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Marketing High Technology: Crossing the Chasm and Other Issues


Figure 11.4 Factors That Shape Market Attractiveness Figure 11.6 Determinants of a Competitive Advantage Develop Tactical Plan Marketing mix decisions to implement ... – PowerPoint PPT presentation

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Title: Marketing High Technology: Crossing the Chasm and Other Issues

Marketing High Technology Crossing the Chasm
and Other Issues
  • Dr. Dawne Martin
  • MGMT 897
  • April 22, 2003

  • What makes high-tech marketing different?
  • How does technology create competitive advantage?
  • What are in critical success factors in moving
    technology through the Technology Adoption Life
  • How do you build a high-tech marketing plan?

What Makes High-Tech Marketing Different?
  • Types of Innovations
  • Continuous extensions of previous technology
  • Discontinuous disruptive technologies
  • Changes in strategy and behavior
  • May not be intuitive to market
  • May require changes in infrastructure
  • Customer Knowledge
  • Education of customer to create value
  • Life Cycle Time
  • Pace of adoption of new technologies and change
    to other technologies

Market Penetration and Market Development Index
Figure 3.6 Roger Best, Market-Based Management,
2nd ed.
Competitive Advantage Hierarchy
Offer Power
Customer Power
Value Chains
Industry Power
Category Power
Competitive Advantage Effects
Competitive Advantage Drivers
Adopted from Paul Wiefels, The Chasm Companion,
Harper Business, 2002.
(No Transcript)
What Speeds Adoption?
  • Relative advantage
  • Compatibility
  • Visibility
  • Trialability
  • Ease of Use
  • Question What are the advantages and
    disadvantages of the McMasters engine relative to
    current technology and fuel cell technology.

Early Market -- Technology Enthusiasts
  • Assume that discontinuous innovation is superior
    to current technology
  • Seek out opportunities to explore new
  • Forgiving of mistakes and bugs
  • Gatekeepers for new technologies in business
  • What they want
  • The truth about product
  • Access to most knowledgeable technical people
  • First to get new stuff

Geoffery A. Moore, Crossing the Chasm, Harper
Business, 1991
Early Market -- Visionaries
  • Match new technologies to opportunities
  • Create high-visibility, high-risk projects
  • Looking for a quantum leap forward for industry
    and customers fundamental breakthrough
  • Not price-sensitive or adverse to risky products
  • What they want
  • Project orientation
  • Meet window opportunity
  • Expectations manage these through project
    timelines with specific deliverables and frequent

Geoffery A. Moore, Crossing the Chasm, Harper
Business, 1991
Mainstream Markets -- Pragmatists
  • Focus on making incremental improvements in
  • Desire standardization loyal customers
  • Communicate within their own industry
  • Keep vendors to a minimum
  • What they want
  • Cost effective solutions
  • Proven technology
  • Single point of contact
  • Price
  • Take their time to make decisions

Geoffery A. Moore, Crossing the Chasm, Harper
Business, 1991
Mainstream Markets The Conservatives
  • Against discontinuous innovation on principle
    tradition focused
  • Buy and use discontinuous innovations because
    they must to keep up
  • Invest only in mature technologies
  • Price sensitive
  • What they want
  • Pre-assembled packages
  • Heavily discounted prices
  • Ease of use
  • Single function

Marketing to Cross the Chasm Paul Wiefels, The
Chasm Companion, Harper Business, 2002
  • Target specific niche markets through technology
    enthusiasts and visionary stages
  • Broaden niche to cross chasm Bowling Alley
  • Shared applications
  • Word of mouth for refereneces
  • Develop a must have value-statement
  • Capability to ensure competitive advantage
  • Improves productivity
  • Reduces operating costs
  • Choose a niche
  • Application niche
  • Thematic niche portability across incompatible
    hardware platforms

Marketing to Cross the ChasmPaul Wiefels, The
Chasm Companion, Harper Business, 2002
  • Inside the Tornado hyper-growth through changes
    in business paradigm
  • Herding move together
  • Preference for emerging market leader
  • Competitors enter to fill supply gap Gorillas,
    Chimps Monkeys
  • Competing in the Tornado
  • Showcase your strengths highlight competitors
  • Standardize product offering reducing
    complexity, time to customer, service
  • Drive price down
  • Make products widely available
  • Community all points of advantage
  • Main Street Issues Market Maturity and Decline
  • Growth slows or sales decline
  • Profits lag
  • Competing
  • Commodity approach
  • Market share
  • Superior and sustainable economies of scale
  • Low-cost channels
  • Operate profitably on low and declining margins

Components of a Marketing Plan
  • Environmental Internal Analysis
  • Marketing Strategy
  • Analysis of potential markets
  • Target market(s)
  • Positioning
  • Tactical Marketing Strategy
  • Marketing Budget
  • Performance Timeline
  • Performance Evaluation

Environmental Internal Analysis
  • Whats happening as the industry as a whole?
    Whats driving the industry
  • Technology changes
  • Economics
  • Socio-cultural changes
  • Political legal changes
  • What are youre companies strengths and
  • Technology/Product
  • Marketing Expertise
  • Management Manufacturing Capabilities
  • Financial Resources
  • Human Resources

Analyze the current climate in the auto industry
and what McMasters has going for it.
Marketing Strategy
  • Choose target markets from segments VALUE!
  • Assess market attractiveness
  • Market growth
  • Competitive intensity
  • Market access
  • Assess competitive advantage
  • Cost advantage
  • Differentiation advantage
  • Marketing advantage
  • Positioning focus on relative competitive
    advantages and customer needs
  • Conduct a preliminary analysis of potential
    market segments.

Figure 11.4Factors That Shape Market
Roger Best, Market-Based Management,
Prentice-Hall, 2000.
Figure 11.6Determinants of a Competitive
Roger Best, Market-Based Management,
Prentice-Hall, 2000.
Develop Tactical Plan
  • Marketing mix decisions to implement strategy
  • Product and service quality and attributes
  • Pricing
  • Channels of Distribution
  • Multiple Channels
  • E-commerce
  • Sales force or manufacturers reps
  • Promotion
  • Direct marketing
  • Publicity
  • Advertising
  • Based on the needs and habits of transportation
    customers, where should you spend your money?

Marketing Budgets
  • Provide detailed expenditures with justification
    for each expenditure how it was calculated
  • Start with a cash flow projections
  • Should forecast sales growth over 3 5 years
  • Justify your sales forecasts by information on
    market growth, competitors and customer needs
  • Justify your expenditures
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