goal-to recognize new business models-to discover new marketing tools-to learn more about the industry-to create a holistic view-to fire up entrepreneurship-to stimulate creativity-to cooperate-to inspire
me?-John Verhoeven, 33-dutch-lecturer marketing & branding-development group CE IEMES-researcher lectureship-freelance marketing advisor-freelance tour manager-musician
hello, is theresomebody out there?-J.Verhoeven@fontys.nl-room 1.02-ma, di, do-0031 6-57 31 21 14
todayintroduction, definitions, the goal,getting to know each other,p l a n n i n g , h e t i m po r t a n c e a drelevance, looking at businessmodels, searching for businessmodels, changing markets,changing people
When you thought that marketing is about numbers and rational decisions… It is not! marketing is NOT an exact science
Marketing is lookingaround you and learning from the successes and mistakes of others and of yourself!
overview advanced course-2: business model canvas (BMG 52 / 121)-3: business model patterns (BMG 122 / 195)-4: business model design (BMG 196 /261)-5: business model strategy + process (BMG 262 /273 + presentation)-6: business model presentations
about the book..-Alexander Osterwalder & Yves Pigneur-(@alexosterwalder)-5 chapters-1 method-lots of examples-real life!
Osterwalder:“ you canʼt write about business model innovation without an innovative business model ”
sharing knowledge..-book ‘Business model generation’-businessmodelmarketing.wordpress.com-facebook page-slides/articles/background info/movies
DIY..-exercise “act different”-go through the business model designprocess-stay within the creative industry-pick an existing organisation-or come up with a new organisation-you will create a total business plan-making use of several BMG figures-working in groups-exercise = 50% of your final grade-more info later
“…the present economical, ecological andtechnological changes are so big and also sofundamental, that you cannot deny that we are in the middle of a system shift. But now matter how you look at it, fact is that many structures are rapidly eroding. Big organisations are busy looking for new markets and alternative ways to keep existing markets profitable. And smaller organisations question themselves how to react on the fast changing environment..”Source: Businessmodellen.. Houtgraaf en Bekkers
which leads to..-”branding and brand activation”-”blue ocean strategy”-”the long tail”-”the experience economy”-”the challenge economy”-”the conversation manager”Lots of theories…But what does really happen?
.. the traditional model..Competitors: Sony, MicrosoftTarget group: hardcore-gamersBuying criteria: graphics, game quality andprocessor speedAverage price: console: €400 game: € 88 Result: production of expensive consoles, which are sold with a loss, earnings from their own game and licences sold to third parties (e.g. EA-games)
.. the traditional model.. New game consoleà attracting game playersà attract new game developers à offer of games àattractiveness of console increases à attracting game playersà etc. Result: heavy competition and Nintendo almost bankrupt
.. the Wii-model..Target group: very big group casual gamersBuying criteria: fun, simple, familyAverage price: console €135 game €30Competitors: ?Result: production of cheap consoles, sellingconsoles with profit, also earnings fromtheir own games and and licences sold tothird parties
“…Wii doesn’t intend to be abest-of-breed videogame console.Nintendo is trying to bring noncore gamers back to gaming withthe Wii. Wii won’t equal videogame but Wii aims at meaning fun.Nintendo focuses on theconsumer’s feeling rather thanits product…” (source: Nintendo)
a group coupon“…Groupon negotiates hugediscounts—usually 50-90% off—withpopular businesses. We send thedeals to thousands of subscribersin our free daily email, and wesend the businesses a ton of newcustomers. Thats the Grouponmagic…” L
free music?“..Spotify launched in Europe threeyears ago, and in the U.S. this pastAugust. The basic idea behind thecompany isnt brand new. Musicstreaming services — sites whereyou pay a monthly fee for access tozillions of songs — have been aroundfor a decade. But theyve neverbroken through to a mass market..” L
and what about the artists?“..ondanks de vele fans zijn er ook mensen die minder blij zijn metSpotify. Spotify zou namelijk weinig per stream uitbetalen aanplatenmaatschappijen en artiesten. De precieze cijfers zijn nietbekend, maar naar schatting krijgen de maatschappijen voor hetafluisteren van een nummer via Spotify maar een duizendste vanwat ze krijgen als iemand een nummer downloadt via iTunes.Woordvoerder Butcher wil niet praten over geld. Niet overhoeveel geld het bedrijf verdient aan abonnementen enadvertenties, noch over wat het de platenmaatschappijenbetaalt. "We hebben ze sinds de start meer dan honderd miljoenbetaald, dat is alles wat ik zeg."Hoeveel het ook is, artiesten als Adele, Coldplay en The BlackKeys, vinden het te weinig. Zij gaven aan hun muziek niet meer tewillen delen. In november trok ook het Britse ST Holdings 238labels terug van Spotify. Volgens de platenmaatschappij zou hetde verdiensten van traditionele digitale diensten (iTunes, red.)kannibaliseren..”
new organisations with totally new business models emerge
looking for the ‘five’! “..leave this room and start searching for five (new) organisations with a totally new business model..” “..try to find out how theseorganisations earn their money and in which way they can distinguishthemselves from other competitors..” “..make a drawing of the business model (like the spotify example)..”
definitions..- Earning model- Business model- Organisation model- Selling model- Publishing model- Advertising model (zie boek Interactieve marketing)- Branding model (zie boek Interactieve marketing)
new business models..- In every part of the world- In every industry- In big and small organisations- Profit and non-profit- Totally new business models are created- With a totally new shape or- By simply altering the current model
huh? “.. the definitions in management science confuse entrepreneurs and marketeers. How often don’t we use the definition ‘business model’, hoping our listener understands us..”Source: Business modellen, focus en samenhang in organisaties, D. Houtgraaf enM. Bekkers
revenue generation? “..a business model makes clearhow an organisation generates its revenues in order to survive..”Bron: Interactieve marketing, H. Janssen, M. Van Reijsen & T. Zweers
but also..-distribution model: how does theorganisation deliver the product?-(co-) creation model: how do theproducts originate?-user model: what about the powerof the customers?
Business models Earning Distribu5on (Co-‐)crea5on User model models models models Subscrip5on Bait and hook Tupperware Online sales Mass Mass-‐eﬀect model model model model customiza5on model Freemium Package Clicks & bricks Franchise Open source Community model deal model model model model Service Adver5sing Labeling Mul5-‐channel User-‐generated Mul5-‐sided model model model model content plaNorm Auc5on based Brokerage Aﬃliate Open business model model model model Yield Long tail management model Unbundling Insurance Bronnen: Interac5eve marke5ng, Business-‐ models model modellen, Business model genera5on
act different..Exercise:-in groups-deadline January 11th-businessplan-a new or existing organisation-making use of the models from ‘BMG’-exercise = 50% of final grade-read the hand-out thoroughly
homework..Literature/theory/background-study today’s slidesAct different:-read the hand-out-pick your industry and search forarticles about trends that maylead to opportunities and threats(1 a4 + min. 3 articles)