Product Strategy for High Technology Companies [Michael E. McGrath] on prehexfejefne.tk *FREE* shipping on qualifying offers. One of the key determinants of. [DOWNLOAD] PDF Product Strategy for High Technology Companies by Michael E. McGrath [DOWNLOAD] PDF Product Strategy for High. Product strategy is extremely critical to high-tech companies. The market continuously evaluates and rewards or punishes competitors based primarily on the.
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One of the key determinants of success for today's high-technology companies is product strategy--and this guide continues to be the only book on product. Request PDF on ResearchGate | On Sep 1, , J.W. Beard and others published Product Strategy for High Technology Companies: Accelerating Your. Since when I first published the concepts of product-platform strategy, Product Strategy for High Technology Companies. (McGraw Hill.
The paper asserts that the significant failure rate among high tech products results from the failure of firms to realize that they are no longer competing in a high tech market environment. It is proposed that firms develop specialized marketing competence in each of the six environments.
New Technologies, New Products, and New Markets A market-oriented definition of a high tech product would be…a product that is an innovative application of technology to the solution of marketplace problems.
This dilemma is an extension of the conceptualization addressed by Ansoff 30 years ago. The less a firm knows about a business, the more likely it is to fail. The modification is necessary because the Growth Strategy model was based on a premise of customers being familiar with the products or product category being offered even if they are not familiar with the firm who offered the product.
Even without technological innovation, in an expanding market customers will enter the marketplace without product knowledge. This complicates the task of the marketer who must not only learn about the new customer but also educate the customer about the product.
The less the customer knows about the product, the more difficult the task facing the marketer. Taken to the extreme, this lack of knowledge characterizes the problem facing the firm marketing a high tech product where, by definition, the customer is unfamiliar not only with the product but also its underlying technology.
To account for this added level of uncertainty and resultant strategic difficulty, the Growth Strategy matrix must be expanded. Expanded Growth Strategy Matrix This expanded matrix adds the dimension of new technology, meaning technology new to the marketplace.
This new technology factor adds an additional level of risk for the marketing firm because it indicates that the marketing firm will have to educate the customer about the technology before the customer can be shown the benefits of the new product.
In the case of old markets markets the company has experience with the firm is already familiar with the problems facing the customer. It is even riskier. The marketer of a high tech product, as this representation illustrates, is unfamiliar with the market and, therefore, knows little about the problems facing the customer. To succeed, before the product is even marketed, the high tech marketer must first learn about the market and then teach that market about the technology.
The inability of managers to perceive the marketing challenge facing their firm is the cause of frequent failures among high tech products. Many firms, managed by technically trained personnel with little strategic or marketing management experience, fall victim to the better mousetrap fallacy.
High Tech Success Means Intensive Market Research and Customer Education A firm competing with the High Tech strategy succeeds by combining its technical expertise, its ability to quickly gain knowledge about its customers problems and needs, and its ability to give the customer sufficient technological expertise to evaluate and choose their product.
Unfortunately, this is a very transient environment and the skills that resulted in initial successes are likely to become far less important as the market matures. The life cycles of products shorten and innovations diffuse rapidly. While the High Tech marketer is learning about the market…key customers the opinion leaders are becoming familiar with both the technology and the product.
A company embarking on a high tech strategy must, simultaneously, be learning about their market for the first time and teaching that market about an emerging technology. The learning component of this strategy should result in the high tech marketer investing heavily in market research to understand the structure and the needs of the market they are entering. The teaching component should result in a communications strategy that adopts a missionary role. Advertising and promotional materials will need to explain not only the product and its benefits but the appropriateness of the underlying technology.
Sales personnel will need to be technologically sophisticated to allow them to help the customer apply and integrate this high technology product into their current set of acceptable solutions to their problems. Because the high tech product provides performance benefits that allow it to substitute for other products and technologies, and because direct competition is likely to be low, premium pricing strategies are appropriate.
While this high tech strategy is being implemented the marketer must be preparing for the inevitable transition to a penetration strategy.
The change to a penetration strategy requires changes in most marketing activities. Market share is the percent of unit and dollar sales a company holds within a certain market vs.
One way to increase market share is by lowering prices. For example, in markets where there is little differentiation among products, a lower price may help a company increase its share of the market. Market Expansion or Development A market expansion growth strategy, often called market development, entails selling current products in a new market. There several reasons why a company may consider a market expansion strategy.
First, the competition may be such that there is no room for growth within the current market.
If a business does not find new markets for its products, it cannot increase sales or profits. A small company may also use a market expansion strategy if it finds new uses for its product.
For example, a small soap distributor that sells to retail stores may discover that factory workers also use its product. Product Expansion Strategy A small company may also expand its product line or add new features to increase its sales and profits. When small companies employ a product expansion strategy, also known as product development, they continue selling within the existing market.
A product expansion growth strategy often works well when technology starts to change.
A small company may also be forced to add new products as older ones become outmoded. Growth Through Diversification Growth strategies in business also include diversification, where a small company will sell new products to new markets. This type of strategy can be very risky.