High-Tech marketing


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High-Tech marketing

  1. 1. Hightech Marketing Strategy http://intempus.tistory.com
  2. 2. 주요 참고문헌- Adrian Ryans, Roger More, Donald Barclay and Terry Deutscher, Winning Market Leadership : Strategic Market Planning for Technology-DrivenBusinesses, Wiley (Dec 15, 1999)- Geoffrey A. Moore, 캐즘 마케팅(Crossing the Chasm), 세종서적, 2002 (초판번역: 벤처마케팅(1999))- Geoffrey A. Moore, 토네이도 마케팅(Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets), 세종서적,2001- 이승주, 경영전략실천매뉴얼, 시그마컨설팅그룹, 1999자료물 출처: 파아란 영혼 http://intempus.tistory.com , yongsup.kim@yahoo.com본 자료는 위 참고문헌 및 기타 리포트에서 인용하여 제작하였음을 알려드립니다. 제작한 지 거의 10년이 다 된 자료물이나, 현재에도 하이테크마케팅은 충분한 의미를 가진다는 판단 아래 다시 업로드하여 유통합니다. 2 http://intempus.tistory.com
  3. 3. TABLE OF CONTENTSI. Process for Understanding MarketII. Understand Discontinuous InnovationIII. Technology Adoption Life CyclesIV. Understand Buyer BehaviorV. Understand Complete Market Chain http://intempus.tistory.com
  4. 4. I. Process for Understanding Market http://intempus.tistory.com
  5. 5. Planning Process Implement the Strategy Define the Business Arenas : Identify Attractive Opportunities : • Define the arena within which you will search for attractive • Segments the market opportunities • Evaluate market forces Understand the Profit Understand the Market Dynamic : Environment• Estimate market acceptance • Lay out market chain(s)• Develop price, cost, and • Understand buyer investment forecasts choice/rejected behavior Planning Process Complete the Winning Assess Resources and Strategy : Competencies :• Detail complete strategy • Identify resources and• Ensure strategic leverage for competencies market chain members • Determine fit Plan Critical Relationships: Make Tough Strategic Choices: Understand the Competitive • Review past strategy Challenge : • Identify key players • Identify strategic issues • Analyze current and potential • Plan relationships • Create option competitors • Organize relationship teams • Make Choices • Understand strategy drivers 5 http://intempus.tistory.com
  6. 6. Process for Understanding Market q Process for Analyzing Technology Adoption, Buyer Behavior, and Market Chains Identify Stage of Technology Adoption Life Cycle Technology Adoption Life Cycle Understand Characteristics of Target Adopter Group Understand “Whole Product” Needs Identify Decision-Making Unit Understand Buyer Behavior Understand Choice Criteria Understand Choice/Rejection Process Review Market Chain OptionsUnderstand Complete Market Chain Consider Market Chain Dynamics Analyze Buyer Behavior at All Key Levels in the Chain 6 http://intempus.tistory.com
  7. 7. II. Understand Discontinuous Innovation http://intempus.tistory.com
  8. 8. What is Innovation? What is Innovation? Source of Innovation • Innovation is the successful development and Unexpected commercialization of new products, services, or Occurrence business systems. New Incongruities Knowledge • In many industries, innovation is the primary basis for competitive advantage and the principal driving force of industry structural change. Innovation Changes in Process Perception Needs • Continuous Innovation • Dynamically Continuous Innovation • Discontinuous Innovation Industry Demographic and Market Changes Changes Source: P.Drucker, “The Discipline of Innovation,” Harvard Business Review, 1985 8 http://intempus.tistory.com
  9. 9. The Technology S-Curve The S-Curve Phenomenon Making The Transition To a New Technology Performance Performance Limit discontinuity Effort EffortSource : R.Foster, Innovation:The Attacker’s Advantage, 1996 9 http://intempus.tistory.com
  10. 10. The Attacker’s Advantage in Technology Development Performance of New Technology Technology Leap Attacker Cumulative Effort Defender Productivity of R&D Function Cumulative EffortSource : J.Kluge, “Managing Technological Discontinuity,” Innovation and Technology Management, 1989 10 http://intempus.tistory.com
  11. 11. Changing Leadership in the Semiconductor Industry 1955 1965 1975 1995 (Vacuum Tubes) (Transistors) (Integrated Circuits) (Submicrons) RCA Hughes TI Intel Sylvania Transitron Fairchild NEC General Electric Philco National Toshiba Raytheon Sylvania Intel Hitachi Westinghouse Texas Instruments Motorola Motorola Amperex GE Rockwell Samsung National Video RCA GI TI Rawland Wesinghouse RCA Fujitsu Eimac Motorola Philips Mitsubishi Lansdale Clevite AMD PhilipsSource : R.Foster, Innovation:The Attacker’s Advantage, 1996 11 http://intempus.tistory.com
  12. 12. III. The Technology Adoption Life Cycle http://intempus.tistory.com
  13. 13. Technology vs. Product Category Life Cycles* Boston Consulting Group portfolio management model 13 http://intempus.tistory.com
  14. 14. The Technology Adoption Life Cycle q Understanding this technology adoption life cycle, and where your products and services are positioned relative to this adoption life cycle, can give you some important insights into buyer behavior. Pragmatists : Conservatives : Stick with the herd! Hold on! Visionaries : Get ahead of the herd! Skeptics : No way! Techies : Try it! 2.5% 13.5% 34% 34% 16% Innovators Early Adopters Early Majority Late Majority Laggards TimeSource : Everett M. Rogers, Diffusion of Innovations, 1962 14 http://intempus.tistory.com
