1. TALC and Marketing

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

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

4. Implications
Target differing segments -- cross the chasm with a single, high-need segment
Provide a “whole product” probably with partners
Enter bowling alley by choosing cross-referencing segments

5. Have these crossed the chasm?
Home wireless LANs
Online college courses
Internet Access by Cable

6. Some Questions
Is “self-referencing” a necessary condition of a segment?
Do you believe that the TALC holds in B2B innovations?
Do you believe the TALC holds in consumer markets?
What happens when innovations are more continuous?

7. 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

8. 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

9. 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)

10. 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?

11. 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

12. 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

13. 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?

14. 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?

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

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

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

18. Functions by phase R&D OPS SVC SLS FIN TOT Visn 4 1 2 13 Bowl 3 9 Torn15
Main St