The document provides an overview of a lecture on technology marketing. It discusses how technology marketing is different due to characteristics of innovative technologies and different customer profiles. The content includes the key differences in marketing communications for technology, focusing on communication content, the technology decision process, and appropriate communication channels. Examples of how certain innovations diffuse faster than others are provided.

1. Ute Hillmer 08
TECHNOLOGY
TECHNOLOGY
MARKETING
LECTURE
MARKETING Intro
is different !
Product
ESB Lecture
Dr. Ute Hillmer Customer
June 2009
Comm.
Strategy

2. Ute Hillmer 08
Content of the Lecture TECHNOLOGY
MARKETING
LECTURE
1. Why is Tech Marketing different?
2. Characteristics of innovative technology Intro
3. Customer profiles
Product
4. Marketing Communication Strategy
a) Communication content Customer
b) Technology decision process
Comm.
c) Communication channels / networks Strategy

3. Ute Hillmer 08
Examples for TECHNOLOGY
MARKETING
technology LECTURE
products??
Intro
Product
“… that TECHNOLOGIES changed the way Customer
you do things in your discipline / Comm.
Strategy
profession lately?”

4. Ute Hillmer 08
TECHNOLOGY
MARKETING
LECTURE
Why should Intro
marketing be
different?
Product
Customer
Comm.
Strategy

5. Ute Hillmer 08
Technology Marketing is different
because its products… TECHNOLOGY
MARKETING
… really change the way one is doing things LECTURE
… need a lot of explanation
– benefits often not readily obvious Intro
– difference to competition not readily obvious
Product
… have a short product lifecycle
– today's technology might be outpaced tomorrow
Customer
… influence and penetrate life and its experiences
 rethinking Marketing : New=Good Credibility= important Comm.
Strategy

6. Ute Hillmer 08
Technology Marketing is different
because its customers… TECHNOLOGY
MARKETING
LECTURE
– are sceptical and expect a dialogue
– don‟t have any time to waist Intro
– can be well informed
– are uncertain due to always new technologies Product
– expect customised solutions at low prices
Customer
 rethinking Marketing : New=Good Credibility= important
Comm.
Strategy

7. Most importantly: Technology
Ute Hillmer 08
Marketing is different because its
Products… TECHNOLOGY
MARKETING
LECTURE
Intro
… really
change the
way you are Product
doing things
Customer
Comm.
Strategy

8. Ute Hillmer 08
The Diffusion of an Innovation
TECHNOLOGY
MARKETING
Disruptive innovation LECTURE
Continuous innovation
Tornado
Intro
Marketsize
Early Product
Mainstreet Total
Market
Assimilation
Customer
Time Comm.
Strategy
Source: Rogers Diffusion of Innovation 1962, 1995, p.262;
Moore; Crossing the Chasm 1995, 1999, p.12; The Chasm Institute LLC 2008.

9. Ute Hillmer 08
Diffusion of an Innovation
TECHNOLOGY
MARKETING
LECTURE
Marketsize
Intro
Time
Product
Marketsize
Marketsize
Customer
Comm.
Time Strategy
Time

10. Ute Hillmer 08
Why do certain
innovations diffuse much TECHNOLOGY
MARKETING
LECTURE
faster than others?
Intro
Why do certain Product
innovations have a much
longer mainstreet
Customer
momentum? Comm.
Strategy

11. Ute Hillmer 08
Success Factors of an
Innovation Diffussion Strategy TECHNOLOGY
MARKETING
LECTURE
1. Favourable Characteristics of Technology
Innovations. Intro
2. Business Strategy that recognises different
Product
customer profiles.
3. Marketing Communication Strategy were Customer
communication content and communication
Comm.
vehicle recognises and considers point 1+2. Strategy

12. Ute Hillmer 08
Inbound Elements of High Tech
Marketing TECHNOLOGY
MARKETING
LECTURE
Characteristics of technology
Intro
Customer profiles
Communication strategy Product
– Content
– Technology decision process Customer
– Communication channels / networks
Comm.
Strategy

13. Ute Hillmer 08
Inbound Elements of High Tech
Marketing TECHNOLOGY
MARKETING
LECTURE
Characteristics of technology
Intro
Customer profiles
Communication strategy Product
Product
– Content
– Technology decision process Customer
– Communication channels / networks
Comm.
Strategy

14. Ute Hillmer 08
1. Favourable Characteristics of
Technology Innovations TECHNOLOGY
MARKETING
LECTURE
Innovations perceived as having greater:
Intro
- relative advantage - compatibility
- trialability - observability Product
Product
- less complexity - familiarity Customer
will be adopted more rapidly than others Comm.
Strategy

