Successful Marketing Strategies for High-Tech Firms

324 Pages·2004·2.05 MB·English

by  Eric Viardot

Successful Marketing Strategy
for High-Tech Firms
Third Edition
ForalistingofrecenttitlesintheArtechHouseTechnologyManagementand
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Successful Marketing Strategy
for High-Tech Firms
Third Edition
Eric Viardot
Artech House
Boston • London
www.artechhouse.com
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Viardot,Eric
Successfulmarketingstratagyforhigh-techfirms.—3rded.
—(ArtechHousetechnologymanagementlibrary)
1.Hightechnology—Marketing 2.Technologicalinnovations—Marketing
I.Title
620.00688
ISBN1580537006
CoverdesignbyGaryRagaglia
©2004ARTECHHOUSE,INC.
685CantonStreet
Norwood,MA02062
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InternationalStandardBookNumber:1-58053-700-6
10987654321
Contents
Introduction . . . . . . . . . . . . . xi
Acknowledgments . . . . . . . . . . . xv
1 The Meaning of Marketing for High-Tech Firms . . 1
1.1 Whatismarketing? 1
1.2 Whatisahigh-techproduct? 6
1.2.1 Theincorporationofsophisticatedtechnology 7
1.2.2 Ashortlifecycle 10
1.2.3 Innovation:evolutionandrevolution 12
1.2.4 Highinvestmentsinresearchanddevelopment 16
1.2.5 Marketspecificity 20
1.2.6 Productdiversityinhightechnology 20
1.2.7 Governmentinvolvementinthehigh-techsector 21
1.3 Whatishigh-techmarketing? 23
1.4 Summary 26
References 27
2 Corporate and Marketing Strategies in the High-Tech
Industry . . . . . . . . . . . . . . 31
2.1 Thecompany’smissionandvisioninthehigh-techindustry 32
2.2 Thestrategicdimensionsoftechnology 34
2.2.1 Thetechnologies’lifecycles 35
2.2.2 Theintroductionphaseoftechnology:whyarecompaniesusually
unabletoanticipatethemarketimpactoftechnologies? 38
2.2.3 Thegrowthphaseoftechnology:howdoyouestablisha
technologicalstandard? 41
2.3 Technologyasastrategicresourcecompetence 48
2.3.1 Thephysicalandvirtualvaluechainmodel 50
v
vi Contents
2.3.2 Thetechnologyportfolio 53
2.3.3 Managingtechnologyasacorecompetence 55
2.4 Developingtechnologycompetencethroughexternalgrowth 58
2.4.1 Relabeling 58
2.4.2 Licensing 59
2.4.3 Externalresearchcontracts 59
2.4.4 Hiringfromtheindustry 60
2.4.5 Alliances 60
2.4.6 Jointventures 62
2.4.7 Acquisition 63
2.5 Marketingstrategyandmarketingplanforhigh-techproducts 64
2.5.1 Situationanalysisforhigh-techfirms 65
2.5.2 Targetingmarket(s)anddesigningthemarketingmix 66
2.5.3 Actionprograms 66
2.5.4 Monitoringprocedures 67
2.6 Summary 68
References 69
3 Knowing Customers and Markets . . . . . . 73
3.1 Determiningthecustomer’sbuyingbehavior 74
3.1.1 Purchasingfactorsforhigh-techconsumerproducts 74
3.1.2 Purchasingfactorsforhigh-techproductsinbusiness-to-businessac-
tivities 79
3.1.3 Specificpurchasingcriteriaforhigh-techproducts 85
3.2 Estimatingdemand 93
3.2.1 Concepttestsandprototypetests 94
3.2.2 Theopinionsofexperts 96
3.2.3 Samplinggroupsandtestmarkets 96
3.2.4 Usingaquantitativeanalysis 97
3.2.5 On-linemarketresearch 99
3.3 Managingtherelationshipwithcustomers 101
3.4 Summary 102
