Lecture 5 17/10/13
Documentum Salient Points: • Effectively identified a problem • Built a technical solution • Good management team • Issues: • How to choose a target market? • Vertical versus Horizontal • What type of sales team do they need?
Documentum Questions: • What did Documentum learn from the first two customers? • Should they go with the insurance company deal? • Is Moore’s approach to selecting the market a good one for the company? • Differences between vertical and horizontal market?
A Market… • a set of actual or potential customers • for a given set of products or services • who have a common set of needs or wants, and • who reference each other when making a buying decision Moore says, "the notion that part of what defines a high-tech market is the tendency of its members to reference each other when making buying decisions-- is absolutely key to successful high-tech marketing."
‘The Chasm’ • Crossing the Chasm is closely related to the technology adoption lifecycle where five main segments are recognized; innovators, early adopters, early majority, late majority and laggards. • According to Moore, the marketer should focus on one group of customers at a time, using each group as a base for marketing to the next group. • The most difficult step is making the transition between visionaries (early adopters) and pragmatists (early majority).
High-Tech Marketing Model • Technology Adoption Lifecycle becomes the foundation for a high-tech marketing model • the way to develop a market is to work the curve from left to right • progressively winning each group of users • using each "captured" group as a reference for the next
The Stages • Innovators pursue technology products aggressively • Early Adopters are the rare breed of visionaries, the core dream is a business goal, not a technology goal • Early Majority are pragmatists, they tend to be 'vertically' oriented, meaning that they communicate more with others like themselves within their own industry than do technology enthusiasts and early adopters • Late Majority share the concerns of the early majority, in addition they have a tendency to be uncomfortable with technology • Laggards typically do not want anything to do with technology