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This document discusses concepts related to marketing. It defines marketing as a planned process to understand and plan markets, involving analyzing markets and acquiring satisfied customers. The purpose of marketing is to identify optimal customers and efficiently direct company resources to maximizing their long-term satisfaction. Marketing functions within a company are typically subordinate to the general management or commercial director. Strategic marketing involves analyzing the market, competitors, and company positioning to inform the company's strategic plan, while operational marketing defines specific policies around products, pricing, placement, and promotion. Effective segmentation involves dividing the market into homogeneous subgroups.
The document discusses marketing solutions provided by launch120 for portfolio companies and startups. It outlines existing problems companies may have with limited marketing resources and experience. The target audience is identified as technology and healthcare companies that have undergone mergers or acquisitions or have raised over $250,000 in seed funding. Solutions proposed include conducting internal audits, developing marketing plans and strategies, providing messaging and copy writing services, and assisting with public relations, marketing communication plans, and strategic alliances. The document emphasizes assessing the fit between a company's resources and competencies and its marketing strategy.
Strategic Foresight for Collaborative Exploration of New Business FieldsRené Rohrbeck
To ensure long-term competitiveness, companies need to develop the ability to explore, plan, and develop new business fields. A suitable approach faces multiple challenges because it needs to (1) integrate multiple perspectives, (2) ensure a high level of participation of the major stakeholders and decision-makers, (3) function despite a high level of uncertainty, and (4) take into account interdependencies between the influencing factors. In this paper, we present an integrated approach that combines multiple strategic-foresight methods in a synergetic way. It was applied in an inter-organizational business field exploration project in the telecommunications industry.
9 Key Principles to Successful Organizational Strategytltiede
The purpose of this presentation is to review key principles that form the foundation of successful organizational strategy.
Readers are encouraged to review the referenced materials at the back of the presentation for further detail and insight.
The document discusses key supporting agencies for cluster development in the Caribbean. It describes the work of The Competitiveness Company, including their typical cluster initiatives like research and networking, policy action, commercial cooperation, education and training. It outlines frameworks and processes used for cluster strategy development, including workshops, diagnostics, templates, and 5 steps. It also addresses issues around public goods, intellectual property, branding, and the importance of trust for cluster success.
The document discusses key supporting agencies for cluster development in the Caribbean. It provides examples of typical cluster initiatives including research and networking, policy action, commercial cooperation, education and training, and innovation and technology. Frameworks for cluster strategy development and a 5-step cluster process are outlined. The role of the Competitiveness Company in mobilizing clusters and developing structured approaches is described. Challenges around public goods, intellectual property, branding, and trust are also discussed.
The document discusses strategic marketing decisions and outlines the evolution of marketing from Marketing 1.0 to Marketing 3.0. It then covers key aspects of strategic marketing like analyzing markets and competitors, formulating strategies and programs, and implementing marketing activities both covertly through research and analyses and overtly through the marketing mix. Market-driven strategies are also discussed which begin with understanding customer needs and forming a distinctive value proposition.
This document discusses concepts related to marketing. It defines marketing as a planned process to understand and plan markets, involving analyzing markets and acquiring satisfied customers. The purpose of marketing is to identify optimal customers and efficiently direct company resources to maximizing their long-term satisfaction. Marketing functions within a company are typically subordinate to the general management or commercial director. Strategic marketing involves analyzing the market, competitors, and company positioning to inform the company's strategic plan, while operational marketing defines specific policies around products, pricing, placement, and promotion. Effective segmentation involves dividing the market into homogeneous subgroups.
The document discusses marketing solutions provided by launch120 for portfolio companies and startups. It outlines existing problems companies may have with limited marketing resources and experience. The target audience is identified as technology and healthcare companies that have undergone mergers or acquisitions or have raised over $250,000 in seed funding. Solutions proposed include conducting internal audits, developing marketing plans and strategies, providing messaging and copy writing services, and assisting with public relations, marketing communication plans, and strategic alliances. The document emphasizes assessing the fit between a company's resources and competencies and its marketing strategy.
Strategic Foresight for Collaborative Exploration of New Business FieldsRené Rohrbeck
To ensure long-term competitiveness, companies need to develop the ability to explore, plan, and develop new business fields. A suitable approach faces multiple challenges because it needs to (1) integrate multiple perspectives, (2) ensure a high level of participation of the major stakeholders and decision-makers, (3) function despite a high level of uncertainty, and (4) take into account interdependencies between the influencing factors. In this paper, we present an integrated approach that combines multiple strategic-foresight methods in a synergetic way. It was applied in an inter-organizational business field exploration project in the telecommunications industry.
9 Key Principles to Successful Organizational Strategytltiede
The purpose of this presentation is to review key principles that form the foundation of successful organizational strategy.
Readers are encouraged to review the referenced materials at the back of the presentation for further detail and insight.
The document discusses key supporting agencies for cluster development in the Caribbean. It describes the work of The Competitiveness Company, including their typical cluster initiatives like research and networking, policy action, commercial cooperation, education and training. It outlines frameworks and processes used for cluster strategy development, including workshops, diagnostics, templates, and 5 steps. It also addresses issues around public goods, intellectual property, branding, and the importance of trust for cluster success.
