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Inside the Tornado : Marketing Strategies from Silicon Valley's Cutting Edge
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Author: Geoffrey A. Moore
List Price: $17.00
Our Price: Click to see the latest and low price
ISBN: 0887308244
Publisher: HarperBusiness (01 July, 1999)
Edition: Paperback
Sales Rank: 2,805
Average Customer Rating: 4.21 out of 5
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Customer ReviewsRating: 4 out of 5
I don't think we are in Kansas anymore, Toto
This was a groundbreaking book for many readers, who grew up in the pre-Silicon Valley boom days. How could Intel, Microsoft and other high-tech giants seize so much revenue, so fast? What were their marketing secrets and how can you apply them if you are in a new technology business? These are good questions and the description of how the successful companies stayed ahead of their competitors is educational. The rules look simple:
1. Just ship
2. Expand your distribution channels (and leave none unprotected)
3. Drive to the next lowest price point.To me, this is more like staying ahead of the wave in surfing rather than riding a tornado, but whatever the metaphor, these are accurate descriptions of how high growth companies kept their products rolling and revenues coming in during high-demand times. But do any of these rules apply to staying ahead of the competition during the lean times? Where have the tornados dropped everyone during the inevitable slowdown after a long, strong period of growth? Look at HP--who drove these rules to high success with the laser and deskjets and unbeknownst to many, took the lead in the home PC market too before the recession hit. Now, when spending on technology has been frozen by corporations seeking to hold costs down during the downturn, how do any of the marketing rules set out by Moore apply? Well, the author points out that one has to be alert to when a new tornado is coming, though that is difficult. Now, when companies are slowing down is when technology developments in the skunk works are allowed to flourish; R&D has more time to perfect new technologies when there is little pressure to get out in a heated marketplace. Sooner or later, then next tornado is coming and the companies that are ready with strategic partnerships, competitive advantage, proper "bowling pin" positioning of product will profit. Right now may be the Year of the Monkey ("monkeys" compete on low price and low overhead) but the fundamentals have not changed for the next wave of a technology boom. I like this book for looking at the fundamentals of companies who will be up and coming in the next recovery period, and for setting up marketing strategies for new products we are developing in house at our firm. Who has the best in-house R&D? What are the coming new technologies? Who's positioned to profit--look at the rules put forth in "Inside the Tornado" and see if you can make any predictions. Recommended reading.
Rating: 4 out of 5
Pure High-Tech marketing
'Crossing the Chasm' and 'Inside the Tornado' explain high-tech marketing strategies and product/technology life cycle. In the 90s, some of the most successful high-tech companies could be distinguished by their marketing strategies. Standard approach to marketing might be fine for other industries, but it has less chance of succeeding in high-tech industry. 'Crossing the Chasm' refers to product's acceptance by mass market. Typical product adaptation cycle would go through various phases that include: innovators (very narrow market), early adopters, (much larger than innovators, but still nothing major), early majority (this is where you want your product to get), late majority (still huge market), and laggards. Now, in high-tech world, there is a chasm between early adopters and early majority. It takes different approach to cross that chasm and get accepted by early majority.
Once you are on the other side of the chasm, be prepare for the 'tornado' phase. Your product/technology will take off with enormous power driven by huge market. You don't want to be at the point where market demand surpasses your supply. At this point your company can grow at hyper growth rate and gigantic revenues can be generated. We have seen this before so many times and some of the examples (Dell, MS, Oracle, Apple, etc...) are known to everybody.
Rating: 3 out of 5
Is It Still Useful?
Notwithstanding its well-written words, the dot-bomb bubble has clearly indicated high-technology may not quite be the donkey's braying.True, the bubble's bursting may not be due to marketing's strategies. The best marketing strategy cannot force someone into purchasing a product. Mike L.'s Guerrila PR: Wired also seeks to provide various techniques and tips for how to do promotions using the Internet, but does not limit itself to technology. Moore's book is not without value, but now may not be the time to extol the virtues of the high-tech industry.
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