STRATEGIC STRATEGIC TECHNOLOGY TECHNOLOGY MARKETING MARKETING

DR. ISMI RAJIANIDR. ISMI RAJIANI

Selling and MarketingSelling and MarketingConcepts ContrastedConcepts ContrastedSelling and MarketingSelling and MarketingConcepts ContrastedConcepts Contrasted

FactoryExistingproducts

Selling andpromotion

Profits throughsales volume

Targetmarket

Integratedmarketing

Profits throughcustomer

satisfactionCustomer

needs

Startingpoint Focus Means Ends

(b) The marketing concept

(a) The selling concept

Operational Model for Operational Model for Implementing the Implementing the Philosophy of the Philosophy of the

Marketing Concept is Marketing Concept is the:the:

The Marketing MixThe Marketing Mix Consists Consists of Four Basic Strategic of Four Basic Strategic

Variables Variables (the four “P’s”)(the four “P’s”)

Product StrategyProduct Strategy Price StrategyPrice Strategy Promotional StrategyPromotional Strategy Place Strategy (Channels of Place Strategy (Channels of

Distribution)Distribution)

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Marketing Mix and the Marketing Mix and the CustomerCustomer

Four P’sFour P’s Product Price Place Promotion

Four C’sFour C’s Customer solution Customer cost Convenience Communication

Other Ps for ServicesOther Ps for Services(the three “P’s”)(the three “P’s”)

People StrategyPeople Strategy Process StrategyProcess Strategy Physical Evidence StrategyPhysical Evidence Strategy

The role of STRATEGIC The role of STRATEGIC marketing is to mix marketing is to mix or blend these four or blend these four

strategic variables in strategic variables in such a way as to meet such a way as to meet

the needs of...the needs of...

THE TARGET THE TARGET MARKETMARKET

Target Market

ProductProduct PricePricePromotion Promotion PlacePlace

Marketing as a Strategic Marketing as a Strategic Component of the Component of the

OrganizationOrganization

Marketing is elevated to a Marketing is elevated to a level of level of strategicstrategic

position in the position in the organizationorganization

1-1-1010

The Four P’s elementsThe Four P’s elements

Strategic Marketing Consists Strategic Marketing Consists of Six Major Areasof Six Major Areas

1)1) Defining the organization’s businessDefining the organization’s business

2)2) Specifying the purpose of the organizationSpecifying the purpose of the organization

3)3) Identifying opportunitiesIdentifying opportunities

4)4) Formulating product/market strategiesFormulating product/market strategies

5)5) Budgeting: financial, production, human Budgeting: financial, production, human resourcesresources

6)6) Monitoring, evaluating, and adaptingMonitoring, evaluating, and adapting

Defining the Defining the Organization’s BusinessOrganization’s Business

Type of customers (markets) to be servedType of customers (markets) to be served Needs of those customersNeeds of those customers Means by which organization will meet the Means by which organization will meet the

needsneeds Competitive advantage (attainment and Competitive advantage (attainment and

sustained)sustained)

ProductionOutput andefficiency

measures, e.g.output perMan hour

FinanceROIROS

ProfitCash Flow

MarketingSales VolumeMargin

Market ShareCustomerSatisfaction

Specifying the Purpose of Specifying the Purpose of the Organizationthe Organization

Aspirations of the organization Aspirations of the organization and what it wishes to achieve and what it wishes to achieve

ie., objectives and goalsie., objectives and goals

Identifying Identifying Organizational Organizational OpportunitiesOpportunities

External (environmental) External (environmental) opportunities matched with internal opportunities matched with internal

(organizational) capabilities(organizational) capabilities

What do we do best? (distinctive competency)What do we do best? (distinctive competency) What must we do? (success requirements)What must we do? (success requirements) What might we do? (environmental opportunity)What might we do? (environmental opportunity)

Formulating Formulating Product/Market Product/Market

StrategiesStrategies

Market Penetratio

n

Market Developmen

t

New Offering

Development

Diversification

EXISTING NEW

EXISTING

NEW

MARKETSOfferings

Budgeting, Financial, Budgeting, Financial, Production, and Human Production, and Human

ResourcesResources

Financial implications and allocations Financial implications and allocations relevant to the marketing planrelevant to the marketing plan

Revenue, expense, and profit Revenue, expense, and profit projectionsprojections

Cost allocations madeCost allocations made

Monitoring, Evaluating Monitoring, Evaluating and Adapting Marketing and Adapting Marketing