The document discusses key supporting agencies for cluster development in the Caribbean. It provides examples of typical cluster initiatives including research and networking, policy action, commercial cooperation, education and training, and innovation and technology. Frameworks for cluster strategy development and a 5-step cluster process are outlined. The role of the Competitiveness Company in mobilizing clusters and developing structured approaches is described. Challenges around public goods, intellectual property, branding, and trust are also discussed.
The document discusses strategic marketing decisions and outlines the evolution of marketing from Marketing 1.0 to Marketing 3.0. It then covers key aspects of strategic marketing like analyzing markets and competitors, formulating strategies and programs, and implementing marketing activities both covertly through research and analyses and overtly through the marketing mix. Market-driven strategies are also discussed which begin with understanding customer needs and forming a distinctive value proposition.
The document discusses marketing strategies for technology companies. It emphasizes the importance of choosing a market segment and gaining dominance within that segment to accelerate sales and market traction. It also discusses identifying the total available market, served available market, and target market. It outlines the technology adoption life cycle and different types of adopters, from innovators to laggards. The goal is to develop repeatable sales processes tailored to the needs and buying criteria of specific customer segments.
The document summarizes a workshop on idea management and evaluating business opportunities. It discusses:
1) The entrepreneurial process including opportunity discovery, evaluation, assembling resources, and exploiting opportunities.
2) Criteria for evaluating opportunities such as unique value proposition, revenue model, industry analysis, risks, and team capabilities.
3) Tools for industry and idea evaluation including market research, competitor analysis, and SWOT analysis. Examples are provided to demonstrate how to apply these evaluation frameworks.
Marketing information systems consist of people, equipment, and processes that gather, analyze, and distribute market data to aid marketing decisions. They have input subsystems that collect internal data from accounting systems and external data from marketing research and intelligence. Output subsystems provide information on products, places, promotion, prices, and marketing mixes to users. Consumer behavior research studies how, why, when, and where people buy products and the factors like culture, social groups, and psychology that influence purchasing. Marketers implement strategies through marketing mixes and control results by measuring performance and making adjustments.
This document provides information on an international marketing course, including the instructor's contact details and office hours, an overview of topics to be covered such as global marketing concepts and identifying international market opportunities, and details on assignments such as presentations, research papers, and case studies that will involve applying international marketing tools and strategies to enter new markets.
This document discusses strategies for gaining market share in a competitive environment. It outlines frameworks for analyzing the competitive landscape including Porter's 5 Forces model and generic strategies of differentiation, cost leadership, and focus. It then discusses principles for competitive strategies including the strategic square of defensive, offensive, flanking, and guerrilla approaches. Most companies should take a guerrilla approach to find a small defensible market segment rather than acting like the market leader.
Nectec talk#68 Service-innovation_by_dr_sasiporn_usanavasinSasiporn U.
This document discusses service innovation. It begins by defining innovation and listing key success factors such as passion, opportunities, and talented staff. It then discusses different types of innovation including product, process, paradigm, and position innovation. The document contrasts goods-dominant and service-dominant concepts. It outlines the innovation process life cycle and a service innovation strategy development process involving discovering options, understanding customer needs, defining value propositions, and developing innovation strategies using tools like blueprints and metrics. Finally, it discusses causes for failure of innovation such as organizational culture, mismatched customer value, and disruptive competitors.
It’s important to understand the potential impact that a new disruptive technology might have on the marekt. The role of the Market Opportunity Analysis (MOA) is to help guide the process of better understanding of the most important market segments, how fast the opportuity is growing, what are the key sustainable differentiations and why are these important. Finally, the purpose of the MOA is to, on one hand, describe the key value propostions and to profile the most important use cases and how best to acquire customers.
We have prepared the following template which describes the MOA process and how outlines the factors for successfully growing market share. Our IRG MOA PowerPoint takes you through the key steps for learning about emerging market opportunities and using that learning to influence strategic decision making.
This document discusses the importance of conducting market research before starting a new business venture. It defines market research as the systematic gathering and interpretation of information about potential customers, competitors, and the business environment. The key functions of market research are to identify customer needs and market size, discover new market opportunities, and develop strategic marketing plans to gain a competitive advantage. The document provides examples of conducting market research for a donut shop and raincoat business. It outlines factors to consider such as market segmentation, trends, supply and demand. Guidelines are presented for performing reliable and measurable market research through surveys.
Industry foresight is an understanding of emerging trends, drivers, opportunities, and disruptions within a market or industry. It allows companies to establish strategies that leverage future trends to gain a competitive advantage. Strategic innovation is created at the intersection of industry foresight, customer insight, and strategic alignment across an organization. An effective process monitors triggers in the external environment, engages thought leaders, and brings together these three elements to identify new opportunities like products, services, business models, and markets.
In this presentation, we will discuss the value chain and all the primary activities involved. Strategy and decision making procedure, indicators of market potentials, types of strategies is discussed here. We will talk about strategic alliances, managing cooperative strategies, material management in global business, production system model, locating manufacturing facilities, and various other decision making processes.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This document provides a business plan for a proposed vintage watch company. It includes sections on the introduction, development plan, marketing plan, sales plan, operations, and financial plan. The introduction outlines the vision, mission, and objectives to become the number one Indian watch brand globally with customized products. The development plan details the product development process. The marketing plan discusses the target market segmentation, positioning, marketing mix, and competition. The operations section covers the organizational structure, manufacturing process, and risk mitigation strategies. The financial plan includes sales and cost forecasts projecting growth over the first three years.
