Moore’s Crossing the Chasm Ch 06: “Define the Battle”

Pages 163 – 196; Amazon Locations 2085 – 2540

Humanity plays games to create scenarios where there are clear winners and losers.  Games let us test out what works and what does not without the violence and destruction of true fighting and warfare.  If we are picking the game and defining the battle as we launch Moore’s new technology product, then we owe it to ourselves to pick a battle we will win.

The first market must be won, otherwise we will not cross the chasm.  Pick a winnable battle.  Define the battle so victory is certain.

Best Quote(s)

“The fundamental rule of engagement is that any force can defeat any other force—if it can define the battle.” Chapter 6, Location 2088

Sun Tzu lays this out in Attack by Stratagem – the goal is to know yourself and know the opposition.  Strategy is the use of this knowledge to create victory, tactics are how you create scenarios where you will win and the opposition loses.

“In our experience to date with developing an early market, competition has not come from competitive products so much as from alternative modes of operation.” Chapter 6, Location 2099

Persuading someone to change their work flow is hard, and it is one of the reasons why Moore’s use of The Whole Product model is so valuable.  Imagine the early challenge of selling electric lamps and all the alternative modes of light that required very different skills to use.

“In sum, the pragmatists are loath to buy until they can compare. Competition, therefore, becomes a fundamental condition for purchase.”  Chapter 6, Location 2114

Define your product in comparison to a product that is bought today, then use the Whole Product Model to uncover – and address – the weaknesses.  Use customer feedback to prioritize what gets fixed first.

“Crossing the chasm, in this context, represents a transition from product-based to market-based values.”  Chapter 6, Location 2139

There is a market for these kinds of goods.  These buyers have common needs and have a common way of paying people to fix their needs.  This is a big change from having a product and looking for people that might need it – your knowledge of the customers’ needs is much higher.  Focus is required to know your customers’ needs.

“When most people think of positioning in this way, they are thinking about how to make their products easier to sell. But the correct goal is to make them easier to buy.” Chapter 6, Location 2361

Easier to sell is just marketing speak – and as Moore calls out – it comes across as slimy.  Easier to buy involves anticipating the customers need, doing some of their work for them, and really attending to what is important to them.  As Carnegie would put it – focus on what they care about.

“For (target customers—beachhead segment only) Who are dissatisfied with (the current market alternative) Our product is a (new product category) That provides (key problem-solving capability). Unlike (the product alternative), We have assembled (key whole product features for your specific application).” Chapter 6, Location 2436

This simple, traditional, well-trodden statement of the goal of the product is an established part of MBA and Marketing Speak.  It works.  Use it.

Page by Page

2085

2088

“The fundamental rule of engagement is that any force can defeat any other force—if it can define the battle.” Chapter 6, Location 2088

2093

“Well, in the case of crossing the chasm, one of the key things a pragmatist customer wants to see is strong competition.”

Creating the Competition

2099

“In our experience to date with developing an early market, competition has not come from competitive products so much as from alternative modes of operation.” Chapter 6, Location 2099

2104

“Pragmatists work to educate the company on the risks and costs involved. Visionaries counter with charismatic appeals to taking bold and decisive actions. The competition takes place at the level of corporate agenda, not at the level of competing products.”

2109

“In the pragmatist’s domain, competition is defined by comparative evaluations of products and vendors within a common category.”

“And the conclusions drawn from these matrices will ultimately shape the dimensions and segmentation of the mainstream market.”

SGI for film editing and SUN work stations.

2114

“In sum, the pragmatists are loath to buy until they can compare. Competition, therefore, becomes a fundamental condition for purchase.”  Chapter 6, Location 2114

2119

“Creating the competition is the single most important marketing decision made in the battle to enter the mainstream. It begins with locating your product within a buying category that already has some established credibility with the pragmatist buyers. That category should be populated with other reasonable buying choices, ideally ones with which the pragmatists are already familiar. Within this universe, your goal is to position your product as the indisputably correct buying choice.”

2129

“Moreover, these categories appear specifically designed to exclude from the competitive set the very products the pragmatist is most likely to consider as purchase alternatives. As marketing devices for crossing the chasm, therefore, they are useless.”

2134

“So, how can you avoid selecting a self-servicing or irrelevant competitive set?”

2139

The Competitive Positioning Compass

“There are four domains of value in high-tech marketing: technology, product, market, and company.”

“Crossing the chasm, in this context, represents a transition from product-based to market-based values.”  Chapter 6, Location 2139

2152

“The model also points to the fact that people who are supportive of your value proposition take an interest in your products and in your company. People who are skeptical of you do not.”

2161

“demonstrating a strong technology advantage and converting it to product credibility, and you develop a mainstream market by demonstrating a market leadership advantage and converting it to company credibility.”

2177

“To sum up, it is the market-centric value system—supplemented (but not superseded) by the product-centric one—that must be the basis for the value profile of the target customers when crossing the chasm.”

2182

Creating the Competition – Silicon Graphics

  • Market alternative – scene editing – reasons to change.
  • Product alternative – Sun desk tops – validation.

2203

“To sum up, your market alternative helps people identify your target customer (what you have in common) and your compelling reason to buy (where you differentiate). Similarly, your product alternative helps people appreciate your technology leverage (what you have in common) and your niche commitment (where you differentiate).”

