Table of Contents. Introduction and Overview... xix. Part 1. Generating Value from Innovation... 1
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1 Preface... xv Introduction and Overview... xix Part 1. Generating Value from Innovation... 1 Chapter 1. The New Operating Context Where the future can be invented Understanding the new world From shortage of resources to a surplus of abundance Three economic eras, three marketing attitudes... 6 Chapter 2. A Few Key Points a Technical Manager Should Know The only sure thing about innovation is that it is about change Change is about the organization itself What are they? The intimate relationship between innovation and competition To be good technically is valuable for the enterprise only if it is also good at marketing Marketing reinvents industry Diffusion of innovation is a non-linear phenomenon As a consequence, models must deal with discontinuity Modern society favors a culture of earliness Keeping afloat with derivatives Make a journey to get from idea to market As old problems get new solutions, old markets get new products... 18
2 vi The Marketing of Technology Intensive Products and Services New problems that affect market issues New problem 1: superior technologies are no longer enough New problem 2: the growing number of new technologies leads to a new uncertainty Sharing knowledge is today s only power Time is only an equally shared resource The acceleration in technology change: how can it be measured? What to do in that context Attitude 1: anticipate demand Attitude 2: explore alternate scenarios of usage Illustration: the case of electronic commerce Chapter 3. Understanding the Customer The changing role of the salesman Needs and wants in the future: how do we assess them? Some possible sources Chapter 4. Business Models: the Engines of the New Economy The role of the salesman Purpose and value of a business model The notion of business modeling has evolved Evolution of business modeling over recent years Evolution of the underpinning value modeling An enlightened glimpse of turn-of-the-century dotcoms and their business models Consequences of the above evolutions Revisiting classical economy principles first Opening up to a 3D ternary view Some incidences of opening up to the 3D ternary view Deepening the discussion Evolving from the binary model Some conditions for the 3-tier movement Scoping the problem of business modeling Four generic components in business modeling The preemption of the virtual over the physical is only relative Four predictability attributes that business models may reveal... 44
3 vii Four adjustable field attributes attached to any business model Three generic archetypes for business modeling activity The three basic principles of business models Wrapping up the principles The chemistry of business modeling Assembling the elements Business modeling and marketing strategy Some principles for designing business models Seven design principles based on underpinning values Detailing principle 2: express values as featured benefits Three business model archetypes The Chameleon model The Innovator model The Habitat (also called Foyer) model Can the three business model archetypes be combined? Can business models be evolved? The business models of innovation What is specific to innovation in a business model? Cartography of innovation situations Deploying business models Look for insight into main trends first Some principles behind deployment Examples Chapter 5. Basic Models in High-Tech Marketing Recasting the basic model curves The Gompertz curve The basic Rogers 1983 model of innovation The pattern of innovation: primarily a phased structure Populating the Gompertz-Rogers model Innovators Early adopters Early maturity Mature maturity Obsolescent maturity (laggards) Additional comments How long does each phase last? Navigating the bell curve is not as direct as sequencing tasks Visionaries and pragmatists Product value drifts into added services... 93
4 viii The Marketing of Technology Intensive Products and Services 5.7. Some easy mistakes Some final thoughts and conclusions Chapter 6. Bridging People, Markets and Technologies Segmentation The user chain, direct and indirect users Actual and latent needs and wants Demand forecasting and the orientation of R&D to demand The role of selling and the salesman Keeping the customer Product focus, functionality, quality The Magic*Eye method Part 2. Marketing Technology Intensive Products, Services and Processes 103 Chapter 7. The New Operating Context Where the future can be invented Success or failure? Technology marketing in the real world as told by three leading historical examples Summing up Checklists for technology marketing in the real world Market study Stages in market research Segmentation What are the key questions for segmentation analysis? Matching to the market Product and competitive positioning Differentiation differential advantage Unique selling proposition The marketing mix The promotion mix Chapter 8. Marketing Plans Introduction A marketing plan template framework
