Browsing by Author "Tonkin, Ryan Michael"

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    Business-to-business marketing and the marketing of innovations in the South African diamond cutting and polishing industry
    (Stellenbosch : Stellenbosch University, 2006-04) Tonkin, Ryan Michael; Terblanche, N. S.; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Business Management.
    ENGLISH ABSTRACT: The South African diamond beneficiation industry is currently undergoing considerable industrial, regulatory and legislative reform. The Precious Metals and Diamonds General Amendment Bill and other government initiatives will result in growth in the local industry. In order to answer Government's call for increased processing of locally produced rough diamonds, polished diamond manufacturers will be continually searching for ways to improve production output and quality with greater efficiency and effectiveness. The study has been performed in conjunction with innovative research and development being conducted by HBO Venture No 7 (Pty) Ltd, a local company formed to design an innovative diamond sawing and polishing machine for the diamond beneficiation industries of South Africa and abroad. The company members believe that a strong market opportunity exists for the development of a more efficient, flexible and cost effective machine, whose predecessor's design has remained relatively unchanged for a century or more. It is also believed that a unique opportunity has presented itself as a result of favourable environmental factors arising from impending industry changes which will serve to promote the local processing of rough diamonds thus taking advantage of South Africa's rich potential for downstream value-creation. The overall purpose of the study is to assist South African innovators of new and improved diamond beneficiation machinery [specifically the technological innovation being designed by HBO Venture No 7 (Pty) Ltd] to achieve a successful product design as well as commercial marketing success. This will be accomplished by enhancing their understanding of the perceptions, needs and purchase intentions of the population of South African diamond cutting and polishing firms that influence the adoption and diffusion of an innovative technology. Furthermore, the study seeks to provide innovators with an understanding of the processes and theory involved in the field of business-to-business marketing and the marketing of innovations. The empirical study seeks to achieve the following five objectives: 1) To identify the factors, if any, that characterise firms as potential adopters or non-adopters of the technological innovation 2) To determine the optimal benefit bundle that will improve the probability of success in terms of the marketability of the technological innovation 3) To determine the most effective conduits for marketing communications in order to generate product awareness and promote the technological innovation 4) To determine the market potential for the technological innovation at various possible selling price ranges 5) To determine the radicalness of the technological innovation's impact and its effect on the organisational adoption thereof Findings indicate that the study was unsuccessful in profiling potential adopters based upon the operational and demographic variables used. The optimal benefit bundle should include features that result in increased cutting accuracy and less wastage of the rough diamond. Personal sales calls should represent the impetus of marketing communications efforts. The empirical research suggests that the technological innovation should be priced between R20 001 and R30 000 to ensure that it is within the willing purchase price ceiling of 88.23 percent of potential buyers. Finally, the product is perceived by respondents to be semi-radical which has implications for the firm's market orientation.