High-tech marketing helps companies to link R&D and marketing efforts
for the successful go-to-market strategy.
What is High-Tech Marketing?
High-Tech Marketing is simply the type of marketing in the advanced technology sector. In most cases, it is a B2B process. The key to master it, is by understanding the power of the link between marketing and R&D.
Why is high-tech market is special?
High-tech companies produce advanced electronic devices used, for example, in ICT, automotive, medicine, aerospace, robotics, or biotechnology. High-tech products are usually sold to the B2B market working tools. The high-tech market is characterized by high technological barriers to entry and high investment in business development and research. High-tech solutions are often protected by patents therefore High-Tech Marketing requires a different approach than a standard one.
What is a key to success in the High-Tech Marketing?
A link between marketing and R&D departments is particularly important in the High-Tech Marketing because of the sector dynamics. It plays a key role here, stimulating the emergence of new solutions by communicating customer expectations to R&D departments.
What is the difference between R&D intensity and technology intensity?
The R&D intensity ratio measures a company’s spending on research and development as a proportion of its total budget. Technology intensity, on the other hand, measures the impact of these investments on the productivity or revenue growth of an industry. Both of these indicators are important for high-tech marketing because they show how much emphasis they place on development and innovation. A high level of technological intensity indicates a company’s high propensity to invest in R&D, which can translate into greater productivity and higher revenues. This, in turn, can lead to greater competitiveness and competitive advantage in the market.
High-Tech Marketing Techniques
High-tech companies that succeed in the market understand that simply having a technological edge is not enough. Engineering knowledge does not necessarily translate into the ability to anticipate market needs and create a product that addresses those needs. This is where High-Tech Marketing comes in. It allows technological knowledge to be strengthened with marketing approach. This way, High-Tech Marketing helps companies to better anticipate market needs and create innovations that will actually bring them success. In addition to this, it enables companies to effectively capitalize on market opportunities so that they can respond quickly to changing customer needs and maintain their leadership position in the market. In this way, by combining marketing with R&D, high-tech companies can better prepare for market entry and succeed in the go-to-market.
In the high-tech, it’s a fairly common situation when the market is not ready for an innovation. Even if the idea of innovation comes from market demand, it does not mean that customers are ready to buy the new technology. In this scenario, the task of High-Tech Marketing is to adjust the timing of go-to-market.
The time is needed to build customer awareness of the usefulness of innovation. The most practical technique to adjust go-to-market timing is by employing brand ambassadors. The launch of the innovation is preceded with the messages about practical examples of use by brand ambassadors. This approach not only controls the go-to-market timing, but also creates a buzz marketing effect, and most importantly the social proof.
Social proof in the High-Tech Marketing
Social proof or factual proof in High-Tech Marketing refers to the phenomenon in which people base their purchasing decisions on the actions of other users in a similar industry. Seeing that others are using a product or service may make people more willing to try it themselves. This is particularly observed in the adoption of new technologies or SaaS services.
High-tech marketing requires the market preparation prior to launch. To do this, brand ambassadors are hired to promote new technologies to potential buyers.
Patents in High-Tech Marketing
New technology can be patented and then licensed to competitors, which helps stimulate the market faster. An example of this approach is the development of artificial intelligence offered by OpenAI. This high-tech company made its innovation available to other companies, which has contributed to the rapid growth of the artificial intelligence market.
Price Strategy in High-Tech Marketing
Matching the price of innovation with customer expectations requires to consider several factors, including the value of the innovation, the competition, and the target audience.
- First, companies should carefully consider the value (utility) of their innovation. The price of a product or service should reflect the value it provides to customers. This could be the benefits it offers, the savings it provides, or the unique features it offers.
- Second, when setting the price of their innovation, companies should also consider the competition. It is important to understand how the price of innovation compares to similar products or services in the market. By conducting market research and analyzing competitors’ prices, companies can ensure that their price is competitive and in line with customers’ expectations.
- Third, companies should also consider the target customer group when pricing their innovation. Different customers may have different budgets and preferences, and the price of innovation should be tailored to the specific needs and expectations of the target customer base. Through market research among the target customer group, companies can set a price that is fair, reasonable, and in line with customer expectations.
It is a good practise to include the following steps when developing the High-Tech Marketing Strategy:
- Conduct market research: market research is an essential tool for understanding the needs and preferences of your target customers. By conducting surveys, focus groups, and other forms of market research, you can gain valuable insight into what customers want and how best to position your innovation to meet their needs.
- Identify and target a specific customer target group: before launching a new product or service, it is important to identify and target a specific customer target group. This will help focus efforts and tailor the product or service to meet customer needs.
- Develop a strong value proposition: to attract customers, the innovation should offer great value to the user. This can be in the form of a unique feature or benefit or a solution to a common problem faced by customers.
- Create a credible advertising campaign using brand ambassadors: after identifying target customers and developing a strong value proposition, a marketing campaign should be created to promote the innovation. This should include social proof in advertising, public relations, and social media to generate buzz and interest in the product or service.
