{"id":1336,"date":"2006-02-20T13:51:03","date_gmt":"2006-02-20T11:51:03","guid":{"rendered":"http:\/\/vizZzion.org\/blog\/2006\/02\/marketing-broad-vs-niche\/"},"modified":"2006-02-20T13:51:03","modified_gmt":"2006-02-20T11:51:03","slug":"marketing-broad-vs-niche","status":"publish","type":"post","link":"https:\/\/vizZzion.org\/blog\/2006\/02\/marketing-broad-vs-niche\/","title":{"rendered":"marketing: broad vs. niche"},"content":{"rendered":"<p><img decoding=\"async\" src=\"http:\/\/vizzzion.org\/images\/blog\/pie.jpg\" alt=\"market segmentation - defining the piece of the pie\" title=\"market segmentation - defining the piece of the pie\" align=\"right\" class=\"showonplanet\" \/><\/p>\n<p><strong>Should KDE target a broad or a niche market?<\/strong><br \/>That question has been<br \/>\nraised on the kde-promo list recently, and people are arguing away. The question itself is rather<br \/>\nvalid, of course, but &#8212; and here comes the surprise &#8212; the right way to answer it is not discussing<br \/>\nto reach consensus. The right way is doing research.<\/p>\n<p>    From a scientific point of view (yeah, marketing is also a science), there&#8217;s a couple of things<br \/>\nthat can help with answering the &#8216;broad vs. niche&#8217; question. First, the strategic situation has to<br \/>\nbe taken into account. <a href=\"http:\/\/en.wikipedia.org\/wiki\/Crossing_the_Chasm\" title=\"Crossing the\nChasm, a book by Geoffrey A. Moore dealing with strategic implications of marketing high tech\nproducts\">Crossing the Chasm<\/a> offers quite some insight on that topic. I&#8217;ll not go into too much<br \/>\ndetail here, but consider two scenarios. <\/p>\n<p>Imagine you want to introduce your product into a mainstream market (&#8216;crossing the chasm&#8217;<br \/>\nbetween early and mainstream market), choosing for a broad approach is generally considered the<br \/>\nwrong thing to do. The right thing in this situation is concentrating on a market segment (niche)<br \/>\nand try to become market leader there. Rationale: Being a market leader in one market will gain you<br \/>\nmuch more than being second in several markets. Supporting technologies are developed for the<br \/>\nleading product, not for the second. Mouth-to-mouth advertising does not promote the &#8216;second best&#8217;<br \/>\nimplementation, and there are many more situations where the 2nd winner is the first loser.<br \/>\n    <br \/>    So you&#8217;ve entered the mainstream market, you have a market segment where you are the<br \/>\nfirst choice. Consider that the king-pin that initiates a chain reaction. Now you can concentrate on<br \/>\nthe second wave of market segments to take over. Look at your strenghts, the needs of possible<br \/>\ntarget markets and use mouth-to-mouth advertising. But why not keep concentrating on one market?<br \/>\nHere&#8217;s why: The added support of the first market segment you took over gains you additional<br \/>\nresources, makes you stronger, and offers a basis to work off. Now you actually have the resources<br \/>\nto broaden your strategic approach.\n    <\/p>\n<p>\n    Second, what is your product. Some product have been designed for niche markets. (To be clear,<br \/>\nKDE as a &#8216;general purpose Desktop&#8217; is not one of those.) KDE is a platform, rather than a product.<br \/>\nThis has certain implications on a decision for or against a niche-strategy, as I stated above. In<br \/>\nfact, a general purpose &#8216;platform&#8217; such as KDE can be used in many niche segments. So what do we<br \/>\nhave? A product that can easily be changed to serve as a good solution in a niche, and a product<br \/>\nthat can easily be changed to accomplish a task in another niche. Voila, low switching costs when it<br \/>\ncomes to &#8216;marketing mandates product development strategies&#8217;. In fact, consider a <a\nhref=\"http:\/\/en.wikipedia.org\/wiki\/Whole_product\" title=\"Whole Product - documenting what a\n'sellable' thing is\">whole product<\/a> based on KDE. Now try to work out what has to be changed to<br \/>\ntarget one market, or the other. You&#8217;ll probably come to the conclusion that those changes have to<br \/>\nbe made in the <a href=\"http:\/\/upload.wikimedia.org\/wikipedia\/en\/9\/9d\/Marketing-whole-product.png\"\ntitle=\"the whole product chart\">outer ring<\/a>. That&#8217;s why KDE can easily be marketed into different<br \/>\nmarkets. But there&#8217;s also a threat buried in this conclusion: The fact that we can does not mean we<br \/>\n<em>should<\/em> target broadly. It merely means that we <em>could<\/em>.