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Chapter Updates

Chapter 1: Introduction to the World of High-Technology Marketing

  • Provides more thorough overview of the role of marketing in the high-tech company;
  • Offers a broader presentation of the types of innovation (including for example, disruptive versus sustaining innovations; architectural versus modular innovations);
  • Introduces key topics such as technology life cycles and industry standards (dominant designs) earlier in the text;
  • Previews new topics including corporate social responsibility, base of the pyramid marketing, and the intersection of technology and solving global problems (energy technologies, health care, One Laptop Per Child, etc.)

Chapter 2: Strategic Market Planning in High-Tech Firms

  • As the foundation for competitive strategy, the value proposition is covered more explicitly; the pros and cons of three types of value propositions (the “All Benefits” value proposition, the “Favorable Points of Difference” value proposition, and the “Resonating Focus” value proposition) are addressed.
  • Provides thorough coverage of four archetypical strategy types (the Product Leader/Prospector, the Fast Follower/Analyzer, the Differentiated Defender/ Customer Intimate strategy, and the Low Cost Defender/Operationally Excellent strategy) that each can be successful under the right conditions.
  • Discusses how to develop a marketing performance measurement system, including marketing dashboards, which provides specific feedback on what is working well and what needs to be modified.

Chapter 3: Culture and Climate Considerations for High-Tech Companies

  • In recognition of the importance of culture, the organization’s shared values, the topic now has its own chapter;
  • Gives greater consideration to the characteristics of a culture of innovation, and the facilitators and obstacles to maintaining a culture of innovativeness.

Chapter 4: Market Orientation and Cross-Functional (Marketing–R&D) Interaction

  • Provides the latest evidence of how being market-oriented leads to superior performance.
  • Differentiates between responsive (market-driven) and proactive (market-driving) dimensions of market orientation.
  • Includes questions for companies to assess their performance on each dimension of market orientation.
  • Integrates the section on new product development teams (which appeared in the Product/Technology Management chapter in 2/e) into the section on cross-functional interactions.
  • Provides more comprehensive discussion of the benefits of, facilitating conditions for, and challenges to the effective functioning of cross-functional development teams.
  • Continues the focus on the Marketing/R&D interaction as crucial in high-tech companies.

Chapter 5: Partnerships, Alliances, and Customer Relationships

  • Includes a broader presentation of the types of alliances, including, for example, alliances for new product development, industry clusters, and networks used for an open innovation model.
  • Provides extended coverage of the issues in managing outsourcing in high-tech companies.
  • The section on managing customer relationships has been significantly modified to reflect best-practices in this area, including managing customers as investments to maximize customer equity.

Chapter 6: Marketing Research in High-Tech Markets

  • Provides benchmarking data on spending on market research by a variety of industries and companies.
  • Moved the detail on “how-to” for each marketing research technique into a Table.
  • Provides thorough coverage of two new topics.
    • customer-driven innovation/ customer co-creation;
    • biomimicry - innovation inspired by nature.
  • Adds coverage of an important quantitative forecasting model, the Bass diffusion model.

Chapter 7: Understanding High-Tech Customers

  • Highlights the important role of product design on consumers’ product evaluation decisions.
  • Adds new information on product end-of-life decisions such as disposal and recycling.
  • Given the latest research on topics such as feature fatigue, provides an extended discussion of complexity as a factor affecting Adoption of Innovation.
  • Offers improved structure to the section on Crossing the Chasm, with better discussion on identifying a beachhead, developing a whole product for adjacent markets, and other important chasm considerations (such as developing industry standard to reduce customer risk, positioning against competition, simplifying the product by reducing features, and beefing up customer service).
  • Adds a new discussion of vertical and horizontal market segments as segmentation alternatives.
  • Includes new tools for positioning – multi-attribute models and perceptual maps.
  • Covers a new factor that affects customer migration decisions - positioning and pricing of upgrades.
  • Concludes with the paradoxical relationship consumers have with technology and implications for high-tech marketing (previously in Chapter 12 in the second edition).