- Partner with other companies: partnering with other companies can be a great way to gain exposure for your innovation and expand your market. To secure an innovation, a good solution is to patent and then offer a free license.
The value of an innovation depends on its uniqueness and usefulness to customers. An innovation that is unique but does not bring value to users is not marketable. This is why many leading high-tech companies, such as Apple, have shifted from an innovation strategy to one focused on marketability. For such a transformation to succeed, the conductive marketing is necessary. The name of the conductive-marketing comes from the conductive materials often used in the high-tech industry. Conductive marketing simply links marketing and R&D activities.
It is a form of agile marketing, which in practice uses sprints and frequent, short meetings between marketing and R&D departments to discuss key development projects. The goal of these meetings is to ensure that the innovation will be useful to customers, increasing its market value. By using this approach in High-Tech Marketing, companies can better align their innovations with market needs and increase their chances of success.
Connection to the service blueprint
A service blueprint is a tool used in service management to plan and design the process of service delivery, as well as to identify the responsibilities of individual employees and customer touch points. It that way, the High-Tech Marketing and service blueprint are related, as both tools are used to improve customer service through the use of modern technology. Conductive marketing allows better outreach to customers through the use of conductive technologies in product promotion, while service blueprint helps ensure efficient and professional service delivery, which translates into customer satisfaction and brand loyalty.
Innovation in High-Tech Markeitng
High-tech is one of the world’s most innovative sectors. According to a Scorebord report the high-tech business is concentrated in the information and communications technology (ICT) industries, medical sector and the automotive. The R&D intensity rate in the high-tech sector averages about 10%, meaning that companies in this industry spend about 10% of their R&D budgets. This proves that innovation is the key to success in the High-Tech Marketing.
High-Tech Marketing is the process of finding and developing new business opportunities. This may mean introducing new products or services using advanced technology, expanding into new markets, or establishing strategic partnerships. All of this requires flexibility and a quick response to changing market needs. Therefore the High-Tech Marketing is a type of agile marketing.
First, make sure the innovation is wanted or needed!
Tomas Edison said “First make sure that a thing is wanted or needed, and only then move forward.” This phrase is the essence of High-Tech Marketing. Research and development projects should be evaluated in terms of whether or not the product will be accepted in a competitive market.
Setting realistic expectations at an early stage eliminates the consequences of failure and the search for blame when a project fails to yield products that can be easily marketed.
What is the presumed need for innovation?
The presumed need for innovation in the High-Tech Marketing refers to a customer’s perceived need for a product or service, even if they have not explicitly expressed that need.
The value of the link between marketing and R&D in high-tech
Establishing a link between marketing and R&D in high-tech allows closing the loop for successful product launch. The marketing team continuously gathers information from customers and passes it on to R&D, which also continuously passes on new features and improvements for testing among brand ambassadors. Continuous testing of innovations helps to optimize while increasing the chance of market success.
When is the innovation ready for the market?
To assess whether an innovation is ready for market deployment, 3 conditions must be met:
- The product or service has a clear value proposition: A high-tech innovation must have a clear value proposition to succeed in the market. This means it must offer a unique benefit or solution to a common problem and be positioned in a way that is compelling to customers. When a high-tech innovation has a clear value proposition, it is ready to go to market.
- The product or service has been developed and tested. This usually involves extensive research and development, as well as testing of the product or service to ensure that it is effective and meets market needs.
- The product or service has been approved for commercialization: in many cases, high-tech innovations must be approved by regulatory authorities before they can be launched.
What is a technological intensity?
Technological intensity is an indicator that shows how much impact an industry’s investment in research and development (R&D) has on productivity or revenue growth. High-tech companies can be divided into four levels according to their technological intensity:
- High-technology – manufacturers of medical and botanicals, computers and telecommunications, precision and optical devices, watches, and aviation, who have the highest technological intensity of all categories.
- Medium-high-technology – manufacturers in the chemical industry, machinery and equipment, motor vehicles, ships, and aircraft, who have a higher technological intensity compared to the low-technology level, but lower than high-technology.
- Medium-low-high-technology – manufacturers of fuels, plastics, and metals, who have a lower technological intensity compared to the medium-high-technology level, but higher than low-technology.
- Low-technology – food, textile, wood, paper and printing, and other industries that have the lowest technological intensity of all categories.
What is a STI in High-Tech Marketing?
STI is an acronym referring to science, technology, and innovation. In the most technologically advanced countries, such as the U.S. and Japan, STI is a major driver of the economy. For example, new technology such as artificial intelligence (AI) is currently at the center of the High-Tech Marketing. Companies such as Google and Microsoft use it to gain the market advantage.
Impact of AI on the High-Tech Market
High-tech companies use opportunity of open access to AI to enhance their innovation capabilities and improve their products and services. Open access to AI can is especially useful for small and medium-sized enterprises, which have fewer resources and financial capabilities than large corporations. With open access to AI technologies and solutions, small companies can more easily compete with larger players in the market.
