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Marketing Principles in Commercialization of High Technology Session 1 Persuasion and Marketing Session 1 Objectives Describe the roles of marketing in the commercialization process

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Marketing Principles in Commercialization of High Technology

Session 1

Persuasion and Marketing


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Session 1 Objectives

  • Describe the roles of marketing in the commercialization process

  • Describe the relationship between Jolly’s concepts of mobilization and the five subprocesses of commercialization

  • Develop a persuasive proposal that incorporates an understanding of the buying process, the persuasion process, needs, and features.

  • Compare and contrast the elements of a marketing plan vs. a persuasive proposal.

  • Describe the relationship between corporate mission and strategy and a marketing plan.


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I.Executive Summary

II.Marketing Situation Analysis

III.Opportunity and Issue Analysis

IV.Objectives

V.Marketing Strategy

VI.Action Programs

VII.Projected Profit-and-Loss

VIII.Controls

The Marketing Plan*

*Year 1 of a 3-year strategic plan


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  • Customers

  • Competitors

  • Collaborators

  • Company

  • Context/Macroenvironment

5

C’s


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Segmentation

S

T

P

Targeting

Positioning


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Product

Price

Place

Promotion

4

P’s

Marketing Mix


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Traditional View of Marketing

  • Helpful

  • Limiting

    • Customer “pull” vs. Technology “push”


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Traditional View of Marketing

  • Helpful

  • Limiting

    • Customer “pull” vs. Technology “push”

    • Doesn’t address communication and persuasion during the “bridging/ mobilization” stages of technology commercialization.


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The Process of Technology Commercialization

Subprocesses1

Building the Value of a New Technology

3.

Incubate

to define commer-

cializability

5.

Demonstrate

contextually

in

products

and

processes

7.

Promote

adoption

9.

Sustain commercial-ization

1.

Imagine

the dual

(techno-market)

insight

2.

Mobilize Interest

and endorse-ment

4.

Mobilize resource

for

Demo

6.

Mobilize market consti-tuents

8.

Mobilize

complimen-tary assets for delivery

Source: Jolly, Vijay. From Mind to Market, 1997


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The Bridging Subprocesses

  • Critical activities are:

    • Reaching out

    • Interesting others

    • Influencing stakeholders and customers

  • Early bridges deal more with technology transfer

  • Later bridges deal with more explicitly with sales and distribution activities

  • One constant in each stage is marketing

Bridges: Satisfying and Mobilizing Stakeholders at Each Stage (2, 4, 6, 8)


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Bridge the Stages

Advocacy activities . . .

  • Mobilize interest of stakeholders

  • Mobilize resources to continue the commercialization process

  • Mobilize market constituents

  • Mobilize complimentary assets for delivery


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Bridging

  • “Human nature and psychology are as much parts of the calculus as objectively derived costs and benefits. Bridging involves taking the interests and the understandably different criteria of those whose help is sought into account while being evangelical. And it involves actively orchestrating the entire process by intervening across all the issues that matter…”

Jolly, p. 335


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The Role of the Commercialization Professional

  • Shepherd a new technology

    • from research,

    • through development, engineering, and manufacturing,

    • and ultimately to the customer.

  • Design a successful marketing/launch plan.


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Stimulating Value RecognitionGetting someone to see the value in something

  • Determine:

    • their everyday problems and needs

    • how they are *currently* meeting those needs

    • competitive ideas/products/services meeting those needs

  • Demonstrate

    • how your proposition can meet their needs better than the current/competitor’s method


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The Importance of Persuasion

  • External marketing:

    • “Persuading the masses to buy.”

  • Internal marketing:

    • Convincing management that a technology is worthy of continued support

    • Convincing a potential funder that the technology is worthy of funding.


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Key Concepts in Persuasion

  • Structured thinking process

  • Debugging proposals (Linkages between sections)

  • Two principles

    • Fix responsibility

    • Structure messages with receiver in mind

  • Buying Process

  • Persuasion Process

  • Needs


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Buying Process

Need

Recognition

Search

Evaluation

of Alternatives

Decision


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Key Concepts in Persuasion

  • Structured thinking process

  • Debugging proposals (Linkages between sections)

  • Two principles

    • Fix responsibility

    • Structure messages with receiver in mind

  • Buying Process

  • Persuasion Process

  • Needs


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Persuasion Process

  • (Audience definition)

  • (Statement of *your* objective)

  • Statement of audience needs (Conscious)

  • (Agreement on audience needs)

  • Plan

  • How it Works

  • Results

  • Next Step(s)


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Unifying Concept: The Marketing Plan

I.Executive Summary

II.Marketing Situation Analysis

III.Opportunity and Issue Analysis

IV.Objectives

V.Marketing Strategy

VI.Action Programs

VII.Projected Profit-and-Loss

VIII.Controls

*Year 1 of a 3-year strategic plan


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Corporate* Strategic Planning

