In the book Crossing the Chasm, Geoffrey A. Moore describes a framework to help technology companies who want to move from a niche market and miss a mass-market success.
The article is a summary of Crossing the Chasm, the book that will help you learn the different ways to define your market, what market you should aim for and how to do so. You will gain insights into productive marketing strategies to ensure that you’re reaching potential new customers effectively.
Crossing The Chasm summary
In the book ‘Crossing the Chasm,’ Geoffrey A. Moore describes a framework to help technology companies who want to move from a niche market and miss a mass-market success. This article will help you with effective marketing strategies for your product and find the right target audience so that they can become your new potential customers.
The product life cycle is defined as the four stages of growth that every product goes through during its lifetime: Introduction, Growth, Maturity, and Decline (or Death). The way most technology products behave is similar to the S-curve, which consists of two phases.
In phase one, there is an exponential growth in sales connected to imitation effects; it usually starts slow, but then it rapidly accelerates. But in phase two, the growth rate gradually slows down until it levels off completely.
The problem is that if your product does not cross or jump the chasm, you will remain stuck in a niche market with only a limited number of potential customers. This means that you cannot achieve growth and profits because you can’t reach enough new customers. If this happens, your company is doomed to fail and go bankrupt soon.
To be able to understand your market, you have to split it into two segments, an Early Market and a Mainstream Market. In the beginning, companies tend to focus on what they think is interesting or important, when in fact, it is only appealing to a small group of people in the Early Market and therefore fails to attract customers in the Mainstream Market.
Instead, it would be best to appeal to as many people as possible and then segment them into specialized groups that show the same behavior. This way, you will know who is interested in your product and what your target audience is, which will help you create a better campaign.
A successful marketing strategy means that customers know about your product because they have heard or read about it and now want to try it out for themselves.
Main ideas from the book
I. Product stages of life
a) Introduction
This is the first phase of the product life cycle. There are only a few customers in this stage, and they use your products in small numbers.
b) Growth
In the second phase, there is a rapid growth in sales, and therefore more and more potential customers want to try out your products.
c)Maturity
The growth rate slows down and levels off completely when all potential customers have bought your product.
d)Death or decline
If you do not cross or jump the chasm, you will remain stuck with a niche market that sells very little of your product while being unable to achieve growth. This means that you cannot reach enough new customers, which will lead to the downfall of your company soon.
II. Market segments
a) Early market
The Early Market consists of the first few people who are interested in your product and start buying it, connected to imitation effects.
b) Mainstream market
The Mainstream Market consists of potential customers who want to try out your product for themselves after having heard or read about it.
III. Successful marketing strategies
A successful marketing strategy is when potential customers know about your product because they have heard or read about it and now want to try it out for themselves.
You need to split your market into two segments, the Early Market and the Mainstream Market, so that you know who is interested in your product and what your target audience is. This will enable you to create a better campaign when reaching new potential customers.
IV. Crossing the chasm or jumping the chasm
Selling to early adopters is relatively easy because they are adventurous and are more likely to try something new. However, they are not representative of typical customers in the Mainstream Market, which means jumping or crossing the chasm between both markets is necessary before you can find success.
V. Look at trends
If you focus on what you think is interesting or important, when it is only appealing to a small group of people in the Early Market, you will not make much profit.
Instead, look at trends when deciding what would be an advantage for your product and try to appeal to many customers as possible. This creates a large enough group of potential customers, which will increase your chances of success.
Who should read vs who shouldn’t read this book?
This book is good for people who are not sure how to create the right marketing strategy for their product. It provides them with a clear overview of what should be done to successfully appeal to more people and increase their chance of success.
It’s a good gift for people who are willing to improve their marketing strategy to achieve growth in sales.
Who shouldn’t read this book?
People without any interest in marketing strategies might find it hard to understand at first sight.
Review of the book Crossing the Chasm
What are the positives from Crossing the Chasm?
- This book is written in very easy-to-understand language, without too much jargon.
- The book’s structure makes it easier for people who are not familiar with marketing to put into practice what they have just read.
- It provides you with a list of successful marketing strategies that can be used to achieve growth, and it forces you to look at trends and see what other people in the market are doing.
What are the negatives from the book?
- The way it discusses individual customers might not always apply to your business. The author mainly studies fast-growing businesses and tends to forget small businesses.
In all, it is an interesting read because it provides some great tips on how to market your product correctly. This will significantly increase your chances of marketing your product because it attracts a large group of people.
Should I read the complete Crossing the Chasm?
Yes, this book provides you with some great tips on how to market your product successfully. It not only focuses on the most successful marketing strategies but also explains why they are so effective.
Reading through will help you understand what influences customers in their buying decisions and which strategy you should use to appeal to them the most.
