Week 8-Kamilla Flashcards
Who is the Early Market(16%)?
- Innovators (tech enthusiasts, 2.5%)
- Early Adopters (visionaries, 13.5%)
Who is Mainstream Market(68%)?
- Early Majority (pragmatists, 34%)
- Late Majority (conservatives, 34%)
Innovators
- Love technology
- Motivated by the idea of being a change agent
- Will tolerate initial flitches
- Willing to alpha/beta test
Ex: “I think electric cars are the future!”
Early Adopters
- Attracted by high risk, high reward
- Demand tech support but willing to work with you
- Want to stand out with revolutionary products
Ex 1: “I want to be the first one on the block with an electric car!”
Early Majority (YOU WANT TO BE IN THIS GROUP)
- Comfortable with evolutionary changes BUT
- Want proven applications and a standard technology solution
- Buy only with a reference from a trusted source (herd mentality)
Ex 1: “I want to see electric cars prove themselves… and I want enough charging and service stations”
Late Majority
- Risk-averse, technology-shy, very price sensitive
- Require assembled, bullet-proof solutions from established brands
Ex: “I won’t buy an electric car until the majority have made the switch and its inconvenient to drive regular gas-fueled cars”
What does it mean to be in the chasm?
Gap of expectations vs. Deliverables
Why is the chasm a problem?
- It presents a catch-22:
a. Pragmatists don’t buy until a company is established… but companies only become established when pragmatists buy!
b. Pragmatists don’t really trust visionaries… but visionaries are the only reference group a company has at this point! - The market stalls, revenue declines, firms lose money, and VCs get impatient
- The chasm can become a graveyard
How do you cross the chasm?
Best analogy, is bowling, if you hit the kingpin, everything else will fall. Essentially if you capture one market, you can automatically capture the others
How do you know who to “attack”?
- You can pick any market, as long as you have a good strategy
- Little to no competition helps though
What’s the role of the “whole product solution”?
Fills the gap between the promise to the customer and the company’s ability to deliver.
For SDVs:
- Hardware
- Software
- Training/support
- Maintenance
- Accuracy decreases, if segment fit declines or multiple segments targeted
Other key decisions?
- Partners and allies: networks
- Sales channel: way to the buyer
- Pricing: sensitivity
Adoption Curve Video Summary
- individuals within any society fall into 1 of 5 different adopter groups based on how early or how quickly they adopt an innovation
- if you want to promote the widespread adoption of a new behavior like these you need to market to each adopter group differently using distinct communication channels and messages
Ex: social media spread very quickly and was accepted by almost everyone. Solar power spread much slower and might take decades to reach widespread adoption.
Adoption Curve Video 5 Groups
- Innovators: small but important group because they are always the first to learn about and adopt an innovation. They are risk-taking and adventurous. They are responsible for introducing innovations to the larger population because they share their experiences with their friends and communities.
- Early adopters: small forward-thinking group and are highly respected as opinion leaders. Their endorsement of an innovation plays a key role in what we call crossing the chasm, which is when the adoption of an innovation bridges the gap between the trendsetters and the majority.
- Early or late majority: 2/3 of the population fall into this group. Early majority take time to make decisions. Will only adopt the innovation when it becomes the status quo. The late majority are more resistant to change, but they are very responsive to peer pressure.
- The laggards: are highly resistant to change and they also can be hard to reach with marketing campaigns because they have very minimal exposure to media. They wait until an innovation is completely mainstream before they adopt it, and in some cases they never do.
What does crossing the chasm mean?
when adoption of an innovation bridges the gap between the trendsetters and the majority
