TALC and Marketing Early Mkt thru Tornado

Technology Adoption Life Cycle # New Users Time technophiles visionaries pragmatists conservatives Skeptics - laggards CHAS M

Segments in Adoption of New Technologies CHASM VISIONARIES PRAGMATISTS OF DIFFERENT TYPES; SOME CONSERVATIVES? # OF NEW ADOPTERS TIME FIRST PRAGMATISTS TECHNOPHILES

Strategy Ideas GAP and CAP Time Profit Cash Flow “GAP” “CAP” Area under curve is Market Cap GAP = Competitive Advantage Gap CAP = Competitive Advantage Period

Strategy Ideas Moore’s Value Chain Product Providers Service Providers Customers Technology Products & Accessories Applications Consulting Technical Buyers Sales & Support Customer Service Managers & Users Economic Buyers

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 Economic Buyers

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 Economic Buyers

Tornado – Pragmatists, via Value Chain Domination Main Street – Conservatives, via Differentiation Strategies and Disciplines Products- Product Leader Sales- Operational Xlnc Technical Buyers Accessories- Incremnl Innov Customer Svc- Ops/Cust. Intmcy Users as Buyers

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 Learning and Adjustment Flawed Strategy Successful Strategy But does information obtained before the point of learning relate to information from the environment at a later point in the TALC?

Similarly… # New Users Time technophiles visionaries pragmatists conservatives Skeptics - laggards CHAS M 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?)