ITESO Webmarketing - Long Tail

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class given at ITESO University - Guadalajara. Discusses the general aspects of the Long Tail based on the book by Chris Anderson.

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ITESO Webmarketing - Long Tail

  1. 1. Raul Hernandez Arthur<br />Webmarketing<br />The Long Tail<br />
  2. 2. Raul Hernandez Arthur<br />What is “The Long Tail” ?<br />The Long Tail<br />Statistical Distribution “very low probability of occurrence”.<br />Pareto Principle<br />80 / 20 rule<br />The Long Tail<br />Why the Future of Business Is Selling Less of More<br />
  3. 3. Raul Hernandez Arthur<br />ECAST<br />What percentage of the 10,000 albums sold at least one track a quarter ?<br />
  4. 4. Raul Hernandez Arthur<br />ECAST<br />What percentage of the 10,000 albums sold at least one track a quarter ?<br />98%<br />
  5. 5. Raul Hernandez Arthur<br />Touching the Void<br />Joe Simpson near fatal climb of the 6344m climb in Peru.<br />
  6. 6. Raul Hernandez Arthur<br />Into Thin Air<br />Joh Krakauser ascent of Mount Everest wich turned catastrophic.<br />
  7. 7. Raul Hernandez Arthur<br />Amazon<br />
  8. 8. Raul Hernandez Arthur<br />Amazon<br />"We sold more books today that didn't sell at all yesterday than we sold today of all the books that did sell yesterday." <br />
  9. 9. Raul Hernandez Arthur<br />3 Forces of the Long Tail<br />Democratize the Tools of Production<br />
  10. 10. Raul Hernandez Arthur<br />Production<br />The PC<br /># ALBUMS released grew 36% ! <br /> - 44,000 in 2004 <br /> - 60,000 titles in 05<br />300,000 free in MySpace<br />Give people the capacity to create and GEMS will emerge<br />
  11. 11. Raul Hernandez Arthur<br />New Producers<br />Never understimate the power of a million amateurs with keys to the factory<br />Feb 23, 1987<br />Kamiokande II<br />
  12. 12. Raul Hernandez Arthur<br />3 Forces of the Long Tail<br />Democratize the Tools of Distribution<br />
  13. 13. Raul Hernandez Arthur<br />Distribution<br />Wal-Mart set up the worlds most sofisticated supply chain. <br /><ul><li>Now you can do it in eBAY</li></li></ul><li>Raul Hernandez Arthur<br />3 Forces of the Long Tail<br />Connect Supply and Demand<br />
  14. 14. Raul Hernandez Arthur<br />Connect Supply - Demand<br />Search <br />Filters<br />Recommendations<br />
  15. 15. Raul Hernandez Arthur<br />Long Tail Examples<br />
  16. 16. Raul Hernandez Arthur<br />Music Industry<br />Rhapsody Overall<br />
  17. 17. Raul Hernandez Arthur<br />Brit Rock<br />
  18. 18. Raul Hernandez Arthur<br />Ethnic Fusion<br />
  19. 19. Raul Hernandez Arthur<br />Long Tail Rules<br />Make Everything Available<br />Help me Find it<br />
  20. 20. Raul Hernandez Arthur<br />Rules<br />Lower your costs<br />More inventory<br />Let customers do the work<br />Peer production<br />Think Niche<br />One distribution Method doesnt fit all<br />One Product Doesnt fit all<br />One Price doesnt fit all<br />
  21. 21. Raul Hernandez Arthur<br />Rules<br />Lose Control<br />Share Information<br />Think “and” not “or”<br />Trust the market to do the job<br />Understand the power of “Free”<br />

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