price : Competitive price

• Distribution : Synergy with hardware/software ven-


dors

REFERENCES

[1]. Leon Alexis. Enterprise Resource Planning ,Tata McGraw-Hill Publishing Education Private Limited ,New Delhi 2008 | [2]. Goyal D P , Enterprise Resource Planning A
Managerial Perspective, Tata McGraw-Hill Publishing Education Private Limited ,New Delhi 2008 | [3]. Garg Vinodkumar,Venkitakrishnan N K, Enterprise Resource Planning
Concepts and Practice, Second Edition ,Prentice Hall India learning Private Limited Second Edition | [4]. www.networkmagazineindia.com | [5]. www.erpwire.com | [6].
www.seiofbluemountain.com/upload/product/201205/2012gjyxhy3c05.pdf | [7]. www.scribd.com/doc/6703768/ERP-an-Overview | [8]. www.bookmarketingworks.com/
MarketingvsSelling.htm

5 | PARIPEX - INDIAN JOURNAL OF RESEARCH

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