TALC and Marketing
Technology Adoption Life Cycle # New Users conservatives CHASM pragmatists Skeptics - laggards technophiles visionaries Time
Segments in Adoption of New Technologies ADOPTERS PRAGMATISTS OF DIFFERENT TYPES; SOME CONSERVATIVES? CHASM TECHNOPHILES FIRST PRAGMATISTS VISIONARIES TIME
Implications Target differing segments -- cross the chasm with a single, high-need segment Provide a “whole product” probably with partners Enter bowling alley by choosing cross-referencing segments
Have these crossed the chasm? Home wireless LANs Online college courses Internet Access by Cable
Some Questions Is “self-referencing” a necessary condition of a segment? Do you believe that the TALC holds in B2B innovations? Do you believe the TALC holds in consumer markets? What happens when innovations are more continuous?
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
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)
Some questions about the tornado... Look at product vs. category definition: should Pentium versions be considered as new TALCs each time? Suppose you are not the gorilla and the gorilla is sequencing tornados -- can you ever get to main street?
Main Street ideas Niche markets emerge among late pragmatists and conservatives Niches need an offering targeted at their particular needs and situation Niches may pay a price premium for the right offerings
How to market Pay attention to the customer Do “Plus One” marketing: emphasize a feature that matches a niche if the offering doesn’t succeed, go on to something else
Some questions about main street… What is required to find the niche market extensions? Can a chimpanzee thrive by going after niche extensions? Can a chimp set the stage for supplanting the gorilla in the next wave, by developing niche extensions?
More main street questions If you are going after niche extensions, why not use some market research? Suppose you are producing product components. Can you do niche extensions? What if you are a chimp?
Market evolution Later Market Early Market High Qual Special Niche Extensions High Qual Special Performance seg Cost-oriented segment Low Price
Strategies and Core Disciplines Early Market – Visionaries Bowling Alley -- Pragmatists Technology- Discontin. Innov Consulting Economic Buyers Applications- Product Leader Support- Customer Intmcy Managers
Strategies and Disciplines Tornado – Pragmatists, via Value Chain Domination Main Street – Conservatives, via Differentiation Products- Product Leader Sales- Operational Xlnc Technical Buyers Accessories- Incremnl Innov Customer Svc- Ops/Cust. Intmcy Users as Buyers
Functions by phase R&D OPS SVC SLS FIN TOT Visn 4 1 2 13 Bowl 3 9 Torn 15 Main St