Business model marketing course 3
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The document discusses various business model patterns and free business models. It provides examples of the long tail model, which focuses on selling a large number of niche products at low volumes, and freemium models, which provide a basic product for free with paid upgrades. Google is used as an example of a company that started services based on whether people wanted them rather than initial profitability, generating revenue through advertising. The document also discusses how non-paying customers in a free business model are financed through other customer segments or parts of the business.
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Business model marketing course 3
- 2. session 3
- 3. last week... Earning model, distribution models, user models, (co) creation models
- 4. Business models Earning Distribution (Co-)creation User model models models models Subscription Bait and hook Tupperware Online sales Mass-effect model Mass customization model model model Freemium Package Clicks & bricks Franchise Open source Community model deal model model model model Service Advertising Labeling Multi-channel Multi-sided model model model model User-generated content Auction based Brokerage Affiliate Open business model model model model Yield model Unbundeled Insurance models model platform Long tail management model Sources: Interactieve marketing, Businessmodellen, Business model generation
- 5. assignment -look at the business model patterns on the screen -make an overview of the Google products -write down which business model patterns Google uses the most
- 6. Business models Earning Distribution (Co-)creation User model models models models Subscription Bait and hook Tupperware Online sales Mass-effect model Mass customization model model model Freemium Package Clicks & bricks Franchise Open source Community model deal model model model model Service Advertising Labeling Multi-channel Multi-sided model model model model User-generated content Auction based Brokerage Affiliate Open business model model model model Yield model Unbundeled Insurance models model platform Long tail management model Sources: Interactieve marketing, Businessmodellen, Business model generation
- 7. so.. -sometimes it’s hard to find out the differences between patterns… -an organization always uses different patterns at the same time… -organizations are constantly changing there strategy that’s why they always develop new patterns
- 8. this week Long tail model, free as a business model, business model design, customer segments, empathy map
- 10. (1) the long tail model..
- 12. link
- 13. 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 traditional model which makes use of a small number of bestselling products.
- 17. 1. what products do you get for free? 2. what can you get for free online? 3. what should be free (online)???
- 18. ‘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)
- 19. ‘free’ as a business model.. At places like Google, new services start with questions 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 better as the Web gets bigger. They then allowed advertisers to create ads that matched keywords or content and bid against each other for the most prominent positions. They then created other products to extend their reach and only attached ads when it made sense. (Chris Anderson)
- 20. (2) the freemium model.. When using the freemium model the product is given away for free. A better version of the product is only accessible after buying an updated version. There are also freemium models used that have a connection with annoying advertising. After a paid update you don’t get this advertising anymore.
- 24. ‘free’ as a business model.. In the FREE business model at least one substantial Customer segment is able to continuously benefit from a free-of-charge offer. Different patterns make the free offer possible. Non-paying customers are financed by another part of the business model or by another Customer Segment. (Business model generation) (so ask yourself.. who IS going to pay??)
- 26. business model design.. -customer insights -ideation (what if-questions, brainstorming rules, silly cow exercise) -visual thinking -prototyping -storytelling -scenarios
- 27. 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
- 29. till next week!