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samedi 27 juin 2009
mercredi 24 juin 2009
Long Tail
1. What is the concept
Long tail is a new business strategy, having as a concept to sell items (generally entertainment related material such as CD's, DVD's, Books, etc.) that are less popular and don't belong to the mainstream hits. Thanks to the Internet, time and space, which are the two main characteristics for selling a good, play no longer a role in the commercialization of any product. The idea is that even if a product is sold in a very small quantity to a niche market, it will still have its place on the market and enable a company to make a profit from it.
2. How is it different than 'traditional' retail concepts?
It is different from traditional retail shops from the fact that long tail retailers don't have to pay any attention to the popularity of the product they sell. Time and space do not play any role , while selling or distributing a product. The idea is to make money with unique non-hit products. The products don't need to be stocked somewhere, since the Internet has a nearly infinite free stocking area, so these are costs that can be erazed by the long tail retailers.
3. Does the Long Tail concept fit in the 'customer in charge' environment?
Of course does it cross the concept of the customer in charge, because there are no more barriers between someones real interests and the hits brainwashed to the customers mind. The customer has the opportunity to follow what suits him the best, let his desirs run the way they want to and purchase the products they chose to buy.
For example even if advertising and other promotion material make a DVD stand out from other non hit-DVD's, the customer will still be able to look for a product that will provide him more satisfaction than the hit product. The idea is to give the customer the opportunity to buy a product only from the point of view of his exact wish and not through the theory of high and low demand, high and low price or any other standard economic purchasing system.
Long tail is a new business strategy, having as a concept to sell items (generally entertainment related material such as CD's, DVD's, Books, etc.) that are less popular and don't belong to the mainstream hits. Thanks to the Internet, time and space, which are the two main characteristics for selling a good, play no longer a role in the commercialization of any product. The idea is that even if a product is sold in a very small quantity to a niche market, it will still have its place on the market and enable a company to make a profit from it.
2. How is it different than 'traditional' retail concepts?
It is different from traditional retail shops from the fact that long tail retailers don't have to pay any attention to the popularity of the product they sell. Time and space do not play any role , while selling or distributing a product. The idea is to make money with unique non-hit products. The products don't need to be stocked somewhere, since the Internet has a nearly infinite free stocking area, so these are costs that can be erazed by the long tail retailers.
3. Does the Long Tail concept fit in the 'customer in charge' environment?
Of course does it cross the concept of the customer in charge, because there are no more barriers between someones real interests and the hits brainwashed to the customers mind. The customer has the opportunity to follow what suits him the best, let his desirs run the way they want to and purchase the products they chose to buy.
For example even if advertising and other promotion material make a DVD stand out from other non hit-DVD's, the customer will still be able to look for a product that will provide him more satisfaction than the hit product. The idea is to give the customer the opportunity to buy a product only from the point of view of his exact wish and not through the theory of high and low demand, high and low price or any other standard economic purchasing system.
samedi 13 juin 2009
vendredi 12 juin 2009
Freemium
To me one of the most popular freemiums at the moment is Facebook. The social network allows its users to create for free an account in which he can post, stock and share all kinds of material (posts, pictures, videos,links...).
How does Facebook make revenue from free:
- Facebook is a very interesting advertising support (pay per click links and ads)
- Over the years they have created a large qualitative database in which they analyze each users information, working position, interests, habits etc. Facebook can sell this database legally (it's part of its terms and conditions accepted by the member of the network).
This list is very interesting for lots of different companies, whether it's for market studies or to get an interesting adress book of potential clients and other prospects.
- Facebook also makes money through partnerships, who want to take advantage of Facebook's popularity in order to make their product more attraktive (Example: The Facebook application on the IPhone)
- Some applications that Facebook offers are not free.
How does Facebook make revenue from free:
- Facebook is a very interesting advertising support (pay per click links and ads)
- Over the years they have created a large qualitative database in which they analyze each users information, working position, interests, habits etc. Facebook can sell this database legally (it's part of its terms and conditions accepted by the member of the network).
This list is very interesting for lots of different companies, whether it's for market studies or to get an interesting adress book of potential clients and other prospects.
- Facebook also makes money through partnerships, who want to take advantage of Facebook's popularity in order to make their product more attraktive (Example: The Facebook application on the IPhone)
- Some applications that Facebook offers are not free.
mercredi 10 juin 2009
Welcome
Hello and welcome to my Blog. My name is Nicolas Schock and I am an MBA student at the European Institute of International Management (IEMI). The aim of this blog is to create a global network and data platform for all kinds of material linked to my e-business course.
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