  • Recall or revise the mission

  • Select strategic segments

  • Allocate resources

  • Choose among business development possibilities

* or Entrepreneurial


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Pillsbury

Plus

Bundt &

Streusel Swirl

Mushrooms

& LeSueur

Brownies

7 Majors

Buffet &

Specialty

I. Executive Summary

I. Executive Summary

I. Executive Summary

I. Executive Summary

I. Executive Summary

I. Executive Summary

II. Current Marketing Situation

II. Current Marketing Situation

II. Current Marketing Situation

II. Current Marketing Situation

II. Current Marketing Situation

II. Current Marketing Situation

III. Opportunity and Issue Analysis

III. Opportunity and Issue Analysis

III. Opportunity and Issue Analysis

III. Opportunity and Issue Analysis

III. Opportunity and Issue Analysis

III. Opportunity and Issue Analysis

IV. Objectives

IV. Objectives

IV. Objectives

IV. Objectives

IV. Objectives

IV. Objectives

V. Marketing Strategy

V. Marketing Strategy

V. Marketing Strategy

V. Marketing Strategy

V. Marketing Strategy

V. Marketing Strategy

VI. Action Programs

VI. Action Programs

VI. Action Programs

VI. Action Programs

VI. Action Programs

VI. Action Programs

VII. Projected Profit-and-Loss

VII. Projected Profit-and-Loss

VII. Projected Profit-and-Loss

VII. Projected Profit-and-Loss

VII. Projected Profit-and-Loss

VII. Projected Profit-and-Loss

VIII. Controls

VIII. Controls

VIII. Controls

VIII. Controls

VIII. Controls

VIII. Controls

Corporate (Strategic Plan)

SBU #1 Plan

SBU #2 Plan

SBU #3 Plan

Refrigerated

Dough

Green

Giant

Baking

Mixes

Marketing Plans


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I.Executive Summary

II.Marketing Situation Analysis

III.Opportunity and Issue Analysis

IV.Objectives

V.Marketing Strategy

VI.Action Programs

VII.Projected Profit-and-Loss

VIII.Controls

The Marketing Plan*

*Year 1 of a 3-year strategic plan


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I.Executive Summary

II.Marketing Situation Analysis

Customers

Competition/Industry

5 C’s

Company

Collaborators

Context (macroenvironment)

Plus: Market Potential and Demand

III.Opportunity and Issue Analysis

IV.Objectives

V.Marketing Strategy

VI.Action Programs

VII.Projected Profit-and-Loss

VIII.Controls

*Year 1 of a 3-year strategic plan


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I. Executive Summary

II. Current Marketing Situation

III. Opportunity and Issue Analysis

IV. Objectives

V. Marketing Strategy

VI. Action Programs

VII. Projected Profit-and-Loss

VIII. Controls

Opportunities/Issues Analysis

  • Analyze current situation (5 C’s)

    • Context (macroenvironment), Competition/Industry, Customer, Collaborators, Company

  • Identify opportunities/threats (external)

  • Identify organizational strengths and weaknesses that are related to those opportunities and threats (internal)


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I. Executive Summary

II. Current Marketing Situation

III. Opportunity and Issue Analysis

IV. Objectives

V. Marketing Strategy

VI. Action Programs

VII. Projected Profit-and-Loss

VIII. Controls

Objectives

  • Financial Objectives

    • Produce contribution of $1.8 million

    • Produce net profits of $.8 million

  • Marketing Objectives

    • Sell 100,000 widgets

    • Increase customer awareness from 15% to 30%

    • Achieve 10% share of the widget market


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The Marketing Plan

I.Executive Summary

II.Current Marketing Situation

III.Opportunity and Issue Analysis

IV.Objectives

V.Marketing Strategy

Segmentation, Targeting

Differentiation, Positioning

Marketing Mix (4 P’s)

VI.Action Programs

VII.Projected Profit-and-Loss

VIII.Controls


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I.Executive Summary

The Marketing Plan

II.Current Marketing Situation

III.Opportunity and Issue Analysis

IV.Objectives

V.Marketing Strategy

VI.Action Programs

TACTICS (specifics and timing):

Product Design details

Pricing details

Promotional details

Place/distribution/alliance details

VII.Projected Profit-and-Loss

VIII.Controls


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I.Executive Summary

The Marketing Plan

II.Current Marketing Situation

III.Opportunity and Issue Analysis

IV.Objectives

V.Marketing Strategy

VI.Action Programs

VII.Projected Profit-and-Loss

One Year Basic Financials

Sales Units

Sales Price and Gross Sales

Cost of Goods Sold

Gross Margin

Marketing Expense

SG&A Expense

Net Margin

VIII.Controls


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I.Executive Summary

The Marketing Plan

II.Current Marketing Situation

III.Opportunity and Issue Analysis

IV.Objectives

V.Marketing Strategy

VI.Action Programs

VII.Projected Profit-and-Loss

VIII.Controls

  • Methods of tracking progress

  • Methods of evaluating progress

  • Contingency plans


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    Objective

    • Develop effective marketing strategy to:

      • “sell” an idea

      • license a technology

      • introduce a new product

      • support an existing product


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    Persuasive Proposal

    • Review: Key Elements of Persuasive Proposal

      • Understand your customer’s buying process.

      • Understand the persuasion process.

