Marketing of High-Technology Products and Innovations

by Mohr, Jakki J.; Sengupta, Sanjit; Slater, Stanley

• ISBN13: 9780131411685
• ISBN10: 0131411683
• Edition: 2nd
• Format: Hardcover
• Copyright: 2010-01-01
• Publisher: Prentice Hall

Summary

For upper-level undergraduate and graduate courses in High Tech Marketing and Innovation. This thoroughly updated text presents a balance between theoretical discussions and practical examples and provides a framework for making marketing decisions in a high-tech environment. Ideal for undergraduate/graduate elective courses in Marketing of High-Tech Products, as well as 'technology centric' courses in Marketing Management, Business-to-Business Marketing and New Products.

Table of Contents

Preface	xi
Acknowledgments	xvii
About the Authors	xix
Introduction to High Technology	1	(38)
Defining High Tech	3	(14)
Government Definitions of High Technology	4	(2)
Defining High Tech in Terms of Common Characteristics	6	(11)
A Supply Chain Perspective on Technology	17	(1)
A Continuum of Innovations	18	(9)
Radical/Breakthrough Innovations	18	(4)
Incremental Innovations	22	(3)
Implications of Different Types of Innovations: A Contingency Model for High-Tech Marketing	25	(2)
Does Marketing Need to Be Different for High-Technology Products and Innovations?	27	(5)
Framework for Making High-Technology Marketing Decisions	28	(4)
Job Opportunities in High Tech	32	(1)
Summary	33	(4)
Appendix A: Outline for a Marketing Plan	37	(2)
Strategy and Corporate Culture in High-Tech Firms	39	(43)
Strategic Market Planning in High-Tech Companies	42	(4)
Planning at Medtronic	44	(2)
Strategy in the High-Tech Firm	46	(5)
Key Strategy Decisions	46	(3)
Strategy Innovation	49	(2)
Competitive Advantage---The Objective of Strategy	51	(6)
Resources and Competencies	51	(2)
Tests of Competitive Advantage for Superiority and Sustainability	53	(3)
Approach to Developing Resources and Competencies	56	(1)
Culture and Climate in Innovative Companies	57	(13)
Cultural Obstacles to Innovativeness	58	(1)
Cultural Facilitators of Innovation	59	(10)
Applying Lessons of Innovativeness on the Internet	69	(1)
Challenges for Small Companies	70	(6)
Funding Concerns	71	(3)
Other Resources	74	(1)
Navigating a Complex Environment	75	(1)
Summary	76	(6)
Relationship Marketing: Partnerships and Alliances	82	(26)
Partnerships and Alliances	84	(12)
Types of Partnerships	84	(2)
Reasons for Partnering	86	(5)
Risks Involved in Partnering	91	(1)
Factors Contributing to Partnership Success	92	(4)
Customer Relationships	96	(6)
Acquisition Strategy	97	(3)
Customer Relationship and Retention Strategies	100	(2)
Summary	102	(2)
Appendix A: Learning from Partners in Collaborative Relationships	104	(4)
Market Orientation and R&D-Marketing Interaction in High-Technology Firms	108	(23)
What It Means to Be Market Oriented	110	(7)
Becoming Market Oriented	112	(2)
Barriers to Being Market Oriented	114	(1)
The Hidden Downside of a Market Orientation	115	(2)
R&D--Marketing Interaction	117	(10)
Nature of R&D--Marketing Interaction: Breakthrough versus Incremental Innovations	120	(1)
Barriers to R&D--Marketing Collaboration	120	(1)
Achieving R&D--Marketing Integration	121	(6)
Summary	127	(4)
Marketing Research in High-Tech Markets	131	(37)
Gathering Information: High-Tech Marketing Research Tools	134	(19)
Concept Testing	135	(1)
Conjoint Analysis	136	(1)
Customer Visit Programs	136	(2)
Empathic Design	138	(3)
Lead Users	141	(6)
Quality Function Deployment	147	(3)
Prototype Testing	150	(1)
Beta Version Testing	151	(2)
Gathering Competitive Intelligence	153	(3)
Forecasting Customer Demand	156	(4)
Forecasting Methods	157	(1)
Other Considerations in Forecasting	158	(2)
Summary	160	(4)
Technical Appendix: What Is Conjoint (Tradeoff) Analysis?	164	(4)
Understanding High-Tech Customers	168	(32)
Customer Purchase Decisions	172	(13)
Process of Customer Purchase Decisions	172	(4)
Categories of Adopters	176	(5)
Crossing the Chasm	181	(4)
The Choice of Customer: Segmenting Markets and Selecting Target Markets	185	(9)
Customer Strategies to Avoid Obsolescence	194	(3)
Customer Migration Decisions	194	(1)
Marketers' Migration Options	195	(2)
Summary	197	(3)
Product Development and Management Issues in High-Tech Markets	200	(52)
Technology Development	202	(5)
The ``What to Sell'' Decision	207	(5)
Possible Options	207	(1)
What Decision Makes Sense?	208	(3)
Technology Transfer Considerations	211	(1)
Product Architecture: Modularity, Platforms, and Derivatives	212	(4)
Modularity	212	(1)
Platforms and Derivatives	213	(3)
New Product Development Teams	216	(2)
A Cautionary Note on Issues Related to ``Killing'' New-Product Development	218	(1)
Developing Services as Part of the High-Technology Product Strategy	219	(4)
Unique Characteristics of Services: Implications for High-Tech Marketing	222	(1)
Protection of Intellectual Property	223	(16)
