Crossing the Chasm

This was a book that was difficult to read. However, it’s clearly a classic with valuable lessons, so I’ll jot down a few notes. The book fundamentally emphasizes that markets must be segmented and that different actions are required for each market. Because of this, numerous definitions emerge, and I’ll try to organize the content around each concept. Also, this article looks good. (I should read it thoroughly later.)

Technology Adoption Life Cycle

The book uses Tesla as an example, but nowadays using LLMs like GPT as an example seems more timely.

If you’re enthusiastic enough to sign up for OpenAI’s beta and be among the first to pay, you’re probably an innovator. On the other hand, if you still distrust its utility and are reluctant to use it, you’re likely a laggard.

From innovators to laggards, the technology adoption life cycle follows a normal distribution. The process of a product penetrating and spreading through the market diffuses sequentially according to each persona in the following order. Let’s use the Tesla example. A simple question helps understand each persona.

When will you buy an electric vehicle?

1. Innovators, early adopters: “I want to drive an electric vehicle before others.”
2. Early majority: “I’ll buy one when the performance is proven and there are enough charging stations on the roads.”
3. Late majority: “I’ll buy one when many people switch to electric vehicles and gasoline cars become really inconvenient.”
4. Laggard: “That will never happen.”

Cracks

Unfortunately, each persona is disconnected. The entities that make up the market don’t follow a continuous spectrum. For example:

• Google Glass needs to create a completely seamless experience, but the gap between that capability and willingness to pay is too large. Anyone can expect XR technology to advance, but the timeline to reach critical mass is too far in the future, so virtual reality only offers fantasies to enthusiasts.
• The early majority can acquire technical skills when necessary. The late majority cannot. To bridge the gap between these two groups, products need to be designed for easier consumer adoption.

The Chasm

However, what you should fear most is the ‘chasm’ when transitioning from early adopters to early majority. It’s the most threatening transition in the technology adoption life cycle and often goes unrecognized. The reason is that both groups appear to have similar customer lists and transaction sizes.

Early adopters try to be first in their industry to embrace change, seeking advantages in cost reduction, faster time-to-market, and improved customer service. On the other hand, what the early majority wants is to improve productivity while minimizing changes from existing methods. Therefore, the presence or absence of reluctance toward discontinuity determines the difference between these two groups.

Marketing

This is a word I still find confusing. Why do different people define it so differently? (I miss the rigor of mathematics and engineering.) However, Geoffrey Moore provides a fairly clear answer.

Marketing = Taking actions to create, grow, maintain, and protect a market

The definition of a market is as follows:

• For a given product or service
• Having common needs or desires
• Referencing each other when making purchasing decisions
• A set of actual or potential customers

The thought that occurred to me here is that one person has different selves for different products. Like when you watch a video on YouTube—if it’s really funny, you share it with close friends; if it’s insightful and useful, you share it with colleagues. As Andrew Chen’s The Cold Start Problem emphasizes the importance of defining cohorts, I realized again that a clear definition of the market determines marketing success or failure.

Innovators

Innovators = Tech enthusiasts

The conditions to satisfy them are as follows:

1. They want the truth without any gimmicks.
2. They want to hear explanations from competent experts whenever technical issues arise.
3. They want to be the first to use new products.
4. They want low prices.

To reach them, you need to target one of the channels they frequently use:

• Websites
• E-zines
• Free demos
• Webinars
• Direct email

Early Adopters

Early adopters = Visionaries

Similarly, the conditions to satisfy them are:

1. They like project orientation = Customer management
2. They rush everything = Execution discipline

Therefore, to win them over, the following details exist:

1. Must be able to complete within a set timeframe.
2. Provide a marketable product to the vendor.
3. Provide definite rewards that invested customers can recognize as significant progress.

Positioning

Like marketing, this is a concept I don’t clearly understand. Moore explains it clearly.

1. Positioning is a noun, not a verb = Best understood as attributes associated with a company or product
2. The factor with the greatest influence on purchasing decisions = Acts as a shorthand image
3. Exists in people’s minds, not in our words = Must describe the position in words that would actually exist in other people’s minds
4. People are extremely conservative about dramatic changes in positioning = Generally, the most effective positioning strategy minimizes the demand for change

If positioning isn’t done well, the following problems can occur:

1. It won’t spread by word of mouth.
2. Marketing communications lack consistency. => Products with uncertain positioning are very difficult to purchase.
3. R&D lacks consistency.
4. Unable to recruit affiliates and partners.
5. Difficult to receive investment from experienced people.

Template

• Who is it for (target customers - limited to the beachhead market segment)?
• Who is dissatisfied with (existing market alternatives)?
• Our product is a (product category).
• Our product provides (compelling reason to buy).
• Our product is different from (product alternatives).
• We have integrated (key whole product features suitable for your use).