15. Ute Hillmer 08
Relative Advantage TECHNOLOGY
MARKETING
= Degree to which a technology is perceived as LECTURE
“better”
Intro
Measured in economic terms, but social prestige,
convenience, and satisfaction are also important Product
Product
Objective advantages are not so important, it
matters if an individual perceives the innovation as Customer
an advantage
Comm.
Strategy

16. Ute Hillmer 08
Yes!
TECHNOLOGY
MARKETING
An advantage for LECTURE
one individual, a Intro
thread for another? Product
Product
Customer
No!
Mmm... Comm.
Strategy

17. Ute Hillmer 08
Sub dimensions of
Relative Advantage TECHNOLOGY
MARKETING
LECTURE
economic profitability personal goal
low initial cost more or less flexibility Intro
a decrease in discomfort more or less control
Product
Product
social prestige personal marketability
savings in time and effort curiosity Customer
immediacy of the reward stability Comm.
Strategy

18. Ute Hillmer 08
Subjective Construction
of Reality TECHNOLOGY
MARKETING
LECTURE
Each individual sees
the world through Intro
subjective lenses.
Making sense of the Product
Product
world through
her/his own Customer
meaning system. Comm.
Strategy

19. Ute Hillmer 08
A Bike!
TECHNOLOGY
MARKETING
LECTURE
Intro
Product
Product
Customer
Comm.
Strategy

20. Ute Hillmer 08
A Bike!
TECHNOLOGY
MARKETING
LECTURE
Intro
Product
Product
Customer
Comm.
Strategy

21. Ute Hillmer 08
A Bike!
TECHNOLOGY
MARKETING
LECTURE
Intro
Product
Product
Customer
Comm.
Strategy

22. Ute Hillmer 08
A Bike!
TECHNOLOGY
MARKETING
LECTURE
Intro
Product
Product
Customer
Comm.
Strategy

23. Ute Hillmer 08
A Bike! ?
Blob
TECHNOLOGY
blob
MARKETING
Bla Blubber
LECTURE
...
bla ... Blub blubber..
blub. . Intro
..
Product
Product
Customer
Comm.
Strategy

24. Ute Hillmer 08
A Meaning System Approach
TECHNOLOGY
MARKETING
LECTURE
“… is built around the idea that people
develop beliefs that organise their world Intro
and that give meaning to their
experiences” Product
Product
DWECK 2000, p. xi
Customer
Different people hold different
Comm.
meaning systems. Strategy

25. Ute Hillmer 08
Marketing and Rationality TECHNOLOGY
MARKETING
„Good" is relative LECTURE
- not immediately evident
Intro
- complex to understand
- circumvented by the market Product
Product
- considered to be amoral
Customer
- difficult to implement
 „Good“ ideas do not sell themselves, they need to Comm.
Strategy
be properly expressed and communicated

26. Ute Hillmer 08
Marketing and Rationality (2) TECHNOLOGY
MARKETING
LECTURE
Most individuals perceive their actions as
rational. Intro
Lack of knowledge or inaccurate perception Product
Product
guide an individuals evaluation.
Customer
Comm.
Strategy

27. Ute Hillmer 08
Status Aspects TECHNOLOGY
MARKETING
LECTURE
Every innovation also has at
least some degree of status conferral. Intro
Product
Product
A motivation for many individuals to adopt
is the desire to gain social status. Customer
Comm.
Strategy

28. Ute Hillmer 08
Special Forms of Advantages TECHNOLOGY
MARKETING
LECTURE
A fad
Intro
Preventive technologies
Incentives Product
Product
Mandates
Customer
Comm.
Strategy

29. Ute Hillmer 08
A Fad TECHNOLOGY
MARKETING
is an innovation that represents a relatively LECTURE
unimportant aspect of culture, which
Intro
diffuses very rapidly, mainly for status
reasons, and then is rapidly discontinued. Product
Product
Customer
Comm.
Strategy

30. Ute Hillmer 08
Preventive Technologies TECHNOLOGY
MARKETING
LECTURE
Preventive innovations are slower to diffuse
because Intro
• individuals have difficulties in perceiving their Product
Product
relative advantage
• the rewards are uncertain Customer
Comm.
Strategy

31. Ute Hillmer 08
Incentives TECHNOLOGY
MARKETING
increase the degree of relative advantage of LECTURE
the technology Intro
• incentives increase the rate of adoption
Product
Product
• incentives lead to adoption of an innovation
by individuals different from those who would
otherwise adopt Customer
Comm.
Strategy

