Friday, February 6, 2009

Hi Technology Marketing Part 1

What is a high-tech product?

The term “high technology” is a catchall category that includes any product manufactured with some type of an advanced technology, from razor blades or athletic shoes, to sports cars, to long-range missiles. Furthermore, high technology can also apply to many categories of services. In any case, technology is not the only characteristic and discriminating feature of these products. When asked about the main characteristics of high-tech products, marketing managers are mostly concerned with some distinctive characteristics that pertain specifically to high-tech products.

When we talk of high technology in telecommunications we are not only talking about the products but also about the services offered by the technology providers. Viz. Relaince may provide a data card to access the internet but what is the use if the customers are unable to access the internet i.e. they are deprived of the basic service that the data card is meant for.

Hence high technology services are also very essential for telecom companies becasue

They are intangible.

Their ownership is not transferred at the time of the purchasing.

Customers are associated with them.

They are location independent but time dependent.

They are relatively homogeneous so they can quality controlled.

They cannot be easily demonstrated before purchasing.

A cell phone is a high technology product because it contains different parts:

A tiny microphone

A speaker

An LCD or plasma display

A keyboard

An antenna

A battery

A circuit board

The circuit board itself—the central part of the system—includes various components:

The analog-to-digital and digital-to-analog conversion chips.

The Digital Signal Processor (DSP)—a highly customized processor— which handles all the signal compression and decompression at about 40 MIPS (millions of instructions per second).

The microprocessor (Ericsson phones use an ASIC version of the Z-80) and memory handle all of the housekeeping chores for the keyboard and display, deal with command and control signaling with the base station, and also coordinate the rest of the functions on the board.

The radio frequency (RF) amplifiers handle signals in and out of the antenna.

The RF and power section handles power management and recharging, and also deals with the hundreds of FM channels.

Thirty years ago, all of that technology would have filled the entire floor of an office building. Today it fits into a compact device that fits in the palm of the person using it. That’s the power of technology in the telecommunication sector.

Moore’s Law does not seem to apply exactly to telecommunication technology, since speeds are doubling on optical fibers every 12 months, and are now approaching 1 terabyte per second

One of the characteristic of a high-tech product is its innovative quality. It should bring a (usually) radical change to a market where one new product will drive away others. E.g. IPTV and Satellite TV is changing the way TV was being viewed by the people through the cable operators. This was possible because the radical innovation in the evolution of the technology for television over the internet protocol and the interactivity controlled features in Satellite Television.

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