Financing High-Tech Marketing
Financing High-Tech Marketing with venture capital can be a good idea for smaller companies. Venture capital is a type of investment that provides capital to startups and small companies with high growth potential. By providing funding to innovative high-tech companies, venture capital can help these companies develop and commercialize their products and services, which can lead to market growth and expansion.
There are several advantages to funding high-tech innovation with venture capital:
- First, venture capital provides access to capital that can be used to fund research and development, marketing, and other activities that are essential to a company’s growth and success. This can be particularly important for innovative high-tech companies, which often require significant funding to develop and commercialize their products and services.
- Second, venture capital can also provide valuable expertise and support to high-tech companies. Many venture capital firms have a team of experts who have extensive experience in the high-tech industry and can provide valuable guidance and support to the companies they invest in. This can help companies overcome the challenges of the high-tech industry and succeed.
- Third, venture capital financing can also help high-tech companies build credibility and attract other investors. By securing financing from a reputable venture capital firm, companies can gain credibility and visibility in the market, which can make it easier to attract additional funding from other investors.
How to create a link between marketing and R&D?
In High-tech marketing practice, an agile approach works best, i.e. frequent, short meetings during sprints in a project. Marketing and R&D staff should talk almost daily during the initial market planning work for a new product or application, and regularly afterward for updates and revisions. To avoid later misunderstandings, both departments should agree and write down the goals and objectives of the business marketing plan. Our research shows that the actual involvement of the R&D department in the formulation of go-to-market strategies and tactics is best limited to a technical-consultative role.
To create an effective combination of marketing and research and development (R&D) teams in the high-tech industry, follow 3 simple rules:
- Collaborate on product development from the very beginning. This involves involving the marketing team in the earliest stages of product development so that they can provide information and guidance on the features, benefits, and positioning of the product or service. By collaborating on product development, teams can work together to create innovative products and services that are aligned with market needs.
- Communicate regularly. For teams to collaborate effectively, it is important to establish regular channels of communication. This can include regular meetings, email updates, and other forms of communication that allow teams to stay informed and on top of the latest developments. With regular communication, marketing and R&D teams can make sure they are working together on common goals and objectives.
- Share data and insights. The marketing team can provide the R&D team with valuable data and insights on customer needs and preferences that can inform the development of new products and services. Similarly, the R&D team can provide with information on the latest technologies and innovations, which can help to develop effective marketing campaigns.
Who should be part of the conductive marketing team?
When selecting a marketing team to work with the research and development (R&D) team in the high-tech industry, it is important to select individuals who have the necessary skills and knowledge. This includes individuals who have a deep understanding of the high-tech industry, as well as experience in product development. The best people for a leadership combine 3 qualities:
- Technical knowledge: a team member who will be working with the R&D team in the high-tech industry should have a strong understanding of the technical aspects of the products and services being developed. This may include knowledge of engineering, computer science, or other technical disciplines, as well as experience working with complex technologies.
- Marketing knowledge: in addition to technical knowledge, a member should also have experience in product development. This may include experience in market research, product positioning, and other marketing activities, as well as a deep understanding of customer needs and preferences in the high-tech industry.
- Communication skills: a member of the team who will be working with the R&D team in the high-tech industry should also have strong communication skills. This is important because the marketing team and the R&D team will need to work closely and communicate effectively to develop and commercialize innovative products and services.
Who manages the conductive marketing process?
Since High-tech marketing plays a strategic role, in practice senior managers, usually serving as board members or vice presidents, oversee the process.
The marketing leader is usually a person with a cross-section of experience, both engineering and marketing. It is important to entrust this mission to a person with the profile of a leader, not a boss. Working with a team developing innovations requires support and motivation from the leader, and a bossy approach often causes a reduction in team motivation.
How to motivate a team working on a high-tech innovation?
There are 3 important ways to motivate a team that is working on a high-tech innovation:
- Communicate the vision and goals of the innovation. This includes explaining the purpose and potential impact of the innovation, as well as the specific goals and milestones the team should strive for. By clearly communicating the vision and goals of the innovation, team members will have a better understanding of the project and will be more motivated to contribute to its success.
- Provide support and resources. This can include providing access to the latest technology and tools, as well as training and support from experts in the field. By providing team members with the resources and support they need to succeed, you can help motivate and inspire them to give their best to the project.
- Recognize the team’s performance. This can mean giving tangible rewards, such as bonuses or promotions, or intangible rewards, such as public recognition or appreciation of their contributions. By recognizing and rewarding team members’ achievements, you can show that their hard work and dedication are valued and appreciated, which can help motivate them to continue contributing to the success of the innovation.
High-tech Marketing Expertise
DrySEO professionals can help you identify the best strategies and tools for your High-Tech Marketing. Whether you want to create a marketing innovation, or implement lead generation, consulting with experts can help you achieve your goals.