The document discusses various business models including the long tail model, free business models, and the freemium model. It provides examples and explanations of each model. For the long tail model, it explains how this focuses on selling a large number of niche products in lower volumes. For free business models, it discusses how companies like Google started services based on whether people wanted them rather than initial profitability, and how they generate revenue from advertising. The freemium model is described as providing a basic free version with paid upgrades for premium features or to remove advertising.

1. advanced course
business model
marketing

2. session 4

3. last week...
Distribution models, user models,
(co) creation models, Google
assignment

4. this week
Long tail model, free as a business
model, business model design,
customer segments, empathy map

5. getting deeper
into it..

6. (1) the long tail model..

8. link

9. the long tail model..
Long
tail
models
are
about
selling
a
lower
volume
of
a
greater
amount
of
different
products.
The
long
tail
focuses
on
selling
a
large
amount
of
niche
products.
All
together
these
sales
are
equally
profitable
as
the
tradi?onal
model
which
makes
use
of
a
small
number
of
bestselling
products.

13. 1. what products do you get for
free?
2. what can you get for free
online?
3. what should be free (online)???

14. ‘free’ as a business model..
Free got started in the twentieth century by companies
giving away something that spurred purchases of related
goods. Gillette razors is an example.
Free in the bits economy, however, can be really Free.
In 1996 the Village Voice became a free newspaper. Since it
no longer charged, people perceived that it had a lesser
quality. Another paper, The Onion, started Free and stayed
Free, and is a much bigger success. This shows that our
feelings about Free are relative, not absolute.
(Chris Anderson)

15. ‘free’ as a business model..
At
places
like
Google,
new
services
start
with
ques?ons
like
“Would
it
be
cool?”,
“Do
people
want
it?”
or
“Does
it
use
technology
well?”
rather
than
“Will
it
make
money?”
In
Google’s
case,
they
first
invented
a
way
to
do
search
that
gets
beIer
as
the
Web
gets
bigger.
They
then
allowed
adver?sers
to
create
ads
that
matched
keywords
or
content
and
bid
against
each
other
for
the
most
prominent
posi?ons.
They
then
created
other
products
to
extend
their
reach
and
only
aIached
ads
when
it
made
sense.
(Chris
Anderson)

16. (2) the freemium model..
When
using
the
freemium
model
the
product
is
given
away
for
free.
A
beIer
version
of
the
product
is
only
accessible
aNer
buying
an
updated
version.
There
are
also
freemium
models
used
that
have
a
connec?on
with
annoying
adver?sing.
ANer
a
paid
update
you
don’t
get
this
adver?sing
anymore.

21. ‘free’ as a business model..
In
the
FREE
business
model
at
least
one
substan?al
Customer
segment
is
able
to
con?nuously
benefit
from
a
free-­‐of-­‐charge
offer.
Different
paIerns
make
the
free
offer
possible.
Non-­‐paying
customers
are
financed
by
another
part
of
the
business
model
or
by
another
Customer
Segment.
(Business
model
genera?on)
(so..
who
IS
going
to
pay??)

22. business
model
design

23. business model design..
-customer insights
-ideation
(what if-questions, brainstorming rules,
silly cow exercise)
-visual thinking
-prototyping
-storytelling
-scenarios

24. customer
insight:
it all begins with the
customer..

25. customer segments

26. wat wil een klantsegment...
-lees het artikel ‘Voor 15 euro
flirten met klassieke muziek..’
-zoek alle punten op die jongeren
blijkbaar als voorwaarde hebben
om naar naar het concertgebouw
te gaan
-hoe ziet de marketingmix er voor
dit jongerensegment er nu uit?

27. wat willen jongeren...
-behoefte aan klassieke muziek
-behoefte aan leeftijdsgenoten (sociaal aspect)
-behoefte aan korte tijdsduur (1 uur max)
-behoefte aan naborrelen/afterparty
-behoefte aan extra beleving (projectiescherm,
tekstinfo, rondleiding, meet&greet)
-behoefte aan een scherpe prijs (15 euro/
sprintplaats 10 euro

28. what do young people
want?...
- Please describe at least 5 reasons why young
people (age 20 till 30) don’t visit classic
concerts at concert halls
- Please describe at least 5 ways that a
concert hall can think of in order to get more
young people (age 20 till 30) to visit a classic
concert
- Please describe how the marketingmix of the
concert hall would look like when aimed at
young people

29. now let’s stick together..

30. • Needs:
– For example a need for a basic element: food,
clothing, shelter, safety
– “I need clothes otherwise I can’t go outside”
• Wants/wish:
– A wish is a specific way a need is fullfilled.
– “I need clothes and I want a coat”
• Demand:
– Demand are all the wishes where a consumer is
willing to buy a product for.
– “I need clothes, I want a coat, I think I am going to buy
a new black coat from Hugo Boss.
Purchase of the product

31. So..
• Important: companies and marketeers don’t
create needs.
• Hugo Boss for example doesn’t create the need
for clothing, Hugo Boss tries to influence the
demand for a particular sort of clothing
• Hugo Boss tries to influence the demand for
luxury clothing by altering: image, fashion, price,
availability, brand, experience, ect.
MARKETING

32. customer needs
• Do customers buy their products
consciously?
• Do customers even know what they
want?
• Are customers aware of their
(latent) needs?
• Do customers know what is
technically possible?

33. what are the underlying
needs of..?
…buying
a
Makita
drilling
machine
?
…buying
an
iPhone
5?
…buying
?ckets
of
a
concert
of
Madonna?

34. customer needs
When one is doing customer
research it is important to
get a deeper insight in
consumer behavior. Not simply
asking customers which
products the miss..

35. empathy map

37. empathy map
• Profiling customer segments
• A better understanding of the
environment, behavior, worries
and aspirations of the segment.
• Check page 131 to find out how
to use the ‘empathy map’

39. other points to start from..
(a side from customer driven)
-resource driven
(for example: eventlocaties)
-offer driven
(for example: Ikea)
-finance driven
(for example: Easyjet)
-multiple epicenter driven

40. aan de slag..