Must-Read Book: Crossing the Chasm

Inspira Strategies
Aug 31, 2018 · 3 min read

Marketing and Selling Disruptive Products to Mainstream Customers

In this book, you learn

  • How marketing high-technology products differ from other types of marketing.
  • How high-tech companies can cross the “chasm” from early markets to mainstream markets.

Disruptive Innovations

Disruptive products require us to change our behavior. Whereas non-tech industries introduce disruptive products only occasionally, high-tech companies do so routinely. To help with their product introduction, high-tech companies use a model that describes the market penetration of any new technology.

“The chasm model represents a pattern in market development based on the tendency of pragmatic people to adopt new technology when they see other people like them doing the same.”

The Technology Adoption Life Cycle is a sociological model that describes the adoption of a new product, according to the demographic and psychological characteristics of defined adopter groups.

  • Innovators or technology “enthusiasts” are the gatekeepers for any new technology. These “techies” will do the early evaluation of new products.
  • Early adopters play a similar role, but they are not very familiar with technology. These “visionaries” are attracted by the benefits offered by new technologies.
  • Early-majority buyers wait before buying the new product. These “pragmatists” want to see well-established references before investing their money.
  • Late-majority buyers want to see that the technology is accepted and all the bugs have been corrected. These “conservatives” invest only at the end of the cycle.
  • Laggards or “skeptics” do not consider technology worth addressing.

Chasm and Catch-22

Many high-tech products fail to make the transition from early adopters to the early majority. Marketers may assume this transition will be seamless, but there is a huge “chasm” and crossing it can be hazardous. The reason: early adopters do not make good reference for the early majority. Since references are very important to them, we are in a catch-22 situation: “Pragmatists won’t buy from you until you are established, yet you won’t get established until they buy from you.”

“The challenge for innovators and marketers is to narrow this chasm and ultimately accelerate adoption across every segment.”

Beware the Chasm

When you are poised between market segments, focus on marketing strategies, not just sales. To cross the chasm, you need to target a very specific niche market where you can dominate your competitors. This way, you can efficiently develop a solid base of satisfied customers who can reference your product and influence other potential buyers.

When customers share their mutual positive experiences, there is a chain-reaction effect — an enthusiastic word-of-mouth about your product — which provides the credibility you need to cross the chasm.

Take-Aways

  • Five market segments buy high-tech products: Innovators, early adopters, early and late majority, and laggards. Each segment is very different.
  • Early majority buyers are difficult to win over, but they are loyal once they have chosen you.
  • One key to crossing the chasm: Concentrate a superior marketing force on a highly focused market.
  • Another key in breaking into a new market: Establish a strong word-of-mouth reputation among buyers.

About the Author

Geoffrey A. Moore is an American author, speaker, and advisor who splits his consulting time between start-up companies and established high-tech enterprises.

Inspira Strategies

Product launches and strategic insights designed for tech founders, CEOs, and product managers

Inspira Strategies

Written by

Product launches and strategic insights designed for tech founders, CEOs, and product managers

Inspira Strategies

Product launches and strategic insights designed for tech founders, CEOs, and product managers

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