Crossing the THz gap: marketing strategy for a new technology

Terahertz Solutions Inc. is a new company that has developed out of research at the University of Northern British Columbia. State of the art terahertz emission and detection equipment has been purchased for development of a prototype to measure density and orientation in the production of oriented strand board. Terahertz Solutions Inc. (TSI) has little in the way of resources to begin operations once the prototype is finished, however. Effective marketing is crucial to the success of any new product, but TSI will not have the financial or human resources to create and implement a traditional marketing plan. This project incorporates elements of strategy to devise a cost effective marketing plan that will set the stage for TSI to become a major player in materials characterization. This strategic marketing plan draws from the literature of marketing and of strategy. The boundary between marketing and strategy is blurred. Traditional marketing concepts based on promotion, product, price, and placement will do little to help a company that cannot afford a marketing program. Strategic insight is gained from Michael Porter's five forces model, and prescriptive advice from the marketing literature is then applied to each of the five forces as they relate to the industry in which TSI will operate. Financial projections are made based on the incorporation of this prescriptive advice. A strategic marketing plan emerges that is practical given TSI's current position, and could led the company through its crucial start-up phase and ensure that this technology which could have a significant impact on the forest industry actually makes it to market. Competitive advantage in business-to-business transactions can be tough to negotiate. It is hoped that the strategic marketing plan presented can serve as a roadmap for the future of TSI, and of other start-up companies applying new technology to existing manufacturing processes. The formulation of a strategic marketing plan that will enable TSI to establish competitive advantag