32. Ute Hillmer 08
Mandates TECHNOLOGY
MARKETING
LECTURE
incentives or penalties by law, tax etc.
Intro
• behaviour change that is desired by society
but might not be desired by the individual can
Product
Product
be mandated
tax reduction for solar energy boost in Customer
solar energy cell sales
Comm.
Strategy

33. Ute Hillmer 08
Favourable Characteristics
of Innovations TECHNOLOGY
MARKETING
LECTURE
Innovations perceived as having greater:
Intro
- relative advantage - compatibility
- trialability - observability Product
Product
- less complexity - familiarity Customer
will be adopted more rapidly than others Comm.
Strategy

34. Ute Hillmer 08
Triability TECHNOLOGY
MARKETING
= Degree to which a technology can be LECTURE
experimented with on a limited basis
Intro
• Technology is easier to adopt if it can be tried out
Product
in part, on a temporary basis, or easily dispensed Product
with after trial.
Customer
• It„s a way to find out how it works under one's own
Comm.
conditions it gives meaning to a technology Strategy

35. Ute Hillmer 08
Complexity TECHNOLOGY
MARKETING
= Degree to which a technology is perceived as LECTURE
difficult to understand and use.
Intro
• It is the perception of the end user that counts
Product
for achieving public adoption. Product
• An innovation might look simple from the Customer
viewpoint of the developer.
Comm.
Strategy

36. Ute Hillmer 08
Compatibility TECHNOLOGY
MARKETING
= The degree to which technology is perceived as LECTURE
being consistent with existing values, past
experiences, and needs of potential adopters Intro
• Technologies that are incompatible with Product
Product
values and norms will be adopted much
Customer
slower because they require the adoption of
Comm.
a new value system. Strategy

37. Ute Hillmer 08
Familiarity TECHNOLOGY
MARKETING
LECTURE
A combination of past experiences and
social conformity. Intro
Often, it is the compatibility of a new Product
Product
technology to familiar social and individual
concepts and not to existing technologies Customer
and processes.
Comm.
Strategy

38. Ute Hillmer 08
Naming a new Technology TECHNOLOGY
MARKETING
LECTURE
A name affects its perceived
familiarity and compatibility Intro
Product
Product
 Customer research to name a new
technology in each culture Customer
Comm.
Strategy

39. Ute Hillmer 08
Positioning a Technology TECHNOLOGY
MARKETING
LECTURE
Positioning „co-designs“ a technology
Intro
Position a new technology in relation to already
Product
Product
familiar concepts  familiarity!
Potential adopters have relevant experiences with Customer
which they associate the new innovation.
Comm.
Strategy

40. Ute Hillmer 08
Observability TECHNOLOGY
MARKETING
= degree to which the results of a technology are LECTURE
visible to others
Intro
• Observing the advantages of a new technology
increases the chance of adoption significantly. Product
Product
• After some adopt, observability improves the
Customer
diffusion effect, a critical component of technology
transfer. Comm.
Strategy

41. Ute Hillmer 08
Where in a TECHNOLOGY
MARKETING
LECTURE
marketing plan do Intro
the discussed areas Product
Product
belong? Customer
Comm.
Strategy

42. Ute Hillmer 08
Marketing Plan
TECHNOLOGY
1. Objective 5. Marketing Communication MARKETING
2. Marketing Strategy Target Customer LECTURE
Positioning
Target Customer
Key Message
Compelling reason to buy
Elements of the Communication Mix
Intro
3. Key Issues
Deliverables
4. Product Marketing
Whole Product 6. Partner Marketing Product
Product
Features
Service
Partners & Allies
Benefits
7. Key Account Marketing
Pricing
Customer
Distribution Channels
Competition
Comm.
Strategy

43. Ute Hillmer 08
Outbound Elements of
Technology Marketing TECHNOLOGY
MARKETING
LECTURE
Characteristics of technology
Intro
Customer profiles
Communication content Product
Technology decision process
Customer
Customer
Communication channels / networks
Comm.
Strategy

44. Ute Hillmer 08
“Innovativeness” TECHNOLOGY
MARKETING
= degree to which an individual or a unit is relatively LECTURE
earlier in adopting new technologies
Intro
Indicates overt
Product
Yes! behavioural
No!
Mmm... change, not just Customer
Customer
cognitive or
attitudinal change Comm.
Strategy

45. Ute Hillmer 08
Human Behaviour +
Technology Marketing TECHNOLOGY
MARKETING
“… dramatically change past behaviour…” LECTURE
and the typical human reaction: Intro
– the majority of the market will hesitate to buy
for a long time Product
No !!!
– when the new way of doing things gets Customer
Customer
accepted, everybody wants it right away
Comm.
Strategy

