Social Networking sites, Market Segmentation and the innovation cycle

In September lat year I blogged about info I gathered in a Wharton article and what my views were on using social netwroking sites to build business.  To help you recall

One thing being, the social networking site expands itself to other areas of the market(other people-professional, age, gender Etc) using the same brand


Works on something which P&G does.  Remains a multi branded company by changing the brand itself, for example, If all these sites were owned by a single organization (linkedin+Orkut+MySpace+Ryze Etc). 

The scholars at Wharton suggest this is a good way to do it as nobody wants to buy a toothpaste from Levis.  

"An attempt to increase in the targeted users with the same brand might lead to severe band dilution"

Now this was then but there are smaller punters coming out with much more segmented waves being created by the concept of social networking itself.  What about the Marketing Gurus who want to use this and what’s happening around?

We want to do this with the guys coming into those sites:

–>Ok, this is possible especially when you get to sites like Orkut




–>Some of the attributes are given out by the people demonstrating their presence in the 2.0 world



–>Now this is tough to measure.  I had spoken about tacit application being the next wave in future for software in my last blog. For more info on a presentation from Software 2006 click here and look at the S i g n i f i c a n t  E c o s y s t e m  D i s c o n t i n u i t i e s  o n  t h e H o r i z  o n  part of the PDF.


And there is this talk about microsegment sites bursting out which reminds me of the innovation lifecycle from Clayton M. Christensen’s book The innovators dilemma.

When the present solution starts overacheiving new disruptive things come into the market, look at the diagrams below.



With more sites like Linkedin,, coming up, things are surely looking better for the marketers who pitch their ideas for generating those online marketing budgets which will rise "Advertisers are expected to spend $1.9 billion on social networks by 2010, up from $280 million in 2006"




So will Web 2.0 fight with 3.0 the same way like how camera phones are fighting with digital cameras???

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