Crossing the chasm
Carlos	
  Morales	
  

Zurich	
  Lean	
  Startup	
  

Marketing and selling disruptive products to
main...
Summary
Technology Adoption life cycle
Problem: The chasm
Solution: Crossing the chasm!
Mission
Customers attitude toward technology
becomes significant in a marketing strategy.
It gives clear guidance on how t...
Technology Adoption life cycle
Different behaviors
Innovators = Technology Enthusiasts
Early Adopters = Visionaries
Early Majority = Pragmatists
Late Maj...
Innovators – Technology Enthusiasts
● 

Primary Motivation:
– 

● 

Learn about new technologies

Key Characteristics:
– 
...
Early Adopters – The Visionaries
● 

Primary Motivation:
– 

● 

High motivated driven by a revolutionary breakthrough

Ke...
Early Majority – Pragmatists
● 

Primary Motivation:
– 

● 

Gain incremental and predictable progress

Key Characteristic...
Late Majority – Conservatives
● 

Primary Motivation:
– 

● 

Against discontinuous innovations

Key Characteristics:
– 

...
Laggards – Skeptics
● 

Primary Motivation:
– 

● 

Maintain status-quo

Key Characteristics:
– 

Disbelieve productivity-...
Problem : The chasm
Pragmatists don’t trust visionaries
as references

New & revolutionary

Standard

Unique functionality

Third party suppor...
Solution: Crossing the chasm!
Analogy to an invasion
To enter the mainstream market is an act of aggression. The companies who
have already established ...
Target the point of attack
Target a specific market niche as your point of
attack and focus all your resources on
achievin...
Assemble the invasion force
Create the whole product. This includes the core
plus everything else you need to achieve your...
Define the battle
The market-centric value system that must be the
basis for the value of customers. What is your
competiti...
Launch the invasion
Distribution: select your distribution channel with which
pragmatist is comfortable (direct sales is p...
Conclusions
Market-driven instead of sales-driven
The consequences of being sales-driven during the
chasm period are, to put it simply...
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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.
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