46. Ute Hillmer 08
Individual Adopter Categorization on
the Basis of Innovativeness TECHNOLOGY
MARKETING
LECTURE
Intro
Product
Marketsize size
Market
Customer
Customer
Comm.
Chart based on Rogers 1962, 1995, p. 262 and Moore 1991,1999, p. 12
Strategy
Time

47. Individual Adopter Categorization
Ute Hillmer 08
on the Basis of Innovativeness TECHNOLOGY
MARKETING
Pragmatists:
LECTURE
Stick with the herd!
Marketsize
Conservatives:
Hold on! Intro
Visionaries: Skeptics:
Techies:Get ahead! No way!
Try it! Product
Customer
Customer
Time
Innovators Early Early Late Laggards Comm.
Adopters Majority Majority Strategy
Sources: Rogers Diffusion of Innovation; Moore; Crossing the Chasm

48. 2009 Category Life Cycle
Ute Hillmer 08
Placement TECHNOLOGY
•Mobile, web-based•HDTV
MARKETING
b-applications •Laptops (consumer) LECTURE
Marketsize
•Solar power •Virtual meetings
•Tablet computers (enterprise) •Consumer games
Intro
•Social networking
•Cloud computing •Social networking
•Many web 2.0 (business) (consumer)
applications •Smartphones •Laptops (enterprise)
•Many “green” Product
technologies
Customer
Customer
Time
Innovators Early Early Late Laggards Comm.
Adopters Majority Majority Strategy
Source: Chasm Institute 2008 LLC.

49. Ute Hillmer 08
Inventors: Techies
Technology is their life TECHNOLOGY
MARKETING
Technology - Crazy LECTURE
– Spend hours to get the product to work
– Do everything to help the product Intro
– Technology should be for free
Forgiving souls Product
– Don‟t mind lousy documentation and weird procedures
to achieve functionality Customer
Customer
– Want technology first – no need for a sales channel
Comm.
Their role: they move technology forward but do Strategy
not generate much diffusion

50. Ute Hillmer 08
Visionaries
Technology enthusiastic businessmen, TECHNOLOGY
driven by a dream MARKETING
LECTURE
Businessman first
- driven to be the first Intro
- new technologies are used to serve their own strategic benefit
- don‟t want incremental but fundamental improvements
Product
- make business world aware of new technologies
- not very price-sensitive, have project budget
Customer
Customer
- live in the future
- communicate with techies and other visionaries
Comm.
Strategy

51. Ute Hillmer 08
Visionaries (2)
TECHNOLOGY
MARKETING
Take a risk LECTURE
- love publicity
Intro
- risky projects
- start projects from ground up, don„t want Product
standards, want to develop them
- buy by intuition Customer
Customer
- highly motivated, driven by a dream
Comm.
Strategy

52. Ute Hillmer 08
Visionaries (3)
TECHNOLOGY
Excellent communicators MARKETING
LECTURE
- charismatic; they fight for their project
- like to serve as a reference Intro
- network with techies and pragmatists
- too many references demotivate visionaries Product
- look for new ideas in communication with intelligent
people Customer
Customer
Comm.
Their role: they fund the product development Strategy

53. Ute Hillmer 08
Pragmatists
Look for measurable, incremental improvement TECHNOLOGY
Driven by business results MARKETING
LECTURE
- improved productivity
Avoid risk Intro
- risk is a negative term
- want to work with market leader/ established firms Product
- look for product quality, support, consulting, good
interfaces, reliability
Customer
Customer
- want standards, “save buys”
- need references
Comm.
- live in the present Strategy

54. Ute Hillmer 08
Pragmatists (2)
TECHNOLOGY
Loyal customers
MARKETING
• are interested in company they buy from LECTURE
• revenue and profit must grow steadily “stability”
Intro
• communicate within company and industry
• the first mass market
Product
Their role: They hold the key to the mainstream
market
Customer
Customer
BUT: you need to be established in order for
them to buy from you but you don‘t get Comm.
established until they buy from you ! ? Strategy

55. Ute Hillmer 08
Pragmatists (3)
TECHNOLOGY
MARKETING
Consequences out of this profile LECTURE
One really needs to be familiar with the Intro
processes and issues that worry these
people Product
 Offer a clear relative advantage to them Customer
Customer
Comm.
Strategy

56. Ute Hillmer 08
Conservatives
“I don’t have to like the product, even if I use it” TECHNOLOGY
MARKETING
LECTURE
- They do what pragmatics do, but later
Intro
- Invest in technology to keep up with
competition
Product
- Have low technical competence
Customer
Customer
Comm.
Strategy