2208

Example 2 – Quicken

2239

“You choose your competition to help you define the niche market you will dominate. As long as they are well behaved and stay out of your niche, you go out of your way to honor their achievements elsewhere.”

2244

Robert Frost—“ Good fences make good neighbors.”

Creating the Competition – Current Opportunities

“Channelpoint, Diffusion, and VerticalNet.”

2275

“In a bar, when asked what Channelpoint does, I can now say, “Oh, they’re the SABRE System for the insurance industry.””

2299

Customer communication software:

“There is a project alternative—that is, an early market offer—to accomplish the same goals, building out a custom system with a technology vendor like Broadvision or an enterprise systems partner like IBM.”

2315

Verticalnet – micro sites

“Say you are attracted to sludge collection.”

2326

“It is not Dilbert with whom you need to position but rather the people who want to sell to him.”

2331

In closing …

2347

“So, market alternatives call out the budget and thus the market category, and product alternatives call out the differentiation. It sounds a lot like positioning,”

Positioning:

  • Noun, not a verb.
  • Biggest influence on purchase decision.
  • Positioning is in the mind of your customer
  • People don’t like changes in positioning.

2361

“When most people think of positioning in this way, they are thinking about how to make their products easier to sell. But the correct goal is to make them easier to buy.” Chapter 6, Location 2361

2366

“Even though the words appear to address the customers’ values and needs, the communication is really focused on the seller’s attempt to manipulate them, a fact that is transparently obvious to the potential consumer.”

2371

“The goal of positioning, therefore, is to create a space inside the target customer’s head called “best buy for this type of situation” and to attain sole, undisputed occupancy of that space. Only then, when the green light is on, and there is no remaining competing alternative, is a product easy to buy.”

4 stages of positioning:

  1. Name it and frame it
  2. For whom for what – who for and what for
  3. Competition and differentiation
  4. Financials and futures

2402

The Positioning Process (4 steps):

  1. The claim
  2. The evidence
  3. Communications
  4. Feedback and adjustment

2412

The Claim – Passing the Elevator Test

Why VCs need clear claims:

  1. Clear communication
  2. If bad, comms will be bad
  3. R&D bad too
  4. Hard to recruit partners, allies
  5. No one else will finance it

2436

“For (target customers—beachhead segment only) Who are dissatisfied with (the current market alternative) Our product is a (new product category) That provides (key problem-solving capability). Unlike (the product alternative), We have assembled (key whole product features for your specific application).” Chapter 6, Location 2436

2459

“One final point on claims before moving on to other issues: The statement of position is not the tag line for the ad.”

2465

The Shifting Burden of Proof

2475

“In sum, to the pragmatist buyer, the most powerful evidence of leadership and likelihood of competitive victory is market share.”

2480

Whole Product Launches

2490

“out? The message now is “Look at this hot new market.” The message typically consists of a description of the emerging new market, fed by an emerging set of partners and allies, each supplying a part of the whole product puzzle, to the satisfaction of an increasingly visible and growing set of customers.”

2510

“The great benefit of the business press as a medium of communication is its high degree of credibility across virtually all business buying situations.”

2531

Recap: The Competitive Positioning Checklist

  1. Focus – the company must have value prop
  2. Create the Competition
  3. Focus your communications
  4. Demonstrate the validity of the claims.

2540

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Moore’s Crossing the Chasm Ch 05: “Assemble the Invasion Force”

This gallery contains 5 photos.

“In the simplified model there are only two categories: (1) what we ship and (2) whatever else the customers need in order to achieve their compelling reason to buy.” Crossing the Chasm – Chapter 5, Location 1813 Continue reading

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Moore’s Crossing the Chasm Ch 04: “Target the Point of Attack”

Pages 105 – 128; Screens and Locations (in Kindle) 1471 – 1726

Moore spends nearly 30 pages hammering home some important points:

  1. A beachhead must be identified, and winning it must be the focus.
  2. There will not be enough information for everyone to be satisfied.
  3. The beachhead – and the markets behind it – are won with The Whole Product concept.

Best Quote(s)

“If you don’t know where you are going, you probably aren’t going to get there.” Chapter 4, Location 1471

If you don’t know what you’re doing – do not do it harder.

“But you cannot expect to transform a low-data situation into a high-data situation quickly.” Chapter 4, Location 1516

Yes, more data can always be found – but will it lead to a better decision?  Is the time spent uncovering better data worth the opportunity cost?

“Since, however, investment and time are two of your scarcest resources, cheaper and sooner are very desirable attributes in a target market scenario.” Chapter 4, Location 1653

If you can prove your product functions fast and cheap then this is always the preferred path.  This is one of Ries’s main points in The Lean Startup.

“This means you can focus all your attention on the whole product, which is where it needs to be. Nail that and you win.” Chapter 4, Location 1683

Moore is being prescriptive – so listen closely – you must win the beachhead and the beachhead is won with the whole product.

“The enemy in the chasm is always time.” Chapter 4, Location 1688

Even the largest, oldest, wealthiest organizations don’t have infinite patience.  “Beyond three years might as well be infinity…” I’d read a study that showed most purchasing / technical / front end engineers at customers were in their roles for an average of three years.  (Typing this out, it feels like it is from Ries.) Which means that if you can’t win in 1.5 years, you should assume you’ll have to start over with a new buyer.

