Transcript Fundamentals in (High) Technology Marketing

Brief Review
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Why would anyone claim that a customer
who does not pay has economic value?
Name two innovations of pricing in fluid emarkets?
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What is the rationale behind them?
What is the difference between inbound and
outbound marketing?
Wherein lies the value for marketers of
consumer search action?
Virden
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What should Jim Merrick do about VM 2.0?
What do you think of Merrick’s crew? Does it
need to change? If so how?
What should be the role of marketing in hightechnology firms?
High Tech Marketing
Fundamentals: Process and Product
Complexity of Technology
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Phaedrus
 What does the story teach technology marketers?
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Unintended Consequences (when things bite back)
 South American Fire Ant
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Technological Paradoxes
 Freedom-Enslavement
 Control-Chaos
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Technological Backlash
 Luddites
 GMF
 Others?
The business enterprise has two —and only
two—basic functions: marketing and
innovation.
Marketing and innovation produce results; all
the rest are costs…
-- Peter Drucker
Innovation without Marketing…
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Radio (1900-20)
Television (1930s)
AT&T Picturephone
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Wrong “App” targeted
Missing business model
Ahead of time (1960)
Technology is ubiquitous
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Examples of traditional “high-tech” industries:
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Computers and information technology
Biotechnology
Telecommunications
Internet
Examples of some industries where technological
innovation is creating radical changes:
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Agriculture
Waste Management (GM organisms)
Automotive
Consumer Products (GMF, irradiated chicken)
A Supply Chain Perspective on
Technology
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Often, technological innovations occur at
upstream (i.e., supplier) levels in the supply
chain…
…affecting the manufacturing process or
the inner workings of a product, but…
…end-user behavior may not be
significantly affected
Examples: cars, food, computing,
medication, hair styling, Internet, phone
The Where of Technology
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Process technology
Product technology
Definition of Technology:
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Technology is people using knowledge, tools,
and systems to control processes and the
environment.
Definition of High-Technology:
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No single preferred method for identifying
high technology industries.
High technology industries have a great
dependence on science and technology
innovation that leads to new or improved
products and services.
Definitions of Technology: Government
Perspective
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Classify industries based on objective,
measurable indicators:
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the number of technical employees
$ spent on R&D
# of patents filed in industry
Why is it so difficult to succeed in
High-Tech settings?
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Complexity of Context
(Hyper)competition
Dynamic/Fickle/Ultra-demanding consumers
Incomplete Information/Partial Knowledge
Timing/Synchronization problems
Organization/Culture problems
Money problems