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Modes of Growth. . . . . . ProductDevelopment. Diversification. MarketPenetration. MarketDevelopment. . . . Acquisitions. StrategicAlliances. Internal Development. Internal Growth Options. . . . Products. New. Existing. Markets. Existing. New. ProductDevelopment. . MarketPenetration. Diversif
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1. Growth Strategies Meeting 9
2. Modes of Growth
3. Internal Growth Options
4. Market Penetration Process
8. Market Development Strategy
9. Product Development Strategy
10. Diversification
16. Risks Associated With Delays In Market With
20% Growth Rate
12% Price Erosion
5 Year Product Life
A 6-month delay in product introduction can result in company income loss of 33%
If development costs are 50% over budget but product is on time, loss is 3.5%
17. Technology Adoption Life Cycle
18. Lifecycle Defined By Buyers . . . Innovators = Technology enthusiasts
Early Adopters = Visionaries
Early Majority = Pragmatists
Late Majority = Conservatives
Laggards = Skeptics
19. Early Market Customers Techies
Want the truth
Access to your techies
First to get new stuff
Want everything cheapfree technology
The Beachheads
Early references
Debugging test-bed Visionaries
they match emerging technology to strategic opportunities
can translate technology to highly visible project
charisma to sell into org.
driven by business dream, not technological dream
20. Early Market Problems Company has no experience in bringing products to market creating problems
Not enough $, wrong people, etc. = foul ups
Company sells visionary before it has product
Vaporware = failed company (must totally regroup)
Visionaries pull back support & $
Marketing fails to identify the compelling application that provides order-of-magnitude leap in benefits
21. The Chasm Visionaries
Intuitive
Support Revolution
Contrarian
Take Risks
Motivated by Opportunities
Seek The Possible
Pragmatists
Analytic
Support Evolution
Conformist
Manage Risks
Motivated by Problems
Pursue The Probable
22. How To Cross The Chasm Targeting The Point Of Attack
23. Target Customer Characterization(An Alternative Form Of Scenarios) Focus on Customer - NOT on Market
Make up potential customers
Users / Technical Buyers / Economic Buyers
Develop a library of 20-30 alternative customer profiles to be reduced to 8-10 distinct alternatives
Develop the date to support prioritizing market segment opportunities
24. Sample Customer Scenario Buyer ID
User:
Technical Buyer
Economic Buyer
Day In the Life Before
Scene / Situation
Desired Outcome
Attempted Approach
Interfering Factors
Economic Consequences
25. Sample Customer Scenario (cont.) Day In The Life After
New Approach
Enabling Factors
Economic Rewards
26. Process (Score) The Scenarios Target Customer - an identifiable economic buyer willing to pay?
Compelling Reason To Buy- problem important for economic buyer to fix
Whole Product- can we(& partners) solve whole problem now (time issue)
Competition - has problem been addressed already by a competitor
Partners and Allies - do you have allies already lined up?
Distribution - is there a sales channel in place, can we talk the language?
Pricing - is target price consistent with budget, value of problem fixed?
Positioning - is our company a credible provider?
Next Target Customer - is this a good bowling pin niche to start with?
27. Selecting Application Niches . . . Is target customer well funded & accessible?
Do they have compelling reason to buy?
Can we today, with help of partners, deliver whole product?
Is there entrenched competition? Want to have competitive avoidance!
If we do win niche - is it leverageable to other market segments?
28. Segment Validity Measurable?
Size, Growth, Market Potential?
Profitable?
Accessible?
Identify and Reach
Actionable?
Segment Specific Marketing & Sales