  15. 15. Innovators(Technology Enthusiast) q Gatekeeper to the Early Adopter. § They don’t need a complete solution. § But, Innovators want lots of information on the technology so they can understand how the technology works. In many cases, they will read leading scientific journals in the field and attend technical conferences. Innovators(Technology Enthusiast, Techies) Focus § Technology Key Characteristics § Very Knowledgeably about technology § Appreciate elegant technical solutions § Like to test new technology § Don’t need complete “solutions” Needs § Early access to emerging technologies § Access to all information on technology Role in adoption process § Confirm viability of technology (They are critical in legitimizing the product and convincing other potential users that the technology does in fact work) Challenges § Want unrestricted access to top technical people § Want no-profit pricing(preferably free) 15 http://intempus.tistory.com
  16. 16. Early Adopters(Visionaries) q Fund the development of the early market § Visionaries can imagine high-leverage applications of the technology and are willing to take substantial risks to gain the potential rewards. § If they can see lots of leverage from applying the technology, they are also willing to invest their resources to create a complete solution Early Adopters(Visionaries) Focus § Breakthrough that will create competitive advantage Key Characteristics § Can imagine high leverage applications § Willing to take risks § Willing to invest resources to create § Not price sensitive Needs § Lots of support § Want to move quickly Role in adoption process § Help commercialize the technology (They can demonstrate the business value of the technology) § Give visibility to technology Challenges § Want rapid time-to-market § Demand high degree of customization and support 16 http://intempus.tistory.com
  17. 17. Early Majority(Pragmatists) q Bulwark of the mainstream market § Looking for proven solutions that can give them a competitive advantage, § So They like to work with a market leader, or work with other suppliers that provide the required level of support and service. Early Majority(Pragmatists) Focus § Proven solution that can give lower costs and/on competitive advantage Key Characteristics § Comfortable with technology § Pragmatic rather than risk takers § Like to work with market leaders § Have a “wait and see attitude” § Don’t like surprises Needs § Complete, proven solution § Want credible reference accounts in their own industry Role in adoption process § Are entry point into huge, mainstream market (Pragmatists create the dynamics of high-tech market development.) Challenges § Insist on good references from trusted colleagues § Want to see the solution in production at the reference site 17 http://intempus.tistory.com
  18. 18. Late Majority(Conservatives) q Extend product life cycles § But they adopt new technology only under duress § They are driven to adopt the new technology in order to reduce costs and to remain competitive in their markets. § They need a complete solution and they prefer a simple, standardized, pre-assembled solution that just works. Late Majority(Conservatives) Focus § Remain competitive Key Characteristics § Less comfortable with technology § Resistant to change § More price sensitive § Risk averse Needs § Prefer simple solutions that are easy to install and operate § Want to buy the established standard Role in adoption process § Represent significant portion of the total market § Can be quite profitable Challenges § Need completely pre-assembled solutions § Would benefit from value-added services but do not want to pay for them 18 http://intempus.tistory.com
  19. 19. Laggards(Skeptics) q Retard the development of high-tech markets § In many cases, a Skeptics located in an influential position in a company can delay, or stop, the adoption of a new technology. § The Challenge in these situations is to find some way to work around the skeptic or to neutralize the skeptic, so that other, more innovative individuals within the organization can support the adoption of the new technology. Laggards(Skeptics) Focus § Avoid change Key Characteristics § Very skeptical of technology and business cases § Very risk averse Needs § Technology may need to be “Hidden” from them § Need to be convinced that all other solutions are weaker Role in adoption process § Obstructs change § You should usually try to avoid or neutralize them Challenges § Not a customer § Can be formidable opposition to early adoption 19 http://intempus.tistory.com
