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OUTLINE OF THE TOPIC

A project is an investment made on a package of inter-related and time-bound activities. It is a one-off investment.

Project Marketing is a subset of project management. Project management involves planning, organising, directing and controlling of the various resources.

One of the most straightforward meanings of Marketing is "Meeting needs profitably". Marketing involves creating value for consumers by identifying needs, communicating and delivering the products to the consumers and ensuring that they are satisfied with their purchase. It includes the following activities:

  • Market research;
  • Financing;
  • Pricing;
  • Distribution;
  • Promotion;
  • Selling.

Project management is an amalgamation of marketing and management while involved in a project.

IMPORTANCE OF PROJECT MARKETING:

Today, organisations face myriad of challenges such as remaining viable and relevant in this increasing competition, improving the value of products and services, developing new offerings to satisfy customers' changing likesanddemands. Among the dual urgency of competitive threats and customer opportunities, the temptation to react to one or the other is strong. Before responding to these challenges, leaders are required to know where to find answers and how to acquire an in-depth understanding of customer needs, including the fundamental insight of customer choices. Once customers' needs and choices are understood, they can then be effectively influenced.

With the increasing competition every day there is a great need for marketing techniques which can be used to generate demand for existing products and services.

For the realistic managers, achieving new contracts is the lifeblood of any project-oriented business. The various practices that are incorporated by the project-oriented companies vary from traditional product business and hence need highly specialised and trained efforts from marketing, technical personnel in addition to significant involvement from the customer. Some pioneering companies have adopted a new and more quantitative approach to marketing. Three elements characterise this approach.

  • A willingness to clarify the marketing process and instil discipline, science and rigorousness in the function that enables marketing leaders to systematically and accurately measure the tangible return on their portfolio of marketing activities.
  • An understanding of marketing that is responsible for rigorously analysing the transaction, demographic and market data to develop deep insight into customer behaviour and needs, and using those insights to develop more targeted campaigns to make sales and customer service more effective and;
  • An acknowledgement that the marketing organisation, not sales or customer service, is the owner of the company's customer data and that the marketing leader's role is broader and has a potentially more significant impact than ever before.

By using the above marketing approach, many companies have gained tangible results and a lot of customer satisfaction which has further helped those companies grow.

Projects are dissimilar to from products in many aspects, mainly from the marketing perspective. Marketing projects require the ability to identify, pursue and capture one of a kind of business opportunities. Marketing projects are characterised by the following:

  • A SYSTEMATIC APPROACH: A systematic approach is usually required to develop a new program leading to an actual contract. The attempt to acquire project requires the involvement of key personnel from both the potential customers and performing organisation.
  • CUSTOM DESIGN: Projects are always custom designed to fit the specific requirements of a single customer community. Whereas traditional businesses provide standards of products for a variety of customers.
  • PROJECT LIFE CYCLE: Each project has its life cycle different from other projects so marketing must be based on the projects.
  • THE REQUIREMENT FOR TECHNICAL CAPABILITY: Technical capability is required for the successful performance of the project.
  • RISK AND UNCERTAINTY: Generally every project is prone to risk and uncertainty. So marketing strategy should be designed in such a way to cover risk and uncertainty.
  • MAXIMISE THE RETURN ON MARKETING INVESTMENT: Use integrated marketing, customer and financial data to develop, implement and monitor marketing resource allocation strategies.
  • WIN THE WAR FOR MARKETING TALENT: Attract, develop and retain people who meet the critical performance objectives of the marketing function.

For a project driven organisation to achieve all the above objectives, the organisation must ensure that the employees both, understand and exhibit the critical, specific corresponding behaviour. This is where training and human resource programs address the three primary drivers of behaviour, i.e. ability, motivation and context play a crucial role.

In spite of the risk and problems, profits on projects are usually meagre in comparison to commercial business practices. It is indisputable that successful companies need effective marketing to understand customers' needs and choices. Once recognised, marketing can help improve sales and services delivered to customers. Especially in project-driven organisations, project managers must stress on the need for a proper marketing technique to get desired results and successful completion of the projects.

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