1. INNOVATION & TECHNOLOGY MANAGEMENT
Chapter 7 - Learning from markets

2. How do Technology & Markets affect commercialisation?
Marketing Mix (Four Ps)
Product
Price
Place
Promotion
Technological maturity
Market maturity
Strategic Marketing – wheter or not to enter a new market and then establishing.
Tactical marketing – differentiation of existing products and services

4. Figure 7.1 Technological and market maturity determine the marketing process
©2005 Joe Tidd, John Bessant and Keith Pavitt

5. Differentiation Old technology and old market
Customer needs, product improvement
Profit associated with
High relative quality
Good value
Product differentiation/Brand

6. Figure 7.3 Relationship between innovation and market performance
©2005 Joe Tidd, John Bessant and Keith Pavitt

7. QFD – Quality Function Deployment
Customer requirements → measurable variables → development needs
Articulate needs -
Inarticulate needs – basic, performance measures, features
Communication between departments
Identifies opportunities

8. Figure 7.4 Quality function deployment matrix
©2005 Joe Tidd, John Bessant and Keith Pavitt

10. Architectural Old technologies to new markets
Market leaders make most profit
New market segments
Identify similar customers
Create for unmet needs
Segmenting Consumer Markets
Behavioural science
Segmenting Business Markets
Informed purchasing decisions

11. Segmenting customers Utilitarian theories – rational buyers
Behavioural theories – attitudes
Depends on the product
rare/often
cost and risk
level of understandability
Psychography

12. Segmenting business More rational?
Buying process – customer, user, gatekeepers, influencers
Three stage process
Functionality of technology
Behavioural segmentation
Combine to find potential customers

13. Technological New technologies to old markets
Identify new applications
Technology/product – why replace?
Informed customer behaviour (High tech)
Factors affecting Buyers’ behaviour
Differences in technolgy
Rate of change
Relationships to suppliers (for organisations)

14. Special case – IPR Patents – usually 20 years protection Copyright
Design rights
Leads to licensing...
Cost and risk

15. Complex Co-evolvement of markets and technology
Interacting components
Educate users
Long-term commitment
Many lag years
Components/bundled systems
Range of applications and number of users
Lead users – early recognition, expect benefits, own innovators
Performance risk and psychological risk

16. Diffusion of innovation
Relative advantage
Compatibility
Complexity
Trialability
Observability
Demand side/Supply side models

17. Figure 7.7 Typical diffusion curve for a new product
©2005 Joe Tidd, John Bessant and Keith Pavitt