Chasm in b2b Market

8/2/2019 Chasm in b2b Market

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CHASM IN B2B MARKET

[ T y p e t h e c o m p a n y a d d r e s s ]

Abhimanyu ChoudharyRoll no: - SMBA10001.

Fall 1


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Technology adoption lifecycle (TALC)

The technology adoption lifecycle (TALC) describes how a market develops for a

new product category. Understanding TALC helps business managers focus

product management, develop future marketing strategies and allocate

resources for radically innovative products (also known as discontinuous

innovations).While the bell curve (see below) has long served as an illustrationof the market development process for a new product category, Geoffrey Moore

introduced the notion of a chasm in the market development process for

radically innovative products in his 1991 book, Crossing the Chasm. Given MaRS

focus on assisting technology entrepreneurs, we will use Moores version of the

TALC.
http://www.marsdd.com/entrepreneurs-toolkit/articles/marketing-planhttp://www.marsdd.com/entrepreneurs-toolkit/articles/marketing-plan


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Stages of the Technology Adoption Lifecycle

1. The Early Market (consists of visionaries and technology

enthusiasts): The market at this stage consists of visionaries and

technology enthusiasts. The technology enthusiasts (often referred to

as"innovators") fundamentally believe that new technology is better

than existing technology and will therefore always be amongst the very

first to adopt new products. Visionaries on the other hand believe in

technology as a path to competitive advantage and thus aggressively

adopt any new technology to further their business.2. The Chasm: In the chasm the product category encounters a pause

in market development. The length of the pause depends on how radical

the disruptive innovation is. The pause occurs often as a result of weak

or incomplete value chains and because pragmatists (mainstream

market) do not trust visionaries as a reference. The success of the

product category depends on the pragmatists view of the outcomes ofthe pilot projects initiated by the Early Market. In this phase,

entrepreneurs need to analyze current pilot projects and developments

to understand how an improved offering can serve niche markets in

order to gain momentum in the next phase of market development.

3. Bowling Alley/Pragmatists: In this phase of the lifecycle, theinnovation appeals to customers within narrowly defined market niches,

who are conservative but open to new ideas, and who are influential

and active in the community. The product category now appeals to

specific niche markets. The sales to these niche markets are predictable


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and provide high margins. However, outside of the niche markets, sales

are opportunistic and may require mass product customization to meet

individual client needs. At this point, industry analysts and media may

begin to follow the development of the product category.

4. The Tornado/Pragmatists: The Tornado represents the stagewhere the market development expands outside the niche markets of

the previous phase and develops into a mass market. Here we see a

period of rapid growth that generates mass appeal amongst the

pragmatists and early adopters, as the product has penetrated a variety

ofmarket segments. Vendors are eager to supply this product category

and this creates a war for market share, which in turn brings down

prices. A market leader will eventually emerge at this stage and enjoy

shorter sales process, better margins and more media coverage than the

competition. The technical analysts now scrutinize the strengths and

weakness of each industry player.

5. Main Street/Conservatives: Here the market has entered themature stage of its lifecycle, experiencing declining growth rates. The

declining prices appeal to the conservative/late majority consumers.

These customers tend to be more risk-averse than previous segments.

The reason they purchase the product is to avoid a competitive

disadvantage. At this point, to secure a viable future within niche

markets, some competitors modify their offering while others compete

solely on price. The focus of the media changes from discussing the

product category and its players to the market itself.
http://www.marsdd.com/entrepreneurs-toolkit/articles/segmentationhttp://www.marsdd.com/entrepreneurs-toolkit/articles/segmentationhttp://www.marsdd.com/entrepreneurs-toolkit/articles/segmentationhttp://www.marsdd.com/entrepreneurs-toolkit/articles/segmentation


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6. Total Assimilation/Skeptics: At this stage, near the end of thelifecycle, it is the laggards or skeptics who embrace the product. Some

after-sale services offered by marketers will provide lingering revenues;

however, a new technology category has begun elsewhere to capture

the market. By this stage, the interests of the media and analysts have

changed and evolved.


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Application of TALC

An important aspect of technology management is deciding where your

product category belongs on the technology adoption lifecycle. While you

should make your placement decision using subjective reasoning and

judgment, keep in mind that guidelines exist to steer you in the right direction.

These include:

Analyse where a product enters the TALC when it is brought to

market (i.e., shipped)

Placement of the product category is geographically sensitive it will

depend on where it is in the world

A products rapid acceptance and adoption in the Early Market does

not mean that it is in a Tornado. It may be due to the reaction of

technology enthusiasts and visionaries to the newness of the

product category. Wait until pragmatists adopt the product

category (in definable segments) before moving out of the Early

Market

A Tornado is also possible in Bowling Alley markets when the product

effectively resolves problems in a particular market segment.

Wait for evidence that this local response carries over into other

segments

When transference does not occur, the product may enter Main Street

without sustaining a Tornado. The product may only be effective

in niche markets a generalized solution and infrastructure will

not apply


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your product may fail, even though others in the product category may

succeed, as a result of (or despite) your companys efforts. Each product and

company must survive on its own. A products success does not guarantee the

success of the product category

http://www.marsdd.com/entrepreneurs-toolkit/articles/technology-

adoption-lifecycle-talc

Cisco TelePresence

1) Cisco should penetrate the market and should creat awareness

among the people of the technology and its advantages.

2)They can use advertisement to reach more number of people and to

capture large market share.

3)They can tell about their product to the target companies by giving

presentation. Presentations can be given to target companies.

4)Cisco needs to convince the pragmatists that the product is here to

stay as it will definitely evolve given the market situations- like

improvement in the applications provided, making it more

affordable, customizing it to their needs and requirements.
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Chasm in b2b Market

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