5 ix Chapter 9. Pricing The black art of pricing A first method for pricing (an interesting historical example) Six pricing methods and their use Mark-up or cost-plus pricing Going rate pricing Target return pricing Added value pricing Perceived value pricing Company pricing policies Sales force acceptability Price elasticity Tips for pricing Summary on pricing Chapter 10. Distribution Introduction: what are distribution structures? Example: the IBM case Approaching distribution issues Who s who in the supply/distribution system? Which distribution structures apply to high technology products? Direct sales Retailer sales Industrial distributors VARs (value added resellers) OEMs (original equipment manufacturers) Systems integrators Managing various channels for value Demand creator or demand filler? Role in supplying a global product Potential for large volumes Where do you find distribution partners? Chapter 11. Business Plans Introduction Business plan framework Motivation The business you are in Forecasts Business objectives of the plan
6 x The Marketing of Technology Intensive Products and Services Strategic focus Scope Overall economic situation Market analysis and segmentation Market positioning Commercial aspects and strategies Pricing models and target gross margins Economic and financial considerations Part 3. Managing Your Environment Chapter 12. The Sales World Selection, training and management of sales staff Selection of sales staff A framework for sales training in the advanced technology field Development of sales plans Introduction Situation Objective Action Consolidation Chapter 13. Funding Your Projects Introduction: the need for funds Sources of finance Approaching the investor The business plan An executive summary The market The product or service The management team Business operations Financial projections Level of capital investment required and exit opportunities Presentation of the business plan Raising capital requires good timing and attitudes The link between innovation and markets is capital Timing brings structure to the funding act It s always time for high technology and therefore for investors
7 xi Chapter 14. Partnering and Outsourcing Introduction What is partnership? Identification of required skills Horizontal collaboration Vertical collaboration Circular collaboration Values and criteria that guide the industrial relationship for partnership The management of partnership Some rules for strategic alliances Rule 1: a partnership should be the clear expression of a strategic alliance Rule 2: strategic alliances should be anticipated Rule 3: work out the cost of partnering Rule 4: use the relationship as a communication channel Some examples of successful alliances Living through the partnership Chapter 15. Management Issues for the Next Decade Where the future can be invented Competition replaced by partnership emulation models? Beyond the World Wide Web The contribution of the sciences of complexity Business webs or experience webs? Conclusion Appendices Appendix A. Conducting Market Research A.1. Analysis and strategy issues: the handy reference questions to be asked Appendix B. Agenda for a Possible Sales Course B.1. Introduction B.2. A framework for sales training in the advanced technology field B.2.1. Objectives B.2.2. Marketing and selling B.2.3. Selling and the role of the salesman
8 xii The Marketing of Technology Intensive Products and Services B.2.4. Buying motivation B.2.5. Selling advanced technology goods and services B.2.6. The corporate environment and differential advantages B.2.7. Sales fundamentals B.2.8. Seminars and sales presentations B.2.9. The basis of decision and identification of decision makers B Bidding and bid management B The sales proposal Appendix C. A Quick Introduction to Pareto Analysis C.1. Introduction: Pareto and modern high tech marketing C.2. Applying Pareto s approach to companies in their competitive environment Appendix D. Commentary on Intellectual Property Rights D.1. Introduction D.2. Firstly, what are your legal rights at present? D.3. Communication to the public D.4. Legal protection of the integrity of technical systems D.5. Distribution rights (and exhaustion principle) D.6. Other specific rights and issues D.6.1. Broadcasting rights D.6.2. Moral rights D.6.3. Rights management D.6.4. Applicable law Appendix E. Standardization in the Knowledge Society E.1. Standardization in the Information Society Appendix F. Branding F.1. What is branding?... F.2. History F.3. Purpose of branding F.4. Examples of the power of branding F.5. Implications for innovative products
9 xiii Glossary of Terms Bibliography Index
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