Patents	225	(8)
Copyrights	233	(1)
Trademarks	233	(1)
Trade Secrets	234	(2)
Patents or Trade Secrets?	236	(2)
Managing Intellectual Property	238	(1)
Summary	239	(4)
Appendix 7A: Steps in Obtaining International Patent Protection	243	(3)
Appendix 7B: Proprietary Information Programs	246	(6)
Distribution Channels and Supply Chain Management in High-Tech Markets	252	(35)
Issues in Distribution Channel Design and Management	254	(5)
Channel Considerations in High-Tech Markets	259	(7)
Blurring of Distinctions between Members in the Supply Chain	259	(1)
Need for Indirect Channels to Provide Value for Manufacturers	260	(1)
Evolution of High-Tech Channels	261	(1)
Understanding Gray Markets	262	(3)
Black Markets, Piracy, and Restricted Exports	265	(1)
Adding New Channels: The Internet	266	(10)
Generating Incremental Revenue or Cannibalizing Existing Sales	267	(3)
Avoiding Conflict	270	(1)
Managing Conflict	271	(1)
Steps in Managing Hybrid Channels	272	(4)
Expanding the View: From Distribution Channels to Supply Chains	276	(6)
Effective Supply Chain Management	278	(2)
Trends in Supply Chain Management	280	(2)
Summary	282	(5)
Pricing Considerations in High-Tech Markets	287	(26)
The High-Tech Pricing Environment	288	(1)
The Three Cs of Pricing	289	(4)
Costs	290	(1)
Competition	290	(1)
Customers	290	(3)
Customer-Oriented Pricing	293	(6)
Steps in Customer-Oriented Pricing	293	(2)
Implications of Customer-Oriented Pricing	295	(4)
Pricing of After-Sales Service	299	(1)
The Technology Paradox	300	(4)
Solutions to the Technology (Pricing) Paradox	301	(1)
From Free to Fee	302	(1)
Antitrust Considerations in Free Pricing	303	(1)
The Effect of the Internet on Pricing Decisions	304	(1)
Additional Pricing Considerations	305	(4)
Outright Sale of Know-How versus Licensing Agreements	305	(1)
Licensing Restrictions	305	(1)
Pay-per-Use versus Subscription Pricing	306	(1)
Price Bundling	306	(1)
Leasing	307	(2)
Summary	309	(4)
Advertising and Promotion in High-Tech Markets: Tools to Build and Maintain Customer Relationships	313	(49)
Advertising and Promotion Mix: An Overview	315	(11)
Brief Overview of A&P Tools	316	(4)
Internet Advertising and Promotion	320	(6)
The Importance of Branding in High-Tech Markets	326	(11)
Developing a Strong Brand	329	(3)
Ingredient Branding	332	(2)
Branding for Small Business	334	(3)
New-Product Preannouncements	337	(4)
Advantages and Objectives of Preannouncements	337	(1)
Disadvantages of Preannouncements	338	(1)
Tactical Considerations in the Preannouncement Decision	339	(2)
The Role of Marketing Communications in Customer Relationships	341	(5)
Categories of Customers	341	(2)
Strategies for Customer Relationship Management	343	(2)
Customer Relationship Management Software	345	(1)
Summary	346	(4)
Appendix A: Search Engine Placement	350	(12)
E-Business, E-Commerce, and the Internet	362	(34)
Lessons from the Dotcom Boom and Bust	365	(7)
Capitalizing on the Unique Characteristics of the Online Environment	367	(1)
Business Models	368	(4)
Effective Website Design and Management	372	(3)
Web Site Design	372	(2)
Web Site Management	374	(1)
Consumer Behavior and the Internet	375	(3)
Peapod vs. WebVan	375	(1)
Inhibitors of Consumer Use of the Web	376	(1)
Facilitators of Consumer Use of the Web	377	(1)
E-Business and Organizational (Business) Behavior	378	(10)
Changing Distribution Channels	378	(3)
New Purchasing Approach: Utilization of B2B Electronic Marketplaces	381	(1)
Streamlined Supply Chain Management	382	(3)
Accelerated Research and Development	385	(1)
Enhanced Knowledge Management	386	(1)
Efficient Training and Education	386	(1)
Improved Customer Service Operations	386	(1)
Customization of Products	387	(1)
Delivery of Web Services	387	(1)
Effective Partner Relationship Management	388	(1)
Efficient Human Resource Management	388	(1)
Gathering of Marketing Research	388	(1)
Realizing the Internet's Full Potential	388	(3)
New Devices for Access	389	(1)
Diffusion of Broadband	389	(1)
Semantic Web	390	(1)
Overcoming Other Barriers	390	(1)
Summary	391	(5)
Realizing the Promise of Technology: Societal, Ethical, and Regulatory Considerations	396	(35)
The Paradoxes of Technology and Unintended Consequences	398	(8)
Technology Paradoxes	400	(5)
Example of Backlash Due to Fears Arising from Technology: Protests over Genetically Modified Foods	405	(1)
Ethical Controversies Surrounding Technological Advances	406	(6)
Framework to Address Ethical Controversies: Merck, Ivermectin, and River Blindness	407	(3)
Benefits of the Framework	410	(2)
Social Responsibility and Business Decisions	412	(7)
Social Responsibility and Innovation	416	(3)
The Role of the Government	419	(8)
Updating Antitrust Models	419	(2)
Examining Intellectual Property Models	421	(3)
Assisting with Access to Technology	424	(3)
Concluding Remarks: Realizing the Promise of Technology	427	(1)
Summary	427	(4)
Name Index	431	(6)
Subject Index	437

