1. Definitions – High Technology What is “High Tech?” –Markets, in which the key or core benefits provided by the offering are –produced by technology which is recently commercially used

2. Definitions – Marketing What is “Marketing?” –Marketing is the process that identifies markets, understands their “needs,” chooses target markets, creates the offering to fulfill the markets’ needs, and does this on a continuous basis –Marketing, in short, is the creation and management of relationships with “customers”

3. Implications of Definitions High Technology: –High Tech markets and industries are often in the earlier stages of a “life cycle” –Companies can differentiate on core technology –Majority of segments will be in “uneducated” mode –Lots of competitive chaos; standards will usually be an issue

4. Implications of Definitions Marketing –Customer needs and perceived benefits drive the business => technology must provide benefits –Competition forces constant effort to innovate –Value Chain is a reasonable framework for guidance

5. Customer/market uncertainty Uncertainty in technology Uncertainty of competition Key Conditions of High Technology Industries

6. Marketing Concept A firm will tend to perform well when it: –understands the needs and wants of targeted customers and prospective customers; –delivers superior value by meeting those needs and wants through coordinated activities –does this while working toward organizational goals

7. Implications of Marketing Concept Need to target segments Need to understand motivations and behavior of customers and prospects Need to create an integrated package of products, services, communications, channels, and prices Need to manage so that meeting customer needs drives profits

8. Elements of Market Orientation Scanning and learning –e.g. market research, evaluation of program results, satisfaction measurement Information dissemination –e.g. intranet, team meetings, cross-functional team design, informal networks Enabling / reinforcing structure –e.g. values, policies, reward system

9. More Market Orientation Elements Use of information –e.g. strategic thinking, marketing planning, implementation planning, planned adaptation Execution effectiveness –e.g. programs and tactics done well, activities coordinated, end results pursued and obtained, performance data collected and used

10. Porter’s Value Chain Support Activities Direct Activities Offering Target Customers Product Service Image Comm. Channl Utils. Price

11. INBOUND LOGISTIC OPERATIONS OUTBOUND LOGISTICS SALES & MARKETING SERVICE INFRASTRUCTURE HUMAN RESOURCES & DEVELOPMENT TECHNOLOGY & DEVELOPMENT PROCUREMENT SUPPORT ACTIVITIES DIRECT ACTIVITIES PORTER’S VALUE CHAIN

12. Value Concepts Value = sum of benefits minus sum of costs –Implication: value can be increased by raising benefits or reducing costs Value is Perceived Value in the eyes of prospects and customers –Implication: vendor’s view of value may be different than prospects’ / customers’ view –A Reality: perceptions may be malleable, but ultimately rely on experienced performance

13. Implications of Value Chain + Definitions Segments exist Value comes from more than product Markets change concurrently with technology change => uncertainty Marketing must be involved in product design and strategy Best technology does not always “win,” but Technology can be the reason you lose

14. Value Network Customer Segment Vendor Partner

16. Technology Adoption Life Cycle # New Users Time technophiles visionaries pragmatists conservatives laggards

17. Segments in Adoption of New Technologies CHASM VISIONARIES PRAGMATISTS OF DIFFERENT TYPES; SOME CONSERVATIVES? # OF NEW ADOPTERS TIME FIRST PRAGMATISTS TECHNOPHILES