57. Ute Hillmer 08
Conservatives (2)
TECHNOLOGY
MARKETING
- predictable LECTURE
- want everything faster, cheaper, improved
Intro
- are price sensitive
- like bundles, pre-installed solutions Product
- “if it isn’t broken, don’t fix it”
- very interested in service and support Customer
Customer
Their role: huge mass market Comm.
Strategy

58. Individual Adopter Categorization
Ute Hillmer 08
on the Basis of Innovativeness TECHNOLOGY
MARKETING
Pragmatists:
LECTURE
Stick with the herd!
Marketsize
Conservatives:
Hold on! Intro
Visionaries: Skeptics:
Techies:Get ahead! No way!
Try it! Product
Customer
Customer
Time
Innovators Early Early Late Laggards Comm.
Adopters Majority Majority Strategy
Sources: Rogers Diffusion of Innovation; Moore; Crossing the Chasm

59. Ute Hillmer 08
The Chasm
TECHNOLOGY
MARKETING
1. Visionaries had their turn and new LECTURE
visionaries chase new dreams (new
technologies new visionaries) Intro
2. Pragmatists want to wait Product
3. Investors get nervous
Customer
NO MARKET!! ?? Customer
Comm.
Strategy

60. Ute Hillmer 08
Technology Adoption and Its
Challenges TECHNOLOGY
MARKETING
From „change agent“ to LECTURE
productivity improvement How much technical
Marktvolumen
competence is Intro
necessary?
Translate a hot technology
into a business benefit Product
Lack of appreciation
Customer
Customer
Comm.
Strategy
Innovators Early Early Late Laggards Zeit
Adopters Majority Majority
Geoffrey Moore 1995, 1999

61. Ute Hillmer 08
Why is there a Chasm?
TECHNOLOGY
Techies and Visionaries talk MARKETING
LECTURE
Conservatives watch the Pragmatists before
buying technology
Intro
BUT
Visionaries and Pragmatists don„t respect each Product
other
Customer
Customer
customer references are there
- but not the right ones! Comm.
Strategy

62. Ute Hillmer 08
Why won‟t Pragmatists buy?
TECHNOLOGY
MARKETING
1. Pragmatic customers hold on to the old paradigm LECTURE
2. Customers see the benefit but they don„t have a pressing
Intro
reason to change
3. User and purchasing want to hold on to the old status Product
quo
Customer
Customer
the market reacts reluctant
Comm.
Strategy

63. Ute Hillmer 08
TECHNOLOGY
MARKETING
What can be done? LECTURE
Intro
Product
Customer
Customer
Comm.
Strategy

64. Ute Hillmer 08
Crossing the Chasm successfully
TECHNOLOGY
MARKETING
„Concentrate a overwhelming power LECTURE
on a small, focused target market
Intro
segment“
FOCUS Product
Customer
Customer
Comm.
Strategy

65. Ute Hillmer 08
Pragmatists want Observability
TECHNOLOGY
MARKETING
“… be familiar with the processes and issues that LECTURE
worry these people…”
Intro
 relative advantage
Product
 compatibility
 trialability Customer
Customer
 observability
Comm.
 less complexity Strategy

66. Ute Hillmer 08
What does that mean for Marketing?
TECHNOLOGY
MARKETING
LECTURE
The previous key to success has to be
thrown away! Everything has to be Intro
changed:
rework message and positioning Product
new message: solve a core niche problem
Customer
Customer
get references in this niche
Comm.
Strategy

67. Ute Hillmer 08
Positive Effects of the Focus
TECHNOLOGY
MARKETING
LECTURE
Effective marketing message
Word of mouth (interpersonal networks) Intro
100% product solution is possible Product
Focused investment of resources
Customer
Customer
Usually no competition (not yet)
Possibility for market leadership Comm.
Strategy

68. Ute Hillmer 08
The 100%-Product
TECHNOLOGY
MARKETING
LECTURE
Standards
Additional
and
Software
Procedures
Anything else Intro
Additional
Training Core- Hardware you would need
and
Support Produkt to achieve your Product
compelling
System
Cables
integration reason to buy
Installation
Customer
Customer
and
Debugging
Comm.
Strategy

69. Ute Hillmer 08
Market leadership
TECHNOLOGY
MARKETING
Pragmatists value stability and predictability LECTURE
As long as there is no stability and predictability in the
Intro
market, they will not make a decision. They talk with each
other, they watch and they wait.
Product
A pattern, stability and predictability develops
as soon as there is a clear market leader Customer
Customer
This is the way to the mass market Comm.
Strategy

70. Ute Hillmer 08
Focus – and then?
Situation: TECHNOLOGY
MARKETING
Vendor has market leadership in a small niche + a 100% LECTURE
product for a small niche.
Intro
Next step:
New markets develop automatically, that are close to the Product
focused niche because now there are:
• relative product advantages that almost fit Customer
Customer
• credible references observability
• word of mouth credible communication channels Comm.
Strategy

