Brief Review Why would anyone claim that a customer who does not pay has economic value? Name two innovations of pricing in fluid e- markets?  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 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 high- technology firms?

High Tech Marketing Fundamentals: Process and Product

Complexity of Technology Phaedrus  What does the story teach technology marketers? Unintended Consequences (when things bite back)  South American Fire Ant Technological Paradoxes  Freedom-Enslavement  Control-Chaos 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… Radio ( ) Television (1930s) AT&T Picturephone Wrong “App” targeted Missing business model Ahead of time (1960)

Technology is ubiquitous Examples of traditional “high-tech” industries:  Computers and information technology  Biotechnology  Telecommunications  Internet Examples of some industries where technological innovation is creating radical changes:  Agriculture Agriculture  Waste Management (GM organisms)  Automotive  Consumer Products (GMF, irradiated chicken)

A Supply Chain Perspective on Technology 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 Process technology Product technology

Definition of Technology:  Technology is people using knowledge, tools, and systems to control processes and the environment.

Definition of High-Technology: 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 Classify industries based on objective, measurable indicators:  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? Complexity of Context (Hyper)competition Dynamic/Fickle/Ultra-demanding consumers Incomplete Information/Partial Knowledge Timing/Synchronization problems Organization/Culture problems Money problems