Free E-books Technology-Based Marketing (TBM): A New Competitive Approach for High-Tech Industries
This Free E-books presents an innovative competitive approach for high-tech industries, named Technology Based Marketing (TBM).
This approach is compared with other eight business approaches. Nowadays, competition is changing and becoming more dynamic and therefore more difficult. Hence, technology can be leveraged to a source of competitiveness. With the TBM approach, three types of technology can be leveraged - product, production, and management. The success of the TBM approach depends on certain conditions, only some of which are controlled by the firm. Managers are forced to cope with conditions of uncertainty, both marketing and technological uncertainty. Although marketing uncertainty is unavoidable, technological uncertainty can be reduced. Adopting TBM enhances the ability to cope with uncertainty in order to achieve the firm’s goals.
Across the world, nations and firms are becoming progressively more sophisticated and well-educated. All markets increasingly demand innovative, higher quality products and services due to the pressure for change.
Innovative products, processes and management methods are spreading rapidly across the globe (Balwin et al. 1997). Players from low cost economies -can create hyper competition using new technologies, skilled people and mobile capital (D’Aveni and Gunther, 1995).
Electronic commerce is radically changing the way business meets customers’ demands (Totty 2003). Managers in high-tech industries are now more than ever confronted with the question - how to compete successfully in the global, dynamic technological reality? Hence, managers are looking to enhance their firm’s competitiveness, or in other words, to create a competitive advantage.
New perspectives are emerging on classical meaning of competitiveness. Competitiveness is the ability to compete (Ajitabh & Momaya, 2004) and Porter (1985) defines competitive advantage as the ability to create and sustain superior performance. Competitiveness can be defined at a country level as “the ability of a country to create added value and thus increase national wealth”, as was done, also at the national level, for the Reagan administration in 1984 (Cho & Moon, 2005).
Competitiveness is the ability to cause customers, current and new, to prefer the firm’s offers (products and services). It is important to draw a distinction between the firm’s competitiveness and its strengths, as reflected in Andrews’ SWOT model (1971). Competitiveness that produces various kinds of values for customers is always based on marketing significance and strengths. Although marketing significance can change with circumstances, strengths are not always
under management’s control but, management may have an impact on them. It is important to emphasize that variables such as market share, company reputation, R&D capacity can all serve as measurements of firm’s competitiveness.
Over fifty years ago, the Dead Sea Works (DSW) was granted an exclusive franchise by the State of Israel to exploit raw material from the Dead Sea. For decades, it was the company’s main strength, but over time many other firms gained access to the raw material of the Dead Sea. This situation has forced DSW to look for other source of competitiveness. DSW offers their target-markets various derivatives of Dead Sea raw material, exploiting their unique technological knowledge and ability to improve their products continuously.
Internet technology diminished the effectiveness of 230 year-old Encyclopedia Britannica’s principal marketing strengths % market share, customer satisfaction, pricing,
innovation and distribution. Once it established an internet site, its source of competitiveness was renewed.
In many cases, traditional models and approaches are not suitable for the new environment, which is characterized by innovations and technological advances with relevant regulations (Karin & Preiss, 2002). If, during the 1990s, demand for technological solutions outstripped supply and investors put unprecedented faith in the developers upfront, the past five years of the twenty-first century have shown that the demand for technology is not devoid of marketing significance. A firm launching any sort of technological innovation on the market must convince the market of its benefit.
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