71. Ute Hillmer 08
Recap: Marketing Plan
TECHNOLOGY
1. Objective 5. Marketing Communication MARKETING
2. Marketing Strategy Target Customer LECTURE
Positioning
Target Customer
Key Message
Compelling reason to buy
Elements of the Communication Mix
Intro
3. Key Issues
Deliverables
4. Product Marketing
Whole Product 6. Partner Marketing Product
Features
Service
Partners & Allies
Benefits
7. Key Account Marketing
Pricing
Customer
Customer
Distribution Channels
Competition
Comm.
Strategy

72. Ute Hillmer 08
Outbound Elements of
Technology Marketing TECHNOLOGY
MARKETING
LECTURE
Characteristics of technology
Intro
Customer profiles
Communication content Product
Technology decision process
Customer
Communication channels / networks
Comm.
Strategy
Strategy

73. Ute Hillmer 08
Communication content
TECHNOLOGY
Two kind of information: MARKETING
LECTURE
Technology information Technology evaluation information
What is it? What are the consequences? Intro
How does it work? What are the benefits?
Product
Why does it work?
Individual evaluation information
Customer
What might it do to me?
How can I benefit? Comm.
Strategy
Strategy
What will I loose?

74. Ute Hillmer 08
Who needs what kind of
information and when?
TECHNOLOGY
MARKETING
Pragmatists:
LECTURE
Stick with the herd!
Marketsize
Conservatives:
Hold on! Intro
Visionaries: Skeptics:
Get ahead! No way!
Product
Techies:
Try it!
Customer
Time
Innovators Early Early Late Laggards Comm.
Adopters Majority Majority Strategy
Strategy
Sources: Rogers Diffusion of Innovation; Moore; Crossing the Chasm

75. Ute Hillmer 08
Level of Concern over Time
for the Mainstream
TECHNOLOGY
MARKETING
LECTURE
Intro
Product
Customer
Comm.
Strategy
Strategy

76. Ute Hillmer 08
Outbound Elements of
Technology Marketing TECHNOLOGY
MARKETING
LECTURE
Characteristics of technology
Intro
Customer profiles
Communication content Product
Technology decision process
Customer
Communication channels / networks
Comm.
Strategy
Strategy

77. Ute Hillmer 08
Technology Decision Process TECHNOLOGY
MARKETING
LECTURE
Knowledge
Intro
Persuasion
Decision Product
Implementation
Customer
Confirmation
Comm.
Strategy
Strategy

78. Ute Hillmer 08
Types of Innovation Decision TECHNOLOGY
MARKETING
LECTURE
• optional innovation decision
Individual‟s influence on the decision
Intro
• collective innovation decision Product
• authority innovation decision Customer
Organizational decision processes
Comm.
Strategy
Strategy

79. Ute Hillmer 08
Outbound Elements of
Technology Marketing TECHNOLOGY
MARKETING
LECTURE
Characteristics of technology
Intro
Customer profiles
Communication content Product
Technology decision process
Customer
Communication channels / networks
Comm.
Strategy
Strategy

80. Ute Hillmer 08
Communication Channels /
Networks TECHNOLOGY
MARKETING
LECTURE
Communication
process in which participants create and share
Intro
information with one another in order to reach a mutual
understanding.
Product
Communication Channels
– connect the informed individual with the others.
Customer
– the means for the information exchange to
communicate a new idea to one or several others.
Comm.
Strategy
Strategy

81. Ute Hillmer 08
Communication Channels (2) TECHNOLOGY
MARKETING
LECTURE
• Mass media channels
Intro
• Interpersonal channels
Product
Customer
Comm.
Strategy
Strategy

82. Ute Hillmer 08
Role of Communication Channels
TECHNOLOGY
MARKETING
• Technology is not evaluated in scientific studies of LECTURE
its consequences (also they are not irrelevant to early
adopters)
Intro
• People depend mainly upon subjective evaluation
from other individuals like themselves Product
 The core motivator is the modelling and imitation
of opinion leaders and peers who have adopted Customer
previously
Comm.
Strategy
Strategy

83. Ute Hillmer 08
Technology and Cultural Change
TECHNOLOGY
MARKETING
Technology adoption always brings about culture LECTURE
change adoption decision is a change in the
“rules for behaviour”. Intro
Sometimes, social structure and culture must Product
change considerably to adopt. The public requires
assurances from opinion leaders to make such a
change. Customer
Comm.
Strategy
Strategy

