ENTREPRENEURSHIP FOR SCIENTISTS AND ENGINEERS
CHAPTER 9
TECHNOLOGY ADOPTION PATTERNS AND MARKETING STRATEGY
LEARNING OBJECTIVES
After studying this chapter, students should be able to
2. Identify the key decisions for technology-intensive markets
4. Discuss how to understand customer needs and determine a marketing approach
6. Explain how to promote technology products
CHAPTER OVERVIEW
High-technology markets display a unique blend of market uncertainty, technology uncertainty,
and competitive uncertainty. A market-driven approach relies on internal and external
knowledge to find a solution to a customer need in the market. By contrast, a technology-driven
approach puts technology in the driver’s seat without firm knowledge that a market even exists
for it. This is the classic solution looking for a problem. A more effective approach combines
knowledge about the technology with knowledge about customer needs and then tells a
compelling story.
CHAPTER OUTLINE
1. The nature of high-technology markets
a. Market uncertainty
Entrepreneurship for Scientists and Engineers
2. The technology adoption cycle
3. Determining a marketing approach
a. Understanding customer needs
4. Pricing high-technology products
5. Developing a marketing plan
a. Constructing a one-paragraph plan
b. Marketing tools
6. Promoting high-technology products
7. Summary
END OF CHAPTER QUESTIONS
1. How do the characteristics of high-technology markets affect the marketing strategy of a
new venture?
Market uncertainty results from the difficulty in correctly assessing customer needs and matching
those needs to a particular technology application. In addition, customer needs are changing at a
Entrepreneurship for Scientists and Engineers
2. What is the most effective strategy for collecting market intelligence?
• Hold a vision of where the company will be in five years
3. When pricing high-technology products, what factors should be taken into consideration?
Pricing strategy must balance covering the costs of development with achieving a reasonable
profit, while at the time recognizing the price tolerance and value perception of customers.
4. What is the purpose of a marketing plan? What is the value of compressing the plan into
one paragraph?
The marketing plan guides the launch of a new product and identifies the goals, strategies,
5. What role does branding play in the promotional strategy of a new high-tech venture?
A strong brand is a significant competitive advantage in markets where customers have
CASE STUDY SUGGESTIONS
The case study, Finding the Right Formula for Music with Science, presents an opportunity to
discuss several important concepts from this chapter.
• Market needs that can be filled by the technology. In this case, although customers saw the
value in the benefits offered, the music industry is slow to change and resists adopting new
technology. This fact presents an opportunity to have a discussion about strategies and
tactics in this type of industry.
Entrepreneurship for Scientists and Engineers
ACTIVITY
Study Successful and Unsuccessful Technology Adoptions
Ask students individually or in small groups to identify a technology product that succeeded and