The Meaning of Marketing for High-Tech Firms

Distribution of Farm Product

was first published, and today that seminal work

is considered the first book on general marketing [2].

The definition of the word “marketing” can be found in its etymology.

Marketing means “putting on the market.” Therefore, the purpose of mar

-

keting is to act in such a way that a company places on the market products

that correspond to demand and satisfy the needs and wants of customers at

an acceptable return.

Marketing’s philosophy reverses the traditional perspective toward the

company, its needs, and its production capacity. Marketing considers its

main task to be “determining the needs and wants of the appropriate mar

-

kets and to profitably produce the desired product or services by being more

efficient than the competition” [3]. The following, more detailed definition

has been developed by the American Marketing Organization (AMA):

“Marketing is the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods, and services to create

exchanges that satisfy individual and organizational goals” [4]. Marketing

focuses on making the product available at the right place, at the right time,

and at a price that is acceptable to customers [5].

Given this perspective, marketing complements or replaces short-term

views that give greater importance to the product, the manufacturing

process, or the selling method (see Table 1.1).

2

The Meaning of Marketing for High-Tech Firms

Table 1.1

From a Product Orientation to a Marketing Orientation

Orientation

Customer

Purchasing Criteria Assumptions

Objectives

Department

Involved

Product

Quality

Customers buy products

for themselves

Find “good”

products

R&D

Product

technology

Customers are able to

identify a product’s

advantages

Produce quality

products

Design

Customers are willing to

pay more if justified by

the product

Explain product

functions

Production

Production Availability and

reasonable prices

Produce sufficient

quantities

Production

Optimize logistics

and distribution

Logistics sales

Sales

Stimulation of

interest

Customers only purchase

what is needed

Customers can be

encouraged to buy more

due to sales techniques

Increase product and

company awareness

Encourage product

purchase

Sales

Marketing

Marketing

Response to needs

and motivations

Customer point of view is

of utmost importance in

long-term sales exchange

Know customer

need’s

Marketing

Customer interest in a

product depends on the

product’s ability to solve a

problem or satisfy a