advanced course business model marketing
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advanced course business model
marketing
session 3
business model
patterns
last week... Article mobile games, 9 building blocks, business model canvas
DIY.. - Take a large piece of paper - Think of your chosen industry and choose an organization, company, platform or brand from that one
- Sketch the business model canvas grit
- Visualize every building block in order to create an image of the business model of that organization, company, platform or brand
- Prepare a short presentation in which you can explain how the business model you have sketched out works.
presentations
business model canvas
conclusion.. - A BM includes the entire organization (not just marketing / sales)
- Understanding a BM of an organization requires lots of practice and (inside) information
- Not many organizations use the exact same BM
- Small differences between BMs can lead to very big gaps between companies in the future (Nokia vs. Apple)
today Some more bus i ness mode l patterns, business model patterns @ google, the long tail, the ‘free’ business model, working on the ‘Act different assignment’
Business models
Earning model
Subscrip4on model
Bait and hook model
Freemium model
Package deal
Service model
Adver4sing model
Auc4on based model
Brokerage model
Yield management
Long tail model
Unbundeled models
Insurance model
Distribu4on models
Tupperware model
Online sales model
Clicks & bricks model
Franchise model
Labeling model
Mul4-‐channel model
Affiliate model
(Co-‐)crea4on models
Mass customiza4on
Open source model
User-‐generated content
Open business model
User models
Mass-‐effect model
Community model
Mul4-‐sided plaNorm
Sources: Interac4eve marke4ng, Business-‐modellen, Business model genera4on
distribution models..
Tupperware model The aim of the tupperware model is to gather a small group of interested buyers in a home seRng. The one who organises a so called ‘party’ earns money by means of a storage rate. Distribu4on costs are low and there is a social pressure to buy. …(distribu3on model)… Examples: Tupperware, Aloë Vera
Online sales model With the internet a company can easily get around wholesalers and retailers. OZen the saving of costs are in favour of the consumer. This way it’s cheaper to buy online. A disadvantage is the fact that markets have become much more transparent. …(distribu3on model)…
Clicks-‐and-‐bricks model When an organiza4on uses the online sales model all sales are based on making use of the internet. However for some organiza4ons the shop in the street is s4ll very important because its customers demand a place where they can meet the physical product. This is why lots of organiza4ons combine internet sales (clicks) and retail (bricks). Despite of the fact that this leads to higher costs. Organiza4ons are always searching for the perfect internet/retail propor4on. …(distribu3on model)… Examples: Bjorn Borg, IKEA
Franchise model The franchise model aims at spreading a successful retail formula by independent entrepreneurs. These entrepreneurs have to follow strict rules in order the keep the formula clear. This business model is an example of spreading risk for both formula as the entrepreneurs. …(distribu3on model)…
Examples: KFC, supermarkets
Labelling The labelling model is a special kind of franchising. Using the labelling model means that products that are labelled with a specific strong brand are distributed by other organiza4ons who earn money with a storage rate. The labelling model is oZen used for luxury brands for which the brand is more important than the product itself …(distribu3on model)…
Examples: Disney
Mul3 – channel model Mul4 channel management means op4mizing the number of communica4on and distribu4on channels an organiza4on has. Past years big organiza4ons have become more aware of the fact that a good mul4-‐channel strategy can lead to cost reduc4on and customer reten4on. …(distribu3on model)…
Examples: G-‐star, Apple
Affiliate model The aim of the affiliate model is offering a product on a large number of places by making use of a network of partners. These partners get a comission for every new customer they deliver the organiza4on. OZen the affiliate uses a buaon, banner or webpage in order to persuade consumers to buy a product. The difference between the affiliate model and the adver4sing model is the fact that the offering organiza4on doesn’t have to pay for the tools the affiliate uses. They only have to pay the affiliate for the leads he delivers. …(distribu3on model)…
Examples: cheapinsurance.com, mortgage.tv
(co) creation models..
