Common High Tech Marketing Mistakes

By Joe Owens

The dot-com bubble that steadily inflated beginning in 1995 through the late 90s saw the rise of budding entrepreneurs and application developers in their early 20s, all dreaming of becoming the next Bill Gates, the prodigy who built the empire we now know as Microsoft. The Internet was still new and venture capitalists were lured to thinking that the next big thing lies in e-commerce. Almost overnight, websites for different services sprouted all over the web. Investors were clamoring to grab dot-com stocks as soon as they were offered for sale. However, the bubble burst as the new millennium approached. Stocks began diving, dreams were shattered and one by one, the promising websites were liquidated.

Many start-up high tech companies fail because of a variety of reasons. It could be because of their products, their management, or their marketing strategies. There are start-ups that fail to grow because they take for granted the importance of having channel partners with partner portal to support them.

Even established brands produce products that flop causing extensive loss of investment. For example, Apple, known for its innovative products like the iPod and iPhone had their own share of product flops over the years; namely, Apple Newton, Puck Mouse and many others. Today, they are at the top of their game but other companies continue to fail. Here are just some of the reasons why.

1. Lack of focus – When companies try to be everything at once, they spread their resources too thin. There has to be a focus that the company can excel at. Apple may look like a bad example when they went into the music industry, then ventured into telecommunications and now is at the forefront of ebook publishing, but what their focus really is in lifestyle technology. Companies have to establish their niche to get ahead of the competition.

2. Too frequent product updates – Vendors or manufacturers have to pace their products. In telecommunications, cell phone models have been updating like clockwork and because of this their value depreciates on a daily basis. If companies update their models every week, customers would learn to wait for the best upgrade and companies will end up selling the old models at bare minimums.

3. Mismanaged channels – The channel management concept is more than just matching channels with specific market segments. Vendors need to cater to the needs of the channel partners because they need these resellers motivated to sell their products. Providing technologies like partner portals is important in preventing channel conflicts and giving lucrative incentives will motivate them to increase revenues.

4. Ineffective Advertising – What eats up most of a manufacturer’s budget is advertising. In introducing a new product into the market, first impressions last. There should be a clear vision of what the product is all about so there would be no miscommunications between vendor and customers.

5. Relying on low prices – In the high tech world filled with all types of gadgets, the prices alone don’t matter. Sophisticated consumers of technology expect products that perform exceptionally well regardless of the price. In buying a desktop computer for instance, the iMac still has a strong following even though much cheaper versions of the PC are available. It’s because Apple fans appreciate the sleek design and cool features of the iMac even though it costs more.

Article Source: http://interpret.zar.vg

About The Author
A computer graduate and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats and walk with them in the park with some dogs.

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