Just because your organization has patience does not mean that your customer will.  And even if your customer does have patience – will the other product competing for their attention be so slow to demonstrate urgency?  Move with speed and purpose.

Page by Page

“If you don’t know where you are going, you probably aren’t going to get there.”

1480

“Rather, they suffer from a built-in hesitancy and lack of confidence related to the paralyzing effects of having to make a high-risk, low data decision.”

1485

“In sum, there’s a lot riding on this kind of decision, and severe punishment for making it badly.”

1490

“The market we will enter, by definition, will not have experienced our type of product before.”

1506

“But it is absolute folly to use such numbers for developing crossing-the-chasm marketing strategies.”

“That’s when you hear them saying things like, “It will be a billion-dollar market in 1995. If we only get 5 percent of that market… When you hear that sort of stuff, exit gracefully, holding on to your wallet.””

1511

“They know the numbers do not provide the answers they need.”

Moore is using more of the Carnegie type persuasion writing – showing why things are good, why the alternatives are bad, and how following his guidance gets the reader what they want.

1516

“But you cannot expect to transform a low-data situation into a high-data situation quickly.”

Informed Intuition

1526

“Only work with memorable images.”

Characterizations – visionary’s, pragmatist, early adopter, etc.

1542

“However, since we do not have real live customers as yet, we are just going to have to make them up.”

1553

Electronic Books – An Example

Reading Chasm on a Kindle this time – it is amazing how often the eBook is brought up and how write his forecasts were.

1569

“In consumer scenarios, the three roles of user, technical buyer, and economic buyer tend to merge into one or two.”

1575

“It is extremely difficult to cross the chasm in consumer market.”

1593

A day in the life – Before and After

1614

“This is not a formal segmentation survey—they take too long, and their output is too dry.”

1620

Market Development Strategy Checklist

  1. Target customer
  2. Compelling reason to buy
  3. Whole product
  4. Partners and allies
  5. Distribution
  6. Pricing
  7. Competition
  8. Positioning
  9. Next target customer

Must pass the first four to be eligible as a beachhead. Then rank along the last 5 to identify #1.

1629

“Can’t we go after more than one target? The simple answer is no.”

1648

“A very low score, relative to the others, in any of these factors almost always is a show-stopper.”

1653

“Since, however, investment and time are two of your scarcest resources, cheaper and sooner are very desirable attributes in a target market scenario.”

1678

“This is a white-water rafting strategy, where hesitating on a split decision is the one behavior guaranteed to capsize the boat.”

Vs the Aircraft Carrier

1683

“This means you can focus all your attention on the whole product, which is where it needs to be. Nail that and you win.”

1688

“The enemy in the chasm is always time.”

1698

“So the rule of thumb in crossing the chasm is simple: Pick on somebody your own size.”

1704

Recap: The Target Market Selection Process

7 step process to make decisions

1726

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Moore’s Crossing the Chasm: Ch 03 “The D-Day Analogy”

Pages 75 – 104; Amazon Locations 1078 – 1468.

Moore’s first chapter laid out his Technology Adoption Life Cycle and the second chapter showed its explanatory power.  In Chapter 3, he shows how to win using the model.  The D-Day invasion is Moore’s metaphor for successful marketing – here he is building off of Sun Tzu’s more ancient counsel from his chapter on Tactical Dispositions, “13… Making no mistakes is what establishes the certainty of victory, for it means conquering an enemy that is already defeated.”  Don’t let the skeptic block the sale, be prepared.  Moore is helping the reader launch a product that can survive the first three waves of buyer – from the early adopters to the pragmatist, and in so doing, cross the chasm.  In Ries’s Lean Startup, we see how this can be done as effectively and with the lowest amount of risk.

Best Quote(s)

“The consequences of being sales-driven during the chasm period are, to put it simply, fatal.” Chapter 3, Location 1160

Your goal in the chasm is to get through the chasm.  If you aren’t sufficiently prepared and funded, then the need for sales will distract you from creating a reference-able customer base to get to the other side.

“The key to moving beyond one’s initial target niche is to select strategic target market segments to begin with. That is, target a segment that, by virtue of its other connections, creates an entry point into a larger segment. “ Chapter 3, Location 1237

The value here is in the strategic preparation and commitment.  If you’ve framed the market correctly, then focusing on the segment will lead you across the chasm and onto other segments.  Market sequence is the big decision in chasm strategy.  Focus on the core market, then by virtue of having made good decisions, you can survive.

“Make a total commitment to the niche, and then do your best to meet everyone else’s needs with whatever resources you have left over.” Chapter 3, Location 1290

Focus on the early buyers – do whatever it takes to get them through their adoption risks.  If those first accounts don’t purchase and succeed, then they can never become references and success stories for the rest of the market.  To survive the chasm you must produce reference-able customers for the rest of the adoption cycle.

“It is not about the money you make from the first niche: It is the sum of that money plus the gains from all subsequent niches.” Chapter 3, Location 1347

Too often companies can become ROI focused and lose focus as they launch new products.  ROI can be appropriate – but the “R” (Return!) must include all the future markets that can only be one if this first bowling pin falls.

“Chasm-crossing theory says, “Act locally, then globally.””  Chapter 3, Location 1427

Win the first accounts at all costs.  Do not, do not, do not fail.

