Article Abstract:
The competitive battles of the 1980s were won by companies that focused on cost and quality advantages in existing, well-defined markets /1~. In the 1990s these battles will be won by companies that can explore and dominate new markets /1~. If managers are not able to think outside current market boundaries, they will miss opportunities. Northern Telecom, with its digital switch software, made an aggressive attempt to spread the technology across different market segments /2~. Similarly, Canon had expertise in optics and related areas and used its product base in markets for cameras, copiers, and photolithography /2~. Hewlett-Packard extended its opportunity horizon by using its instrumentation technology over a number of markets from oscilloscopes to cardiac analyzers. This article demonstrates how to analyze the potential of a new market. The proprietary company that participated in the study wanted to extend its opportunity horizon by searching explicitly for markets that could use its traditional area of competence: miniature and subminiature lamps. Hamel and Prahalad suggested that "new markets are seldom created by some mysterious process of spontaneous generation" /1~. The five steps a company should take to analyze the potential of a new market are outlined. (Reprinted by permission of the publisher.)
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Article Abstract:
Industrial marketing is generally viewed from the vantage point of firms marketing to other firms. Yet organizations devote extensive resources to situations where managers market their capabilities to other units within the same firm. A case study of industrial health and safety is presented here to stress internal marketing concepts that managers and staff professionals should use to strengthen their internal contribution to company objectives. The case has implications for managers who deal with internal marketing problems of many in-house services sush as information systems, market research, data processing, education and training, and other functions. Staff unit managers in a range of disciplines who want to better serve internal publics can effectively market their services internally by understanding and responding to internal decision processes and expectations. Moreover, internal customers will receive higher quality services if these staff functions focus their capabilities on meeting or exceeding management expectations. (Reprinted by permission of the publisher.)
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Article Abstract:
This article reports the findings of a 1985-1986 study of success and failure determinants for new industrial products that had recently reached commercialization. In particular, the paper seeks to identify underlying factors for success and to test whether perceived success and failure factors vary with new product "experience" levels and-or with the degree of innovation in the company's new product program. The paper concludes that companies with more innovative and-or high-tech new product programs have significantly different success and failure factors at work than their less innovative and-or lower technology counterparts, and that across a sample of companies from many industries, wide variety of situation-specific success and failure variables need to be addressed by industrial marketers. (Reprinted by permission of the publisher.)
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