Wednesday 15 November 2006

Crossing the Chasm Book Review

Geoffrey Moore’s book Crossing the Chasm is an account of the methodical marketing strategy that he believes is required to transfer a high technology product from conception to the mainstream market. Moore begins by describing the modifications required to the traditional Technology Adoption Life Cycle (TALC) and sets a case for the presence of discontinuity within the life cycle due to the ‘cracks’ and the ‘chasm’. Moore then defines each section of the cycle as comprising of a type of purchaser; distinguishable by their purchasing tendencies and their requirement for a product. This is shown diagrammatically below.

In summary, Moore defines the early market, the early majority, the late majority and the laggards.

The early market consists of the innovators and visionaries. Innovators tend to be interested in technology products because they represent technological advancement and typically, have an insatiable enthusiasm for technology products. They will tolerate errors and require little support but consequently they will not pay highly for technology products. By comparison, the visionaries are interested in new technology because of their potential strategic importance and return on investment.

The early majority are less interested in taking risk and are consequently strongly drawn to the market leader and whole product technologies, expecting that they are supported. This group is loyal once one over and peers regularly refer to one another. They are also reasonably price sensitive paying more for differentiated products.

The late majority or conservatives are often afraid of high technology products and only use them because they are pre-requisite for performing required tasks; they simply have to. They invest when a product is at the end of the life cycle and when prices have been reduced by increased market share.

According to Moore, the laggards believe that the product which is delivered is not the same as that which was expected to be delivered at the time of purchase. They are therefore portrayed in a negative light, interested in blocking future purchases.

However, the main body of text is dedicated to a 4 stage strategy for crossing the chasm, akin to the execution of the D-Day landings.

In Target the Point of Attack, Moore describes the requirement to identify the market for your product and the process required to do so. It is suggested that target customer scenarios are developed, and that the customers compelling reason to buy is assessed by rating factors. Additional guidelines are provided, such as target a segment of similar size to you and do not enter a market in which the forces you expect to work for you are working for someone else.

Assemble the Invasion Force:
This section is driven by the requirement to achieve market leader status in the targeted market/s so that the product/company becomes favourable to the early majority. It identifies the requirement to provide a whole product and that partners and allies may be required to assist in this.

Define the Battle:
Moore suggests that the position of a product within the market determines the early majority’s decision whether to buy it. Moore emphasises the requirement to position a high technology product so that it is easy to buy. He defines this as positioning and describes the procedure as putting the correct perceptions, in the right place with the right people, at the right time for market adoption.

Launch the Invasion:
Moore believes that utilising a distribution channel, from which the early majority will buy, and a pricing procedure, which reflects a market leading product, is essential to the success of crossing the chasm. He states that the price should be comparable to, rather than less than, the competition.

This book is written as though Moore is sharing his experience with a colleague, making it approachable. To its credit, it is littered with examples to assist the readers understanding but which, possibly due to my limited knowledge of the industry, seem unfamiliar and dated. However, the result is to make the reader consider where in the technology adoption life cycle current, high technology products are and what marketing strategies are being used to promote them. This exercise (refer figure as additional blog entry) makes the theories seem equally logical and relevant now.

Similarly, consideration of Moore’s revised Technology Adoption Life Cycle (TALC) Model, forces the reader to consider the type of adopter they are and, as one of the later majority, to consider the feasibility of becoming one of the more appealing characters identified by Moore.














Generally, Moore’s analysis is quite thought prompting. For example, if there is a clear, mutual interest between the innovators and high technology companies, could this model have been used to predict the emergence of Opensource? Could it not be argued that the innovators are the group most likely to exhibit altruistic tendencies?

Additionally, how is Moore’s model for crossing the chasm affected by the law of the diminishing firms? For companies with a small number of employees, it is likely that the product developers (already likened to the innovators) will be more involved in the sales procedure begging the question; will these people be able to relate sufficiently to the early majority?

Finally, there were times when I was felt that more information was required. Specifically, Moore skates over strategic alliances which one might suspect to change a companies marketing strategy significantly. Not only would this change the size of the niche market a company could pursue but could it not also mitigate some of the risk associated with new markets and open avenues into new ones. However, it is understood that where Crossing the Chasm ends, Inside the Tornado begins….

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