Potential Marketing Approaches for ISA

(Intelligent Speed Adaptation)

Master Thesis

by

Ingeborg Knauseder

MOP Program 2001 

Foreword

This Thesis has been carried out at Vägverket (Swedish National Road Administration) and the Technical University Chalmers. We hope we can with our work help to increase the safety on the streets and to decrease the number of injured or killed people in traffic.

We would like to thank Malin Theorin and Torbjörn Biding at Vägverket and Daniel Hjelmgren at CTH for excellent guidance and support during our time at Vägverket.

We are also grateful to our respondents in the different companies and authorities for their patience and generosity in sharing their time and knowledge with us and as well as their openness towards our questions. It has been a pleasure knowing you all. Your contributions were really helpful while providing a constant atmosphere of stimulating discussion.

Göteborg, 29^th October 2001.

Ingeborg Knauseder Bertrand Rose

Contents

Contents ... 7

1 Introduction ... 10
1.1 Background ... 10
1.1.1 Informative or Active Support ... 10
1.1.2 Signal by GPS or Roadside Transmitters ... 11
1.2 Purpose ... 11
1.3 Limitations ... 12
1.4 Problem Analyzes ... 12

2 Method ... 14
2.1 Systematic Combining ... 14
2.2 Data collection ... 15
2.3 Primary data ... 16
2.4 Validity and Reliability ... 18
2.5 Secondary data ... 19
2.6 Benchmarking ... 20

3 Theory ... 21
3.1 New Product Development Strategy ... 21
3.1.1 New Product Development and Partnering ... 22
3.1.2 New Technology Commercialization and Diffusion ... 23
3.2 Managerial View ... 24
3.2.1 A Kind of Standard Approach ... 24
3.2.2 Definition of the Managerial Approach ... 25
3.3 Market Segmentation ... 27
3.3.1 Needs-Based-Approach ... 28
3.4 Organizational Relations ... 30
3.5 Change Process ... 33
3.6 Social Marketing Approach ... 36
3.6.1 Definition of Social Marketing ... 36
3.6.2 The Development of Social Marketing ... 37
3.6.3 Core Principles of Social Marketing ... 38
3.6.4 Consumer Orientation and Key Segments ... 38
3.6.5 Exchange ... 39
3.6.6 Alliance Building ... 40
3.6.7 Long-Term Planning Approach and High Involvement Issue ... 41
3.6.8 Going further than the Individual Customer ... 42
3.7 Differences between Economic and Non Economic Marketing ... 42
3.7.1 Different Missions and Final Goals lead to Different Benefits ... 43
3.7.2 Product Complexity ... 43
3.7.3 Negative Demand ... 44
3.8 Interaction Approach ... 45
3.8.1 Relationships became Networks ... 48
3.8.2 Comparison of the Network and the Interaction Approach ... 49
3.9 Industrial Networks Approach ... 51
3.9.1 Characteristics of the Different Parts of a Network ... 52
3.9.2 The Structures of a Network (Håkansson, 1992) ... 53
3.9.3 A Second Stage in the Network Conceptualization ... 55
3.9.4 Connection with ISA ... 56
3.10 Comparison and differences Managerial and the Network Approach ... 58
3.10.1 Localization of the Different Approaches ... 58
3.10.2 Coordination and Social Aspect ... 59
3.10.3 Unit of Analysis ... 59
3.10.4 Dynamism ... 60
3.10.5 The future position of the different paradigms ... 62
3.11 How will we lead our Study about ISA regarding these Approaches? ... 62

4 Data Presentation ... 65
4.1 Authorities ... 65
4.1.1 Customer ... 66
4.1.2 Product ... 67
4.1.3 Network ... 69
4.2 Car Manufacturer ... 72
4.2.1 Customer ... 72
4.2.2 Product ... 74
4.2.3 Network ... 76
4.3 Insurance Companies ... 77
4.3.1 Customer ... 77
4.3.2 Product ... 78
4.3.3 Network ... 79
4.4 Research and Safety Institutes ... 81
4.4.1 Customer ... 81
4.4.2 Product ... 82
4.4.3 Network ... 82
4.5 Professional Drivers ... 83
4.5.1 Customer ... 83
4.5.2 Product ... 83
4.5.3 Network ... 84

5 Analysis ... 85
5.1 Network Analysis ... 85
5.1.1 Actors ... 85
5.1.2 Actor Bonds ... 91
5.1.3 Resource Ties ... 103
5.1.4 Activity Links ... 108
5.2 Transition ... 112
5.3 Analysis - Social Marketing Point of View ... 113
5.3.1 Segmentation ... 113
5.3.2 Early Adopters ... 115
5.3.3 Slow Adopters ... 116
5.3.4 Benchmarking ... 117