  20. 20. Identify Stage of Technology Adoption Life Cycle q Understanding the adoption process has some clear implications for you as you try to speed the adoption of an innovative new product or service. q The Adoption “Stairway” § Innovators(Technology Enthusiast) § Seed innovators with new product § Help innovators educate visionaries § Early Adopters(Visionaries) § Capture interest of visionaries § Make them satisfied customers § Serve as good references for pragmatists § Early Majority(Pragmatists) § Gain bulk of revenue by serving pragmatists ideally by becoming market leader and setting de facto standards § Late Majority(Conservatives) § Generate volumes and experience so product become reliable and cheap to meet demands of conservatives § Laggards(Skeptics) § Leave skeptics to their own devices 20 http://intempus.tistory.com
  21. 21. Discovering The Chasm q Visionaries don’t see enough of a head start, Pragmatists see no reason to start yet. Early Market Mainstream Market Pragmatists : Conservatives : Stick with the herd! Hold on! Visionaries : Get ahead of the herd! Skeptics : No way!Techies : Try it! The Chasm Innovators Early Adopters Early Majority Late Majority Laggards Time 21 http://intempus.tistory.com
  22. 22. Model Breaks Down at Key Transition q Pragmatists don’t trust visionaries as references Visionaries Vs. Pragmatists § Adventurous § Prudent § Early buy-in attitude § Wait-and-see § Think Big § Manage expectations § Go it alone relationships § Maintain § Spend big § Spend to budget § First strike capability § Staying power § Think Pragmatists are pedestrian § Think Visionaries are dangerous § Don’t need reference base § Reference base very important, not § Take greater interest in technology visionaries § Underemphasize infrastructure § Less interested in technology § Plan for disruption § Value infrastructure and support § Don’t plan to stay for long § Dislike disruption § Plan for long term career 22 http://intempus.tistory.com
  23. 23. Crossing the Chasm q A number of indicators warn of an emerging chasm Chasm Early Market Mainstream Market § Product vendor’s problem ü 80% of many solutions – 100% of none ü Pragmatists won’t buy 80% solutions § Most common vendor mistake: ü Committing to the most common enhancement requests ü Never finishing any one customer’s wish-list § Solution ü Focus on a single beachhead ü Accelerate formation of that segment’s whole product ü Pick a list and finish it! 23 http://intempus.tistory.com
  24. 24. Most Important Implication q Don’t let this happen to you § Not seeing the chasm creates a chasm crisis § Management is discredited § Equity is radically diluted § Key personnel become disillusioned § Drastic actions are taken – but don’t help § Typical success pattern is not achieved § Everyone loses 24 http://intempus.tistory.com
  25. 25. Crossing the Chasm q Time of despair, early market interest wanes, but mainstream not comfortable with product q Pragmatist departmental managers adopting before the herd § Head-pin segment adopts only if in severe pain § Responsible for a broken mission-critical business process § Must have complete solution to the business process problem § Will try anything that looks like it should work § Will track customer references within own niche carefully q Niche Marketing prevails § Direct sales opens up the niche § Indirect sales takes over the niche once adoption is under way § Healthy price margins and restricted competition are normal § Think whole product not product 25 http://intempus.tistory.com
  26. 26. After Crossing the Chasm - Market Development Model q Your company then must try to leverage this success in on segment to other related segments § Early Market : Deal-driven marketing prevails § Crossing the Chasm : Niche marketing prevails § Bowling Alley à Tornado à Main Street 26 http://intempus.tistory.com
  27. 27. Bowling Alley q Period of niche-based adoption in advance of the general marketplace; whole product for niche applications § First, managers in your company might try to identify other vertical markets with almost identical applications and move to penetrate them. § Second, they might look new, different, but related applications in the vertical market in which your company is already established. Seg 3 Seg 2 Seg 1 App 1 App 2 App 3 Seg 2 Seg 1 App 1 App 2 Seg 1 Whole Product Customer Reference App 1 Seg : Segment App : Application 27 http://intempus.tistory.com
  28. 28. Tornado q Period of mass market adoption; market place switches over to new paradigm § Once the company has begun to successfully implement the bowling pin strategy and penetrate the early majority or pragmatists, revenues grow very rapidly. § Pragmatist infrastructure managers adopting with the herd § Transition to the new infrastructure § Must have standards § Rely on market share § Mass marketing prevails Post-Tornado Market Shares § Streamlined one-size-fits-all whole product § Low-touch, high-volume distribution § Think product The Gorilla Chimp #1 Chimp #2 Monkeys 28 http://intempus.tistory.com
  29. 29. Gorilla Power q Gorilla set the de facto standards in a hypergrowth market q Basis of gorilla power § Proprietary open architecture § Proprietary means gorilla can control standards going gorward § Open means rest of the value chain becomes dependent on gorilla § High switching costs § Keeps customers and partners in § Keeps competitors out q Results in unique combination of three types of power § Supplier power (over customers) § Value chain power (over partners) § Market leadership power (over competitors) q Gorilla – Market leader in a tornado, Proprietary ‘architecture’ q Chimp – Market challenger in a tornado, Incompatible with the gorilla architecture q Monkey – Market follower in a tornado, May clone gorilla architecture 29 http://intempus.tistory.com
