New Orders

1. New Orders Customer Adoption a la Moore* Who influences whom? Who references whom? Who buys for what reason? What is the whole product? What is the minimum product? Which partner helps bridge the gap? What is the minimum customer base? What are optimal price points? Moore’s Chasm Skeptics Visionaries Pragmatists Conservatives Time Early Majority Innovators/ Early Adopters Late Majority Laggards * Moore (1991), Crossing the Chasm

2. Network Products in Networked Markets • The last decade has witnessed a shift from a focus on the value created by a single product to an examination of the value created by networks of products (product ecosystems or NETWORKED PRODUCT). • Network products emerge at the intersection of three types of networks: • User network • Complements network • Producer network Key Claims: • Any or all of these networks add value or enhance the attractiveness of the associated focal product. • Consumers allocate resources among competing products based on the perceived value added of any or all of these networks.

3. The Networked Product: • Complements network • Services that permit consumption Focal Product • User network • Other consumers Producer network Other companies producing the same or similar product or service

4. Linux as Networked Product: • Complements network • Application developers • Maintenance and Repair • Service Companies Ex.: Linux Operating System • User network • number of other companies that are using Linux (moderated by size, reputation, industry, etc. of these companies) Producer network Other companies producing the same or similar product or service

5. Remember: • If you are dealing with a focal product that is a networked product • Consumers allocate resources not only based on the objective and perceived quality of the focal product but based on the perceived value added to the focal product by the networks it has. • Marketing of a networked product therefore is no longer limited to developing a marketing mix and a strategic position for the focal product. Rather, marketing needs to support network strength as well.

6. Examples? Focal Product • Complements network • Services that permit consumption • User network • Other consumers Producer network Other companies producing the same or similar product or service Video game market Satellite Radio HDTV Electric Cars?