84. Ute Hillmer 08
Mass Media Channels TECHNOLOGY
MARKETING
Rapid and efficient to inform about the existence LECTURE
of an innovation = awareness creation
Intro
It also gives feedback to potential adopters about
those who have adopted. Product
Because they create awareness, mass
communications place some pressure upon Customer
opinion leaders to make decisions about the new
technology. Comm.
Strategy
Strategy

85. Ute Hillmer 08
Mass Media Channels TECHNOLOGY
MARKETING
LECTURE
are …..
Intro
Product
Customer
Comm.
Strategy
Strategy

86. Ute Hillmer 08
Interpersonal Communication TECHNOLOGY
MARKETING
Interpersonal communications between experts and LECTURE
the public, opinion leaders and the public, peers and
among friends and family = persuasion Intro
Equally as essential as mass communications.
Product
Knowing the viewpoints of close references (e.g.,
family and friends) and opinion leaders is a critical Customer
element of the social comparison process leading to
choice shift.
Comm.
Strategy
Strategy

87. Ute Hillmer 08
Communication Channels TECHNOLOGY
Effectiveness MARKETING
LECTURE
by decision stages
Intro
Mass media is more important at the knowledge stage
Interpersonal channels are more important at the Product
persuasion stage
Customer
Comm.
Strategy
Strategy

88. Ute Hillmer 08
Communication Channels
Effectiveness (2) TECHNOLOGY
MARKETING
LECTURE
by adopter category
Intro
Mass media channels are more important than
interpersonal channels for early adopters;
Product
Interpersonal influence is less important to early adopters
 Mass media channels early in a product life cycle; Customer
interpersonal channels later
Comm.
Strategy
Strategy

89. Ute Hillmer 08
Communication Channels
Effectiveness (3) TECHNOLOGY
MARKETING
Interpersonal Channels and Adopter Profile LECTURE
Intro
Product
Customer
Comm.
Strategy
Strategy
Source: Rogers, Diffusion of Innovations, p. 198

90. Ute Hillmer 08
Mass Media Communication Flow TECHNOLOGY
MARKETING
Transmission of facts alone limited success LECTURE
Media presents positions of proponents and Intro
opponents and opinion leaders are mediating the
information higher success Product
Mass media channels are primarily knowledge
creators (awareness) Customer
Comm.
Strategy
Strategy

91. Ute Hillmer 08
Interpersonal Communication Flow:
Opinion leaders TECHNOLOGY
MARKETING
LECTURE
Social systems have prestige hierarchies
some persons / organisations are Intro
more influential than others
Focus upon wining opinion leaders. It will Product
be opinion leaders who will persuade
others to adopt. Customer
Interpersonal networks persuade Comm.
Strategy
Strategy

92. Ute Hillmer 08
Communication Networks
TECHNOLOGY
Networks have a certain degree of MARKETING
LECTURE
structure, of stability. This structure is so
complex, that even the members of the Intro
system do not understand the
communication structure of which they
Product
are part.
100 members: 4.950 links Customer
200 members: 19.900 links
Comm.
Strategy
Strategy

93. Ute Hillmer 08
Interpersonal Communication Networks TECHNOLOGY
MARKETING
LECTURE
• Interconnected individuals who are linked
by patterned communication flows to a Intro
given individual.
Product
• Individual behaviour is determined in part
by information and influence that is Customer
communicated through the individual's
personal network. Comm.
Strategy
Strategy

94. Ute Hillmer 08
Interpersonal Networks (2) TECHNOLOGY
MARKETING
Interlocking personal networks LECTURE
a network of individuals, all of whom interact
with each other Intro
Radial personal networks Product
a set of individuals linked to a focal individual
(opinion leader) but not interacting with each
other. Such networks are less dense and Customer
more open
Comm.
Strategy
Strategy

95. Ute Hillmer 08
Interpersonal Networks (3) TECHNOLOGY
MARKETING
are… LECTURE
Intro
Product
Customer
Comm.
Strategy
Strategy

96. Ute Hillmer 08
Radial Personal Networks
"the strength of weak ties" TECHNOLOGY
MARKETING
LECTURE
Weak ties occur with individuals only
marginally included in the current network Intro
of contacts
They allow the exchange of information Product
with a wider environment
Particularly important in the diffusion of Customer
innovations because the links reach out to
the entire system Comm.
Strategy
Strategy

97. Ute Hillmer 08
Radial Personal Networks “the
strength of weak ties“ (2) TECHNOLOGY
MARKETING
LECTURE
new information flows stronger in weak
ties, because an individuals close Intro
friends seldom know much more that
the individual does not also know. Product
Communication proximity:
Customer
the degree to which two individuals in a network
have overlapping personal communication
Comm.
networks Strategy
Strategy

