Today markets are overloaded with new information flooding our minds and vying for our attention.
New and old media grabs our attention when it provides relevant and relative information that appeals to our affinities. Media surrounds us 24/7 both online and off-line. Media moves markets because it influences behavior, thinking, conversations and actions.
Markets are segmented into four categories regardless of product or service. Each group is influenced by information flooding each segment of the market. Each segment reacts to information in different ways. Social technology is accelerating propagation of information and then creating shorter reaction cycle times. These shorter cycle times is what is moving markets faster than ever before.
Lets Profile Each Market Segment
Segment D: These people and organizations create innovation by applying knowledge of what the market wants and needs and then creating new products and services. The information about new creations is then passed along to the markets. Historically this information was propagated using old media. Today the information is passed along both by old media channels and now new media channels, conversations. Segment D represent market creators, i.e. Apple, Google, Microsoft and a host of other organizations and people that create innovation that the market wants and needs. This segment is likely 5% or less of the entire marketplace.
Segment C: These people and organizations take the information about new knowledge and innovation and apply it to solving problems or creating new solutions. In other words they use the new knowledge about a process, a product or service and create improvements for their markets, their company and their personal lives. We can see this in the field of marketing and advertisers. All are trying to apply the knowledge of social media to improve results for their customers and/or their company. Look what Ford is doing with social media, Dell, Zappos etc. This segment is likely 15% or less of the entire marketplace during the early stages of development.
Segment B: These organizations and people migrate to the use of something new and learn how to use it from those creating use for it. This segment usually follows Segment C. Just consider how many organizations and people are using social media based on how the crowd uses social media. They learn how to use it based on how others are using it. Right, wrong and indifferent. This segment is likely 20% or less of the entire marketplace during the early stages of development.
Segment A: These organizations and people are aware of this new thing, whatever it is, but they either fail or simply decide not to act on it for whatever reason. However, the larger segments B & C becomes segment A gets pulled into whatever it is kicking and screaming. An example would be all those companies whose web sites are static, dead and have no social function whatsoever. Sure they are aware of this “social stuff” but do not consider it important, valuable or worthy of time and attention. That is until the market moves away from them or competitive pressure pushes them into it. This segment is likely 60% or more of the entire marketplace during the early stages of development.
The 80/20 rule applies to how markets move. 20% are the creators and early adopters applying new knowledge to improve. 80% are the users and those that standby and watch.
Which Segment Wins The Most?
The answer is obvious. Segment D &C because they lead the markets to the next phase of new knowledge created and used by segment B &A. The primary difference between each segment is knowledge, how to create it and apply it for gain.
Our economy is influenced by those that create and apply knowledge. Segments D&C is where most of the money flows because segments B &A are forced to consume that which is created by new knowledge. Why are they forced? Because markets move and when they do you have to move with them or get left behind. Today this cycle of movement is rapid because the markets of conversations are accelerating both the creation and consumption of new knowledge faster than ever before. Get it?
Which segment represents you or your company?