How To Create A Crush Strategy To Support Different Sizes Of Market | by Amid Sedghi
In the previous two blogs, we discovered the technology adoption lifecycle, the 5 different market segments and the gulf between the first two markets. We then delved into the characteristics of each market group in order to identify their behavior. In this blog, we walk through the third chapter of the book and discover strategies for crossing the chasm.
The greatest danger to a business that Is about to cross the abyss is negative cash flow. In this state, they have already absorbed the early adopters and are preparing to prove to pragmatists that their product is a risk to be taken. At the same time, competition fights back with counterfeit products, while venture capital funding may or may not disappear. Some venture capitalists take advantage of this and discredit the company to lower valuations so that they can buy the rest of the company for much less.
The chasm is, well, in other words, the zooooone daaaanger. The goal is to reach the mainstream market as soon as possible and such an act requires a fair amount of aggression. Well what can we do? The competition is unhappy with our existence and consumers are unsure of how to trust us. The answer is simple. Time and energy must be devoted to a single target, a niche market. Then we work horizontally towards adjacent markets. The most important task is to focus on the targeted niche and realize that it would be much easier to market to a small base than to try to sell to everyone. That way, it’s time to straighten out wrinkles and experiment with marketing methods.
Tech company executives don’t want to limit their product to niches just because they’re sales-driven and not necessarily market-driven. However, before we can start a big fire, we have to have kindling and the niche markets are kindling. These markets should be supplied with the complete product or in other words, everything they need to achieve their goals. Of course, a lot of effort is involved and this type of service cannot be offered to everyone. The point is, commitments need to be made strategically, where we can cross the chasm.
Market-oriented methodologies are the most appropriate. Targeting a niche market provides an environment in which consumers are connected to each other and can talk to each other about the product, increasing the chances of spreading the product through word of mouth. Obviously, this is not as likely to happen in a large market.
With a niche market taken. the adjacent niche markets can be supported and, therefore, cross through the chasm.
Three companies to study that managed to cross the abyss are
- Selling power