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TMCVocabulary

TMC Vocabulary

pg.7

Compiled by Chris Halliwell, TMC Director

Market Segmentation

Market Segmentation promotes a more profitable position in the market by using the principle of divide-and-conquer. Technology 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, and promotional efforts can then be tailored to target segments and support higher prices.

Offensive Strategy

Offensive Strategy is available to market players holding second or third market share position, but should only be implemented if the supplier is strong enough to sustain an attack against the Market Leader. Offensive Strategy requires good, unbiased information about the Leader's strengths and weaknesses so that the weakness inherent in the strength may be identified and exploited. Another key tactic of Offensive Strategy is to provoke the Leader into public acknowledgement and direct comparison: the leader's public acknowledgement provides crucial credibility to the offensive competitor.

Opinion Leaders

An Opinion Leader is an individual or organization in a Community that is able to influence the attitudes and behaviors of others. Opinion leadership is based on technical competence, social accessibility and conformity to Community norms. An Opinion Leader is "just like me only better." In technology business terms, "better" almost always refers to majority market share, or fastest growing market share, in the segment of influence. Opinion Leaders may, as in early adopting segments, or may not be Early Adopters