Marketing Management in the World of

High Technology and Innovation

Course Proposal (July 5, 2011)

Prakash Bagri
Instructor

Prakash Bagri

email: prakash.bagri@gmail.com
phone: +91-9845013982

A detailed instructor profile is appended as annexure I.

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.

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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
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 Textbook

Marketing of High Technology Products and Innovations (2010)

Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater
3rd Edition (ISBN: 9788131761076)

Power-point outline of lectures will be provided in advance, and can be used for class notes.
Bibliography of additional and recommended reading is appended as Annexure II.

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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. Defining characteristics and major forces of differentiation

2. Types of innovations and implications for overall business and marketing in particular
3. Criticality of product planning and customer orientation
4. Overall marketing mix (4 Ps) and required adaptions versus classical marketing
5. Role of ecosystem, strategic alliances and partnerships
6. 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 hi-
tech, 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.

Course Outline

The course will comprise of six major sections, as follows:

MODULE I: How is High Technology Different?

MODULE II: The Marketing Approach

MODULE III: Product is King!

MODULE IV: Pricing, Distribution (and Communication) Strategies

MODULE V: Ecosystem & Industry Initiatives

MODULE VI: Exam, Group-work & Projects

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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: 40%

Project Work: 30%

Quizzes: 20%

Class Engagement: 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 five or six with clear roles assigned
to each member of the team.

For the project, the groups may choose one of the following options:

1. A paper on an issue in technology or start-up marketing.

2. A project for a self-sourced client organization in the field of hi-tech, or
3. Selection from a number of possible topics which will be provided

However, this is not intended to be exhaustive and groups will be encouraged to propose their
own ideas.

The group deliverables will include a project outline during the first fortnight of the term,
followed by a mid-term progress report, and a final written report along with a short class
presentation.

The expected final outcome will be a white paper or report with sections that (i) present the
issue, (ii) provide an industry overview, (iii) table findings from relevant primary research
undertaken, (iv) discuss/ arrive at a conclusion and (v) present consequent implications and/
or recommendations.

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 Session Plan

Session Coverage Readings/

Assignments
1 Hi-Tech Industry Introduction Mohr, Ch1
The Technology Paradox
Dominant Characteristics of Hi-Tech Environment
Key Concepts: Technology Adoption Life Cycle (TALC)
Implications for Marketing
2 Case Discussion Case of the Profitless PC
Andy Blackburn, Matt Halprin,
Ruth Veloria
HBR Case Study, 1998
3 Innovation & Industry Evolution Performance Provided, Market
Types & Patterns of Innovation Demand, and the Product Life
Metcalfes Law & The Network Economy Cycle
Fines Double Helix model Clayton M. Christensen (1997)
Contingency Model for Hi-Tech Marketing
4 Strategic Market Planning Mohr, Ch 2
Competitive Advantage & Core Competency
Strategic Decisions facing Hi-Tech Firms
Overview of Strategic Models / Specific Strategies
Implications for Technology & Market Driven Environments
5 Organizational Climate & Culture Mohr, Chs 3, 4 & 5
Culture of Innovation
Market Orientation & Cross-functional Integration With Friends Like These: The
Ecosystem Art of Managing Complementors
Partnerships, Alliances & Customer Relationships Yoffie, Kwak (2006)
Outsourcing & Open Innovation Networks
6 GUEST LECTURE: Google

7 Understanding Technology Customers Mohr, Chs 6 & 7

Customer Behaviour
Market Segments (TALC): Chasm, Tornado, Main Street Consuming Technology: Why
Specific Market Research Tools Marketers Sometimes Get it Wrong

Market Forecasting & Sizing: Bass Diffusion Model Berthon, Hulbert, Pitt (2005)

8 Case Discussion: ** Linden Lab: Crossing the

Chasm
Thomas Eisenmann, Alison
Berkley Wagonfeld
Harvard Business School, 2009
9 Product Management Mohr, Ch 8
Technology Mapping/ Technology Driven Innovation
Product Design: Biomimicry & Consumer Co-creation Defining Next-Generation
Software Development Life Cycle (SDLC) Products: An Inside Look
New Product Development & Role of Product Management Tabrixi, Walleigh (1997)