\n    <\/p>\n<p>So the actual strategic position is one consideration for the choice &#8220;broad vs. niche&#8221;. I do<br \/>\nnot want to advocate one or the other right now, but show that we should not ask each other the<br \/>\n&#8216;broad vs. niche&#8217; question, but we should try to answer the question <strong>&#8220;Where are we<br \/>\nnow?&#8221;<\/strong>. The answer to that question mandates one or the other approach.\n    <\/p>\n<p>Yeah, mandates. Marketing is &#8211; <em>sadly<\/em> &#8211; no rocket-science. Uuuhm, sadly? &#8211; Exactly.<br \/>\nHere&#8217;s where the infamous <a href=\"http:\/\/www.bikeshed.org\">bikeshedding<\/a> comes into the picture.<br \/>\nWe should be aware that one possible approach to those strategic issues is discussing it and trying<br \/>\nto reach consensus. It&#8217;s rather easy to have a personal opinion on the &#8216;broad vs. niche&#8217; issue. But<br \/>\nfrankly, this is <strong>wrong<\/strong> as an approach to get real results. Marketing has been<br \/>\nresearched for quite some time, and trying to solve the problem by discussion does throw away all<br \/>\nthat previous work we have available. But <em>luckily<\/em>, marketing KDE is no rocket-science. It<br \/>\ncertainly makes sense to lay the marketing and strategic groundwork in a structured and validable<br \/>\nfashion &#8211; it even isn&#8217;t all that hard to do. <em>Structured<\/em> means scientific here, it means<br \/>\napplying professional methods. Validable means: Make it easy to follow why you took a certain<br \/>\ndecision. You&#8217;ll need that validity in two respects: First, strategic decisions are generally<br \/>\nimportant ones. You have to convince people why your direction is the right one. People need to<br \/>\nunderstand why a decision is made. Second, you&#8217;ll be getting new data and new insight all the time.<br \/>\nDecisions based on longish discussions would have to be reiterated then. That does not scale.<br \/>\nStructured and validable strategic analyses can be reworked in the input data that have been used,<br \/>\nyou can change only the bits that have changed. <br \/>\n    And all that&#8217;s worth nothing if you do not open your mind for a strategy that seems<br \/>\ncounter-intuitive.<\/p>\n<p> Marketing KDE is moving towards a structured, professional approach.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Should KDE target a broad or a niche market?That question has been raised on the kde-promo list recently, and people are arguing away. The question itself is rather valid, of course, but &#8212; and here comes the surprise &#8212; the right way to answer it is not discussing to reach consensus. The right way is&hellip; <a class=\"more-link\" href=\"https:\/\/vizZzion.org\/blog\/2006\/02\/marketing-broad-vs-niche\/\">Continue reading <span class=\"screen-reader-text\">marketing: broad vs. niche<\/span> <span class=\"meta-nav\" aria-hidden=\"true\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-1336","post","type-post","status-publish","format-standard","hentry","category-kde"],"_links":{"self":[{"href":"https:\/\/vizZzion.org\/blog\/wp-json\/wp\/v2\/posts\/1336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vizZzion.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vizZzion.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vizZzion.org\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vizZzion.org\/blog\/wp-json\/wp\/v2\/comments?post=1336"}],"version-history":[{"count":0,"href":"https:\/\/vizZzion.org\/blog\/wp-json\/wp\/v2\/posts\/1336\/revisions"}],"wp:attachment":[{"href":"https:\/\/vizZzion.org\/blog\/wp-json\/wp\/v2\/media?parent=1336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vizZzion.org\/blog\/wp-json\/wp\/v2\/categories?post=1336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vizZzion.org\/blog\/wp-json\/wp\/v2\/tags?post=1336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}