Microelectronics and Marketing
| Date | 01 July 1981 |
| Pages | 2-12 |
| Published date | 01 July 1981 |
| DOI | https://doi.org/10.1108/eb057198 |
| Author | Jim Mann,Peter Thornton |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Microelectronics and
Marketing
by Jim Mann, Lecturer in Marketing, University of Bradford Management Centre
and Peter Thornton, Research Fellow in Management Studies, Huddersfield Polytechnic
Introduction
The first paper ever published on microprocessors
described the device as the "re-configurable" circuit.
This conveys the simplest, but most important feature
of the microprocessor, namely that by changing the
software a device can be tailored to fit a wide range of
applications - from a simple light switch control to the
central processing unit of a computer. This versatility of
microelectronic devices, combined with their falling
price, decreasing size and exponentially increasing
power makes inevitable their widespread application.
Indeed, it can be predicted with reasonable confidence
that by the end of the century the pervasiveness of the
"silicon chip" will be the defining characteristic of an
advanced society.
The real significance of recent developments in
microelectronics is perhaps best illustrated by the con-
cept of the meta-technology [1]. A meta-technology
being defined as a technology which directly affects
nearly all other existing technology. In this sense, the
development of the microprocessor and its related
devices is in many ways analogous to that of the steam-
engine at the beginning of the 18th century. The steam-
engine, originally intended simply to pump water out of
the mines, became a meta-technology when it was later
coupled to existing technology, converting machinery
into powered machinery. The computer, originally
developed to perform computations (essentially huge
number crunching exercises), when coupled to existing
machinery converts it into "intelligent" machinery.
More specifically, the availability of cheap reliable
computing power in the form of the microprocessor
makes possible the substitution of "intelligent"
products for "dumb" ones.
The greatest impact of microelectronics, in fact, in the
immediate and medium-term future is likely to be in the
area of consumer products. This is because the simple
control devices upon which most consumer products are
based can be replaced by low cost single chip micro-
computers (actual complete computer systems on a
single piece of silicon) with proven capabilities, which
have now been commercially available for well over five
years.
The first applications of this type of device, in
pocket calculators and digital watches, virtually de-
stroyed two well-established industries almost overnight
and in video games created an entirely new industry.
These, however, are only the better documented and
more dramatic examples of the use of microelectronic
devices in products. A salient feature of the micro-
processor will be its pervasiveness. Currently, for
example, it is possible to buy in the US a whole range of
domestic appliances including washing machines, cook-
ers,
microwave ovens, weighing machines and sewing
machines all incorporating microprocessor-based con-
trols - and the list is ever growing.
There can be little doubt, as the examples of the
watch and calculator industries clearly demonstrate,
that microelectronics technology is going to affect com-
parative advantage on a national, industry and indi-
vidual company basis - possibly drastically. The precise
balance, however, will ultimately depend on how
managers seize the immense opportunities offered by
microelectronics to better satisfy existing needs and to
meet previously unrecognised needs. To take full advan-
tage of the new technology managers will need to react
quickly and effectively. Already some American
businessmen are becoming apprehensive of the Japanese
rate of product innovation.
The first applications of this type
of device virtually destroyed two
well-established industries almost
overnight and created a new one
Success in exploiting the new opportunities created
by microelectronics will require the development of new
attitudes, knowledge, techniques and organisational
structures and procedures appropriate to the demands of
the new technology. In particular, success will depend
on finding the correct marketing-technological mix to
match consumer requirements. Consequently, the role
of the marketing function will be central. The purpose of
this article, therefore, is to examine the likely effects of
microelectronics on the operation of the marketing func-
tion and to indicate the type of demands which will be
made upon it by changes in both the environment and
within the organisation
itself.
On the basis of this
analysis an attempt will then be made to develop a
series of guidelines which will be of assistance in enabl-
ing the marketing function to meet these new demands.
The Advantages of Using Microelectronics in Products
The advantages of substituting microelectronic systems
for existing control devices (in the case of consumer
products essentially mechanical and electro-mechanical
controllers) are normally cited as:
(1) "Intelligence".
(2) Flexibility.
(3) Reliability.
(4) Size (miniaturisation).
(5) Lower power consumption.
(6) Raw materials/component saving.
2 INDUSTRIAL MANAGEMENT + DATA SYSTEMS
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