Marketing Management in the World of High Technology & Innovation (HTIM)

Course Outline

Indian Institute of Management, Bangalore PGP II, Term V September 5 to November 24, 2011

Course Essentials
Instructor: Prakash Bagri email:prakash.bagri@iimb.ernet.in campus phone: Teaching Assistant: Anup Krishnamurthy (FPM 2009) email:anup.krishnamurthy09@iimb.ernet.in Session Times: 11.45 1.15pm, Wednesday & Thursday*

Class-room: Course Resources url:

C 12* (on Moodle)

* unless otherwise intimated

Course Textbook
Marketing of High Technology Products and Innovations (2010) Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater 3rdEdition(ISBN:9788131761076)

Bibliography of additional and recommended readings is appended as Annexure I and II.

Background
The high technology (hi-tech) world is characterized by a chaotic environment in which the products, players and users are constantly changing. Profitable and well-differentiated products segments could suddenly face commoditization pressures at the entry segment, or even disruptive technologies at the high end eating into their business. Technology innovation could lead to blurring of boundaries between different product segments. Newer distribution or ownership models could lead to need for re-education of consumers and integration of services. Even the role of different players in distribution chain could evolve as each tries to move up in value with increasing deliverables. This constant churn and ever-changing industry dynamics has fundamental implications for marketing strategies in general, and for marketing of hi-tech products in particular. Todays technology marketers face challenges across the marketing mix, starting with the need to provide clear differentiation, positioning, better integration across offerings and newer and more effective ways of providing value to the customer. Despite such complexities, the hi-tech world continues to provide exciting and newer business opportunities. Whereas in traditional and mature markets a new entrant or small player is unlikely to compete effectively with established leaders, the hi-tech world offers tremendous prospects for innovation and entrepreneurship, both for established companies as well as new players. Such opportunities are pursued by multiple aspirants with exciting new technologies, and the winner is usually the one with the strongest market model. Success amidst this dynamic and turbulent environment calls for diverse skills, an understanding of a wide range of capabilities and an approach beyond the traditional gamut of marketing management.

Course Overview
Marketing Management in the World of High Technology and Innovation is intended to address some of these challenges, through a combination of published concepts, real-life examples, group discussions and expert opinions. This course will focus on the application of basic marketing framework in the hi-tech context while including those concepts unique to this world. It will build understanding on specifics of high technology marketing and its difference from regular marketing. It will subsequently
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introduce tools and techniques for more effectively developing strategic market models and marketing plans for hi-tech products and services. The focus will be in guiding marketers on how to adapt, modify and prioritize the basic tenets of marketing, while incorporating the unique and specific hi-tech aspects. Given the context, the course will not focus on some adjacent topics. Specifically, it will not focus on (1) how to employ technology as a marketing tool (digital marketing), (2) identifying hot technologies of today or the future, and (3) overall organizational technology strategy. Nonetheless, some of these subjects will find mention or will appear in discussions, without being the key concern for the sessions. This course is intended for students preparing for a career in the hi-tech industry. Individuals seeking roles in sales, marketing and business or product development in hardware, software, newer and emerging technologies as well as in companies providing B2B or B2C services and solutions will find the tenets of this course relevant for their career goals. It will also be extremely relevant to start-ups and for students who wish to become hi-tech entrepreneurs. The course will be offered as a PGP elective though it is desired that the enrolment/ sessions be open for all interested students.

Course Objectives
The course Marketing Management in the World of High Technology and Innovation will explore the following with reference to hi-tech industries: 1. 2. 3. 4. 5. 6. Defining characteristics and major forces of differentiation Types of innovations and implications for overall business and marketing in particular Criticality of product planning and customer orientation Overall marketing mix (4 Ps) and required adaptations versus classical marketing Role of ecosystem, strategic alliances and partnerships Challenges taking new innovations to success and future of hi-tech marketing

