Crossing the Chasm - Book review


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Review of book Crossing the Chasm, is a marketing book by Geoffrey A. Moore that focuses on the specifics of marketing high tech products during the early start up period.

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Crossing the Chasm - Book review

  1. 1. Crossing the chasm Carlos  Morales   Zurich  Lean  Startup   Marketing and selling disruptive products to mainstream customers 19.08.2013  
  2. 2. Summary Technology Adoption life cycle Problem: The chasm Solution: Crossing the chasm!
  3. 3. Mission Customers attitude toward technology becomes significant in a marketing strategy. It gives clear guidance on how to address them.
  4. 4. Technology Adoption life cycle
  5. 5. Different behaviors Innovators = Technology Enthusiasts Early Adopters = Visionaries Early Majority = Pragmatists Late Majority = Conservatives Laggards = Skeptics
  6. 6. Innovators – Technology Enthusiasts ●  Primary Motivation: –  ●  Learn about new technologies Key Characteristics: –  Strong technical aptitude –  Like to test new products –  Can ignore any missing elements –  Do like to help –  Want no-profit pricing (preferably free)
  7. 7. Early Adopters – The Visionaries ●  Primary Motivation: –  ●  High motivated driven by a revolutionary breakthrough Key Characteristics: –  Strategic thinkers, not from technology itself –  Attracted by high-risk, high-reward propositions –  Want rapid time-to-market –  Demand high degree of customization and support
  8. 8. Early Majority – Pragmatists ●  Primary Motivation: –  ●  Gain incremental and predictable progress Key Characteristics: –  Risk free, via evolutionary changes –  Focus on proven applications –  Insist on good references from trusted colleagues –  Want to see the solution in production at the reference site
  9. 9. Late Majority – Conservatives ●  Primary Motivation: –  ●  Against discontinuous innovations Key Characteristics: –  If it works, they stay –  Risk averse –  Highly reliant on a single, trusted advisor –  Need assembled solutions
  10. 10. Laggards – Skeptics ●  Primary Motivation: –  ●  Maintain status-quo Key Characteristics: –  Disbelieve productivity-improvement arguments –  Seek to block purchases of new technology –  Not a customer
  11. 11. Problem : The chasm
  12. 12. Pragmatists don’t trust visionaries as references New & revolutionary Standard Unique functionality Third party supporters Horizontal references Willing to take risk Want rich tech-support Revolutionary processes Tolerate bugs Vertical references Little risk Great quality of support Enhance established processes Bug free
  13. 13. Solution: Crossing the chasm!
  14. 14. Analogy to an invasion To enter the mainstream market is an act of aggression. The companies who have already established relationships with your target customer will resent your intrusion and do everything they can to shut you out. The customers themselves will be suspicious of you as a new and untried player in their marketplace. No one wants your presence. You are an invader. Target the point of attack Assemble the invasion force Define the battle Launch the invasion
  15. 15. Target the point of attack Target a specific market niche as your point of attack and focus all your resources on achieving the dominant leadership position in that segment. Segmentation!
  16. 16. Assemble the invasion force Create the whole product. This includes the core plus everything else you need to achieve your reason to buy. Differentiation!
  17. 17. Define the battle The market-centric value system that must be the basis for the value of customers. What is your competition and how you differentiate. Positioning!
  18. 18. Launch the invasion Distribution: select your distribution channel with which pragmatist is comfortable (direct sales is preferred) Pricing: Set pricing at the market leader price point, reinforcing your claims to market leadership and build a high reward for the channel into the price margin.
  19. 19. Conclusions
  20. 20. Market-driven instead of sales-driven The consequences of being sales-driven during the chasm period are, to put it simply, fatal. The sole goal of the company during this stage must be to capture a reference base in a mainstream market.