Mass customiza3on The mass customiza4on model is a good example of a model that lets organiza4ons and consumers work together when it comes to product development. The organiza4on has divided its product in several components that can be altered by the consumer. The consumer can make combina4ons with these components and this way make its one ‘personalized’ product.. …((co) crea3on model)… Examples: Nike, Lego Open source model The open source model is oZen used in the soZware industry. It leads to important but free soZware. SoZware companies develop great free soZware that can be used by a lot of customers. AZer they start using it they oZen discover they want some customized solu4ons. This way the customer becomes a paid customer. …((co) crea3on model)… Examples: OpenOffice, Android
User – generated content User-‐generated content is a co-‐crea4on model that is oZen designed as a social network. The organiza4on behind it is facilita4ng the service. The product itself emerges by the energy invested by volunteers. The organiza4on makes money by dona4ons and adver4sing. And some4mes also by selling a premium service. …((co) crea3on model)… Examples: Wikipedia.org, IMDB.com Open – business model Open business models can be used by organiza4ons in order to create value through sustainable partnerships with other organiza4ons. This can be done outside-‐in (ideas from outside the company are exploited inside the company) or inside-‐out (ideas from the company are exploited elsewhere). …((co) crea3on model)… Examples: Mercedes & Swatch, Philips & DE
user models..
Mass effect model The mass effect model applies to certain products of which the amount of users determines the success immediately. Because of more and more people become users the product becomes an industry standard and that’s why other consumers don’t have an actual choice anymore. (user model)… Examples: MicrosoZ Word, Whats app Community model The community model is special kind of mass effectmodel. The product / plaNorm originates from a community of users. The plaNorm oZen makes money with adver4sing or a freemium business model …(user model)… Examples: Runkeeper, iphoneclub
Mul3 – sided plaGorm Mul4-‐sided plaNorms bring together two or more independent customer groups or segments (oZen suppliers and consumers). These mul4-‐sided plaNorm are only interes4ng for a customer group when the other group is also using the plaNorm. The plaNorm creates value by facilita4ng interac4ons and transac4on between the groups. The value of a mul4-‐sided plaNorm grows when it aaracts more users, aZer which it will automa4cally aaract a new group of suppliers. …(user model)… Examples: Apple appstore, Sony Playsta4on
Business models
Earning model
Subscrip4on model
Bait and hook model
Freemium model
Package deal
Service model
Adver4sing model
Auc4on based model
Brokerage model
Yield management
Long tail model
Unbundled models
Insurance model
Distribu4on models
Tupperware model
Online sales model
Clicks & bricks model
Franchise model
Labeling model
Mul4-‐channel model
Affiliate model
(Co-‐)crea4on models
Mass customiza4on
Open source model
User-‐generated content
Open business model
User models
Mass-‐effect model
Community model
Mul4-‐sided plaNorm
Sources: Interac4eve marke4ng, Business-‐modellen, Business model genera4on
-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
assignment
Business models
Earning model
Subscrip4on model
Bait and hook model
Freemium model
Package deal
Service model
Adver4sing model
Auc4on based model
Brokerage model
Yield management
Long tail model
Unbundeled models
Insurance model
Distribu4on models
Tupperware model
Online sales model
Clicks & bricks model
Franchise model
Labeling model
Mul4-‐channel model
Affiliate model
(Co-‐)crea4on models
Mass customiza4on
Open source model
User-‐generated content
Open business model
User models
Mass-‐effect model
Community model
Mul4-‐sided plaNorm
Sources: Interac4eve marke4ng, Business-‐modellen, Business model genera4on
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
designing a new business model
homework last week.. Literature/theory/background: -read BMG page 1 till 50 Work on the assignment:
act different.. - Dive deep into your future customer segment (s)
- Use the empathy-map (page 126 till 133) to get the right customer perspective
- Figure out (do some research): - What does the segment want to change? - What does attract the segment to the product? - What does the segment hate/love? - Which problems do the segments stumble upon?
- Go on building your new business model and writing the business plan!
homework next week.. Literature/theory/background: -read BMG page 52 t/m 195 Opdracht: -go on working on your ‘Act differnent assignment’
let’s get to
work..
till next week!
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