Interacting-for-Benefit > Profitability Frameworks > Marketing Frameworks > The Marketing Tree > New Technology

Three Contentious Marketing Topics

  1. Pitfalls of New Technologies
  2. Quests for Customer Satisfaction
  3. The Favourite Weak Strategy: Line Extension

Pitfalls of New Technology

New technologies often must cross the abyss from L7-L6 to L5-L3: i.e. they must create the markets into which they wish to sell their amazing new products.

The Market Creation Strategy is Complex

No matter what their advantages, new high-tech products require an extraordinary mixture of business strategies to bridge the gap between facts/reality (L6/L7) and expedient conventionality (L5-L1):

Positioning [#20]
Research & Development [#21]
First Mover [#22]
Commoditisation [#19]
Applications [#16]
Education [#18]
Strategic Alliances [#17]
Standards [#15]
● several of the lower-level strategies as well.

The Usual Result

Phase 1: between product conception and reaching the market; &
Phase 2: between reaching the market and commercial success.  

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Quests for Customer Satisfaction

At the heart of any business strategy are satisfied customers willing to pay for the company’s products and services. The average enterprise loses 10%-20% of its customers each year and many others, while still loyal, restrict purchasing due to dissatisfaction.

Many strategies are claimed to target «customer satisfaction». Alternative terms like ‘customer delight’ and ‘customer intimacy’ are unsatisfactory. As with any general term, these may apply at all levels. In practice,

What must be grasped is that customers are focused upon as a group at L4, and as individuals at L5.

The Complete Satisfaction Strategy

Research suggests that companies providing complete satisfaction do far better than those whose customers are merely satisfied. However, completeness is a substantial and costly challenge.

It depends primarily on:

Care [#12],
Loyalty [#10],
Customer Partnering [#14]
Customisation [#11]

properly supported by sensible:

Segmentation [#8],
Differentiation [#9]
Advertising [#6] .

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The Favourite Weak Strategy: Line Extension

Power-centric leaders are tempted to equate line extension with product development and innovation. This is based on the conviction that it is possible to leverage the success of the company’s name or existing brands by applying them to other products.

This popular and expedient strategy regularly fails; it tends to weaken the original leading line through blurring customer perceptions and by cannibalising its market share.

Conclusion: There is never a short cut to great success: truly new products require their own complete and discrete developmental and marketing process, including a unique brand name.

Ries &TroutRies, A and Trout, J. The 22 Immutable Laws of Marketing 1994, Harper Collins  Closedargue:

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Developing a commercial ethos
Supporting business and markets 
How big organizations must harness staff 
Developing a career
Cooperating for results

Originally posted: July 2009

All posted material is part of a scientific project and should be regarded as provisional. Visitors are encouraged to think through the topics and propositions for themselves. Copyright © Warren Kinston 2009-2016.
All Rights Reserved.

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