This document discusses key concepts in technology marketing. It identifies 7 building blocks of technology marketing: corporate image, positioning, product, price, place, promotion, and marketing information mix. It then discusses factors that influence market-driven strategies such as demographic trends, technology environment, suppliers, price, and competitors. Finally, it outlines different technology marketing roles in a company including customer marketing, product engineering, and sales. The document provides an overview of developing marketing strategies for technology products and services.
The document discusses the process of taking a defined mobile proposition through to delivery, including documenting requirements before design and build, identifying stakeholders and their responsibilities, communicating requirements to technical teams, and matching business and user needs with technical capabilities. It focuses on ensuring the proper information is captured and shared between teams to deliver the mobile proposition.
Eng - Company Profile TrustPartners Nov 2010TrustPartners
We support the innovative and successful Top Management during all its strategic and operational actions, to achieve sustainable economic and value growth; in particular we operate into 3 main areas:
- Business Planning & Strategy
- Performance Management
- Organization
We operate in Italy in the following industries:
- Gaming and Gambling
- Pharmaceutical and Life Cycle Management
- Tobacco
The document outlines Innovation's objectives at a consumer products company, which are to identify new product opportunities driven by consumer needs, develop and commercialize products to address those opportunities, and influence industry specifications. It then describes the new product development process and keys to success, including a consumer-centric culture, market insights, and cross-functional collaboration. Finally, it discusses Innovation's roles in evaluating concepts, ensuring success through tools like segmentation and ensuring product optimization, and thinking outside the box to develop paradigm-shifting innovations.
The document discusses Michael Porter's analysis of competitive advantage through his concept of the value chain. It provides an overview of Porter's view that competitive advantage can be achieved through either cost leadership or differentiation. It then explains Porter's value chain framework which identifies primary and support activities that can contribute to cost leadership or differentiation. The document outlines Porter's perspectives on analyzing costs, identifying cost drivers, and reconfiguring activities to achieve a competitive advantage through lower costs. It also discusses differentiating products and services in a way that creates value for buyers. The goal is to shift competition from red oceans of head-to-head competition to blue oceans of creating uncontested market space.
The document discusses how information technology can transform industries by providing competitive advantages when used strategically. It covers challenges of IT adoption and best practices for overcoming them, how IT can support decision making, and how to measure IT project success. Emerging IT trends are also addressed, along with current topics like disruptive business models and technology-enabled opportunities. The document emphasizes an experimentation philosophy and provides materials like case studies and faculty articles.
The document discusses marketing strategies for technology companies. It emphasizes the importance of choosing a market segment and gaining dominance within that segment to accelerate sales and market traction. It also discusses identifying the total available market, served available market, and target market. It outlines the technology adoption life cycle and different types of adopters, from innovators to laggards. The goal is to develop repeatable sales processes tailored to the needs and buying criteria of specific customer segments.
The document summarizes a workshop on idea management and evaluating business opportunities. It discusses:
1) The entrepreneurial process including opportunity discovery, evaluation, assembling resources, and exploiting opportunities.
2) Criteria for evaluating opportunities such as unique value proposition, revenue model, industry analysis, risks, and team capabilities.
3) Tools for industry and idea evaluation including market research, competitor analysis, and SWOT analysis. Examples are provided to demonstrate how to apply these evaluation frameworks.
Marketing information systems consist of people, equipment, and processes that gather, analyze, and distribute market data to aid marketing decisions. They have input subsystems that collect internal data from accounting systems and external data from marketing research and intelligence. Output subsystems provide information on products, places, promotion, prices, and marketing mixes to users. Consumer behavior research studies how, why, when, and where people buy products and the factors like culture, social groups, and psychology that influence purchasing. Marketers implement strategies through marketing mixes and control results by measuring performance and making adjustments.
This document provides information on an international marketing course, including the instructor's contact details and office hours, an overview of topics to be covered such as global marketing concepts and identifying international market opportunities, and details on assignments such as presentations, research papers, and case studies that will involve applying international marketing tools and strategies to enter new markets.
This document discusses strategies for gaining market share in a competitive environment. It outlines frameworks for analyzing the competitive landscape including Porter's 5 Forces model and generic strategies of differentiation, cost leadership, and focus. It then discusses principles for competitive strategies including the strategic square of defensive, offensive, flanking, and guerrilla approaches. Most companies should take a guerrilla approach to find a small defensible market segment rather than acting like the market leader.
Nectec talk#68 Service-innovation_by_dr_sasiporn_usanavasinSasiporn U.
This document discusses service innovation. It begins by defining innovation and listing key success factors such as passion, opportunities, and talented staff. It then discusses different types of innovation including product, process, paradigm, and position innovation. The document contrasts goods-dominant and service-dominant concepts. It outlines the innovation process life cycle and a service innovation strategy development process involving discovering options, understanding customer needs, defining value propositions, and developing innovation strategies using tools like blueprints and metrics. Finally, it discusses causes for failure of innovation such as organizational culture, mismatched customer value, and disruptive competitors.