The course will use a combination of published concepts, real-life examples, case-studies, journal articles and expert opinions. The course will attempt to explore a range and diversity of industries and contexts within hitech, though a significant focus will thus emerge on information technology. Given the specific characteristics these illustrations and lessons will be very relevant to businesses and industries that are now emerging or those that are just starting-up.
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Pedagogy & Evaluation

This course will use a mixture of the following learning and teaching techniques: class lectures, discussions of case-studies& journal articles, guest seminars, class exercises and project work. The students will be graded as follows on each of the segments for the final evaluation: Closed-book Examination: Project Work: Quizzes: Class Participation: 40% 30% 20% 10%

Project
The project will provide an opportunity for in-depth study or application of the concepts discussed in class. The project should be done in groups of six with clear roles assigned to each member of the team. For the project, the groups may take up a specific technology, company or product. The group should then map its genesis from conception to current state and/or maturity and recommend future steps and/or identify alternate options in the route. The focus should be on application of concepts learnt, insights and analysis as well as on quality of recommendations. Groups are encouraged to pick their own topic though some suggestions will be provided. The expected final outcome will be a report with sections that (i) present the issue, (ii) provide an industry overview, (iii) table findings from relevant primary/secondary research undertaken, (iv) discuss/arrive at a conclusion and (v) present consequent implications and/or recommendations. The group deliverables will include a project outline during the first fortnight of the term, followed by a mid-term progress report (2 page word document), and a final written report along with a short class presentation. Time-lines for each of the deliverables are mentioned in the Session Plan. Guidelines for the final report will be provided. The project will be graded on (i) Project Definition, (ii) Depth of Effort, (iii) Quality of Analysis, (iv) Presentation and (v) Report-out.
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Session Plan
Session 1
(7
th

Coverage
Hi-Tech Introduction Why High Tech & Innovation Marketing? Dominant Characteristics of Hi-Tech Environment Technology Adoption Life Cycle (TALC) Metcalfes Law & The Network Economy Innovation & Industry Evolution Types & Patterns of Innovation Contingency Model for Hi-Tech Marketing Strategic Market Planning Competitive Advantage Strategic Management Model & Porters Value Chain Strategic Decision Making Marketing Performance Management Case Discussion Project Outline is due in this session Organizational Climate & Culture Culture of Innovation Market Orientation & Understanding Cross-functional & Ecosystem Interaction Partnerships & Alliances Marketing Research in High-Tech Markets Specific Market Research Tools Biomimicry & Consumer Co-creation Market Forecasting & Sizing: Bass Diffusion Model Book Reviews Crossing the Chasm Inside the Tornado Case Discussion

Readings/ Assignments
Mohr, Ch1

Sept)

2
(8th Sept)

Performance Provided, Market Demand, and the Product Life Cycle by Clayton M. Christensen (1997) 1. Mohr, Ch 2 2. The Innovator's Dilemma 3. Who will Rule the New Internet? 4. Reasons hi-tech companies fail Case of the Profitless PC Andy Blackburn, Matt Halprin, Ruth Veloria; HBR Case Study, 1998 1. Mohr, Chs 3, 4 2. Breaking the Rules 3. With Friends Like These: The Art of Managing Complementors by Yoffie, Kwak (2006) Mohr, Ch 5 1. Mohr, Ch 6 2. Consuming Technology: Why Marketers Sometimes Get it Wrong by Berthon, Hulbert, Pitt (2005)

3
(14
th

Sept)

4
(21 Sept)
st

5
(22
nd

Sept)

6
(28th Sept)

7
(29th Sept)

8
(5th Oct)

9
(6
th

Oct) Understanding Technology Customers Customer Behaviour Market Segments (TALC): Chasm, Tornado, Main Street Product Management Technology Mapping/ Technology Driven Innovation Software Development Life Cycle (SDLC) New Product Development & Role of Product Mgmt

Linden Lab: Crossing the Chasm by Thomas Eisenmann, Alison Berkley Wagonfeld; HBS, 2009 1. Mohr, Ch 7 2. Can the Cellphone Help End Global Poverty? 1. Mohr, Ch 8 2. Defining Next-Generation Products: An Inside Look by Tabrixi, Walleigh (1997)

