The Marketing of Technology Intensive Products and Services

Preface xv Introduction and Overview xix Part 1. Generating Value from Innovation 1 Chapter 1. The New Operating Context 3 1.1. Where the future can be invented 3 1.2. Understanding the new world 3 1.3. From shortage of resources to a surplus of abundance 5 1.4. Three economic eras, three marketing attitudes 6 Chapter 2. A Few Key Points a Technical Manager Should Know 9 2.1. The only sure thing about innovation is that it is about change 9 2.2. Change is about the organization itself 10 2.3. What are they? 10 2.4. The intimate relationship between innovation and competition 11 2.5. To be good technically is valuable for the enterprise only if it is also good at marketing 12 2.6. Marketing reinvents industry 14 2.7. Diffusion of innovation is a non-linear phenomenon 15 2.8. As a consequence, models must deal with discontinuity 16 2.9. Modern society favors a culture of earliness 16 2.10. Keeping afloat with derivatives 17 2.11. Make a journey to get from idea to market 17 2.12. As old problems get new solutions, old markets get new products 18 2.13. New problems that affect market issues 20 Chapter 3. Understanding the Customer 27 3.1. The changing role of the salesman 27 3.2. Needs and wants in the future: how do we assess them? 28 3.3. Some possible sources 28 Chapter 4. Business Models: the Engines of the New Economy 29 4.1. The role of the salesman 29 4.2. Purpose and value of a business model 30 4.3. The notion of business modeling has evolved 31 4.4. Some principles for designing business models 58 4.5. Three business model archetypes 63 Chapter 5. Basic Models in High-Tech Marketing 79 5.1. Recasting the basic model curves 79 5.2. Additional comments 89 5.3. How long does each phase last? 90 5.4. Navigating the bell curve is not as direct as sequencing tasks 91 5.5. Visionaries and pragmatists 92 5.6. Product value drifts into added services 93 5.7. Some easy mistakes 93 5.8. Some final thoughts and conclusions 95 Chapter 6. Bridging People, Markets and Technologies 97 6.1. Segmentation 97 6.2. The user chain, direct and indirect users 98 Part 2. Marketing Technology Intensive Products, Services and Processes 103 Chapter 7. The New Operating Context 105 7.1. Where the future can be invented 105 7.2. Success or failure? Technology marketing in the real world as told by three leading historical examples 107 7.3. Summing up 109 7.4. Checklists for technology marketing in the real world 110 7.5. Market study 112 Chapter 8. Marketing Plans 123 8.1. Introduction 123 8.2. A marketing plan template framework 123 Chapter 9. Pricing 127 9.1. The black art of pricing 127 9.2. A first method for pricing (an interesting historical example) 128 9.3. Six pricing methods and their use 129 9.4. Mark-up or cost-plus pricing 129 9.5. Going rate pricing 130 9.6. Target return pricing 130 9.7. Added value pricing 130 9.8. Perceived value pricing 131 9.9. Company pricing policies 131 9.10. Sales force acceptability 131 9.11. Price elasticity 132 9.12. Tips for pricing 133 9.13. Summary on pricing 133 Chapter 10. Distribution 135 10.1. Introduction: what are distribution structures? 135 10.2. Example: the IBM case 136 10.3. Approaching distribution issues 137 10.4. Who’s who in the supply/distribution system? 139 10.5. Which distribution structures apply to high technology products? 140 10.6. Managing various channels for value 142 Chapter 11. Business Plans 145 11.1. Introduction 145 11.2. Business plan framework 146 Part 3. Managing Your Environment 153 Chapter 12. The Sales World 155 12.1. Selection, training and management of sales staff 155 12.2. Selection of sales staff 157 12.3. A framework for sales training in the advanced technology field 158 12.4. Development of sales plans 160 Chapter 13. Funding Your Projects 167 13.1. Introduction: the need for funds 167 13.2. Sources of finance 170 13.3. Approaching the investor 172 13.4. The business plan 173 13.5. Raising capital requires good timing and attitudes 175 Chapter 14. Partnering and Outsourcing 179 14.1. Introduction 179 14.2. What is partnership? 180 14.3. Identification of required skills 180 14.4. Horizontal collaboration 181 14.5. Vertical collaboration 181 14.6. Circular collaboration 181 14.7. Values and criteria that guide the industrial relationship for partnership 181 14.8. The management of partnership 182 14.9. Some rules for strategic alliances 183 Chapter 15. Management Issues for the Next Decade 187 15.1. Where the future can be invented 187 15.2. Competition replaced by partnership emulation models? 188 15.3. Beyond the World Wide Web 189 15.4. The contribution of the sciences of complexity 190 15.5. Business webs or experience webs? 191 15.6. Conclusion 192 Appendices 193 Appendix A. Conducting Market Research 195 Appendix B. Agenda for a Possible Sales Course 201 Appendix C. A Quick Introduction to Pareto Analysis 207 Appendix D. Commentary on Intellectual Property Rights 211 Appendix E. Standardization in the Knowledge Society 217 Appendix F. Branding 219 Glossary of Terms 223 Bibliography 225 Index 229