HighTech Marketing

1
High-Tech Marketing

• Introduction
• Technology-Push and Market-Pull Strategies
• New Markets and New Major Devices
• Completing High-Tech Products for Applications
• Mass Markets
• Proprietary Technology
• Market Positioning

2
Introduction

• The special problems of high-tech marketing in
  the ideas of
• Innovation Sources
• New Market Creation
• Completing Applications
• Proprietary Knowledge
• Market Experimentation.
• Case Study Personal Computer Industry (1)

3
Technology-Push and Market-Pull Strategies

• Technological innovation motivations

Technology-Push Innovation
Market-Pull Innovation
Technological innovation motivated primarily by
exploring nature and its manipulation most
often create radical innovation.
Technological innovation motivated primarily by
market need most often create incremental
innovations.

• Case Study Personal Computer Industry (2)

4
New Markets and New Major Devices

• As technical performance in a new high-tech
  product rapidly advances, new customers come into
  the market and the market changes.

• Case Study Personal Computer Industry (3)

5
Completing High-tech Products for Applications
(1/2)

• For a market to emerge, a new high-tech product
  must be completed for an application.
• The first marketing problem for a new high-tech
  product is to determine what, how, where, and
  when it can be completed by additional products
  for a customers application.

6
Completing High-tech Products for Applications
(2/2)

• The value added to a customer of a high-tech
  product is as a device in the customers
  application system.
• Marketing of new high-tech products is not only
  an advertising challenge but also an
  application-system-completion challenge.

• Case Study Personal Computer Industry (4)

7
Mass Markets

• All forms of markets are basically ways for
  society to trade economic uses of nature.
• The reasons of market change
• When the kinds of goods and services change
• When the ways of exchanging goods and services
  change in an economy.

• Case Study Personal Computer Industry (5)

8
Proprietary Technology

• Product without proprietary technology simply
  invite imitators into its market.
• A brand name cannot maintain a premium when
  customers learn that the brand does not provide
  higher quality than that provided by competing
  products.

• Case Study Personal Computer Industry (6)

9
Market Positioning (1/3)

• A markets evaluation of the potential of new
  technology in a product can be examined through
  several criteria

through product superiority
Quality
through correct market focus
Value
through efficient production
Price
through timing of innovation
Opportunity
through investment return
Profitability
10
Market Positioning (2/3)

• Marketing of new high-tech products is difficult
• As the radically new technology of the product
  and its applications must be developed together
  simultaneously and interactively.

11
Market Positioning (3/3)

• The steps in market positioning

Focus on the range of applications possible with
new technology
Project the size and structure of corresponding
markets for the applications
Judge the optimal balance of performance,
features, and costs to position for markets
Consider alternative ways to satisfy markets
Analyze the nature of the competition
Consider the modes of distribution
12
Market Positioning (4/4)

• The more radical the innovation,
• the more experimental must be
• the marketing approach.