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?)