“The critical attitude to maintain in all four of these challenges is that chasm-crossing represents a unique time in your enterprise’s history.” Chapter 3, Location 1463

If we’re asking our team to Cross the Chasm – the team deserves special rules so they can behave in different ways than the rest of our organization.  Moore hits on these needs in his 2015 book Zone to Win (video summary).

Page by Page

1078

“Their efforts conspire to tax the reserves of the fledgling enterprise seeking to pass through to the mainstream. We need to look briefly at these challenges so we can be alert in our defenses against them.”

If we take our Carnegie Persuasion Lens to this task, Moore is now showing us the risks of not following the path shown to us in the Technology Adoption Life Cycle.

1082

The Perils of the Chasm

  • early market customers are saturated
  • Mainstream pragmatists not yet comfortable
  • Cash flow
  • Competitors
  • Customer diversity
  • Investor expectations

1092 – 1468

1107

“Under the best-case scenario, you are asking them to rein back their expectations just when it seems most natural to let them fly. There is an underlying feeling that somehow, somewhere, someone has failed.”

“You must get into a mainstream market segment soon, establishing long-term relationships with pragmatist buyers, for only through these can you control your own destiny.”

1107

Fighting Your Way into the Mainstream

“To enter the mainstream market is an act of aggression.”

With the D-Day invasion as metaphor, Moore calls on the wisdom of Sun Tzu – and reminds of the wisdom from Chapter 2 – “Waging War”:

“18. In war, then, let your great object be victory, not lengthy campaigns.” Loc 142

1113

“No one wants your presence. You are an invader.”

1123

“Cross the chasm by targeting a very specific niche market where you can dominate from the outset, force your competitors out of that market niche, and then use it as a base for broader operations. Concentrate an overwhelmingly superior force on a highly focused target.”

Moore’s military metaphors make reference again to Sun Tzu’s wisdom – focus your resources to create an advantage.

1129

“The more tightly bound it is, the easier it is to create and introduce messages into it, and the faster these messages travel by word of mouth.”

Focus on a market.  Focus on a market.  Focus, focus, focus.

1139

“Most companies fail to cross the chasm because, confronted with the immensity of opportunity represented by a mainstream market, they lose their focus, chasing every opportunity that presents itself, but finding themselves unable to deliver a salable proposition to any true pragmatist buyer.”

1144

How to Start a Fire – Trying to Start a Fire

“Trying to cross the chasm without taking a niche market approach is like trying to light a fire without kindling.”

1154

“We do not have, nor are we willing to adopt, any discipline that would ever require us to stop pursuing any sale at any time for any reason.”

“We are, in other words, not a market-driven company; we are a sales-driven company.”

1160

“The consequences of being sales-driven during the chasm period are, to put it simply, fatal.”

“The sole goal of the company during this stage of market development must be to secure a beachhead in a mainstream market—that is, to create a pragmatist customer base that is referenceable, people who can, in turn, provide us access to other mainstream prospects.”

1170

“Therefore, whole product commitments must be made not only sparingly but strategically—that is, made with a view toward leveraging them over multiple sales. This can only happen if the sales effort is focused on one or two niche markets. More than that, and you burn out your key resources, falter on the quality of your whole product commitment, and prolong your stay in the chasm. To be truly sales-driven is to invite a permanent stay.”

1180

“Winning over one or two customers in each of 5 or 10 different segments—the consequence of taking a sales-driven approach—will create no word-of-mouth effect.”

1185

“This lack of word of mouth, in turn, makes selling the product that much harder, thereby adding to the cost and the unpredictability of sales.”

Moore covers several examples – tax software, gaming, desktop os- pragmatists want to buy from mkt leaders.  Anything other than a market leader is not a reference they will trust.

1201

“So, if we want market leadership early on—and we do, since we know pragmatists tend to buy from market leaders, and our number one marketing goal is to achieve a pragmatist installed base that can be referenced—the only right strategy is to take a “big fish, small pond” approach.”

Segment. Segment. Segment.

1211

“leadership—it is critical that, when crossing the chasm, you focus exclusively on achieving a dominant position in one or two narrowly bounded market segments. If you do not commit fully to this goal, the odds are overwhelmingly against your ever arriving in the mainstream market.”

What about Microsoft?

Evil Kneivel approach

1227

Microsoft – os as a moat.

1232

Beyond Niches

1237

“The key to moving beyond one’s initial target niche is to select strategic target market segments to begin with. That is, target a segment that, by virtue of its other connections, creates an entry point into a larger segment. “

Macintosh – graphic arts in the Fortune 500.

1248

“All used the Macintosh to exchange a variety of graphic materials, and the result was a complete ecosystem standardized on the “non-standard” platform.”

1253

Examples

Clarify, Documentum, Palm Pilot, NEON

1264

“So, because of the dynamics of technology adoption, and not because of any niche properties in the product itself, platforms must take a vertical market approach to crossing the chasm even though it seems unnatural.”

1275

“It was—and indeed still is—a great idea, but it required not only new software and significant systems reengineering but also new workflows and new job descriptions, and pragmatists were leery of jumping on board.”

1285

“The market was exploding, and lack of customer support threatened to become a bottleneck to growth.”

1290

“The segment has specific needs that weren’t prioritized, and these priorities at minimum compete with, and sometimes even directly conflict with, the desires of customers in other markets. What is a company to do in this case?”

“Make a total commitment to the niche, and then do your best to meet everyone else’s needs with whatever resources you have left over.”

