1.
Consumer fear, uncertainty, and doubt (FUD)
[Link] needs change rapidly and unpredictably
[Link] anxiety over the lack of standards and dominant design
[Link] over the pace of adoption
[Link] over/inability to forecast market size
Technological uncertainty .
Here are the five points in very simple words:
1. Not sure if it will work well.
2. Don’t know when it will be ready.
3. Worried no one can fix problems.
4. Afraid of unexpected issues.
5. Worried it will become old fast.
Competitive volatility.
1. Not sure who the competitors will be.
2. Don’t know how competition will work.
3. Unsure what kind of products will compete.
Define the two types of Network Externalities ?
There are two types of network effects:
1. Direct network effects: The product becomes more valuable as more people use it (also
called the bandwagon effect).
2. Indirect network effects: The product’s value depends on related products, like games
for consoles or DVDs for DVD players.
Compare between Incremental Innovations and
Breakthrough Innovations!
Incremental Innovations:
1. Building on current products or methods.
2. Small upgrades using existing technology.
3 Changes are gradual, not drastic.
Breakthrough Innovations:
[Link] new products
2. Big changes in core technologies and methods.
3. New, revolutionary ideas that create new markets.
Discuss the difference between architectural Innovations
and modular innovations?
Architectural innovation:
1. New ways for system parts to work together.
2. Based on scientific principles
3. Different from current technologies, often seen as radical.
Modular Innovations:
1. New parts or materials within the same technology.
2. Example: Magnetic tape, floppy disk, and zip disk use different materials but are all
based on magnetic recording.
What is the marketing mix tools and at which level are
marketing mix decisions
made?
Answer: marketing mix include Product, Price, “Place” (distribution), Promotion.
1. Product: Develop products with the right features to meet customer needs. Includes new
product development, licensing, and intellectual property.
2. Price: Set prices considering production costs, competitor prices, customer value, and
profitability, including product bundles.
3. Place: Manage distribution channels and supply chains.
4. Promotion: Use tools like advertising, sales promotions, personal selling, public
relations, and online media
5. Marketing mix: All decisions are made at the strategic level.
Why Do So Many High-Tech Innovations Fail?
Answer
* Some high-tech companies believe that marketing is unnecessary
* The role of marketing is downplayed or misunderstood
* Marketing for high-tech products is complicated and difficult
* Marketing is an after-thought to product development
* Cross-functional collaboration is difficult
* High-technology companies are not “market-driven”
Tutorial3
Q1: List the reasons to partner.
[Link] resources and skills
2. Gain cost efficiencies
3. Speed ti6me-to-market
4. Access new markets
5. Define industry standards
6. Develop innovations and new products
7. Develop complementary products
8. Gain market clout
Q2: List the factors contributing to partnership success ?
1. Both partners depend on each other.
2. Be careful with partners that are much bigger or smaller
3. Have a clear system for managing the partnership.
4. Both partners are committed to protecting each other
5. Trust the partner’s intentions.
6. Communicate clearly and effectively.
7. Share similar company cultures
8. Resolve conflicts cooperatively, not through aggressive negotiation.
Q3: What are the risk associated with Partnering ?
1. Total failure of the partnership.
2. Losing control and independence.
3. Risk of sharing confidential information with the partner
4. Possible legal or antitrust problems
5. Not meeting the goals of the partnership.
Tut 5
2- What are the four generic customer acquisition
strategies?
1. Full Throttle: Spend heavily on marketing to quickly grow market share.
Example: A streaming service offering discounts and big ads.
2. Selective: Target specific customer groups for better conversions.
Example: A luxury car brand focusing on high-income customers with exclusive events.
[Link] Pay as You Go: Spend only when a potential sale happens, optimizing
marketing budgets.
Example: Paying for ads only when someone clicks on them.
4 .Restructure Divest: Reevaluate customer acquisition efforts, focusing on profitable
segments, and possibly cutting less profitable ones.
Example: Discontinuing a low-revenue product and focusing on more profitable ones.
From the Product Life Cycle, Innovation, and the Role of
Alliances
perspective, Compare between the Emergence stage and
the growth
stage?
Buyers and their characteristic: -
Emergence stage:
Innovators have few needs, but they are very particular about them.
1. They expect a clear understanding of the benefits and risks of the innovation. As
gatekeepers, they can affect a product's success if it surprises them.
2. If they face a problem, they want to speak with the most knowledgeable person in the
company for help.
3. They want the new technology early and at a low cost.
Growth stage
Early Adopters are people who use new technology to improve their business.
1. They understand the potential of new technology and don’t mind paying more for it.
2. They want to use the technology quickly before the chance is gone.
3. Sellers need to understand what these buyers want and explain how the product will
help them.
4. This group is important because it brings in a lot of money and is usually profitable
because they’re not worried about the price.
Competition and Alliances
Emergence stage:
At the emergence stage, there may be little direct competition, but there are often
competing standards.
Alliances can be formed around standards or licensing.
In the growth stage, the companies that succeed in creating the main design allow others
to use their technology. They also work together through R&D partnerships to improve the
design and add new features or products.