Principlesofmarketing.com

1. Principlesofmarketing.com Chapter Seven Marketing High Technology

2. High Technology • “Sophisticated knowledge associated with some field of endeavor” • Thus, the computer industry is not all ‘hi-tech’ • Nor is the coal industry all ‘lo-tech’ • However, almost all industries have some aspect of them which is ‘hi-tech’ • This chapter is devoted to those aspects of industries that are ‘hi-tech’ or require sophisticated knowledge to understand and manage

3. Revisiting ‘market-driven’ versus ‘sales-driven’ and ‘technology-driven’ • Market-driven management requires that the firm constantly gather market intelligence and apply it to improve the company’s ability to meet customer needs • Technology-driven is the philosophy that if the firm strives to build the ‘highest tech’ products around, then success will follow • (Production or technology driven emphasis - ‘build a better mousetrap and the world will beat a path to your door’) – what benefits are people seeking in a mousetrap?

4. Characteristics of sales- driven organizations The top executive for marketing has the title: Vice-President of Sales and Marketing The marketing department has no marketing research personnel assigned to it Sales personnel have little or no input into what products are developed Sales personnel are paid primarily on a commission structure with little incentive to develop long-term customer relationships

5. Characteristics of Technology-driven organizations •   Marketing Department has little or no input regarding what products are developed • The only programs for marketing research are visits to present customers by R&D personnel and field reports filed by salespeople resulting in context specific information only •   No sophisticated technologies are used to uncover present and potential customer needs •   Marketing’s primary role is seen as either ‘sell what we make’ or ‘find someone to buy what we make’

6. Characteristics of Market-driven organizations • Marketing is a partner with other functions in uncovering and serving customer needs • Sophisticated marketing research programs operate on a continuous basis targeted at understanding customer needs better and monitoring the competitive environment • Marketing’s primary role is seen as gathering up-to-date, valuable market intelligence

7. Marketing concept (also known as ‘Customer as Monarch’) • Meet customer needs and provide customer satisfaction above all things • Meet organizational goals through serving customers • Coordinate marketing activities • Monitor and perform better than competing organizations

8. How to identify ‘benefits sought’ • Use creativity techniques and ask yourself: • How could things be better in this product or service area? • In a fantasy world, what would I do to improve the satisfaction customers gain by being associated with my organization? • Use these ideas to form ways to improve

9. Quality Function Deployment • This is a method used to translate benefits into features • For example, the benefit of feeling a car is ‘safe and solid’ is partially a function of how the door sounds when you close it. A solid ‘clunk’ gives most people a feeling of quality and security whereas a tinny, ‘clink’ gives you more a feeling of low-quality, shoddy workmanship. • Try it with the doors on your car! • Be sure to visit the website indicated in your book and read the article, okay?

10. Exercise in understand market-driven, sales-driven, and technology-driven Most of you are presently working – therefore, identify characteristics of your workplace (or the organization for which you presently work) that are representative of each of the three orientations we talked about today: market-driven, sales-driven, and technology-driven.

11. Some final comments • All individual work will be handed back next week (I appreciate your patience) • Informal mid-term evaluation will be this week