1300

Adjacent niche…

“The customer problems here were not quite as complex, but the call volumes were in many cases much higher.”

1310

“In the year after Jeff came on board, it went to $ 8 million, then to $ 25 million, then $ 45 million (and an IPO), and then $ 75 million.”

1320

“Pharmaceutical companies were taking up to one year to get their first application filed—not a year to get it approved, a year to get it submitted!”

1325

“It is normally the departmental function who leads (they have the problem), the executive function who prioritizes (the problem is causing enterprise-wide grief), and the technical function that follows (they have to make the new stuff work while still maintaining all the old stuff).”

1340

“There are two keys to this entire sequence. The first is knocking over the head pin, taking the beachhead, crossing the chasm. The size of the first pin is not the issue, but the economic value of the problem it fixes is.”

1345

“It is not about the money you make from the first niche: It is the sum of that money plus the gains from all subsequent niches.”

1350

“If the executive council cannot see the extended market, if they only see the first niche, they won’t fund. Conversely, if you go the other way, and show them only an aggregated mass market, the end result of the market going horizontal and into hypergrowth, they will fund, but then they will fire you as you fail to generate these spectacular numbers quickly.”

3com palm pilot – stand alone platform crosses the Chasm

Others had failed – sharp wizard, Casio boss. Consumer focused firms. Why did PP win? Psion, Poquet – tiny PCs then HP LZ and Apple Newton.

1386

“Success through subtraction is the key lesson here.”

1391

“It’s a huge challenge to manage.”

1401

SmartCards

1417

“And that—achieving density or critical mass—is the key to crossing the adoption chasm with any platform.”

1422

“This ensures high saturation rapidly, thereby justifying the economics of the new infrastructure.”

1427

“Chasm-crossing theory says, “Act locally, then globally.””

1437

Applications vs Platforms

“Applications are what an end user sees. They can readily gauge the benefits of them.”

1443

“To accelerate the adoption of platforms, then, vendors must clothe them in applications clothing.”

“That is, they must tie them directly to an application in order to gain the end-user sponsorship necessary to secure a beachhead.”

1448

“And since real estate people do not talk to newspaper people, and neither of them cares much to talk to lawyers, you cannot develop word-of-mouth support across them. You must pick one, saturate it, and then move on to the next.”

Pivot between archipelago and platform- examples of failure:

Lotus Notes, McIntosh, silicon graphics (Sgi)

1458

“These are the huge wins in high tech. Just understand, they are also the hardest types of technology to get across the chasm.”

1463

“The critical attitude to maintain in all four of these challenges is that chasm-crossing represents a unique time in your enterprise’s history.”

1468

“Between these two stages is a singular moment of transition, the penetration of the mainstream market, an act of burglary, of breaking and entering, that requires special techniques used at no other time in the Technology Adoption Life Cycle.”

Persuasion language – burglary, D-Day, etc.

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Moore’s Crossing the Chasm: Ch 02 “High Tech Marketing Enlightenment”

Pages 33 – 72.  Locations 544 – 1071 in Amazon Kindle.

In Chapter 1 Moore introduced one great topic – his guiding light – his North Star – the Technology Life Cycle Adoption model.  His great bell curve of adoption, with sections denoting the psychographic profiles of each type of buyer, is his prescription for the future of every industrial B2B product.

Best Quote(s)

“…market, which we will define, for the purposes of high tech, as 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.” loc 567

Moore’s definition of a market – tucked away as an aside – is one of the best anywhere.  Across 100s of marketing books there are many definitions, but his is clear and consistent.

“Because controlling expectations is so crucial, the only practical way to do business with visionaries is through a small, top-level direct sales force.” Loc 716

Business books have value when they give clear definitions (like above with markets) and when they are prescriptive about specific situations.  New products need a direct sales force to succeed with the most likely group of buyers – early adopters.

“Visionaries are the ones who give high-tech companies their first big break. It is hard to plan for them in marketing programs, but it is even harder to plan without them.” Loc 725

Moore’s comments here echo the persuasion methods of Carnegie.  Yes, the visionary is a hard person to win over – but woe to the company that decides to avoid visionaries.

“Then we must get very practical about focusing on one application, making sure that it is indeed a compelling one for at least one visionary who is already familiar with us, and then committing to that visionary, in return for his or her support, to removing every obstacle to getting that application adopted.” Loc 772

Focus, focus, focus.  Too many modern products launch as the ‘AllTech’ with many applications and uses.  Find one use with one market and validate that it works.  Moore’s comments on focus and validation sets up Ries’s writing in The Lean Startup.

“If high-tech marketers do not take responsibility for seeing that the whole product solution is being delivered, then they are giving the skeptic an opening to block the sale.” 1003

The D-Day invasion is Moore’s metaphor for successful marketing – here he is building off of Sun Tzu’s more ancient counsel from his chapter on Tactical Dispositions, “13… Making no mistakes is what establishes the certainty of victory, for it means conquering an enemy that is already defeated.”  Don’t let the skeptic block the sale, be prepared.  Moore is helping the reader launch a product that can survive the first three waves of buyer – from the early adopters to the pragmatist, and in so doing, cross the chasm.  In Ries’s Lean Startup, we see how this can be done as effectively and with the lowest amount of risk.