References 103
4 Understanding Competitors. . . . . . . . 107
4.1 Identifyingcompetitors 108
4.1.1 Identificationbymarketandbyproduct 108
4.1.2 Identificationofthecompetitiveforcesattheindustrylevel 111
4.2 Analyzingacompetitor’sstrategy 117
4.2.1 Strategicgroupingsofcompanies 117
4.2.2 Competitiveanalysis 118
Contents vii
4.3 Findinginformationaboutcompetitors 121
4.3.1 Externalsources 121
4.3.2 Internalsources 126
4.4 Organizingcompetitiveanalysis 127
4.4.1 Whoperformsthecompetitiveanalysis? 127
4.4.2 Performingthecompetitiveanalysis 128
4.5 Summary 129
References 129
5 Selecting Markets . . . . . . . . . . . 131
5.1 Twomarketsegmentationmethodsforhigh-techproducts
andservices 133
5.1.1 Innovation-drivenmarketsegmentation:thecustomer-
groupingapproach 134
5.1.2 Market-drivenmarketsegmentation:themarket-breakdown
approach 138
5.2 Evaluatingandtargetingsegments 142
5.3 Positioningofthesolution 145
5.4 Segmentationandtime 150
5.5 Summary 152
References 153
6 Product Strategy . . . . . . . . . . . 155
6.1 Managingthethreeproductdimensions 156
6.1.1 Managingaproduct’sessence 156
6.1.2 Managingaproduct’sphysicalattributes 157
6.1.3 Managingaproduct’sshell 170
6.2 Managingaproductrange 173
6.3 Managingahigh-techproductaccordingtoitsproductlife
cycle 176
6.3.1 Introductionstage 178
6.3.2 Salesgrowthstage 181
6.3.3 Maturityanddeclinestages 183
6.4 Summary 184
References 185
7 Distributing and Selling High-Tech Products . . 189
7.1 Selectingdistributionchannelsforhigh-techproducts 190
7.1.1 Channel-designdecisionsaccordingtothesizeofthemarket 191
7.1.2 Channel-designdecisionsaccordingtothecostofthe
distributionnetwork 193
viii Contents
7.1.3 Channel-designdecisionsaccordingtotheproduct
characteristics 195
7.1.4 Channel-designdecisionsaccordingtothedegreeofcontrol
overadistributionnetwork 196
7.1.5 Channel-designdecisionsaccordingtotheflexibilityofthe
distributionnetwork 197
7.2 Managingdistributorsofhigh-techproducts 198
7.3 Sellinghigh-techproducts 201
7.3.1 Prospecting:theimportanceofqualificationandprobing 203
7.3.2 Ateamworkapproach 206
7.3.3 Customerfollow-up 208
7.3.4 Supportactivities 209
7.3.5 After-salesmarket 211
7.4 Summary 213
References 214
8 Communication Strategy for High-Tech Products 217
8.1 Communicationforhigh-techproducts 218
8.2 Settingacommunicationbudget 219
8.3 Allocatingtheadvertisingbudget 221
8.3.1 Sales 221
8.3.2 Trademagazines 222
8.3.3 Tradeshows 223
8.3.4 Seminarsandpresentations 224
8.3.5 Salescommunicationmaterial 225
8.3.6 Directmarketing,on-linemarketing,andSMSmarketing 225
8.3.7 Packaging 227
8.3.8 Magazinesandnewspapers 227
8.3.9 Television 228
8.3.10 Radio 228
8.3.11 Outdooradvertising 229
8.3.12 Communicationmixes 229
8.4 Managingpromotionaltools 231
8.5 Preannouncementinthecommunicationplanforhigh-tech
products 232
8.6 Corporateadvertising,publicrelations,andviralmarketing 233
8.6.1 Corporateadvertising 234
8.6.2 Publicrelations 234
8.6.3 Word-of-mouthandviralmarketing 235
8.7 Summary 236
References 237
9 Pricing High-Tech Products . . . . . . . . 239