Excerpts

With this revised edition of theMarketing of High-Technology Products and Innovations,we invite you to consider the following ways in which the last three years have witnessed enormous changes in the technology arena: The economy has gone from one that characterized technology as a panacea, the driver of the economic engine, to a major source of the economic downturn in 2000-2002. Organizations and enterprise customers have tightened their enthusiasm for tech spending, monitoring more carefully the returns from investments in technology. In the area of consumer electronics and technology, the pace of innovation that offers a multiplicity of new products for customers continues unabated. In the Internet arena, businesses have more widely adopted electronic business technologies, designed to streamline business processes for enhanced effectiveness and efficiency. Companies and retailers are moving to harmonized distribution channels, offering customers bricks-and-clicks-models for a seamless shopping experience via a multitude of channel choices. Consumers continue to use the Internet for a wide array of activities, including searching for information, shopping, and joining virtual communities. The wider adoption of broadband technologies has allowed the sharing of more data, file-swapping of music, downloading of videos. Other bandwidth-intensive activities have also brought about a concomitant need to examine intellectual property rules, digital piracy, and legitimate use.These are but a few of the many changes the technology arena has witnessed during the three years since the first edition ofMarketing of High-Technology Products and Innovationswas released. Our intent with this revised edition is to continue the development and synthesis of decision frameworks and strategies that reflect best practices in the area of high-technology marketing. This edition offers a cutting-edge treatment of research and practice related to the marketing of technology and innovations, supported with a plethora of examples and applications.Thriving in the high-tech marketplace requires mastery of a diverse set of skills and capabilities. From adroitly reading market trends; investing wisely in future technologies; leveraging the skills and capabilities of technical and marketing personnel in a dynamic, interactive fashion; understanding customers intimately; offering a compelling value proposition; developing astute marketing campaigns; pricing with an eye to customer value; and harmonizing distribution channels and supply chains, high-tech marketing managers must be versatile, yet focused, flexible yet determined, tenacious yet open-minded.In light of this complicated and challenging environment, we offer a systematic, thorough overview of the issues high-tech marketers must address. More specifically, based on feedback and reviews of the first edition, this second edition: Offers more in-depth treatment to the topical coverage in the chapters. Brings more examples to the book. Streamlines the presentation of the material. Updates the material to reflect new developments both in the area of high technology marketing research and practice (for example, in the area of micro payments and subscription pricing), as well as new technological developments. Adds coverage of under-developed areas in the first edition, such as the marketing of high-technology services.Importantly, the addition of Sanjit Sengupta of San Francisco State University and Stan Slater of Colorado State University as new co-authors on this edition brings new expertise and perspectives. Their biographies appear at the conclusion of this preface; in brief, Professor Sengupta brings experience in e-business and executive education in high-tech marketing, and Professor Slater brings an extensive background in business strategy and market or