12.4. THE MARKET, MARKETERS, AND MARKET RESEARCH IN TECHNOLOGICAL INNOVATION
Depending on how much clarity exists in market size and customer segmentation as well as the level of development of the technology involved, the role of the market in technological innovation varies in important ways. The degree of clarity has implications for the role of marketers as projects evolve, the appropriate market research they can contribute, and the type of customer input that can be expected (Table 12.5).
12.4.1. Role of Marketers
Marketers play the largest role in the early stages of innovation involving low technical uncertainty: (1) incremental innovation, involving low uncertainty in both technical and marketing, and (2) creation of new market via existing technology. In both cases, once a project is selected marketers are expected to play active, although different, roles. In the case of incremental technological innovation, marketers interact mainly with existing customers to determine what improvements need to be made and communicate with technical teams to make these improvements to existing offerings. Alternately, if a technology is already developed and has not yet found a market, the role of marketing is to identify new markets and segments, and creatively embody the technology in an appropriate offering.
In projects where technical uncertainty is high, marketers have a less influential role, at least in the nascent stages of a new project. When the market need for the technological innovation is clear (i.e., market uncertainty is low), marketers inform and advise the process of innovation and, as technical progress is made, gain a more prominent role in introducing the breakthrough. When market uncertainty is also high, however, marketers take on the role of active listener. As the innovation process proceeds, along with other disciplines, marketers help create alternative paths for the project through iteration. The role of marketing strengthens as the project is developed and is clarified, and the breakthrough is eventually launched.
While these roles are not rigidly defined, the wisdom of making distinctions becomes evident when considering mismatches. For example, if marketers, who expect to be very influential in directing technical efforts are involved in projects in which marketing and technical certainty are low, they will not only be ineffective, but likely detrimental.
12.4.2. Market Research
Different approaches to market research are appropriate to various types of innovations. Where market needs and customer segments are already well defined, research can rely on secondary trend data, as well as primary data collection via focus groups, surveys, and user observation. The market research approach is analytical, well defined, and systematic. Competitor analysis is more prominent in incremental improvements and need fulfillment. In contrast, for projects in which market needs and segments are unclear or nonexistent, early market research focuses on identifying or even creating wants and needs that customers cannot express or perhaps even envision. This sort of market assessment is by necessity more ambiguous and tentative, and demands more creativity and vision on the part of marketers.
12.4.3. The Market and Disruptive Innovation
Radical or disruptive innovation poses unique challenges to marketers, as early stage technological breakthroughs that may eventually create entirely new markets are less subject to user input. Harryson (2008) suggests that partnering with users is most valuable in the commercial phases of innovation, or for defining final applications and speeding up diffusion. Clayton Christensen (1997, p. 208) adds, "We cannot expect our customers to lead us toward innovations they do not need now. Therefore, while keeping close to our customers is an important management paradigm for handling sustaining innovations, it may provide misleading data for handling disruptive ones." Christensen (1997, pp. 209–10) recommends directing disruptive innovations to new markets and customers who value the unique attributes to the innovation, versus existing markets. Market information for a disruptive innovation does not exist, it has to be created by "making fast, inexpensive and flexible forays into the market and the product...and [leaving] room to try, fail, learn quickly, and try again, [can] succeed at developing the understanding of customers, markets and technology needed to commercialize disruptive innovations."
In Inside the Tornado, Geoffrey Moore (1995) also argues that radical technological innovation that disrupts the marketplace demands special treatment. Users may not necessarily recognize the value of adoption. The burden is therefore on the innovator to convince others that the benefits of the new offering outweigh the costs. In his technology adoption lifecycle, early diffusion is encouraged by seeding interest in enthusiasts, who are intrinsically interested in the technology and educate others in the benefits of the technology. Visionaries, who demand high-end performance, are typically the next users, and are then followed by pragmatists, conservatives, and skeptics. The key to success, however, is the ability to "cross the chasm" between the visionaries and pragmatists, and become the market standard. Doing so requires an "eggs in one basket" approach in which a specific niche within a mainstream market is fulfilled 100 percent. Unmitigated success here then drives broader mainstream success.