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Chasm Marketing1 30 30

Chasm Marketing1 30 30



CHASM MARKETING

What is CHASM?
TECHNOLOGY ADOPTION LIFECYCLE

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Chasm & High-tech product

Continuous Innovation

Discontinuous Innovation
- Most high-tech products

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What is Chasm marketing?
A marketing strategy that is devised as a solution of getting out of the quagmire which is named CHASM
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Example Selection : Why?
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Example Selection : Why?
Similarity of reasons
why they experienced ‘Chasm’

Analyzing both cases comes up to overcoming strategies

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RFID Suffered from Chasm


Radio Frequency Identification (“Chips, Tags”)


Advanced AIDC(Automatic Identification and Data Capture) Technology compared to Barcode





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Bar-code
RFID
Type
Non-contact style

Recognition Range
Up to 50 cm
Up to 3m
Data storage
Up to 100 byte
Up to 512 kb
Data Write
Impossible
Possible
Durability
Frequency
Almost nothing
Short comparison with Current Bar-code system

Then, why is it stuck to chasm?
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RFID Suffered from Chasm
① Costs

- High installation costs for infrastructure
(computer systems, databases, readers, etc.)

- Tag cost is relatively expensive(up to $10)



② Utility

- Technical problem

- No united global standard

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Problem-solving Strategy
Target the Point of Attack
-
Define the competitors
- market alternative : current bar code market
- product alternative
Positioning
- differentiated product (function)
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Successful Case: WIRELESS INTERNET
In the early 2000s, wireless internet has been introduced to the market with the new slogan.



“Enjoying internet service anytime anywhere”

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WIRELESS INTERNET



The annual growth rate of 1.83% in sales from 2003 to 2005.

But, the statistics shows a sudden low growth sales rate(0.3% annually) from 2005 to 2007.

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WIRELESS INTERNET



The usage of wireless internet was also limited to certain functions.

Downloading dial sound(64.8%)
Game/Movie/Music(8.0%)
E-mail(7.8%)
News(6.8%)

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Wireless Internet
① Insufficient Infrastructure

highly relying on other instruments such as
laptop and PDA, which did not form a complete
infrastructure in the market

Why early majorities didn’t show their interest?


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Wireless Internet
② Impracticality

Most of the services were used at home, and
therefore not much needed outside.

Why early majorities didn’t show their interest?

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③ High Price

Free price programs in the wired internet needed to
be highly paid in wireless internet

Why early majorities didn’t show their interest?

Wireless Internet
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Wireless Internet


How they overcame chasm?

① Overcoming High Price

Off


자료출처 : http://www.ALLReport.co.kr/search/detail.asp?pk=11058945&sid=ddangkung&key=