StrategyStrategy

Marketing audit --comprehensive, Marketing audit --comprehensive, systematic, independent, and periodic systematic, independent, and periodic

examination of the organization’s examination of the organization’s marketing objectives and strategies to marketing objectives and strategies to identify problems and opportunities as identify problems and opportunities as

well as to recommend ways of well as to recommend ways of improving marketing performanceimproving marketing performance

Evolution of Company Evolution of Company OrientationOrientation

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling/Sales ConceptSelling/Sales Concept

Marketing ConceptMarketing Concept

Holistic Marketing ConceptHolistic Marketing Concept

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Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing Concept

•Consumers favor products that are available and highly affordable. Improve production and distribution.

•Consumers favor products that offer the most quality, performance, and innovative features.

•Consumers will buy products only if the company promotes/ sells these products.

•Focuses on needs/ wants of target markets & delivering satisfaction better than competitors.

•Focuses on needs/ wants of target markets & delivering superior value.

Marketing Marketing Management Management PhilosophiesPhilosophies

1-1-2020

Holistic Marketing DimensionsHolistic Marketing Dimensions

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Technology AdoptionTechnology Adoption Product Life Cycle Product Life Cycle (Based on G. Moore (Based on G. Moore ““Crossing the Chasm”)Crossing the Chasm”)

Time

Revenue

Early Majority Late Majority LaggardsEarly

AdoptersLead Users

■ Innovators Lead Users : Technology Enthusiasts; They want to try it just to see if it works…

■ Visionaries Early Adopters : They have the insight to match a new technology to a strategic opportunity

■ Pragmatists Early Majority : They fell that some Risk may be taken, but with a good safety nets in place

■ Conservative Late Majority : They are Conservatives that are against discontinuous innovations

■ Sceptics Laggards : They are Sceptics...

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““The CHASM” is changing The CHASM” is changing highly highly

industry dependent...industry dependent...

Technology AdoptionTechnology Adoption

Classical Early market VS Mainstream

Market

Early Market

Main Stream Market

The New Reality The CHASM may have moved depending on your industry !!!!

Main Market

Possible Market (?)Lead Users

Early Majority

Late Majority Laggards

Early AdoptersLead Users

Early Majority

Late Majority Laggards

Early AdoptersLead Users

Early Majority

Late Majority Laggards

Early AdoptersLead Users

Th

e C

HA

SM

Early Majority Late Majority LaggardsEarly

AdoptersLead Users

The

CH

AS

M

Early Majority Late Majority LaggardsEarly

AdoptersLead Users

The

CH

AS

M

2.5% 13.5% 34% 34% 16%

2% 48 % 29% 16% 5%

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Evolution of “The Evolution of “The

CHASM” (1/3)CHASM” (1/3)– In the last 10 years, people have In the last 10 years, people have

become more and more tech-savvy become more and more tech-savvy

People are more comfortable People are more comfortable

with technologywith technology

– Adoption of technology is faster Adoption of technology is faster

today thanks to Internet, today thanks to Internet, Twitter, Twitter,

Facebook Facebook and other social medias.and other social medias.

– The The Early Adopters Early Adopters area of the area of the

curve is today much larger curve is today much larger 50% 50%

of the total market is now before of the total market is now before

the CHASM.the CHASM.

Technology AdoptionTechnology Adoption

Main Market

Possible Market (?)

Lead Users

Early Majority

Late Majority Laggards

Early AdoptersLead Users

Early Majority

Late Majority Laggards

Early AdoptersLead Users

Early Majority

Late Majority Laggards

Early AdoptersLead Users

Th

e C

HA

SM

50% of Market

50% of Market

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1. Marketing Mix ■ Branding

■ A strong branding is required to ease market penetration and allow client retention.

■ Social Medias■ Use all social medias on the web to help your market be aware of

what you are doing. The difficulty is to do its soon enough but at the same time not too soon.

■ You must analyze periodically the social medias to know what is been said about your company, group and products. Use those medias to influence perceptions and be close to your clients (customer proximity).

2. Understanding Market Segment ■ You must understand your market and this takes time and efforts. If your

“beachhead” is very niche or is only a specific program (governmental, defense), you must work on the customer intimacy to influence his decisions toward your solution.

Conclusions Conclusions