It’s important to understand the potential impact that a new disruptive technology might have on the marekt. The role of the Market Opportunity Analysis (MOA) is to help guide the process of better understanding of the most important market segments, how fast the opportuity is growing, what are the key sustainable differentiations and why are these important. Finally, the purpose of the MOA is to, on one hand, describe the key value propostions and to profile the most important use cases and how best to acquire customers.
We have prepared the following template which describes the MOA process and how outlines the factors for successfully growing market share. Our IRG MOA PowerPoint takes you through the key steps for learning about emerging market opportunities and using that learning to influence strategic decision making.
This document discusses the importance of conducting market research before starting a new business venture. It defines market research as the systematic gathering and interpretation of information about potential customers, competitors, and the business environment. The key functions of market research are to identify customer needs and market size, discover new market opportunities, and develop strategic marketing plans to gain a competitive advantage. The document provides examples of conducting market research for a donut shop and raincoat business. It outlines factors to consider such as market segmentation, trends, supply and demand. Guidelines are presented for performing reliable and measurable market research through surveys.
Industry foresight is an understanding of emerging trends, drivers, opportunities, and disruptions within a market or industry. It allows companies to establish strategies that leverage future trends to gain a competitive advantage. Strategic innovation is created at the intersection of industry foresight, customer insight, and strategic alignment across an organization. An effective process monitors triggers in the external environment, engages thought leaders, and brings together these three elements to identify new opportunities like products, services, business models, and markets.
In this presentation, we will discuss the value chain and all the primary activities involved. Strategy and decision making procedure, indicators of market potentials, types of strategies is discussed here. We will talk about strategic alliances, managing cooperative strategies, material management in global business, production system model, locating manufacturing facilities, and various other decision making processes.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This document provides a business plan for a proposed vintage watch company. It includes sections on the introduction, development plan, marketing plan, sales plan, operations, and financial plan. The introduction outlines the vision, mission, and objectives to become the number one Indian watch brand globally with customized products. The development plan details the product development process. The marketing plan discusses the target market segmentation, positioning, marketing mix, and competition. The operations section covers the organizational structure, manufacturing process, and risk mitigation strategies. The financial plan includes sales and cost forecasts projecting growth over the first three years.
This document discusses key concepts in technology marketing. It identifies 7 building blocks of technology marketing: corporate image, positioning, product, price, place, promotion, and marketing information mix. It then discusses factors that influence market-driven strategies such as demographic trends, technology environment, suppliers, price, and competitors. Finally, it outlines different technology marketing roles in a company including customer marketing, product engineering, and sales. The document provides an overview of developing marketing strategies for technology products and services.
The document discusses the process of taking a defined mobile proposition through to delivery, including documenting requirements before design and build, identifying stakeholders and their responsibilities, communicating requirements to technical teams, and matching business and user needs with technical capabilities. It focuses on ensuring the proper information is captured and shared between teams to deliver the mobile proposition.
Eng - Company Profile TrustPartners Nov 2010TrustPartners
We support the innovative and successful Top Management during all its strategic and operational actions, to achieve sustainable economic and value growth; in particular we operate into 3 main areas:
- Business Planning & Strategy
- Performance Management
- Organization
We operate in Italy in the following industries:
- Gaming and Gambling
- Pharmaceutical and Life Cycle Management
- Tobacco
The document outlines Innovation's objectives at a consumer products company, which are to identify new product opportunities driven by consumer needs, develop and commercialize products to address those opportunities, and influence industry specifications. It then describes the new product development process and keys to success, including a consumer-centric culture, market insights, and cross-functional collaboration. Finally, it discusses Innovation's roles in evaluating concepts, ensuring success through tools like segmentation and ensuring product optimization, and thinking outside the box to develop paradigm-shifting innovations.
The document discusses Michael Porter's analysis of competitive advantage through his concept of the value chain. It provides an overview of Porter's view that competitive advantage can be achieved through either cost leadership or differentiation. It then explains Porter's value chain framework which identifies primary and support activities that can contribute to cost leadership or differentiation. The document outlines Porter's perspectives on analyzing costs, identifying cost drivers, and reconfiguring activities to achieve a competitive advantage through lower costs. It also discusses differentiating products and services in a way that creates value for buyers. The goal is to shift competition from red oceans of head-to-head competition to blue oceans of creating uncontested market space.
The document discusses how information technology can transform industries by providing competitive advantages when used strategically. It covers challenges of IT adoption and best practices for overcoming them, how IT can support decision making, and how to measure IT project success. Emerging IT trends are also addressed, along with current topics like disruptive business models and technology-enabled opportunities. The document emphasizes an experimentation philosophy and provides materials like case studies and faculty articles.
2. 주요 참고문헌
- Adrian Ryans, Roger More, Donald Barclay and Terry Deutscher, Winning Market Leadership : Strategic Market Planning for Technology-Driven
Businesses, Wiley (Dec 15, 1999)
- Geoffrey A. Moore, 캐즘 마케팅(Crossing the Chasm), 세종서적, 2002 (초판번역: 벤처마케팅(1999))
- Geoffrey A. Moore, 토네이도 마케팅(Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets), 세종서적,
2001
- 이승주, 경영전략실천매뉴얼, 시그마컨설팅그룹, 1999
자료물 출처: 파아란 영혼 http://intempus.tistory.com , yongsup.kim@yahoo.com
본 자료는 위 참고문헌 및 기타 리포트에서 인용하여 제작하였음을 알려드립니다. 제작한 지 거의 10년이 다 된 자료물이나, 현재에도 하이테크마케팅
은 충분한 의미를 가진다는 판단 아래 다시 업로드하여 유통합니다.
