TALC and MarketingEarly Mkt thru Tornado
Technology Adoption Life Cycle
# New Users
Time
technophiles
visionaries
pragmatists
conservatives
Skeptics - laggards
CHASM
Segments in Adoption of New Technologies
CHASM
VISIONARIES
PRAGMATISTS OFDIFFERENT TYPES;SOME CONSERVATIVES?
# OF NEWADOPTERS
TIME
FIRST PRAGMATISTS
TECHNOPHILES
Strategy IdeasGAP and CAP
Time
ProfitCashFlow
“GAP”
“CAP”
Area undercurve isMarket Cap
GAP = Competitive Advantage GapCAP = Competitive Advantage Period
Strategy IdeasMoore’s Value Chain
Product Providers
ServiceProviders
Customers
Technology
Products &Accessories
Applications
Consulting TechnicalBuyers
Sales & Support
CustomerService
Managers& Users
EconomicBuyers
General Implications
• Target differing segments at different stages
• Use different value chain configurations at different stages
• Provide a “whole product” probably with partners to cross the chasm
• Enter bowling alley by choosing cross-referencing segments
Mktg in the Early Market
• No value chain exists
• Visionary customers are few and far between
• Compete for Category Advantage
• Ad hoc value chain
Technology-Discontin. Innov
Consulting EconomicBuyers
Approaches to Category Advantage in Early Market
• Reinventors – operational excellence e.g. Charles Schwab
• Niche-Carvers – customer intimacy e.g. Silicon Valley Bank
• Innovators – product leadership e.g. Palm
• Sorcerers – disruptive innovation e.g. eBay
Consumer vs. B2B
• What is the nature of the game in B2B?
• What does Moore say about marketing in a Consumer early market?
Across the Chasm into the Bowling Alley
Mktg to Cross Chasm and enter the Bowling Alley
• Value chain not really ready yet
• Pragmatist customers are a herd that is unconvinced, so far – find the niche that really needs your whole product
• Compete for Customer Advantage
• Developing value chain
Applications-Product Leader
Support-Customer Intmcy Managers
Approaches to Customer Advantage in Bowling Alley
• Satisfiers – operational excellence e.g. Kinko’s
• Includers – customer intimacy e.g. Starbucks
• Excellers – product leadership e.g. Adobe
• Enchanters – disruptive innovation e.g. Intuit
Marketing efforts
• Find the customers with the broken process
• Devlop deep domain expertise
• Become the dominator in a segment
• Move on to adjacent segments; be the leader in the next few
Basic idea of the Tornado
• Having crossed the chasm, you want to develop the bowling alley
• The bowling alley creates references
• IT buyers take notice, put off purchase, then all buy at once
• Demand outstrips supply, creating more of a frenzy
How to behave
• Don’t skip the bowling alley (unless it is a consumer market)
• Don’t deny the tornado when it occurs
• Don’t try to control the tornado, e.g.– prop up prices– control channels– restrict supply
Approaches to Industry Advantage in Tornado
• Dominators – operational excellence e.g. Dell
• Market Makers – customer intimacy e.g. IBM (services!)
• Excluders – product leadership e.g. Cisco
• Disruptors – disruptive innovation e.g. Amazon
How to market
• “Ignore customers”• Attack the competition; be the leader• Make the product available• Expand, extend distribution• drive price lower• Create, commoditize product (design out your
partners)• Note the difference between Proprietary platform
and Open Source platform• Note the difference between Gorilla, Chimps,
and Monkeys or King, Princes and Serfs
Some questions about the tornado...
• What do you do if you are a component provider?
• Early Market – Visionaries
• Bowling Alley -- Pragmatists
Strategies and Core Disciplines
Applications-Product Leader
Support-Customer Intmcy
Managers
Technology-Discontin. Innov
Consulting EconomicBuyers
• Tornado – Pragmatists, via Value Chain Domination
• Main Street – Conservatives, via Differentiation
Strategies and Disciplines
Products-Product Leader
Sales-Operational Xlnc
TechnicalBuyers
Accessories-Incremnl Innov
Customer Svc-Ops/Cust. Intmcy
Users asBuyers
In class exercise
• Suppose you are the CMO of an emerging publisher aimed at introducing “new media” text material into the education market
• Where are you in the TALC?
• What will you do tomorrow morning, going forward, using Moore’s marketing in the TALC ideas?
If this were me…
• I’d focus on generating revenue and ideas by working with visionaries
• I’d be talking with pragmatists – professors and department chairs: think ahead
• I’d be seeking partners (w/$?) to build the value chain– Content providers, incl. professors, websites– Visionary users, profs, chairs, deans
Here’s the problem…
Point of Learningand Adjustment
FlawedStrategy
SuccessfulStrategy
But does information obtainedbefore the point of learningrelate to information from theenvironment at a later point in the TALC?
Similarly…# New Users
Time
technophiles
visionaries
pragmatists
conservatives
Skeptics - laggards
CHASM
How does info from Visionaries relate to needs and behavior of Pragmatists?
How can we experiment to learn?
• Build prototypes – keep it simple– Web model– Mock up communications
• Try it out– Trial course or module within a course– Continuing ed course or seminar– Workshop for pragmatists (webinar?)