10
(13th Oct)

11
(19th Oct)

Session 12
(20
th

Coverage
Branding Strategies: Product, Ingredient, Experience Developing a Strong Brand Corporate/ Business Brand Considerations The Apple Effect! Project Mid-Term Progress Report is due in this session

Readings/ Assignments
1. Mohr, Ch 12 2. Breaking the Rules: (2008)
Apple Succeeds by Defying 5 Core Valley Principles by Kahney

Oct)

13
(26
th

Case Discussion Oct) Pricing Considerations Technology Pricing Paradox Versioning and Pricing in Technology Products Cross-elasticity & Total cost of Ownership (TCO) Results based Pricing Supply Chain & Distribution Channels Managing Technology Supply Chain Channel Structure & Dynamics Harmonized, Integrated and Multi-channel Strategy Emerging Channels Direct Sales Management Business & Market Development Sales Force Structures: Vertical, Geographic, Product based Managing the Sales Process Incentives Programs: Credits, Deferrals & Exemptions Integrated Marketing Communication Developing the Promotion Mix Integrated Marketing Communications Importance of PR Co-op Marketing Initiatives New Technology Ventures Bootstrapping Building & Execution the Marketing Plan Bottom-of-the-Pyramid & Digital Divide Efforts (Aadhaar) Future of Hi-Tech Marketing

Samsung: Redefining a Brand by Robin Ritchie, Fan Ye, Christian Kim; Richard Ivey School of Business Foundation, 2008 Mohr, Ch 10

14
(27
th

Oct)

15
(2
nd

Mohr, Ch 9

Nov)

16
(3rd Nov)

17
(16th Nov)

Mohr, Ch 11

18
(17th Nov)

19
(23rd Nov)

20
(24th Nov)

PROJECT PRESENTATIONS

Course Synopsis Project Final Report to be submitted in this session The session plan above is indicative and will be continuously updated as the course progresses. Case studies are suggestive. Guest lectures will be decided post confirmation of the class.

Annexure I: Recommended Texts

1. Crossing the Chasm: Marketing and Selling High-Technology Products to Mainstream Customers Geoffrey A. Moore

2. Inside the Tornado: Marketing Strategies from Silicon Valley's Cutting Edge Geoffrey A. Moore

Annexure II: Recommended Readings

1. The Innovators Dilemma: http://www.businessweek.com/chapter/christensen.htm 2. The Technology Paradox: http://www.businessweek.com/1998/35/z3414001.htm 3. Case study of disruptive technologies (Digital Camera, Steve Sassoon): http://frontendofinnovation.blogspot.com/2010/05/fei2010-case-study-of-disruptive.html 4. Reasons hi-tech companies fail: http://www.hightechstrategies.com/10_reasons.html 5. Why Free is the Future Of Business: http://www.wired.com/techbiz/it/magazine/16-03/ff_free 6. The Illusion of price-driven market transfusion: http://www.hightechstrategies.com/illusion.html 7. Results based pricing: http://www.podtech.net/home/1215/india-technology-20-resultbased-pricing-model 8. Breaking the Rules: Apple Succeeds by Defying 5 Core Valley Principles: http://www.wired.com/techbiz/it/magazine/16-04/bz_apple_rules 9. Steve Jobs and the Eureka Myth:
http://blogs.hbr.org/cs/2011/08/steve_jobs_and_the_myth_of_eur.html

10. Can the Cellphone Help End Global Poverty? http://www.nytimes.com/2008/04/13/magazine/13anthropologyt.html?_r=2&scp=1&sq=Nokia%20ethnography&st=cse 11. Android And Apple Now Command Nearly 70 Percent Of U.S. Smartphone Market Share: http://techcrunch.com/2011/08/30/android-apple-70-percent-smartphone/ 12. Who will Rule the New Internet? http://www.time.com/time/magazine/article/0,9171,1812070,00.html

Note: Additional articles/ references might be provided for the sessions during the course.