Some of the latest and greatest
product offerings from the software publishers and hardware manufacturers
demand heavy system requirements, including Windows 95, Pentium
processors, 16 megabytes of memory, high-end audio capabilities,
or even 200 megabytes of free disk space. So, the question is, are
you ignoring the large installed-base of legacy system users who
have not yet adopted the newest technologies?
It's true – you can't stop technological development. No more
than six months after a system is purchased, it's already obsolete
compared to its feature-rich replacement which is available at
a lower price. However, the introduction of a new system doesn't
mean that your current system stops performing its intended job,
which is a good reason why individuals, especially in a corporate
environment, don't part with them too easily.
You will probably agree that while there are the computer enthusiasts
(especially gamers) with the newest "wiz-bang" systems (the new
MMX-based Aptiva is targeted right at them), there is still a
large installed-base, many in the corporate arena, who are using
older systems. It just so happens that Windows 3.11 for Workgroups
on a 486 system delivers adequate performance for basic word processing
and spreadsheet needs. In addition, it also performs well in a
networked environment and, most important, its paid and requires
very minimal support.
When a company is upgrading a system, there are also additional
and sometimes "hidden" costs which go beyond the actual purchase.
When you factor in set-up time, support, training, debugging,
and the additional costs of ancillary software upgrades to maintain
compatibility, upgrading a single user can be an expensive task.
It is easily understood why so many corporate IT managers preach,
"if it's working, don't fix it."
There is a lot of excitement surrounding Microsoft's new Office
'97. From my own personal use, it is, without doubt, an elegantly
designed suite of business applications offering tight integration
with E-mail and the Web. In the same breath, it is a huge and
massively complex program that comes with an 800 page manual and
requires a high-end Pentium system with 190 megabytes of disk
space for a full installation. For many users who never go beyond
the common word processing and spreadsheet functions, it is probably
more than actually needed.
Prior to the Windows 95 launch, there was an estimated installed
base of 40-50 million Windows 3.x users - that is, quite frankly,
a huge installed base, representing a product that has reached
"main street" market status (as defined by Geoffrey Moore in his
book, Crossing the Chasm). Keeping in mind the aforementioned
costs, there are still many users, both at home and at work, that
are going to keep using their older equipment, since they still
can perform their required tasks.
The savvy hi-tech direct marketer can use the "main street"
status of the Windows 3.x audience to their advantage. They represent
a viable audience of active PC users who will still purchase hardware
and software products for their systems, if they are offered to
them.
Moore had pointed out that during the main street phase of a
product's life cycle, there was also deep penetration into vertical
niche markets, some of which bud into new niches. The good news
is that you can mostly likely find 3.x systems covering a very
wide market areas, giving you the freedom to offer products with
either horizontal or vertical appeal.
By acknowledging the users of legacy systems and incorporating
them into your marketing mix, you can position yourself to communicate
with a wider installed-base and increase your profitability. Remember,
what is considered as "older systems" represent purchases that
are possibly within the last 12 months, which still represents
relatively new systems and users from a marketer's perspective.
Users of "older systems" are out there, and they are still doing
real work with their equipment -- why not sell them your products!