2
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3. TABLE OF CONTENTS
I. Process for Understanding Market
II. Understand Discontinuous Innovation
III. Technology Adoption Life Cycles
IV. Understand Buyer Behavior
V. Understand Complete Market Chain
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4. I. Process for Understanding Market
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5. Planning Process
Implement the Strategy Define the Business Arenas : Identify Attractive
Opportunities :
• Define the arena within which
you will search for attractive • Segments the market
opportunities • Evaluate market forces
Understand the Profit Understand the Market
Dynamic : Environment
• Estimate market acceptance • Lay out market chain(s)
• Develop price, cost, and • Understand buyer
investment forecasts choice/rejected behavior
Planning Process
Complete the Winning Assess Resources and
Strategy : Competencies :
• Detail complete strategy • Identify resources and
• Ensure strategic leverage for competencies
market chain members • Determine fit
Plan Critical Relationships: Make Tough Strategic Choices: Understand the Competitive
• Review past strategy Challenge :
• Identify key players • Identify strategic issues • Analyze current and potential
• Plan relationships • Create option competitors
• Organize relationship teams • Make Choices • Understand strategy drivers
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6. Process for Understanding Market
q Process for Analyzing Technology Adoption, Buyer Behavior, and Market Chains
Identify Stage of Technology Adoption Life Cycle
Technology Adoption Life Cycle
Understand Characteristics of Target Adopter Group
Understand “Whole Product” Needs
Identify Decision-Making Unit
Understand Buyer Behavior
Understand Choice Criteria
Understand Choice/Rejection Process
Review Market Chain Options
Understand Complete Market Chain
Consider Market Chain Dynamics
Analyze Buyer Behavior at All Key Levels in the Chain
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8. What is Innovation?
What is Innovation? Source of Innovation
• Innovation is the successful development and
Unexpected
commercialization of new products, services, or Occurrence
business systems.
New
Incongruities
Knowledge
• In many industries, innovation is the primary basis
for competitive advantage and the principal driving
force of industry structural change. Innovation
Changes in Process
Perception Needs
• Continuous Innovation
• Dynamically Continuous Innovation
• Discontinuous Innovation Industry
Demographic
and Market
Changes
Changes
Source: P.Drucker, “The Discipline of Innovation,” Harvard Business Review, 1985
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9. The Technology S-Curve
The S-Curve Phenomenon Making The Transition To a New Technology
Performance Performance
Limit
discontinuity
Effort Effort
Source : R.Foster, Innovation:The Attacker’s Advantage, 1996
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10. The Attacker’s Advantage in Technology Development
Performance
of New
Technology Technology
Leap
Attacker
Cumulative Effort
Defender
Productivity of
R&D Function
Cumulative Effort
Source : J.Kluge, “Managing Technological Discontinuity,” Innovation and Technology Management, 1989
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11. Changing Leadership in the Semiconductor Industry
1955 1965 1975 1995
(Vacuum Tubes) (Transistors) (Integrated Circuits) (Submicrons)
RCA Hughes TI Intel
Sylvania Transitron Fairchild NEC
General Electric Philco National Toshiba
Raytheon Sylvania Intel Hitachi
Westinghouse Texas Instruments Motorola Motorola
Amperex GE Rockwell Samsung
National Video RCA GI TI
Rawland Wesinghouse RCA Fujitsu
Eimac Motorola Philips Mitsubishi
Lansdale Clevite AMD Philips
Source : R.Foster, Innovation:The Attacker’s Advantage, 1996
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12. III. The Technology Adoption Life Cycle
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13. Technology vs. Product Category Life Cycles
* Boston Consulting Group portfolio management model
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14. The Technology Adoption Life Cycle
q Understanding this technology adoption life cycle, and where your products and services are positioned
relative to this adoption life cycle, can give you some important insights into buyer behavior.
Pragmatists : Conservatives :
Stick with the herd! Hold on!
Visionaries :
Get ahead of the herd!
Skeptics :
No way!
Techies :
Try it!
2.5% 13.5% 34% 34% 16%
Innovators Early Adopters Early Majority Late Majority Laggards
Time
Source : Everett M. Rogers, Diffusion of Innovations, 1962
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15. Innovators(Technology Enthusiast)
q Gatekeeper to the Early Adopter.
§ They don’t need a complete solution.
§ But, Innovators want lots of information on the technology so they can understand how the technology works. In many
cases, they will read leading scientific journals in the field and attend technical conferences.
Innovators(Technology Enthusiast, Techies)
Focus § Technology
Key Characteristics § Very Knowledgeably about technology
§ Appreciate elegant technical solutions
§ Like to test new technology
§ Don’t need complete “solutions”
Needs § Early access to emerging technologies
§ Access to all information on technology
Role in adoption process § Confirm viability of technology
(They are critical in legitimizing the product and convincing other potential users that the
technology does in fact work)
Challenges § Want unrestricted access to top technical people
§ Want no-profit pricing(preferably free)
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16. Early Adopters(Visionaries)
q Fund the development of the early market
§ Visionaries can imagine high-leverage applications of the technology and are willing to take substantial risks to gain the
potential rewards.
