Marketing and IP: An Introductory Perspective

1. Marketing and IP: An Introductory Perspective By Abraham Koshy Professor of Marketing Indian Institute of Management, Ahmedabad @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

2. Compulsions of Operating Environment • Shift in Competitive Advantage from access to and ownership of physical resources to possession of intangible resources • Intense competition for knowledge and knowledge based assets • Shorter market windows • Time as competitive weapon @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

3. Implication... Knowledge: Only those who have it, who can generate it and who can utilize it will succeed in future @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

4. Purpose of the session • To provide a perspective on how Marketingcan help in utilizing IP generated by R&D organizations • To provide a perspective on how BRANDING can help in adding value of IP @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

5. Questionable Assumptions... • “Brands” are all about emotional cues; a bit of irrationality! • Brands are created by high decibel advertising and publicity… some divine creative binge!! • Brands are relevant only for low involvement, “feel” products • Marketing and brand building is best left to marketing professionals; rest of the organization should do their job of producing products and services! @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

6. What is Marketing? • A set of activities to develop enduring relationship with organization’s chosen setof customersthroughvalue addedofferings (products/ services) @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

7. Elements of Marketing Decision Process... • A set of decisions • A set of analyses for decisions • A set of organizational processesto arrive at those decisions @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

8. Marketing decisions... • Identifying and choosing market opportunities to add value to customers • Deciding target clients/ customers for whom the offer will be worthwhile • Designing the offer and • Delivering the offer @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

9. Analysis for Marketing Decisions • Understanding key aspects of the operating environment • Understandingcustomers- their needs and requirements, their criteria for choice, their buying process, and their satisfaction parameters • Understanding competition • Understanding capabilities and constraints of your company/organization @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

10. Process of arriving at Decisions • Data based decisions • Inter-functional coordination • Collective responsibility to serve chosen customers @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

11. Primary requirement for Marketing • Mind set!! From obsession with product and technology to obsession with customer requirements Transition from product-led to promise-led business model... @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

12. Difficulty in achieving this …. Scientists are like artists…their joy is in the act of creation….. And most artists died in poverty!!! @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

13. Commercializing IP Success Parameters • Successful innovators have much better understanding of user needs • They pay more attention to marketing and publicity • They perform their development work more efficiently than failed ones, not necessarily more quickly @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

14. Commercializing IP Success Parameters • They use outside technology and scientific advice, not necessarily in general, but in specific areas targeted • Those who are responsible for projects are usually more senior, with grater authority that their failed counterparts @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

15. Type of Successfully commercialized IP • An improved solution for a known need (low cost spectrum analyzer) • New solution to a known need ( continuous frequency counters) • A new solution to an anticipated need (optical signal measurement) • An evolving solution to an uncertain need (Voice mail devices) @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

16. Nature of Marketing Tasks • Alignment with current market • Market creation Risk and uncertainty increases from first to the last type... @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

17. Key Messages…. • Know thy MARKET…. Customers, competitors and your own objectives, capabilities and constraints “Research labs are graveyards of ideas… not because there are no good ideas there, but good ideas are dying all the time there…” @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

18. What is a “market”? • Key Benefits that customers want • Type of Customers for whom those benefits are salient • Technology or means by which those benefits can be delivered @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

19. Hence…. • Focus on the benefits of chosen customers • Technology is a means of satisfying those benefits of your chosen customers @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

20. Action implications... • Identify who should be your target customers • Specify as to what benefits your invention or innovation will provide. Are these benefits superior to what is currently available? • Specify as to how your innovation delivers those benefits in a superior way compared to competing offers/ existing methods @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

21. Action implications... • Specify, based on your understanding of customers, how your innovation or invention should be delivered …”packaging” your offer - design, technical specifications, drawings, evidences, collaborative support that can be provided, developmental support that can be given, terms of licensing, etc.. • Communicate to your offer to target customers @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

22. Action implications... • Develop organizational arrangements to service your customers • Follow up, obtain feed back, incorporate them to improve These contribute to building your BRAND @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

23. Therefore, what is a Brand? A Brand is a PROMISE that is executed through physical offerings that customers value @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

24. Components of a Brand... • A set of associations that consumers hold • Value perceptions of those associations • Images that are evoked in the minds of consumers • Reputation/respect with which consumers view • Preference and liking that consumers exhibit resulting in repeat purchase and/or loyalty @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

25. Meaning of Brands…. Brands are built over a period of time… Long term persistent effort and hence cumulative effect of these actions @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

26. Building Brands .. Basic questions • What are the intangible, verifiable, measurable characteristics of your product/ service/ or components that carry this brand name? • What benefits to the customers or solutions result from the brand’s features? @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

27. Building Brands .. Basic questions • What psychological or emotional benefits do customers receive by using this brand’s product/ offers? How does customers feel? • What is the essential nature and character of the brand? @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

28. Key to Branding by an R&D Organization • “Intel Inside” story • Tea story @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

29. Implication... • Quality of your R&D • “Branding” your Organization • Use of Brand Name, Trade mark, symbols.. Understanding their role • Communicating to relevant target audience @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

30. A final word... • Marketing is not hype… it is the process of going to the basics of customers’ needs • Future is for those who care about customers • And marketing is a mind set and not a set of techniques!! @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015

31. Thank you very much May all those who care about customers win @Abraham Koshy, Professor of Marketing, Indian Institute of Managemenet, Ahmedabad 380 015