TMC Vocabulary
Compiled by Chris Halliwell, TMC Director
Late Majority
These are the much more skeptical adopters making up about 30% of the Community. The Late Majority possess scant resources to integrate technology, and do so only when it is more costly and competitively dangerous to ignore innovation that it is to adopt. Late Majority adopters are highly susceptible to peer pressure, particularly from adopters with identical characteristics (like application requirements, cost basis, etc.) Because of this drive to mimic narrowly defined peer groups, the Late Majority market tends to be fragmented.
Market Leader
The Market Leaders articulate vocabulary, vision, and standards of performance among suppliers for a technology category. Market Leaders take responsibility for defining the category and growing the market, to the benefit of all suppliers and related ecosystem partners in the category. Dominant market share is the hallmark of a Market Leader, although not all market share leaders are willing or able to take on the role of Market Leader. Mainstream customers will not adopt new technology until a Market Leader emerges because leadership solidifies the technology roadmap and thereby lowers the risk of both third party participation and customer purchase.
Market Segmentation
Market Segmentation promotes a more profitable position in the market by using the principle of divide-and-conquer. Market strategies based on taking a small percentage of a large market fail because this thinking acts against delivery of unique customer value and creation of effective competitive barriers. Segmentation strategy consists of dividing the market into clusters of customers with similar technical requirements, buying environments and Community relationships. Product, support, pricing, and promotional efforts can then be tailored to target segments. Segment-focused market strategies yield higher profits because segment-specific value drives higher prices and share growth.