§ If they can see lots of leverage from applying the technology, they are also willing to invest their resources to create a
complete solution
Early Adopters(Visionaries)
Focus § Breakthrough that will create competitive advantage
Key Characteristics § Can imagine high leverage applications
§ Willing to take risks
§ Willing to invest resources to create
§ Not price sensitive
Needs § Lots of support
§ Want to move quickly
Role in adoption process § Help commercialize the technology
(They can demonstrate the business value of the technology)
§ Give visibility to technology
Challenges § Want rapid time-to-market
§ Demand high degree of customization and support
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17. Early Majority(Pragmatists)
q Bulwark of the mainstream market
§ Looking for proven solutions that can give them a competitive advantage,
§ So They like to work with a market leader, or work with other suppliers that provide the required level of support and
service.
Early Majority(Pragmatists)
Focus § Proven solution that can give lower costs and/on competitive advantage
Key Characteristics § Comfortable with technology
§ Pragmatic rather than risk takers
§ Like to work with market leaders
§ Have a “wait and see attitude”
§ Don’t like surprises
Needs § Complete, proven solution
§ Want credible reference accounts in their own industry
Role in adoption process § Are entry point into huge, mainstream market
(Pragmatists create the dynamics of high-tech market development.)
Challenges § Insist on good references from trusted colleagues
§ Want to see the solution in production at the reference site
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18. Late Majority(Conservatives)
q Extend product life cycles
§ But they adopt new technology only under duress
§ They are driven to adopt the new technology in order to reduce costs and to remain competitive in their markets.
§ They need a complete solution and they prefer a simple, standardized, pre-assembled solution that just works.
Late Majority(Conservatives)
Focus § Remain competitive
Key Characteristics § Less comfortable with technology
§ Resistant to change
§ More price sensitive
§ Risk averse
Needs § Prefer simple solutions that are easy to install and operate
§ Want to buy the established standard
Role in adoption process § Represent significant portion of the total market
§ Can be quite profitable
Challenges § Need completely pre-assembled solutions
§ Would benefit from value-added services but do not want to pay for them
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19. Laggards(Skeptics)
q Retard the development of high-tech markets
§ In many cases, a Skeptics located in an influential position in a company can delay, or stop, the adoption of a new
technology.
§ The Challenge in these situations is to find some way to work around the skeptic or to neutralize the skeptic, so that
other, more innovative individuals within the organization can support the adoption of the new technology.
Laggards(Skeptics)
Focus § Avoid change
Key Characteristics § Very skeptical of technology and business cases
§ Very risk averse
Needs § Technology may need to be “Hidden” from them
§ Need to be convinced that all other solutions are weaker
Role in adoption process § Obstructs change
§ You should usually try to avoid or neutralize them
Challenges § Not a customer
§ Can be formidable opposition to early adoption
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20. Identify Stage of Technology Adoption Life Cycle
q Understanding the adoption process has some clear implications for you as you try to speed the adoption of
an innovative new product or service.
q The Adoption “Stairway”
§ Innovators(Technology Enthusiast)
§ Seed innovators with new product
§ Help innovators educate visionaries
§ Early Adopters(Visionaries)
§ Capture interest of visionaries
§ Make them satisfied customers
§ Serve as good references for pragmatists
§ Early Majority(Pragmatists)
§ Gain bulk of revenue by serving pragmatists ideally by becoming market leader and setting de facto standards
§ Late Majority(Conservatives)
§ Generate volumes and experience so product become reliable and cheap to meet demands of conservatives
§ Laggards(Skeptics)
§ Leave skeptics to their own devices
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21. Discovering The Chasm
q Visionaries don’t see enough of a head start, Pragmatists see no reason to start yet.
Early Market Mainstream Market
Pragmatists : Conservatives :
Stick with the herd! Hold on!
Visionaries :
Get ahead of the herd!
Skeptics :
No way!
Techies :
Try it! The Chasm
Innovators Early Adopters Early Majority Late Majority Laggards
Time
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22. Model Breaks Down at Key Transition
q Pragmatists don’t trust visionaries as references
Visionaries Vs. Pragmatists
§ Adventurous § Prudent
§ Early buy-in attitude § Wait-and-see
§ Think Big § Manage expectations
§ Go it alone relationships § Maintain
§ Spend big § Spend to budget
§ First strike capability § Staying power
§ Think Pragmatists are pedestrian § Think Visionaries are dangerous
§ Don’t need reference base § Reference base very important, not
§ Take greater interest in technology visionaries
§ Underemphasize infrastructure § Less interested in technology
§ Plan for disruption § Value infrastructure and support
§ Don’t plan to stay for long § Dislike disruption
§ Plan for long term career
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23. Crossing the Chasm
q A number of indicators warn of an emerging chasm
Chasm
Early Market Mainstream Market
§ Product vendor’s problem
ü 80% of many solutions – 100% of none
ü Pragmatists won’t buy 80% solutions
§ Most common vendor mistake:
ü Committing to the most common enhancement requests
ü Never finishing any one customer’s wish-list
§ Solution
ü Focus on a single beachhead
ü Accelerate formation of that segment’s whole product
ü Pick a list and finish it!