Page by Page, Screen by Screen, Swipe by Swipe

553

“If all goes well, and the product and your company pass through the chasm period intact, then a mainstream market does emerge, made up of the early and the late majority. With them comes the real opportunity for wealth and growth.”

“To reap the rewards of the mainstream market, your marketing strategy must successfully respond to all three of these stages.”

557

First Principles

562

“Marketing: It simply means taking actions to create, grow, maintain, or defend markets.”

567

“market, which we will define, for the purposes of high tech, as 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.”

571

“If two people buy the same product for the same reason but have no way they could reference each other, they are not part of the same market.”

If they can’t talk to each other – or refer to each other in any way – then those two buyers are not in the same market.

589

Early Markets

594

“High-tech marketing, therefore, begins with the techies.”

599

Moore gives us the name of his four archetypes of the ‘Techie’: Gyro Gearloose from Disney,  Archimedes of “Eureka” fame, Doc Brown from Back to the Future, and ‘The Professor’ from Gilligan’s Island.

From a persuasion standpoint – these lists are great because they show us what the other buyers are not.  If this were Carnegie, he would explicitly say something like, “If your buyer is not Gyro Gearloose, then he is not an early adopter!”  Moore is never that explicit – but he gets closer to such prescriptive statements later in the book.

604

“They are the ones who will spend hours trying to get products to work that, in all conscience, never should have been shipped in the first place.”

And most customers do NOT want to do this!  If your marketing plan involves finding all the customers who love doing your work for you – then your marketing plan is insufficient.

622

“In business, technology enthusiasts are the gatekeepers for any new technology.”

Wants:

  • Truth
  • Access to source
  • First

639

“In sum, technology enthusiasts are easy to do business with, provided you (1) have the latest and greatest technology, and (2) don’t need to make much money.”

“want to try it out just to see if it works.”

653

Early Adopters: The Visionaries

Kennedy w Space, Henry Ford, Jobs at Parc, Laube at PWC for Lotus, Solvik at Cisco – web service, Barksdale at Fedex,

672

“Visionaries are not looking for an improvement; they are looking for a fundamental breakthrough.”

676

“a visionary derives value not from a system’s technology itself but from the strategic leap forward it enables.”

681

“They typically have budgets that let them allocate generous amounts toward the implementation of a strategic initiative.”

685

“The “incarnation” of this dream will require the melding of numerous technologies, many of which will be immature or even nonexistent at the beginning of the project.”

2 aspects:

  • 1 Project focused. Forces need to productive.
  • 2 In a hurry.

708

Projects –

such that each phase is,

“• accomplishable by mere mortals working in earth time

• provides the vendor with a marketable product

• provides the customer with a concrete return on investment that can be celebrated as a major step forward.”

As Moore discusses in his later book Zone to Win – much of the way that bigger companies can win in new markets is focusing on their ability to properly do project management.

716

“Because controlling expectations is so crucial, the only practical way to do business with visionaries is through a small, top-level direct sales force.”

725

“Visionaries are the ones who give high-tech companies their first big break. It is hard to plan for them in marketing programs, but it is even harder to plan without them.”

730

The Dynamics of Early Markets

Challenges that are common include:

  • company cannot market

752

  • Sells product too early – vaporware
  • Product never finds a compelling large value proposition

772

“Then we must get very practical about focusing on one application, making sure that it is indeed a compelling one for at least one visionary who is already familiar with us, and then committing to that visionary, in return for his or her support, to removing every obstacle to getting that application adopted.”

776

Mainstream Markets

780

Early Majority

795

Pragmatist CEOs:

“Ray Lane of Oracle (as opposed to Larry Ellison), Craig Barrett of Intel (as opposed to Andy Grove), Lew Platt of Hewlett-Packard (as opposed to Scott McNealy at Sun), and Carol Bartz on Autodesk.”

808

“This focus on standardization is, well, pragmatic, in that it simplifies internal service demands. But the secondary effects of this standardization—increasing sales volumes and lowering the cost of sales—is dramatic.”

817

“When pragmatists buy, they care about the company they are buying from, the quality of the product they are buying, the infrastructure of supporting products and system interfaces, and the reliability of the service they are going to get. In other words, they are planning on living with this decision personally for a long time to come.”

825

There is a Catch 22 for companies that are looking for pragmatist buyers:

  • Won’t buy unless established
  • Can’t get established unless they buy

Tend to be vertical, hard to penetrate. Like to see competition. Keeps costs down. Willing to pay some premium. Cost sensitive.

839

“Market leadership is crucial, therefore, to winning pragmatist customers.”

844

How to market:

  • patient
  • Conversant in their language
  • Industry specific trade shows
  • Journals

848

“You need to have earned a reputation for quality and service. In short, you need to make yourself over into the obvious supplier of choice.”

853

Late Majority: The Conservatives

858

“Conservatives, in essence, are against discontinuous innovations. They believe far more in tradition than in progress.”

871

“I did not buy my first CD until 1998.”

Moore is using Carnegie’s writing style – inserting himself into the vignette.

875

“In general, I hate “being connected,” which I associate with being either interrupted or confused, not being in touch.”

885

2 ways to market:

  • Whole solution
  • Low cost channel

907

The Dynamics of Mainstream Markets

952

Examples of mainstream market failures – Autodesk.