  30. 30. Main Street q Period of aftermarket development; goal is now to reach and flesh out the market potential q Installed base driving the after-market § Want better value, no disruption § Two paths: commodity vs. differentiation § Installed vendor has major competitive advantage § Customer relies on trial, not references q Mass customization prevails § Standard core for price-sensitive sales § Customizable surface for differentiated offers § High-touch, high-volume distribution direct to end users § Think end-user experience not product Commodity Niche Market Market Extensions <Market opportunity in Main Street> 30 http://intempus.tistory.com
  31. 31. The Comparison of Bowling Alley and Tornado q Bowling Alley vs. Tornado § Focus on economic buyer and end-user § Focus on infrastructure buyer; ignore economic buyer § Emphasize ROI as the compelling reason to buy § Ignore ROI; focus on timely infrastructure deployment § Differentiate “whole product” for a single application § Commoditize product for general purpose use § Partner with value-added distribution channel § Distribute via low cost, high volume channels to ensure customized solution delivery to ensure maximum market exposure § Use value-based pricing to maximize profit § Use competition based pricing to maximize margins market share § Avoid competition to gain niche market share § Attack competition to gain mass market share § Position products within vertical market § Position products horizontally as global segments infrastructure 31 http://intempus.tistory.com
  32. 32. The Comparison of Tornado and Main Street q Tornado vs. Main Street • Sell to infrastructure buyer § Sell to end-user • Focus on timely & reliable infrastructure § Focus on end-user’s product experience; seek deployment to gratify individual needs • Commoditize product for universal § Differentiate commoditized products via +1 deployment (open systems & need for strategic campaigns directed at specific niches partnerships) § Continue same channels, but focus on • Distribute via low cost, high volume channels merchandising that communicates +1 & advertise heavily to ensure maximum messages market exposure § Gain margins above low cost clone with +1 • Drive price points even lower to maximize benefits market share § Compete against own low-cost offering to • Attack other competitors to gain market share boost margin share • Position products horizontally as global § Position in niche markets based on end user infrastructure preferences 32 http://intempus.tistory.com
  33. 33. Toward the “Whole” Product q With the innovator, the core product is a big part of the whole product. q By the time the product has reached the late majority or conservatives adopter group, the success of the product will depend much more heavily on the non-core elements of the product rather than the core product itself. q Thus the core-product is increasingly taken for granted and becomes a less important determinant of choice as the product moves into the later stages of the adoption cycle. Potential Product Expected Product Augmented Product Generic Product 33 http://intempus.tistory.com
  34. 34. Priorities in Market Mass Mass Marketing Customization Deal-driven Marketing Niche Marketing Key Priority: Design & build the whole product Key Priority: Simplify and extend the whole product Partnering Priority: Complementary technologies Partnering Priority: Complementary skills and resources in & services to form the whole product and win marketing and distribution to succeed in identifying new niches dominant segment share Distribution Priority: Find some hunters for the Tornado and Distribution Priority: Find some evangelists for farmers for the Main Street Early market and Crusaders for Bowling Alley 34 http://intempus.tistory.com
  35. 35. IV. Understand Buyer Behavior http://intempus.tistory.com
  36. 36. Identify Decision-Making Unit q The decision-making unit, or buying network, is a group of individuals that have some influence on whether to buy a particular product or service and, if the decision is made to buy the product or service, the particular brand of that product or service. § To recognize that the key individuals in the decision-making unit may very well evolve over time. § To understand the power and influence of each individual in the decision-making unit. Buyer Key Questions • Who are the key decision-makers? Who is the • In what decisions do they Influencer Approver Customer? exercise influence? • What evaluation criteria do they use? User 36 http://intempus.tistory.com
