Modeling international marketing strategies related to high-tech products (a case study of Iranian companies active in the field of nanotechnology)

Dissertation for Master's degree (M.A)

Field and direction:

Business management - international business

Abstract

The present study deals with the modeling of international marketing strategies of high-tech products in companies active in the field of nanotechnology, and in this regard, seeks to investigate the role of marketing trends and international marketing experiences on international marketing strategies. international as well as examining the role of marketing trends, international marketing experiences and international marketing strategies on the performance of selected companies. The statistical population of this study consisted of managers and senior experts of companies active in the field of nanotechnology located in the Science and Technology Park of Tehran University and selected companies introduced by the country's nanotechnology development headquarters, from which 70 people were selected as a statistical sample. The researcher-made questionnaire was used to test the assumptions and achieve the aforementioned goals, and the results showed that marketing trends and international marketing experiences have a positive effect on the performance of the studied companies. Also, marketing trends, international marketing experiences, and international marketing strategies have a positive effect on the performance of selected companies.

Key words: international marketing, marketing strategy, marketing trends, international marketing experiences, nanotechnology. In this chapter, a detailed description of the statement of the research problem, objectives and assumptions of the research and the necessity of conducting the research will be presented, and also the research method, which includes the method of collecting information and society, and the statistical sample and the scope of the research, will also be stated. Finally, a description of the words and concepts used in the research will be presented. 1-2- Importance of the subject Technology commercialization is a defined process that consists of: transferring knowledge and technology from one person or group to another person or group in order to use it in a system, process, product, or a way of doing work (Martyniuk et al, 2002). Meanwhile, technology marketing is a part of technology commercialization process. In this field, marketing managers have not been very active, but active companies in the field of producing high-tech products that have accepted marketing principles and based their plans and programs on the basis of mixed marketing elements have achieved positive results (Kathleen, 2003). High-tech products are advanced products whose production is based on scientific/engineering knowledge. Few conceptual and empirical studies have been done in the field of distinguishing high-tech products from ordinary products. Also, there have not been many studies in the field of identifying effective strategic alternatives for marketing technology-oriented products. Of course, the commercialization and sale of high-tech products requires marketing and branding. The financial success of such products is not only achieved through product innovation, or the latest and greatest product features, marketing skills play an increasingly important role in the acceptance[1] and success of high-tech products. On the other hand, the speed and short life cycles of these products have led to unique challenges in the field of marketing and branding. Marketing in high-tech products faces its own unique challenges due to the accelerated life cycle of these products and as a result of continuous improvements and R&D innovations. Many high-tech products fail because the companies producing these products consider marketing unnecessary and the role of marketing in these companies is not properly understood. Marketing for high-tech products is complicated and difficult; Maybe mainly because the companies and institutions producing such products are not market-oriented. What improves the success of high-tech products is not only technological superiority [2], but the combination of technological superiority and marketing competence [3] maximizes success. According to Porter (1980) and his discussion about emerging industries, it can be logically concluded that the marketing strategy for high-level technology should be different. Especially Rosen and others (Rosen et al., 1998) argue that: "High-tech markets have certain characteristics that distinguish them from other sectors".

The first point to note is that there are few products that consist of only one technology, although there are exceptions. Products are usually a combination of advanced, established, and old technologies that together create a strong product. Therefore, it is difficult to distinguish between high-tech products and low-tech products. The low level made a distinction based on the technology used in them. What is important is whether the products are considered high level or not and the amount of high level technology elements they contain will be the basis for the evaluation and therefore the customer's behavior.

One aspect of this evaluation is the risk experienced by the customers It is aggravated by the uncertainties associated with a new technology.Moriarty and Kosnik (1989) believe that this uncertainty can be only on the customer's side or for both the customer and the supplier. Suppliers will experience uncertainty and risk due to lack of expertise in selling, promoting or supporting these products. The nature of the risk depends on the type of technology, the degree of innovation used, and whether the customer is the final consumer or a channel intermediary. Customer risk stems from the lack of experience in applying, maintaining and using technology. Uncertainty is therefore a pervasive aspect of high-tech products.

The term high-tech also implies "leading edge[4]" or "advanced developments[5]" as does uncertainty. However, whether cutting-edge satisfactorily defines high-end technology for marketing purposes is debatable. But it can be said that being progressive and advanced also means being new in the market.

The next implication of being progressive or advanced is that the provider organization has to employ a comparatively high percentage of highly skilled professionals in scientific and technical activities. In fact, in some instances, it is a key descriptor for identifying high-tech industries. In these industries, the research intensity [6], meaning the research cost as a percentage of sales, is at least 3 times the average of all industries (Jelinek and Schoonhoven, 1990).

Rapid product changes and obsolescence, short product life cycles, low entry barriers, and an ever-changing competitive environment are different from other operational characteristics of high-tech products in the market.

For marketing management purposes, high-tech products require a more complex definition. It is beyond "advanced and progressive" that includes products that:

are developed in a purely technical environment.

include a new or advanced technology that serves as a basis for their evaluation. 

They are associated with a high degree of technological uncertainty on the part of the customer and the supplier.

They are not currently accepted as natural solutions to the problems they are designed to solve.

They do not yet have a coherent external framework.

This definition contrasts with the approach adopted by some authors. These authors limit their definition to descriptions such as "complex products usually with a high-level technical design" or "products that are characterized by advanced development and usually have a short and transitory life cycle". More comprehensive definitions are also provided by authors such as: Shanklin and Ryans (Shanklin and Ryans, 1987), although they considered only 3 criteria as key:

Business that requires a strong scientific basis. – Be technical.

New technology can quickly make existing technology obsolete.

As new technologies emerge, their applications create markets and demand.

What is suggested by the above definition is a reduced emphasis on the short-lived and pioneering aspects of high-tech products. Instead, more weight has been given to factors that affect the relationships between suppliers, products and markets, which are closer to the marketing issue.