Bitm 15-17 - b2b - 13 Talc (Students' Copy)

8/16/2019 Bitm 15-17 - b2b - 13 Talc (Students' Copy)

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Girish Ketkar Topic 13B2B Marketing @ BITM 2015-17 Semester II

Technology Adoption Life Cycle (TALC)

Topic 13


Agenda

TALC concept

Strategy guidelines over TALC


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Reading (Textbook; Reference Books)

B2B Marketing: A South-Asian Perspective (11e)

(Hutt, Sharma, Speh)

– Chapter 7: Managing Products for Business Markets

Business Marketing: Text and Cases (4e)

(Havaldar)

– Chapter 8: New Product Development and Marketing of

Business Services


Background


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Background

1957

– George M. Beal and Joe M. Bohlen

• Introduced the concept of “Diffusion Process”

1962

– Everett M. Rogers

• Broadened the scope of the process

• Introduced the concept of “Diffusion of Innovation”

1991

– Geoffrey Moore• Proposed a variation for discontinuous or disruptive innovations

• Introduced the concept of “The Chasm”


Discontinuous Innovation

“New products or services that require the end-user and the

marketplace to dramatically change their past behavior, with

the promise of gaining equally dramatic new benefits”

(Geoffrey Moore)


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Technology Adoption Life Cycle (TALC)

TALC describes the process of diffusion of discontinuous

innovations in marketplace.


TALC Categories


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TALC Categories

Technology enthusiasts (Innovators)

– Interested in technology for the sake of technology

– Very little propensity to buy

– Keen on trying out the technology

– May help in improving your product by pointing out errors and

lacunae

– Act as gatekeeper for rest of the TALC


TALC Categories

Visionaries (Early adopters)

– Keen on “strategic leap forward”

• How can technology help in creating or benefiting from strategic

opportunities?

• How can technology help in achieving business goals?

• How can technology help in staying way ahead of competition?

– Tolerant of putting together pieces of solution

– Willing to take risks

– Have money (and willingness) to spend

– May be willing for joint development to address specific

business goals


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TALC Categories

Pragmatists (Early majority)

– Interested in “whole product”

– Look for incremental improvement

– Believe in technology evolution, not revolution

– Make bulk of technology purchases in organizations

– Decide after going through an evaluation process

– Give importance to firm’s reputation, track record

– Unwilling to be “guinea pig”

– Need references (proof of benefits) from other pragmatists

• Catch 22 situation!!


TALC Categories

Conservatives (Late majority)

– May “fear” technology

– Reluctantly purchase “hi-tech” products to avoid being left

behind

– Prefer simplified products

– Against discontinuous innovation

– Believe in tradition (as established by Pragmatists)

–Highly price sensitive


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TALC Categories

Skeptics (Laggards)

– Eager to point out problems rather than benefits

– Prevent others from purchasing/using the product

– Naysayers!


The Chasm


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The Chasm

InnovatorsEarly

Adopters

Early

Majority

Late

MajorityLaggards


Bowling Alley, Tornado, Main Street


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Bowling Alley, Tornado, Main Street


Strategy Guidelines


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Strategy Guidelines: Visionaries

Element Strategy

Target “Visionary” line-of-business heads or functional heads

Compelling reason

to buyDramatic competitive advantage

Selling approach Direct

Pricing Value-based; Gain-motivated

Your firm’s

positioningTechnology leadership

Next target Another visionary in a different industry


Strategy Guidelines: Crossing the Chasm

Build a “100% solution” to pragmatists’ problems

– Define and build “whole product” properties

Identify a niche market

Identify a “beachhead”

Gain niche foothold in mainstream market as quickly as

possible


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Strategy Guidelines: Pragmatists (Bowling Alley)

Element Strategy

Target “Pragmatist” departmental manager

Compelling reason

to buyFix a broken business process

Selling approach Direct; Transition gradually to VARs

Pricing Value-based; Pain-motivated

Your firm’s

positioningNiche market leadership

Next target Adjacent niche market


Strategy Guidelines: Pragmatists (Tornado)

Element Strategy

Target “Pragmatist” technical buyer

Compelling reason

to buyAdopt new infrastructure

Selling approach VARs; Drive for volume

Pricing Competition-based; Pain-motivated

Your firm’s

positioningMarket share based leadership

Next target New platforms, channels, geographies


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Strategy Guidelines: Conservatives (Main Street)

Element Strategy

Target End-users

Compelling reason

to buyBetter values with no risk

Selling approach VARs; Distributors

Pricing Competition-based; Gain-motivated

Your firm’s

positioningBetter experience for end-users

Next target Next micro-niche


Strategy Guidelines

Visit

– Chasm Institute

• http://www.chasminstitute.com/

• http://www.chasminstitute.com.dnnmax.com/Resources/Frame

works/tabid/309/Default.aspx

http://www.chasminstitute.com/http://www.chasminstitute.com.dnnmax.com/Resources/Frameworks/tabid/309/Default.aspxhttp://www.chasminstitute.com.dnnmax.com/Resources/Frameworks/tabid/309/Default.aspxhttp://www.chasminstitute.com.dnnmax.com/Resources/Frameworks/tabid/309/Default.aspxhttp://www.chasminstitute.com.dnnmax.com/Resources/Frameworks/tabid/309/Default.aspxhttp://www.chasminstitute.com/


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What We Covered in this Topic


What We Covered in this Topic

Background

– Diffusion process

– Diffusion of innovations

– Discontinuous innovation

– Technology adoption life cycle (TALC)


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Documents

Bitm 15-17 - b2b - 13 Talc (Students' Copy)