Market-Pull' and Technology-Push': New Technology Is Now Available For Manufacturing or

‘Market-Pull’ and ‘Technology-Push’.
NEW products are offered to the market as a result of technology-push or market-pull.
What does ‘Technology Push’ mean? (TP) What does ‘Market Pull’ mean? (MP)
Technology Push is when a product is designed and Market Pull, refers to the need/requirement for a new
manufactured thanks to: product/solution to a problem, which comes from the
 New technology is now available for manufacturing or market situation.
 A technology taken from another context can be  The need is identified by market research. Then a
used to make the product. product or a range of products are developed, to
Technology means the availability of materials & solve the original need.
components, tools & equipment and new ways of  Sometimes starts with potential customers asking
realisation. The manufacturing cost is brought down, so for improvements to existing products.
businesses assume that the product will be affordable to  There could also an opportunity, for a new product,
most customers. evident to the manufacturer but not to the
TP involves another type of market research=>which customers.
market segment will want to buy a product based on a Because there is demand, sale & profit are guaranteed.
NEW & unfamiliar technology? In technology push strategy, so as to minimise risk, the
Because customers’ response is unknown, the TP venture manufacturer must also create a demand for the newly
could prove risky to the business. created product.
Examples of technology- push products. There are many such products that we use daily.
(a) The technology used in Microwave Oven emanates from

the early telecommunication industry. The technology was
discovered accidentally in 1945 by autodidact engineer, Percy
Spencer. He was experimenting with a new vacuum tube
called a magnetron (used in microwave communication) and
got intrigued when the candy bar in his pocket began to melt,
so he tried another experiment with popcorn. When it began Constant research and
to pop, Spencer immediately saw the great potential of his development into the
discovery. In 1947, the phenomenon discovered by Spencer technology has made
was employed to build the first microwave oven, which was a possible the modern
commercial failure due to its bulkiness and unaffordable price. microwave oven.
(b) Touch screen technology (TST), used in smart phones, ATM and many other devices. The technology first appeared
as a published research by E.A. Johnson at the Royal Radar Establishment-UK in the mid sixties. TST was simple, catchy
and attracted much attention together with generous funding for further research & development. Since then, TST
has gradually evolved to reach us as we experience it in 2020. TST has now become the norm. Customers ask for more
and better from TST. What was technology push has become market-pull. Hard to believe that just a few decades ago,
TST could only be found in science fiction film and books. Evolution of TST is briefed below.
In 1993 TST evolved to find In 2012 the first finger In 2019 pliable TS is already a
its way in products such as driven TST smart phones reality. There is more to
Apple’s Newton PDA came into market. come.
Note: ‘Technology push’ strategy does not always work, as it depends on new
technology being made available in the form of new products, which have not been
adequately market tested first. The electric-powered 3-wheeled vehicle Sinclar C5
introduced in UK in 1980 was a technological breakthrough but a commercial failure
because of short range maximum-speed and it was open to weather.
Examples of market-pull products. Most products fall in this category.
An example of market pull influencing product evolution, is seen in the development of the digital camera. From years
ago, there was a ‘market’ requirement for a camera without a film ( saving on developing films), that could take endless
photographs, that could be viewed almost immediately. The technology of that time could not allow the manufacture
of such a device. However, technology has a habit of catching up on market needs. Market pull eventually led to the
development of digital cameras’, once miniature digital storage; processing power and improved battery performance
was available. Market pull ensured that photo editing software also developed, in parallel with the development of
digital camera technology. Evolution of the camera due to ’market craze’ illustrated below.
In 1980s film roll cameras, 36 In 2000s SD Card digital camera, Later in 2000s camera goes into After 2015 selfie camera becomes
photographs of acceptable quality. thousands of photos of superior mobiles, quality similar to digital reality, amazing quality photos.
quality cameras. 4500 photos/gb 4500 photos/gb
Market pull does not always work. Sometimes the market ‘calls’ for an innovative product, but the technology does
not exist to support its development/manufacture. Electric cars have become quite popular and the commuter market
place, is open to the development of environmentally friendly electric motor bikes. A motorbike that can match the
performance of petrol driven motor bikes. However, current electric motor and battery technology, means this is not
economically viable. Eventually, market-pull will influence investment in research and development, ensuring the
continued evolution of electric motorbikes.
Characteristic differences between technology push and market pull strategies.
Issues to be compared Market Pull Technology Push

What about need & want (demand)? Is evident to business area, customer No demand. Customer not aware of
market-readiness, marketing? Who is asking for the product/solution, product/solution. A team or even 1
informs? market research justifies. So the people work secretly on a new
market is ready. Marketing will be technology to provide a new product.
*business area means one particular easy. Little chance of failure. Market Market not ready, marketing difficult.
market, e.g. the market of: pressure- informs business what is needed. Big possibility of product failure.
cooker, or hard-disks, or car-battery,. Exclusive team has information that
will be exposed to market later.
What about competition, risk, Highly competitive market because No competition because product
innovation? many manufacturers will supply. Little does not exist yet. Risky venture.
or no innovation in primary function. Emphasis will be to propose highly
Emphasis will be on add-on features, innovative solution to a potential
packaging, styling, etc. Little risk. problem/situation.
What about investment? Low investment on Research and High investment. Return on
Development. Return on investment investment is unknown and unsure.
is assured.
What about man-power? Same labour resources, with little New competencies and skills have to
training, used as they are familiar be developed since a novel
with the actual context: similar technology will be employed.
products already exist, technology Product or solution will come into
also exist. The business leaders do existence for the first time. High
mostly managerial tasks, with little leadership skills are is required to
leadership skills. make things happen for the benefit
of ALL: market + business.
Notes:
(i) Customer and market means the same thing.
(ii) There is a difference between a product and a solution. A solution to a problem can be achieved by many products.
During an electricity cut, how to find one’s way in the dark? => by using the phone torch, by a lighted candle or oil
lamp,...

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‘Market-Pull’ and ‘Technology-Push’.

NEW products are offered to the market as a result of technology-push or market-pull.

(a) The technology used in Microwave Oven emanates from

Characteristic differences between technology push and market pull strategies.

Issues to be compared Market Pull Technology Push

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