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24. Most Important Implication
q Don’t let this happen to you
§ Not seeing the chasm creates a chasm crisis
§ Management is discredited
§ Equity is radically diluted
§ Key personnel become disillusioned
§ Drastic actions are taken – but don’t help
§ Typical success pattern is not achieved
§ Everyone loses
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25. Crossing the Chasm
q Time of despair, early market interest wanes, but mainstream not comfortable with product
q Pragmatist departmental managers adopting before the herd
§ Head-pin segment adopts only if in severe pain
§ Responsible for a broken mission-critical business process
§ Must have complete solution to the business process problem
§ Will try anything that looks like it should work
§ Will track customer references within own niche carefully
q Niche Marketing prevails
§ Direct sales opens up the niche
§ Indirect sales takes over the niche once adoption is under way
§ Healthy price margins and restricted competition are normal
§ Think whole product not product
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26. After Crossing the Chasm - Market Development Model
q Your company then must try to leverage this success in on segment to other related segments
§ Early Market : Deal-driven marketing prevails
§ Crossing the Chasm : Niche marketing prevails
§ Bowling Alley à Tornado à Main Street
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27. Bowling Alley
q Period of niche-based adoption in advance of the general marketplace; whole product for niche applications
§ First, managers in your company might try to identify other vertical markets with almost identical applications and
move to penetrate them.
§ Second, they might look new, different, but related applications in the vertical market in which your company is already
established.
Seg 3 Seg 2 Seg 1
App 1 App 2 App 3
Seg 2 Seg 1
App 1 App 2
Seg 1
Whole Product Customer Reference
App 1
Seg : Segment
App : Application
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28. Tornado
q Period of mass market adoption; market place switches over to new paradigm
§ Once the company has begun to successfully implement the bowling pin strategy and penetrate the early majority or
pragmatists, revenues grow very rapidly.
§ Pragmatist infrastructure managers adopting with the herd
§ Transition to the new infrastructure
§ Must have standards
§ Rely on market share
§ Mass marketing prevails
Post-Tornado Market Shares
§ Streamlined one-size-fits-all whole product
§ Low-touch, high-volume distribution
§ Think product
The Gorilla
Chimp #1
Chimp #2
Monkeys
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29. Gorilla Power
q Gorilla set the de facto standards in a hypergrowth market
q Basis of gorilla power
§ Proprietary open architecture
§ Proprietary means gorilla can control standards going gorward
§ Open means rest of the value chain becomes dependent on gorilla
§ High switching costs
§ Keeps customers and partners in
§ Keeps competitors out
q Results in unique combination of three types of power
§ Supplier power (over customers)
§ Value chain power (over partners)
§ Market leadership power (over competitors)
q Gorilla – Market leader in a tornado, Proprietary ‘architecture’
q Chimp – Market challenger in a tornado, Incompatible with the gorilla architecture
q Monkey – Market follower in a tornado, May clone gorilla architecture
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30. Main Street
q Period of aftermarket development; goal is now to reach and flesh out the market potential
q Installed base driving the after-market
§ Want better value, no disruption
§ Two paths: commodity vs. differentiation
§ Installed vendor has major competitive advantage
§ Customer relies on trial, not references
q Mass customization prevails
§ Standard core for price-sensitive sales
§ Customizable surface for differentiated offers
§ High-touch, high-volume distribution direct to end users
§ Think end-user experience not product
Commodity Niche Market
Market Extensions
<Market opportunity in Main Street>
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31. The Comparison of Bowling Alley and Tornado
q Bowling Alley vs. Tornado
§ Focus on economic buyer and end-user § Focus on infrastructure buyer; ignore
economic buyer
§ Emphasize ROI as the compelling reason to
buy § Ignore ROI; focus on timely infrastructure
deployment
§ Differentiate “whole product” for a single
application § Commoditize product for general purpose use
§ Partner with value-added distribution channel § Distribute via low cost, high volume channels
to ensure customized solution delivery to ensure maximum market exposure
§ Use value-based pricing to maximize profit § Use competition based pricing to maximize
margins market share
§ Avoid competition to gain niche market share § Attack competition to gain mass market share
§ Position products within vertical market § Position products horizontally as global
segments infrastructure
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32. The Comparison of Tornado and Main Street
q Tornado vs. Main Street
• Sell to infrastructure buyer § Sell to end-user
• Focus on timely & reliable infrastructure § Focus on end-user’s product experience; seek
deployment to gratify individual needs
• Commoditize product for universal § Differentiate commoditized products via +1
deployment (open systems & need for strategic campaigns directed at specific niches
partnerships)
§ Continue same channels, but focus on
• Distribute via low cost, high volume channels merchandising that communicates +1
& advertise heavily to ensure maximum messages
market exposure
§ Gain margins above low cost clone with +1
• Drive price points even lower to maximize benefits
market share
§ Compete against own low-cost offering to
• Attack other competitors to gain market share boost margin share
• Position products horizontally as global § Position in niche markets based on end user
infrastructure preferences
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33. Toward the “Whole” Product
q With the innovator, the core product is a big part of the whole product.
q By the time the product has reached the late majority or conservatives adopter group, the success of the
product will depend much more heavily on the non-core elements of the product rather than the core product
itself.
q Thus the core-product is increasingly taken for granted and becomes a less important determinant of choice
as the product moves into the later stages of the adoption cycle.
