Marketing High-Tech Products

Agenda

1. THE TECHNOLOGY ADOPTION LIFE CYCLE

2. A COMMON MISCONCEPTION IS THAT THE LIFE CYCLE IS CONTINUOUS. IT'S NOT!

3. HOW TO MAKE THE TRANSITION FROM ONE MARKET STAGE TO OTHERS

4. RESEARCHING YOUR MARKETS

5. THE "ELEVATOR TEST"

6. OTHER CRITERIA FOR SUCCESS

7. YOUR PLAN

1. THE TECHNOLOGY ADOPTION LIFE CYCLE

Sees your product can provide a competitive edge
Knows there will be problems that will have to be worked out (Components of the whole product have yet to be devised.)
Will invest heavily because he/she expects to obtain a competitive edge.
Will work with you to develop the whole product
On the fast-track: He/She won't be around long enough to live with your product. He/She will move on quickly.

Skeptics
Won't buy until after having experienced being left behind - not really a market!

2. A COMMON MISCONCEPTION IS THAT THE LIFE CYCLE IS CONTINUOUS. IT'S NOT!

These are really different markets, requiring different marketing strategies.
Progression from one market to another is perilous
Each market stage references others within the same market stage.
References from other segments are irrelevant
Develop different advertising, promotion, and distribution strategies that reflect the characteristics desired by each market stage.

You need to first dominate a small market segment - one that is only a few multiples larger than your own projected annual revenue
Provide a complete solution - take a problem off your customers' hands.
Service them.
Each market segment wants to identify the market leader, then stick with the leader.
Then they will rally behind you, and conspire to keep others (your competitors) out.
Then, having dominated your first target market, you expand into other market segments

You need to understand your customers mindset. Talk to them. Find out how they perceive your product, its benefits, you, and your competitors.
Read the trade journals and press that your customers read.
Questionnaires - pay customers $10 to answer them!
Talk to your competitors & their customers
Industry Insiders (Salesmen, Editors of Trade Journals, Association representatives). Their insights can be invaluable, and dramatically affect your strategy.
You'll often get 15 minutes on the phone for free. Perhaps offer to pay them $100 to spend an evening with you. They'll usually be flattered, often decline payment, offer advice, and maybe even join your team - perhaps informally at first, then maybe even permanently as your relationship grows.

Advertising kits of trade journals and magazines are full of statistical information about your market!
Association membership lists
Government Statistics: SIC (Standard Industry Classifications)
On-line commercial databases ("Dialog" is a pay-as-you-go gateway to 450 databases concerning every conceivable topic of human endeavor)
Stock Analysts' "Investment" Reports. These are often a consolidation of several of professional researchers reports, couched to hype the stock they are promoting.
Market reports by professional researchers (Typical price = $1,000 to $3000)
Take advantage of the Science Council's generous MART funding (3/4 of the cost!)

A readily identifiable target market
A unique product
... with an obvious customer benefit
You can sell it at 4 to 5 times your manufacturing cost
Easy to distribute - Try to tap into someone else's established distribution channel