971

“The key lesson is that the longer your product is in the market, the more mature it becomes, and the more important the service element is to the customer.” 971

985

Laggards: The Skeptics

989

“One of the favorite arguments of skeptics is that the billions of dollars invested in office automation have not improved the productivity of the office place one iota. Actually, some fairly good data exist to support this notion.”

1003

“If high-tech marketers do not take responsibility for seeing that the whole product solution is being delivered, then they are giving the skeptic an opening to block the sale.”

“What skeptics are struggling to point out is that new systems, for the most part, don’t deliver on the promises that were made at the time of their purchase.”

1012

“Steamrolling over the skeptics, in other words, may be a great sales tactic, but it is a poor marketing one.”

1017

Back to the Chasm

Psychographics show the development of each position as we work our way left to right across the bell curve.

1034

“As we move from segment to segment in the technology adoption life cycle, we may have any number of references built up, but they may not be of the right sort.”

1039

Ways that visionaries alienate pragmatists:

  • don’t respect their experience
  • More tech interest than the rest of the industry
  • Existing product infrastructure expectations – how much of the whole product is there?
  • Overall disruptiveness

1071

“The high-tech vendor wants—indeed, needs—the pragmatist to buy now, and the pragmatist needs—or at least wants—to wait.” 1071

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Moore’s Crossing the Chasm: Ch 01 “High-Tech Marketing Illusion”

Chasm 01: High-Tech Marketing Illusion – 293 – 543

Chapter Style

Moore makes his points about marketing technology product over hundreds of pages organized across just 8 chapters.  The chapters are long.

Writing Style

Carnegie’s points were simple, but made with repetitive poetic effectGoldratt uses fiction and applies the same toolset countless times to demonstrate the effectiveness of his creation – the theory of constraints.  Moore’s chapter structure and writing style are very different.  Moore has a clear, new concept to show the world – the technology adoption life cycle.  This model is the most important part of the first chapter.  He walks the reader through it in detail, using logic and examples to show how it predicts the fate of new product introductions.

Moore combines the life cycle model (his own invention), with the whole product concept (introduced in Chapter 2, but a focus of Chapter __, and which he credits to others), and then uses Sun Tzu’s prescriptive style to describe how this battle must be fought, and how it fits into a broader war.  The prescriptive urgency and focus of Sun Tzu serves as Moore’s template.

Best Quote(s)

 “… the High-Tech Marketing Model. That model says that the way to develop a high-tech market is to work the curve left to right, focusing first on the innovators, growing that market, then moving on to the early adopters, growing that market, and so on, to the early majority, late majority, and even to the laggards.”

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Page by Page, Screen by Screen, Swipe by Swipe

293/3327

“As the revised edition of this book is being written, it is 1998, and for this time we have seen a commercial release of the electric car. General Motors makes one, and Ford and Chrysler are sure to follow.”

“Now the question is: When are you going to buy one?”

296

The Technology Adoption Life Cycle

“Your answer to the preceding question will tell a lot about how you relate to the Technology Adoption Life Cycle, a model for understanding the acceptance of new products.”

Moore isn’t talking about revenge or tech – he’s talking about individual consumer behavior. It is aggregation of that behavior that creates markets.

301

“It turns out our attitude toward technology adoption becomes significant—at least in a marketing sense—any time we are introduced to products that require us to change our current mode of behavior or to modify other products and services we rely on. In academic terms, such change-sensitive products are called discontinuous innovations. The contrasting term, continuous innovations, refers to the normal upgrading of products that does not require us to change behavior.”

Continuous vs discontinuous innovation

315

“Between continuous and discontinuous lies a spectrum of demands for change.”

324

“Whereas other industries introduce discontinuous innovations only occasionally and with much trepidation, high-tech enterprises do so routinely and as confidently as a born-again Christian holding four aces. From their inception, therefore, high-tech industries needed a marketing model that coped effectively with this type of product introduction. Thus the Technology Adoption Life Cycle became central to the entire sector’s approach to marketing.”

328

“The model describes the market penetration of any new technology product in terms of a progression in the types of consumers it attracts throughout its useful life:”

333

Bell curve of adoption.

344

“They know that many of these newfangled inventions end up as passing fads, so they are content to wait and see how other people are making out before they buy in themselves.”

349

“Whereas people in the early majority are comfortable with their ability to handle a technology product, should they finally decide to purchase it, members of the late majority are not.”

358

“To recap the logic of the Technology Adoption Life Cycle, its underlying thesis is that technology is absorbed into any given community in stages corresponding to the psychological and social profiles of various segments within that community. This process can be thought of as a continuum with definable stages, each associated with a definable group, and each group making up a predictable portion of the whole.”

362

“…very foundation of the High-Tech Marketing Model. That model says that the way to develop a high-tech market is to work the curve left to right, focusing first on the innovators, growing that market, then moving on to the early adopters, growing that market, and so on, to the early majority, late majority, and even to the laggards.”

367

“It is important to maintain momentum in order to create a bandwagon effect that makes it natural for the next group to want to buy in.”

371

“If momentum is lost, then we can be overtaken by a competitor, thereby losing the advantages exclusive to a technology leadership position—specifically, the profit-margin advantage during the middle to late stages, which is the primary source from which high-tech fortunes are made.”

376

“This, in essence, is the High-Tech Marketing Model—a vision of a smooth unfolding through all the stages of the Technology Adoption Life Cycle.”