6 Conclusion ... 120
6.1.1 Comments upon the Actual Network ... 120
6.1.2 Actual Problems ... 121
6.1.3 Comments about the Social Marketing Perspective ... 123

7 Recommendations ... 124

8 References ... 126

9 Appendix ... 133

Summary English

New technologies carrying a social benefit are often facing challenges before they can be introduced successfully at the market. Intelligent Speed Adaptation (ISA) is one of these technologies. The acceptance of those products is very low in the beginning due to the fact that personal advantages are not feasible.

Our purpose is to examine and understand possible marketing strategies for the Swedish National Road Administration (Vägverket). Taking care about the problem of products carrying social benefits we decided to base our study on the network approach theory. In addition to this we decided to use the managerial view about marketing, specifically the social marketing view.

Networks of all kind are of extreme importance to achieve a positive result in the marketing process of ISA. We examined networks regarding actor bonds, resource ties and activity links to see how strong the different actors are already linked together. The density of the different networks varies greatly between the different actors. Nearly all needed links are already established through other projects or the daily work of the actors. Most of those links have to be strengthened for future co-operations.

In addition to the network theory we use the social marketing point of view to take care about those topics the network view is not covering. The behavior of the potential adopters is crucial to trigger the whole network, therefore that only a demand of a certain product or service can start the whole network.

Benchmarking is a method we used to investigate the potential of ISA for the future by analyzing older technologies from the car-manufacturing sector. To make this comparison sufficient we used technologies that are also carrying a social aspect and had through these difficulties in their introduction process.

Sammanfattning

Nya teknologier, med inneboende sociala aspekter, har ofta svårt att etablera sig på marknaden. Intelligent Hastighets Anpassning (ISA) tillhör denna produktkategori. Anledningen till att det ofta tar lång tid för användarna att acceptera den här typen av produkter är den låga upplevda nyttan.

Vår syfte är att undersöka och förstå möjliga marknadsstrategier som Vägverket skulle kunna använda vid introduktionen av ISA. Vägverket kommer troligtvis inte att kunna marknadsföra ISA helt på egen hand, därför har vi valt att i vår analys ta hjälp av den Industriella nätverksansatsen.

För att kunna introducera ISA på den svenska marknaden är det viktigt för Vägverket att förstå de olika relationer som finns mellan marknadens olika aktörer i form av aktörskopplingar, aktivitetslänkar och resursbindningar. Genom att förstå dessa kopplingar, länkar och bindningar ökar Vägverkets möjligheter att engagera andra aktörer i introduktionen av ISA. Det är inte bara viktigt för Vägverket att kunna utnyttja och utveckla redan existerande relationer, utan det kan även bli viktigt för dem att utveckla nya relationer.

Den Industriella nätverksansatsen tar inte hänsyn till alla de olika sociala faktorer som skulle kunna påverka Vägverkets möjligheter att introducera ISA. Vi har därför valt att komplettera den Industriella nätverksansatsen med den Sociala marknadsföringsansatsen.

Slutligen, som ett komplement till ovanstående ansatser har vi valt att utföra en Benchmarking, för att kunna analysera tidigare introduktioner av nya teknologier som gjorts inom bilindustrin. För att effektiviserar jämförelsen har vi valt teknologier som likt ISA påverkats av olika sociala faktorer.

Resumé

Les nouvelles technologies comportant un bénéfice social doivent souvent faire face à de nombreux défis avant de pouvoir être introduites avec succès sur le marché. Intelligent Speed Adaptation (ISA) fait partie de ces technologies. L′acceptation de ces produits est très lente au départ, ceci étant dû au fait qu′aucun avantage n′est perceptible par l′utilisateur.

Notre propos est d′examiner et de comprendre les possibles stratégies de marketing pour le compte de l′administration des routes de Suède. Tout en prenant en compte les problèmes des produits comportant un bénéfice social, nous avons décidé de baser notre étude sur la théorie d′une approche en réseau. Nous avons aussi utilisé l′approche managériale du marketing, et plus spécifiquement le marketing social.

Les réseaux de toute sorte sont d′une extrême importance afin d′arriver à un résultat positif dans le processus de marketing d`ISA. Nous avons examiné les réseaux de liens existants entre les acteurs, les ressources et les activités afin de comprendre comment les acteurs sont liés les uns aux autres. La densité des différents réseaux varie énormément en fonction des acteurs. Presque tous les liens entre les acteurs sont déjà établis à travers d′autres projets. De ce fait, une simple demande sur un produit ou service spécifique peut déclencher la formation du réseau.

