1. 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

2. 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

3. 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)

4. 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?

5. 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

6. 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

7. 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?

8. 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?

9. Market evolution Early Market High Qual Low Price Special Later Market Performance seg Cost-oriented segment Niche Extensions

10. Strategies and Core Disciplines Early Market – Visionaries Bowling Alley -- Pragmatists Applications- Product Leader Support- Customer Intmcy Managers Technology- Discontin. Innov Consulting Economic Buyers

11. 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

12. Functions by phase R&DOPSSVCSLSFINTOT Visn4142213 Bowl223119 Torn3324315 Main St 1413413