TALC and Marketing Early Mkt thru Tornado

1. TALC and MarketingEarly Mkt thru Tornado

2. # New Users conservatives CHASM pragmatists Skeptics - laggards technophiles visionaries Time Technology Adoption Life Cycle

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

4. Strategy IdeasGAP and CAP Profit Cash Flow Area undercurve isMarket Cap “GAP” “CAP” Time GAP = Competitive Advantage Gap CAP = Competitive Advantage Period

5. Strategy IdeasMoore’s Value Chain ServiceProviders Product Providers Customers Technology Consulting TechnicalBuyers Products &Accessories Sales & Support Managers& Users Applications CustomerService EconomicBuyers

6. 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

7. Technology-Discontin. Innov EconomicBuyers Consulting Mktg in the Early Market • No value chain exists • Visionary customers are few and far between • Compete for Category Advantage • Ad hoc value chain

8. 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

9. Consumer vs. B2B • What is the nature of the game in B2B? • What does Moore say about marketing in a Consumer early market?

10. Across the Chasm into the Bowling Alley

11. 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 Support- Customer Intmcy Applications-Product Leader Managers

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. Some questions about the tornado... • What do you do if you are a component provider?

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

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

21. 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?

22. 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

23. Here’s the problem… SuccessfulStrategy But does information obtainedbefore the point of learningrelate to information from theenvironment at a later point in the TALC? FlawedStrategy Point of Learningand Adjustment

24. # New Users conservatives CHASM pragmatists Skeptics - laggards technophiles visionaries Time Similarly… How does info from Visionaries relate to needs and behavior of Pragmatists?

25. 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?)