**Alternate Case: Research in Motion (A): Adrian Ryans, Richard Ivey School of Business, 2000

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Session Coverage Readings/
Assignments
10 Branding Mohr, Ch 12
Role & Types: Product, Ingredient, Experience Breaking the Rules: Apple
Developing a Strong Brand Succeeds by Defying 5 Core Valley
Principles
Strategic Brand Considerations
Kahney (2008)
The Apple Effect!
11 Case Discussion: Samsung: Redefining a Brand
Robin Ritchie, Fan Ye, Christian
Kim
Richard Ivey School of Business
Foundation, 2008
12 Pricing Considerations Mohr, Ch 10
Technology Pricing Paradox
Versioning and Pricing in Technology Products
Cross-elasticity & Total cost of Ownership (TCO)
Results based Pricing
13 Supply Chain & Distribution Channels Mohr, Ch 9
Managing Technology Supply Chain
Channel Structure & Dynamics
Harmonized, Integrated and Multi-channel Strategy
Emerging Channels
14 Direct Sales Management
Business & Market Development
Sales Force Structures: Vertical, Geographic, Product based
Managing the Sales Process
Incentives Programs: Credits, Deferrals & Exemptions
15 Integrated Marketing Communication Mohr, Ch 11
Developing the Promotion Mix
Specific Tools: PR, Events, Collaterals & Direct Marketing
Internet (Web 2.0 & 3.0) & Mobile Marketing
Co-op Marketing Initiatives (Intel Inside Program)
16 GUEST LECTURE: Nokia

17 New Technology Ventures

Bootstrapping
Building & Execution the Marketing Plan
Bottom-of-the-Pyramid & Digital Divide Efforts (Aadhaar)
Future of Hi-Tech Marketing
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PROJECT PRESENTATIONS
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20 Course Synopsis

The session plan is work-in-progress, and will be refined further as also supplemented with further reading
recommendations and course material. Case-studies are suggestive and are subject to change.

Guest lectures will be decided post confirmation of the class, but will include APac/ India CxO level participants
(highlighted companies are suggestive).

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Annexure I: About the Instructor

Prakash Bagri has almost two decades of multi-industry experience in

leadership roles across business management, marketing, sales, strategy
planning and channels.

Prakash was with Intel for the past 12 years, during which he carried out a gamut of business
roles. For the past four years, he was the Director of Marketing for South Asia. This period
witnessed a doubling of PC penetration in India, while completing a hugely successful brand
transition (from Pentium to new Core, with strongest brand measures worldwide). Prior to this
assignment, he was the Director for OEM Business in India, handling Intels entire business and
technology engagement and a $600M revenue across all MNC and local OEM customers.

Earlier, he spent more than 7 years with Hindustan Unilever Ltd in different sales and marketing
functions. While with the FMCG giant, he had the opportunity to work across 9 different foods
brands spanning from the premium range of Lipton teas to the mass oils & dairy fats business of
Dalda, Flora et al.

Prakash has been a driving force rallying Intel and the industrys efforts to increase technology
adoption, building PC desirability and in establishing a locally vibrant and sustainable business
ecosystem in the country. During his corporate career, he has specialized in the areas of
strategic vision and business planning with extended experience in taking these to successful
execution through break-through and innovative business models.

Prakash has been a regular spokesperson in media on the fields of technology and marketing
and an active participant in industry forums. For the past couple of years, he also held the
position of Chairman, CMO Council Asia (South Chapter). Prakash was recognized with the
Outstanding Marketing Professional Award by the World Brand Congress in 2009, and is a
recipient of the Intel Achievement Award in 2005.

Prakash is a graduate from the Indian Institute of Technology, Kharagpur and received his
PGDM from the Indian Institute of Management, Bangalore.

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Annexure II: Recommended Reading

1. Successful Marketing Strategy for High Tech Firms E. Viordot

2. Crossing the Chasm: Marketing and Selling High-Technology Products

to Mainstream Customers Geoffrey A. Moore

3. Inside the Tornado: Marketing Strategies from Silicon Valley's Cutting

Edge Geoffrey A. Moore

Additional supplementary articles/ references might be provided for the sessions during course
enrolment.