High Tech Marketing Prof. Mitchell Tseng IELM538.

High Tech MarketingHigh Tech Marketing

Prof. Mitchell TsengProf. Mitchell Tseng

IELM538IELM538

The "lens" model, showing attributes relevant to designing products for customers. (Image by Prof. John Hauser.)

Technology Adoption Life CycleTechnology Adoption Life Cycle

Innovator

s`

Early

Adopters

Early

Majority

Late

Majority

Laggard

s

Geoffrey A Moore. Crossing the Chasm.

Technology Adoption Life CycleTechnology Adoption Life Cycle

Innovator

s`

Laggard

s

Early

Adopters

Early

Majority

Late

Majority

Geoffrey A Moore. Crossing the Chasm.

Innovator, the technology Innovator, the technology EnthusiastsEnthusiasts

• Appreciate technology for its own sake• They want the latest and greatest technology• Willing to tolerate the inconvenience of

inadequate infrastructures• Willing to contribute extra efforts and

resources to make the new systems work • “pushing the edge of the envelope”• Have the interest to learn about the technical

details• Industry colleagues look up to their

assessment

Where to find innovatorsWhere to find innovators• Often sit in the advanced technology de

partment• They spend time in bulletin board• Organize/Attend user meetings• No need for packaging, fancy advertizin

g• They ask for free demo/ tryout copies, re

ad brochures

Dealing with InnovatorDealing with Innovator• Proud to be the show case• They want the truths without any tricks• They want to get access to the most

knowledgeable technical persons (problems??) • They are willing to sign non disclosure

agreement and give feedbacks early in the product life cycle.

• Let them know that you implement the (appropriate) improvements

• Their budget is often limited, they want it cheap

But, the innovatorsBut, the innovators• Don’t buy a lot• Not powerful enough to dictate the

buying decision• They debug • They open doors to the big boss

Technology Adoption Life CycleTechnology Adoption Life Cycle

Innovator

s`

Laggard

s

Early

Adopters

Early

Majority

Late

Majority

Geoffrey A Moore. Crossing the Chasm.

Early adaptersEarly adapters• They are the visionaries• They match the new technology to a strategic

opportunity• They have the temperment to translate that in

sight into a high visibility, high risk project• They have the charisma to move the rest of or

ganization to buy in• They can the multi million dollar budget appro

val

Where to find early adaptersWhere to find early adapters• Recent entrants to the executive ranks,

highly motivated and driven by a “dream”

• A business goal not technical goal• Taking a quantum leap forward in how

business is conducted• High degree of personal recognition and

reward• You don’t find them, they will find you

(though technology enthusiastic).

Dealing with Early AdaptersDealing with Early Adapters• They see the potential for an “order of

magnitude” return on investment• They typically have budget to fund up

front money for additional development

• They usually more than willing to serve as highly visible references

• Visionary like project orientation (but vendor needs product orientation)

But, Early AdaptersBut, Early Adapters• Hard to please, getting closure is next to

impossible• Visionary is in a big hurry• Managing expectation

– Each phase is doable– Synchronize with productization plan– Concrete ROI

Overcome the EA Market Overcome the EA Market IssuesIssues

• The company simply has no expertise

• Sell the visionary before it has the product

• Marketing falls prey to the crack between stages

Technology Adoption Life CycleTechnology Adoption Life Cycle

Innovator

s`

Laggard

s

Early

Adopters

Early

Majority

Late

Majority

Geoffrey A Moore. Crossing the Chasm.

Niche focused approachNiche focused approach• Recruit and fulfill partners is a resource

intensive management• Support is very important, it requires the

attention of key people.• Product commitment must be strategic• Leverage over multiple sales

• Sales-driven approach must be avoided

Building up Building up • Establish a strong word of mouth

reputation among buyers.• How to develop them? • Segment, segment, segment• Beyond niche

• Being a professional is doing the things you love to do, on the days you don’t feel like doing them.

– Julius Erving