Original Date: 05/01/1992
Revision Date: 01/18/2007
Information : Marketing Strategy Development
With estimated cuts in the defense budget forcing many suppliers out of the market, Texas Instrument/Semiconductor Group/Military Products (TI/SG/MP) is striving for a position as the preferred supplier of military semiconductors through total customer satisfaction. The company recognized that in order to achieve this goal, it would need to realign its marketing strategy and reaffirm its focus which, since 1985, has been on total customer satisfaction.
The first step toward changing the marketing strategy was to conduct a benchmark and positioning study. This study indicated TI/SG/MP's position relative to its competitors. The results detailed the total available market for military products and the breakdown of products within the market, thereby providing TI/SG/MP with a picture of the customer's emerging needs. The benchmark research study indicated that TI/SG/MP was considered first among the semiconductor suppliers by 61% of those surveyed. However, the company recognizes that the marketplace is changing rapidly and has been making product and process alterations in response to the changing needs of its customers. For example, while general purpose logic devices represent 10% of the total available market, linear, discretes, and ASICs each represent 15% or more.
TI/SG/MP realigned its marketing strategy as the result of this benchmark and positioning study. The center of TI/SG/MP's new marketing efforts included military equipment design engineers, engineering management, systems engineers, and component engineers within original equipment manufacturers (OEMs) in North America and Europe, as well as the OEM corporate management. The secondary -- but critical -- target became financial and market analysts, field sales personnel, and editors of trade publications. TI/SG/MP provided timely information through the media, its sales force, and directly to the industry with technical releases.
The primary means of marketing now comes from news releases and product briefs, advertisements directed at management, engineering, and purchasing people, and tools that the field sales force can use with impact and utility. TI/SG/MP continues to execute news releases of advanced technology products which describe ASIC/VHDL, programmable logic, DSP/GSP, advanced linear, advanced logic, and high-density memory.
In addition, TI/SG/MP developed a selling tools program that provided its sales force with a military linear device data book and foil presentation combined into a "survival kit." A user-friendly military selection guide was published, and TI/SG/MP also conducts satellite broadcasts to keep the sales force updated and involved.
Market share is the critical measurement for success in the semiconductor business. TI/SG/MP wants to increase its share by expanding sales of its advanced-technology differentiated products. To achieve a premier spot in the marketplace, TI/SG/MP followed a disciplined problem-solving approach and in response to real data, developed and implemented innovative solutions.
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