Marketing of high technology products

VINAYAKA H.

Order the writing of a tailor-made Services marketing Research papers

Free quote online

Tutorials/exercises Format .doc

Marketing of high technology products

Download

Read an extract

Reader
Abstract
Contents
Extract

Abstract

Technology has encompassed all human activities spread from farmers in the remote areas to the human activities reaching out into outer space. Managing this tool of "Technology" which governs the future of the mankind, planet and the universe covers multiple disciplines of sciences and mankind. Today's Global economy is, to a large extent, driven by technological innovations. The scope of high-technology applications is no longer limited to computers, telecommunications, or consumer electronics- the ‘traditional' high-tech industries; it encompasses a broad cross section of industries in today's business economy.

The 19th-Century 'the age of coal' opened the world through steam ships and railways. The 20th-Century 'the age of oil' has freed humankind from the limits of their physique and the force of elements through powered flights, personalized transport and the like offered by availability of cheap energy. The dawn of the 21st-Century 'the age of information' should free the mind and imagination. Science is concerned with discovering facts and studying the relationships of phenomena. Technology is concerned with using scientific knowledge and scientific methods to fulfill commercial needs. The Technology Management optimally manages and blends science and technology elements to its maximum towards innovation in the industrial world of progress.
Technology is the stock of relevant knowledge that allows new techniques to be derived and includes both product and process know-how. Product technology covers the ideas embodied in the product and its constituent components. Process technology encompasses the ideas involved in the manufacture of a product.

Introduction
Characteristics of technology marketing
Characteristics of the technology as the transfer subject
1. Uncertainty
2. Ingenuity
3. Innovativeness
4. Reduced development period and short life cycle
5. Complexity
Characteristics of technology marketing
1. Long transfer period and procedural complexity
2. Importance of time management
3. Importance of opinion adjustments between transfer parties
Common characteristics of high tech industries
1. Market uncertainty
2. Technological uncertainty
3. Competitive volatility
Additional characteristics
1. Network externalities
2. Industry standards
3. Unit one cost
4. Trade ability problems
Does marketing need to be different for high tech products?
Framework for high tech marketing decisions
Marketing mix 4 P's
1. Product
2. Price
3. Place
4. Promotion
Issues in distribution channel design and management:
Channel consideration in high tech markets
1. Need for indirect channels to provide value for manufacturers
2. Evolution of high tech channels
3. Understanding gray market
4. Black markets, piracy, and restricted exports
5. Supply chain management software
6. Internet channel
Strategy in high tech firms
1. Customer
2. Products and services
3. Timing
4. Execution
5. Strategy innovation
Competitive advantage
Culture and climate in innovative companies
Cultural obstacles to innovativeness
1. Core rigidities
2. The innovator's dilemma
Cultural facilitators of innovation
1. Creative destruction
2. Leveraging firm dominance effectively
3. Unlearning
4. Nurturing a culture and climate of innovation
Relationship marketing
Possible alliance partners along the supply chain
Market orientation
1. Market oriented firm
2. Becoming market oriented
3. Barriers to being market oriented
4. Turf protection
5. Core rigidities
6. Served market
R and D: Marketing interaction
1. Steps to effective R and D marketing interaction
2. Strategies to enhance R and D marketing interaction
3. Cooperation
4. Constructive conflict
Understanding customers
1. Marketing research in high tech markets
2. Forecasting customer demand
3. Customer purchase decisions
4. Process of customer purchase decisions
5. Adoption or diffusion
Steps in segmentation process
1. Profile the customers in each segment
2. Evaluate and select a target market
Societal, ethical, and regulatory concerns
1. Social responsibility and business decisions
2. Considerations in social responsibility
3. Ethical controversies surrounding technological advances
4. The role of the government
5. Branding in high tech products
Conclusion

Get this table of contents for free after login.

Extract

[...] In order to develop effective marketing strategies, firms must have a solid understanding of how and why customers make purchase decisions for high-tech products and innovations. Process of Customer Purchase Decisions: Problem Recognition: Need recognition can be stimulated by internal bottleneck exists in the order fulfillment process) or external (advertising) stimuli. Information Search: This takes the form of identification of alternatives for solving the problem. The buyer may utilize personal sources, commercial sources, public sources, or experiential sources. Evaluate Alternatives: Evaluation of alternatives for high-tech products and innovations follows Everett Rogers' framework for the evaluation and adoption of innovations. [...]

[...] Framework for High-tech Marketing Decisions: Marketing- 4 Ps and Internet High-tech Firms Customers Internal Considerations: Understanding customers: Strategic Market Planning High-tech research Core competencies/ Core rigidities Forecasting Market orientation Customer Decision Making Relationship marketing Adoption/ Diffusion of innovations R&D Marketing interactions Target Marketing Societal, Ethical, and Regulatory Concerns Marketing Mix- 4 Ps: Product: Companies have to develop capability to focus on the core technology upon which the company's long-term success depends. The core technology is visible to the outsiders in the form of products and services. [...]

[...] Cultural Facilitators of Innovation: Creative Destruction- Firms must recognize that products in high-tech environments typically sustain only a finite spell at the technological frontier before being made obsolete by better products. Given this reality, firms must proactively attempt to develop that next generation technology. This notion of constantly innovating to develop the next generation technology, despite the potential drawbacks of doing so, is known as Creative destruction. Leveraging Firm Dominance Effectively- There has been significant debate regarding the relationship between firm size and the firm's ability to be innovative. [...]

[...] Technology oriented products present an interesting case for examining the importance of the knowledge management in developing effective marketing strategies. Under the conditions of market and technological uncertainty, the organizational conditions that facilitate information processing and knowledge resource utilization move to the forefront in facilitating successful marketing programs. Effective knowledge management provides several important benefits including the provision of a heightened vision of the decision environment and an enhanced ability to facilitate decision implementation. When marketing high-tech products, this improved understanding of the decision environment is expected to provide a clearer context within which to implement marketing strategies. [...]

[...] In addition to being aware of potential counterfeit problems, firms selling strategic high-tech products must also be aware of Export restrictions. Supply Chain Management Software: With the advent of ever increasingly sophisticated information technology, companies are using new software programs to redesign their business processes. Known as Enterprise Resource Planning enterprise software refers to the sub-industry of software for companies looking to use technology to improve virtually every key co-operate function. A subset of ERP software, supply chain management programs, brings data from manufacturing, inventory, and suppliers to create a unified picture of the elements that go into building a product. [...]

doc