Market Development Mgt 519 Week 7

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Market DevelopmentMgt 519 Week 7

• Dr. Walsh

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Outline

• What is Market Development?
• Expeditionary Marketing?
• What is the difference between Market focused and
  Market development?
• What are the processes?

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Market Focused vs. Market Development

• Market Focused efforts are centered on current
  market sales and traditional marketing techniques
• Market Development efforts are centered on Market
  Drivers rather than market projections.

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Market Development Vs. Market Focused

• Market Development The process of educating
  potential consumers about the value of your
  technology/product paradigm. Usually found in a
  disruptive commercial cycle.
• Market Focused The process of responding to
  clearly elicited market needs. Usually found in a
  virtuous commercial cycle

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Market Development

• The process of market development can be divided
  into two segments.
• The first is the effort to get a replacement
  product based on a new technology accepted
• The second is the marketing of a new to the world
  product

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Virtuous and Disruptive Industry Cycles

• Virtuous Industry Cycle
• Porter Factor Inputs, Suppliers, Demand, Systems
  Integrators
• Market Focused Approach
• Disruptive Cycle
• Competing industry Technology/Product Paradigms
• Market Development Approach

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What do they look like?
Systems Integrators
Virtuous Cycle
Firms with dominate market share Niche players
Dominate firms Gate keeping Entrepreneurial
Firms Industrial losers Progressive firms from
other industries
Sustaining Factor Inputs
Virtuous Demand
Suppliers D. Systems Integrators
Disruptive Cycle
Disruptive Factor Inputs
Unmet Demand
Emergent Suppliers
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Internal Market Development

• Where did this come from
• RD mission is to reinvent the corporation
• This means to develop new skill sets for current
  and new product paradigms
• They have to convey their technologies to their
  current SBUs and potential creation of new ones

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Informal

• Originally done informally
• By folks that understand both the old and new
  technologies
• Enjoyed a large cache with the important
  directors
• They tried to develop an understanding of market
  drivers rather than market

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What tools

• Internal
• External
• Expeditionary Marketing
• Probe and Learn
• Use of technology description
• The science of Muddling through

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Knowledge of Market Drivers

• Usually found in or at conferences, roadmaps,
  sales groups, industry rags
• Found in publications that cater to the interface
  of
• Technology and products
• Academic and practitioner
• Engineering and qc
• Early adopters, regional excellence
• Some examples

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Pharma / Medical Drivers
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Pharma / Medical Drivers
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Funding
World Micro Nanotechnology Funding (1997-2003)
Millions US
Graph
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Realities

• Patents
• Products
• Papers
• NanoNed
• Nano4Food
• Frontiers

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Top Ten Nanoproducts 2004

• Stain repellent and wrinkle-resistant threads
  Dockers Nanotex, Nanosphere
• High-performance Ski Wax Cerax Nanowax
• Deep penetrating skin care LOreal
• OLED Digital Camera Kodak
• High performing sun-glasses Nanoflm

• 6. Smart motorcycle visor Swedish company
  Chromogenics
• 7. Nano-socks SoleFresh
• 8. Nanocrystalline sunscreen
• Main ingredient is nanotechnology based NuCelle
  by BASF
• 9. High-tech tennis rackets
• French manufacturer Babolat
• 10. High-tech tennis Balls
• nanotubes supplied by the French company
  Nanoledge

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Top Patentees
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Global Participation in Nanoscience
Sweden 297
Germany 1949
Russia 854
Canada 382
England 906
Israel 273
France 1317
USA 5395
Japan 2289
China 2474
Switzerland 372
Italy 631
Korea 760
Taiwan 282
Mexico 166
India 461
Singapore 209
Brazil 285
Australia 236
CY2002 PUBLICATION COUNT (By Keyword Nano,
2/2003)
(23,000 in 2003)
Total Worldwide- 18538
Science Citation Index of 5300 Journals
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Netherlands strong Programs

• EU-level NanoMedicine, Eniac, Frontiers,
• National level
• NanoNed
• Point One
• Holst Institute
• Regional level
• Nano4Vitality (Overijssel Gelderland)

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External

• Develop prototypes
• Show customers
• Become evangelists
• See article Newbert, Kirchhoff, Walsh, Chavez

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The End

• Sorry about the timming