380

Testimonials – 380

Lotus 1-2-3

389

Oracle, Microsoft

398

“It should come as no surprise that the history of these flagship products conforms to the High-Tech Marketing Model.”

402

Illusion and Disillusion: Cracks in the Bell Curve

407

“Each of these gaps represents an opportunity for marketing to lose momentum, to miss the transition to the next segment, thereby never to gain the promised land of profit-margin leadership in the middle of the bell curve.”

416

“At present, neural networking software falls into this category.”

425

“As we shall see in the next chapter, the key to winning over this segment is to show that the new technology enables some strategic leap forward, something never before possible, which has an intrinsic value and appeal to the nontechnologist.”

434

“Simply put, the early majority is willing and able to become technologically competent, where necessary; the late majority, much less so.”

452

“What the early adopter is buying, as we shall see in greater detail in Chapter 2, is some kind of change agent. By being the first to implement this change in their industry, the early adopters expect to get a jump on the competition, whether from lower product costs, faster time to market, more complete customer service, or some other comparable business advantage.”

457

“By contrast, the early majority want to buy a productivity improvement for existing operations. They are looking to minimize the discontinuity with the old ways. They want evolution, not revolution. They want technology to enhance, not overthrow, the established ways of doing business. And above all, they do not want to debug somebody else’s product. By the time they adopt it, they want it to work properly and to integrate appropriately with their existing technology base.”

461

“Because of these incompatibilities, early adopters do not make good references for the early majority.”

465

“So what we have here is a catch-22. The only suitable reference for an early majority customer, it turns out, is another member of the early majority, but no upstanding member of the early majority will buy without first having consulted with several suitable references.”

501

“In sum, when promoters of high-tech products try to make the transition from a market base made up of visionary early adopters to penetrate the next adoption segment, the pragmatist early majority, they are effectively operating without a reference base and without a support base within a market that is highly reference oriented and highly support oriented.”

506

A High-Tech Parable

524

“….It’s time to bring in “real management.””

529

“Real management doesn’t do any better.”

This parable is a highlight of the book for anyone who has worked in tech.

538

“Thus, at a time of greatest peril, when the company was just entering the chasm, its leaders held high expectations rather than modest ones, and spent heavily in expansion projects rather than husbanding resources.”

henrik-berglund-crossing-the-chasm-12-638

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Sun Tzu: Enumeration and Concepts

Enumeration improves decision making.  It provides a menu of activities that can occur.  We learn from how the options are framed.  In listing a finite set of options, other ideas are often uncovered.  Anytime an author or thought leader enumerates the options in a scenario it leads to better thinking and better outcomes.

“How do we fix this?” If you’ve got a smart group of people around the table it can be easy to run to problem solving.  It’s a trap!  Instead get every possible idea down in writing somewhere.  Then talk about those options.  Before deciding on how to fix a problem, develop a set of options before anyone gets too focused on a single approach.

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Sun Tzu 01: Laying of Plans

077

“10. These five heads should be familiar to every general: he who knows them will be victorious; he who knows them not will fail.”

  • Which leader has the moral advantage?
  • Which general has the most ability?
  • Who has the advantages of Heaven and Earth?  (Tactical ground?)
  • Which side has the most discipline?
  • Which side has the most trained men and officers?
  • Which army is most consistent in punishment and reward?

084

“13. By means of these seven considerations I can forecast victory or defeat.”

Sun Tzu 02: Waging War

 “6. There is no instance of a country having benefited from prolonged warfare.” Loc 122

Even if we conclude there are no options – zero is a number and we have enumeration.

Chapter 4: Tactical Dispositions

217

“17. In respect of military method, we have, firstly, Measurement; secondly, Estimation of quantity; thirdly, Calculation; fourthly, Balancing of chances; fifthly, Victory.”

  • Measurement
  • Estimation of quantity
  • Calculation
  • Balancing of chances (Probability?)
  • Victory

Chapter 8: Variation in Tactics

28

“12 There are five dangerous faults which may affect a general:
(1) Recklessness, which leads to destruction;
(2) cowardice, which leads to capture;
(3) a hasty temper, which can be provoked by insults;
(4) a delicacy of honour which is sensitive to shame;
(5) over-solicitude for his men, which exposes him to worry and trouble.”

Sun Tzu 10: Terrain

Types of Ground

“1 Sun Tzu said: We may distinguish six kinds of terrain, to wit:

(1) Accessible ground;

(2) entangling ground;

(3) temporising ground;

(4) narrow passes;

(5) precipitous heights;

(6) positions at a great distance from the enemy.”

Sun Tzu 11: The 9 Situations

“The art of war recognises nine varieties of ground:

(1) Dispersive ground;
(2) facile ground;
(3) contentious ground;
(4) open ground;
(5) ground of intersecting highways;
(6) serious ground;
(7) difficult ground;
(8) hemmed-in ground;
(9) desperate ground.”

Sun Tzu 13: Types of Spies

“7 Hence the use of spies, of whom there are five classes:

(1) Local spies;
(2) inward spies;
(3) converted spies;
(4) doomed spies;
(5) surviving spies.”

Chapters 3, 5, 6, 7, 9, 12

All have no enumeration.

Concepts

Entangling Ground: “4 Ground which can be abandoned but is hard to re-occupy is called entangling.”

Temporising Ground: “6 When the position is such that neither side will gain by making the first move, it is called temporising ground.”

 

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