    • Reflect back now

      • A Marketing plan has two audiences

        • upper management, or a funding source

        • customer

      • Think through what you see as the similarities and/or differences between a persuasive proposal and a marketing plan.


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    Persuasion and Marketing

    • Determine audience (segments/target)

    • Collect information to turn into opportunities

      • stakeholder needs (customer)

      • competition, company, collaborators, context

    • Set objectives (communication, results)

    • Develop strategy

      • determine how I/P/S* meets needs (results) vs. competition

      • positioning = communicating how

    * idea/product/service


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    Market Research Overview


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    Sources of Information About Markets and Customers

    • Subjective information

      • intuitive prediction

    • Objective information

      • market research


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    Subjective InformationBenefits

    • Primary input during idea generation and screening for new product development.

    • Strategic advantage to introduce quickly.


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    The Average American Consumer Quiz

    % of consumers agreeing

    Sample questions

    % Male % Female

    1. A nationally advertised brand is usually better than ________ _________

    a generic brand

    2. I went fishing at least once in the past year ________ _________

    3. I am a homebody ________ _________

    5. The government should exercise more control over ________ _________

    what is shown on television

    6. Information from advertising helps me make better ________ _________

    buying decisions

    7. I like to pay cash for everything I buy ________ _________

    9. I am interested in spices and seasoning ________ _________

    (Note: not all questions included)

    Hoch (1988) Journal of Consumer Research


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    Predicting the Interests and Opinions of the American Consumer:

    Hoch (1988) Journal of Consumer Research


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    Sources of Information

    • Subjective information

      • intuitive prediction

    • Objective information

      • market research

      • data works better most of the time!


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    Market Research Uses

    • Technology Assessment

    • Product Development

    • Marketing (Launch) Plan


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    Market Research Uses

    • Technology Assessments

      • Initial quick assessment (Quick Look)

      • In-Depth

    • Product Development

    • Marketing (Launch) Plan


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    Market Research Uses

    • Technology Assessment

    • Product Development

      • Understand customer problems/needs

      • Concept testing

      • Assess potential market size

      • Market testing

    • Marketing (Launch) Plan


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    Market Research Uses

    • Technology Assessment

    • Product Development

    • Marketing (Launch) Plan

      • Situation Analysis

        • Macroenvironment

        • Industry/Competition

        • Company/Product

        • Customers

        • Collaborators

      • Setting Objectives

      • Developing Marketing Strategy


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    Market Research Uses

    • Technology Assessment

    • Product Development

    • Marketing (Launch) Plan

      • Situation Analysis

      • Setting Objectives

        • Estimating market potential

        • Estimating demand

      • Developing Marketing Strategy


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    Market Research Uses

    • Technology Assessment

    • Product Development

    • Marketing (Launch) Plan

      • Situation Analysis

      • Setting Objectives

      • Developing Marketing Strategy

        • Segmentation and Targeting

        • Differentiation and Positioning

        • Product

        • Pricing

        • Promotion

        • Place/Distribution


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    Pros

    Cons

    Primary Research

    • Surveys

    • Interviews

    • Focus Groups

    • Observation

    • Experimental


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    Secondary Research Sources

    • Internal Company Data


    Secondary research l.jpg

    Fast (relatively)

    Inexpensive (relatively)

    Readily available

    May be high quality

    Could be out of date

    May not exactly address your question

    Secondary Research

    Pros

    Cons


    Secondary sources of information external l.jpg

    Annual reports

    Trade associations

    Professional associations

    Statistical Abstract of U.S.

    National Trade Database

    Survey of Buying Power

    Trade/Consumer Publications

    Trade Shows & Professional Exhibits Directory

    WWW – Search Engines

    WWW – Research Sites

    Reference desk

    Secondary Sources of Information - External

    Library


    Sources of information l.jpg

    Customers

    Benchmarking

    Partnerships

    Study trips

    Annual reports

    Patents/Licenses

    SEC filings (U.S.)

    Advertising agencies

    Trade Shows/Conventions

    Trade/professional associations

    Suppliers/subcontractors/distributors

    Sources of Information


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    Early Stage Market Research

    • Traditional market research helpful

    • Certain elements work better for very early stage research

      • Interviewing inventors/development teams

      • Talking to customers and collaborators


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    Review/Wrap-Up

    • Marketing concepts in commercialization

    • Persuasion concepts in marketing

    • The Marketing Plan

    • Market Research Overview


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    Session 1 Objectives

    • Describe the roles of marketing in the commercialization process

    • Describe the relationship between Jolly’s concepts of mobilization and the five subprocesses of commercialization

    • Develop a persuasive proposal that incorporates an understanding of the buying process, the persuasion process, needs, and features.

    • Compare and contrast the elements of a marketing plan vs. a persuasive proposal.

    • Describe the relationship between corporate mission and strategy and a marketing plan.


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    Assignment Summary(See Syllabus for details)

    • Write a Persuasive Proposal as per instructions in Aubuchon, Ch. 15.

      • Include both the outline and the one-page proposal.

      • Submit electronically to Kate by 06/01

    • Reading

    • Prepare/post study questions in Discussion Board – Session 2

    • Prepare information for interviewing exercise


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