  37. 37. Understand Choice Criteria q A second important element is the choice criteria that individuals in the decision-making units bring to bear as they attempt to make a decision. These criteria are related to both organizational and personal objectives. Product Criteria Process Criteria § Product criteria refer to the fit of the product § Process criteria refer to the degree to which your attributes to the customer’s need. product or service fits the customer’s need from a purchasing, usage, and disposal perspective. § Does the product or service have the functionality, quality, reliability, speed the § Some organizations call this the customer customer is seeking? interface strategy. This information on choice criteria by market segment can be absolutely critical as you design your product and service offerings and as you decide how best to position them relative to customer needs and competitive offerings in the market. 37 http://intempus.tistory.com
  38. 38. Understand Choice/Rejection Process q The third element in understanding buyer choice/rejection behavior is the “How” question – how the customer goes about making decisions in the choice/rejection process. § In order for them to adopt the new product or service, these customers need to switch from their existing choices. Step 3 : Your Competitor BUILD BARRIERS Solution A’s Solution Creation of barriers to reduce chances Current of rejection of your Solution Step 2 : IN new solution Perceived Need for Adoption of Change new solution Competitor Step 1 : OUT B’s Solution Rejection of current choice or solution Choice/Rejection Process (The Three Critical Issues) Experience Experience Time 38 http://intempus.tistory.com
  39. 39. V. Understand Complete Market Chain http://intempus.tistory.com
  40. 40. Defining Market Chain q A Market Chain is simply the chain of organizations a company uses that play key roles converting raw materials into solutions that meet end-user requirements q Market Chain as live, profit-driven, value-creating networks of companies that compete with other value- creating systems in the market Raw End User/ Equipment Materials Consumers Raw Systems/ Manufacturer/ VAR/ End User/ Components Distributor Materials Products OEM Retailer Consumers End User/ Services Distributor ConsumersOEM – Original Equipment ManufacturerVAR – Value-Added Reseller 40 http://intempus.tistory.com
  41. 41. Choices Among Market Chain q Market Chain Challenge facing a Manufacturer Trying to Reach Multiple Target Segments Market Channels Target Segments 2 1 3 Manufacturer 4 7 5 6 41 http://intempus.tistory.com
  42. 42. Choices Among Market Chain q Two Potential Market Channels for a Manufacturer of Semiconductor Components to Access the Antilock Braking Systems Market Raw Car GM DealersMaterials Buyers Modules Tevis Capital Car Motorola Ford DealersEquipment Buyers Modules Bosch CarSupplies Chrysler Dealers Buyers 42 http://intempus.tistory.com
  43. 43. Consider Market Chain Dynamics q Take account of a number of considerations. q First, it should use channels that represent an attractive opportunity for it. Other things being equal, it should focus on the channel(s) most likely to be successful in gaining market share, growth, and profitability. These channels will be ones where there is an excellent fit between what the channels can deliver and the needs of the end user. q Second, if a company is aiming to capture leadership in the opportunity, it should focus on those channels where it can clearly emerge as the market leader relative to competing companies using the same chain. It will need to present powerful reasons for the market chain members to work closely with it and to aggressively market its products. q In PC Industry, Dell eliminate all downstream market chain members and deal directly with customers largely by personal selling, by telephone, or over internet. 43 http://intempus.tistory.com
  44. 44. Downscaling and Upscaling Vertical Downscaling or Upscaling Changing an organization’s Value-adding role Raw Systems/ Manufacturer VAR/ End Users/ Components DistributorMaterials Products (OEM) Retailer Consumers Horizontal Upscaling Changing the application and/or technology to create more value-added for market chain members 44 http://intempus.tistory.com
  45. 45. Vertical Downscaling and Upscaling q Vertical Upscaling Motorola acquire a module maker Modules Tevis Motorola Car Car Makers Dealers Buyers Modules Bosch q Vertical Downscaling Modules Tevis Motorola Car Car Makers Dealers Buyers Modules Bosch Motorola 45 http://intempus.tistory.com
  46. 46. Market Chains as a Series of Choice/Rejection Process q The major challenges in any technology-intensive industry is § Getting new products to the market in a timely manner § Managers don’t usually pay enough attention to adoption along each of the market channels that make up the market chain § Existing business that carry a certain set of products and services and operate in certain ways q Once they have adopted, you or other players in the market chain will need to work with them and develop programs that solidify the new behavior. q To do all of this effectively requires that you or other committed partners in the market chain understand the decision-making unit, the choice criteria, and the choice/rejection process at all levels in the market chain. 46 http://intempus.tistory.com
  47. 47. Thank you. 47