Analyzing the potential of a new market
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.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1993
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Internal marketing of a service
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.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1992
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