Potential Product
Expected Product Augmented Product
Generic Product
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34. Priorities in Market
Mass Mass
Marketing Customization
Deal-driven
Marketing
Niche
Marketing
Key Priority: Design & build the whole product Key Priority: Simplify and extend the whole product
Partnering Priority: Complementary technologies Partnering Priority: Complementary skills and resources in
& services to form the whole product and win marketing and distribution to succeed in identifying new niches
dominant segment share Distribution Priority: Find some hunters for the Tornado and
Distribution Priority: Find some evangelists for farmers for the Main Street
Early market and Crusaders for Bowling Alley
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35. IV. Understand Buyer Behavior
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36. Identify Decision-Making Unit
q The decision-making unit, or buying network, is a group of individuals that have some influence on whether
to buy a particular product or service and, if the decision is made to buy the product or service, the particular
brand of that product or service.
§ To recognize that the key individuals in the decision-making unit may very well evolve over time.
§ To understand the power and influence of each individual in the decision-making unit.
Buyer
Key Questions
• Who are the key
decision-makers?
Who is the • In what decisions do they
Influencer Approver
Customer? exercise influence?
• What evaluation criteria
do they use?
User
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37. Understand Choice Criteria
q A second important element is the choice criteria that individuals in the decision-making units bring to bear
as they attempt to make a decision. These criteria are related to both organizational and personal objectives.
Product Criteria Process Criteria
§ Product criteria refer to the fit of the product § Process criteria refer to the degree to which your
attributes to the customer’s need. product or service fits the customer’s need from
a purchasing, usage, and disposal perspective.
§ Does the product or service have the
functionality, quality, reliability, speed the § Some organizations call this the customer
customer is seeking? interface strategy.
This information on choice criteria by market segment can be absolutely critical as
you design your product and service offerings and as you decide how best to
position them relative to customer needs and competitive offerings in the market.
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38. Understand Choice/Rejection Process
q The third element in understanding buyer choice/rejection behavior is the “How” question – how the
customer goes about making decisions in the choice/rejection process.
§ In order for them to adopt the new product or service, these customers need to switch from their existing choices.
Step 3 :
Your
Competitor BUILD BARRIERS
Solution
A’s Solution Creation of barriers
to reduce chances
Current of rejection of your
Solution Step 2 : IN new solution
Perceived
Need for Adoption of
Change new solution
Competitor
Step 1 : OUT
B’s Solution
Rejection of current
choice or solution
Choice/Rejection Process
(The Three Critical Issues)
Experience Experience
Time
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39. V. Understand Complete Market Chain
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40. Defining Market Chain
q A Market Chain is simply the chain of organizations a company uses that play key roles converting raw
materials into solutions that meet end-user requirements
q Market Chain as live, profit-driven, value-creating networks of companies that compete with other value-
creating systems in the market
Raw End User/
Equipment
Materials Consumers
Raw Systems/ Manufacturer/ VAR/ End User/
Components Distributor
Materials Products OEM Retailer Consumers
End User/
Services Distributor
Consumers
OEM – Original Equipment Manufacturer
VAR – Value-Added Reseller
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42. Choices Among Market Chain
q Two Potential Market Channels for a Manufacturer of Semiconductor Components to Access the Antilock
Braking Systems Market
Raw Car
GM Dealers
Materials Buyers
Modules Tevis
Capital Car
Motorola Ford Dealers
Equipment Buyers
Modules Bosch
Car
Supplies Chrysler Dealers
Buyers
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43. Consider Market Chain Dynamics
q Take account of a number of considerations.
q First, it should use channels that represent an attractive opportunity for it. Other things being equal, it should
focus on the channel(s) most likely to be successful in gaining market share, growth, and profitability.
These channels will be ones where there is an excellent fit between what the channels can deliver and the
needs of the end user.
q Second, if a company is aiming to capture leadership in the opportunity, it should focus on those channels
where it can clearly emerge as the market leader relative to competing companies using the same chain. It
will need to present powerful reasons for the market chain members to work closely with it and to
aggressively market its products.
q In PC Industry, Dell eliminate all downstream market chain members and deal directly with customers
largely by personal selling, by telephone, or over internet.
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44. Downscaling and Upscaling
Vertical Downscaling or Upscaling
Changing an organization’s
Value-adding role
Raw Systems/ Manufacturer VAR/ End Users/
Components Distributor
Materials Products (OEM) Retailer Consumers
Horizontal Upscaling
Changing the application and/or
technology to create more value-added
for market chain members
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45. Vertical Downscaling and Upscaling
q Vertical Upscaling
Motorola acquire
a module maker
Modules Tevis
Motorola Car
Car Makers Dealers
Buyers
Modules Bosch
q Vertical Downscaling
Modules Tevis
Motorola Car
Car Makers Dealers
Buyers
Modules Bosch
Motorola
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46. Market Chains as a Series of Choice/Rejection Process
q The major challenges in any technology-intensive industry is
§ Getting new products to the market in a timely manner
§ Managers don’t usually pay enough attention to adoption along each of the market channels that make
up the market chain
§ Existing business that carry a certain set of products and services and operate in certain ways
q Once they have adopted, you or other players in the market chain will need to work with them
and develop programs that solidify the new behavior.
q To do all of this effectively requires that you or other committed partners in the market chain
understand the decision-making unit, the choice criteria, and the choice/rejection process at all
levels in the market chain.
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