Strategies for Emerging High-Tech Companies

	NEW: Solar Strategies Techniques and ideas for accelerating the adoption of solar power and renewable energy
	Research Results The following articles summarize the unique requirements of technology marketing: Top Ten Mistakes in Technology-Based Business Sixty percent of the high-tech startup companies that succeed in getting venture capital end up in bankruptcy. Here are some of the reasons the failure rate is so high. (ref 1) Historical Perspective: The Original Technology Adoption Lifecycle The technology adoption lifecycle was originally developed in 1957 to track the purchase patterns of hybrid seed corn by farmers (ref 2). Keys to Market Acceptance There are six general strategies that accelerate market acceptance. Spotlight on Strategy: The Sony Mavica An illustration of successful high-tech strategies in action (ref 3).

Executive Summary

This web site presents information about how people adopt new technologies (or innovations) and what suppliers must do to encourage the acceptance process. This information was compiled by Warren Schirtzinger using the results of a ten year study of winners and losers in high-tech (ref 1).

It's All About Risk

In high tech, products are often more costly and complicated, so the customer has more at stake. Therefore market adoption of a technology product is dependent upon helping customers reduce perceived risk.

Marketing a new technology is vastly different than marketing a consumer product that carries little or no risk. In the risky world of high tech, the customer will not rely on the word of the provider. The customer's decision process is based on finding objective information from reliable sources, something the vendor cannot provide.

Have you ever had someone call and ask you what kind of computer to buy? This is a common method of lowering risk by gathering objective evidence.

With low risk products, there is little or no penalty for making the wrong decision. Marketing low-risk products relies on name recognition, image and branding because most products in a given category are interchangeable, plus customers accept the claims of the provider at face value.

When was the last time you called a trusted friend to ask what type of cereal or milk to buy? Or called the Coca Cola Company to ask if they offer 24-hour support? We just automatically believe that Kellogg's knows how to make Corn Flakes.

References

1	Marketing Lessons Learned: A 10 Year Study of Winners and Losers in High Tech (Washington Software Association, Presidents Forum)
2	North Central Rural Sociology Committee, Subcommittee for the Study of the Diffusion of Farm Practices. The Diffusion Process. Ames: Agriculture Extension Service, Iowa State College, Special Report No. 18, 1957
3	Sony Mavica's success in the market for digital cameras (Wall Street Journal)