Chapter 8: Technology and Product Management

  • Contains new material on the opportunities and challenges for companies presented by digital convergence trends.
  • Provides more thorough coverage of the pros/cons of choosing a holistic product strategy (complete end-to-end solution) with a company’s own proprietary platform, or offering a more component-based/modular approach with an open platform for third-party providers to leverage.
  • Includes a new section on the role of Product Management in the High-Tech Company.
  • Offers a major rewrite of the section on Intellectual Property Considerations.

Chapter 9: Distribution Channels and Supply Chain Management in High-Tech Markets

  • Offers more extensive coverage of company-owned/direct distribution channels, including:
    • the company’s sales force (including an overview of the interactions between Marketing and Sales)
    • company-owned retail outlets
    • sales over the company’s own Website, and issues related to cannibalization and channel conflict.
  • Provides a new section on multi-channel marketing.
  • A new section, titled “Emerging Considerations in Distribution Channels, covers new topics such as the distribution for digital goods and considerations related to “the Long Tail,” as well as the unique distribution needs for developing (base-of-the-pyramid) markets.
  • Considers four different types of supply chains that are matched to the different levels and combinations of demand and supply uncertainties: efficient supply chains, risk-hedging supply chains, responsive supply chains, and agile supply chains
  • Explores a wide variety of technologies used to support best-practices supply chain management, including online platforms such as electronic marketplaces (hubs or exchanges) and e-procurement, reverse auctions, the wide variety of software for supply chain management including sales and operations planning (S&OP) software and service-oriented architectures, and RFID technologies.
  • Discusses the emerging trend in supply chain management called green supply chains that consider environmental impacts of all decisions from sourcing to transportation to consumption and end-of-life disposal.

Chapter 10: Pricing Considerations in High-Tech Markets

  • Presents the concept of experience curves and how they affect pricing of high-tech durables.
  • Discusses cross-price elasticity of demand and how competition from other technologies affects pricing decisions.
  • Provides explicit examples of life-cycle costing (total cost of ownership) for a variety of types of products, including CRM software and environmentally friendly durables.
  • Updates the section on the technology pricing paradox, in which companies must find new models for profitability given the inexorable downward pressure on price—which at the extreme means technology is free; this section weaves in cutting-edge material from the popular business press.
  • Other new topics include reference price, smart (or dynamic) pricing, and price promotions.

The topic of marketing communications now has two chapters, 11 and 12, devoted to it.

Chapter 11: Marketing Communication Tools for High-Tech Markets

  • Discusses all the traditional advertising and promotion tools with a “new media” spin.
  • Offers a new section on Internet Advertising and Promotion, grounded in permission-based marketing, that includes new media techniques for behavioral targeting, Search Engine Optimization, Web 2.0 tools for marketing purposes (such as social networking, tagging, blogs, podcasting, video and virtual worlds, the role of widgets and gadgets), and mobile advertising (including location-based services).
  • Covers ways in which the traditional media industries are dealing with the disruption posed by new media.
  • Covers the material on Website design (previously in the E-commerce chapter in the prior edition), with an eye to the role of a company’s Website in its advertising-and-promotion mix.
  • Offers expanded coverage of Web analytics and ways to measure the effectiveness of a Web site.

Chapter 12: Strategic Considerations in Marketing Communications

  • By dedicating a chapter to them, offers expanded coverage of two strategic issues in marketing communications: strategic brand management and new product preannouncements.
  • Adds a new section on the benefits and risks of branding to companies and customers.
  • Covers new brand-building strategies including harnessing Web 2.0 technologies and new media, thinking strategically about corporate social responsibility, and utilizing effective internal branding.
  • Continues the coverage on ingredient brand strategies.
  • Updates the section on product preannouncements with the latest academic research and plenty of new and interesting business examples.

Chapter 13: Strategic Considerations for the Triple Bottom Line in High-Tech Companies

  • Has been completely revamped to incorporate the latest writings on corporate social responsibility, including the triple bottom line (profits, people, planet)
  • Addresses the research findings regarding the relationship between corporate social performance and company financial performance
  • Includes new sections on:
    • The interaction of company strategy with environmental considerations
    • Social entrepreneurship and bottom-of-the-pyramid strategies
  • Updates the material on the digital divide with a global focus
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