98. Ute Hillmer 08
Similarity in Networks TECHNOLOGY
MARKETING
LECTURE
individuals tend to be linked to others who
are close to them in physical distance and
Intro
who are relatively homophilious = similar in
social characteristics.
Product
Network links with similar individuals require
the least effort (easy communication) and are
Customer
most rewarding (agreement on many terms).
Comm.
Strategy
Strategy

99. Ute Hillmer 08
Similarity in Networks (2) TECHNOLOGY
MARKETING
Technology diffusion demands a certain LECTURE
degree of heterophily to be effective
Intro
 If individuals want more information, they Product
must break out of the comfort of close links
and form more open and spatially distant
network links. Customer
Comm.
Strategy
Strategy

100. Ute Hillmer 08
Personal Networks and Thresholds TECHNOLOGY
MARKETING
A threshold is reached when an individual is LECTURE
convinced to adopt as the result of knowing
that some minimum number of other Intro
individuals have adopted
The threshold is an individual level. Product
Customer
Comm.
Strategy
Strategy

101. Ute Hillmer 08
Personal Networks and Thresholds (2) TECHNOLOGY
MARKETING
some people adopt late, but early within their LECTURE
personal network - a lack of network
exposure to the innovation Intro
some people adopt easily within the entire
system but late within their personal network Product
 a person is more likely to adopt if more of the
other individuals in his or her personal Customer
network have adopted previously
Comm.
Strategy
Strategy

102. Ute Hillmer 08
Technology-adoption Life-cycle
- the Cycle in the Cycle TECHNOLOGY
MARKETING
LECTURE
Marketsize
Intro
Product
Customer
Time
Innovators Early Early Late Laggards Comm.
Adopters Majority Majority Strategy
Strategy

103. Ute Hillmer 08
Mainstream Behaviour
number of adoptions
Noncumulative
TECHNOLOGY
MARKETING
LECTURE
Intro
Product
Increasingly
conforming behaviour
Customer
Innovators Early Early Late Laggards Time
Adopters Majority Majority Comm.
Strategy
Strategy
Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12

104. Ute Hillmer 08
Individualistic Behaviour
number of adoptions
Noncumulative
TECHNOLOGY
MARKETING
LECTURE
Intro
Product
Increasingly
individualistic
behaviour Customer
Innovators Early Early Late Laggards Time
Adopters Majority Majority Comm.
Strategy
Strategy
Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12

105. Ute Hillmer 08
Group-Identities vs. Role-Identities
During Technology Adoption
TECHNOLOGY
MARKETING
number of adoptions
LECTURE
Noncumulative
Multiple, coherent
Group-Identity dominates
group and role
identities that Role-Identity dominates
Intro
balance the
individual
Product
Customer
time
individualistic endorsement Comm.
Individualistic behaviour
conforming behaviour
behaviour Strong ROLE-identityStrategy
strong GROUP-identity
Strong ROLE-identity “I am part of it” “I can and will change it”
“I can change it”

106. Ute Hillmer 08
Recap: Marketing Plan
TECHNOLOGY
1. Objective 5. Marketing Communication MARKETING
2. Marketing Strategy Target Customer LECTURE
Positioning
Target Customer
Key Message
Compelling reason to buy
Elements of the Communication Mix
Intro
3. Key Issues
Deliverables
4. Product Marketing
Whole Product 6. Partner Marketing Product
Features
Service
Partners & Allies
Benefits
7. Key Account Marketing
Pricing
Customer
Distribution Channels
Competition
Comm.
Strategy
Strategy

107. Ute Hillmer 08
E-Learning Case Study
TECHNOLOGY
MARKETING
Develop the key components of a marketing and LECTURE
marcom plan for a product in the fast moving e- Intro
learning (online learning) segment.
Product
Customer
Comm.
Strategy

108. Ute Hillmer 08
E-Learning Case Study 1
Your company is in the business of developing and marketing e- TECHNOLOGY
learning software for the institutional or organisational market. A MARKETING
LECTURE
strategic move is to develop a software application, especially
targeted at the academic online-learning market. You and your
team are in charge to develop the market oriented part of the Intro
business plan for, what is hoped to become a new, breakthrough
software application within the next 2-3 years. Product
At the end of the 4 days, your team is expected to present an
outline of the marketing- and marcom-plan to the board, the VP of
Customer
R&D as well as the VP of sales and marketing in order to get their
OK for the necessary funding and the time allocation of the
respective teams necessary for the project. (Joint presentation at Comm.
Strategy
the end of the 4th day, each team member presenting about 5
minutes).