Le benchmarking est une méthode que nous avons utilisée afin d′analyser le potentiel d′ISA dans le futur en prenant en compte des technologies précédemment mises sur le marché dans le secteur de la construction automobile. Cette comparaison est appuyée sur des produits comportant un bénéfice social qui a impliqué certaines difficultés lors de leur lancement sur le marché par le passé.

Zusammenfassung

Neue Technologien, welche einen sozialen Aspekt in sich haben, treffen häufig Schwierigkeiten an, bevor sie erfolgreich am freien Markt eingefuehrt werden können. Intelligente Geschwindigkeits Anpassung (ISA) ist eine dieser Technologien. Die Aktzeptanz fuer Produkte in diesem Bereich ist zu Beginn sehr gering, weil persönliche Vorteile nicht ersichtlich sind.

Unsere Arbeit besteht darin, mögliche Marketing Strategien fuer die schwedische Strassenverwaltung zu untersuchen und zu verstehen. Unter Beruecksichtigung der Probleme, welche Produkte mit einem sozialen Faktoren mit sich bringen, haben wir uns dazu entschieden unsere Studie an der Netzwerktheorie zu orientieren.

Netzwerke unterschiedlichster Art sind von extremer Wichtigkeit um ein positives Endergebnis in ISA′s Marketingsprozess zu erziehlen. Um herauszufinden wie solide die unterschiedlichen Partizipienten bereits verbunden sind untersuchten wir verschiedene Netzwerke bezueglich Akteurverbindungen, Resourcenverknuepfungen und Aktivitätenallokation. Fast alle erforderlichen Verbindungen existieren bereits dank frueherer gemeinsamer Aktivitäten. Allerdings ist eine Vertiefung der meisten Verbindungen fuer eine zukuenftliche erfolgreiche Zusammenarbeit notwendig.

Da die Netzwerkperspektive nicht alle Aspekte umfasst wird als Kompliment die Theorie ueber Soziales Marketing herangezogen. Nur die Nachfrage nach einem bestimmten Produkt oder Service kann das ganze Netzwerk zum Laufen bringen, daher ist das Verhalten der potentiellen Nutzer von spezieller Bedeutung.

Benchmarking ist eine der genuetzten Methoden um mittels Analyse älterer Technologien aus dem Bereich der Automobil Produktion, das zukuenftige Potenziall fuer ISA auszuloten. Um diesen Vergleich effizient anstellen zu können wurden Technologien verwendet welche auch einen sozialen Aspekt in sich tragen und die dadurch anfängliche Schwierigkeiten in ihrem Marketingprozess hatten.

1 Introduction

1.1 Background

ISA (intelligent speed adoption) is a safety device that helps the driver to keep the speed limits within the urban area and in local towns, villages ....In this way it should help to reach the "Vision Zero"(Swedish National Road Administration). This means that no one should need to be killed or seriously injured on the roads-a reversal in the trend in traffic safety programs. In the past, these programs focused on dealing with problems when they occur and individual road users were given the greatest responsibility for safety...The most important overall change is that the human factor alone should not be blamed for causing an accident. There are several different designs and functionalities for the product:

1.1.1 Informative or Active Support

The informative support can be either acoustic or optic. The acoustic support warns the driver with a beep tone as soon as he exceeds the driving limit. While the optical support changes a green light, which is situated at the dash board, to red when the limit is exceeded.

!!! Schaubild fehlt in der Vorschau !!!

Figure 1-1 Informative ISA system, source: ISA in Sweden

The active support can be divided into a compulsory system and the so-called "active accelerator". The compulsory system reduces the amount of fuel provided for the engine and avoids in this way driving over speed limit. It is not possible for the driver to control the compulsory system. The "active accelerator" works in a similar way, as soon as the driver is over speed limit the pressure needed to accelerate is getting higher. In emergency case it is possible to override the system by pushing the accelerator to its limit.

1.1.2 Signal by GPS or Roadside Transmitters

The signal used for providing the necessary information about the speed limitation on each street can either be provided by satellites and digital roadmaps (GPS) or roadside transmitters situated on the streets close to the traffic signs.

In our study we are investigating the different ways of intelligent speed adaptation except the compulsory system. The reason for this is that it is not wanted by the user and that it is no opportunity to introduce this system within a reasonable time period.

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