Topics in Technology and Marketing The Economic Backstory

The Manufacturing Story Barriers to Entry Production Capacity Product Customization Distribution Range Worker Flexibility Unit Price/Cost Pre-Industrial Era < 1800 Industrial Revolution 1800 -2000 Flat World > 2000

The Information Age Barriers to Entry Production Capacity Product Customization Distribution Range Worker Flexibility Unit Price/Cost Pre-Gutenberg Era < 1450 Media Revolution 1440 -2000 Digital Revolution > 2000

Advantage Lilliputians Advantage shifts from Gulliver (big corporations) to the Lilliputians (individuals) Global Presence Individuals (Now) Individuals (Then) Organization Size Resources ($$$) Corporations (Now) Corporations (Then) ●

Real World Example: Blendtec http: //budurl. com/Risman. Social. Media 084 http: //www. willitblend. com/

Real World Example: Blendtec ● Most viral ad series ever - 138 MM+ views ● Ad Agency? ● ● ● In-house Production Cost ● Video camera: < $250 ● Editing software: $0 ● Soundtrack: < $50 Super Bowl XLV ad ● $3 MM for 30 s ● Production Cost > $1 MM ● Audience = 100 MM / Views = ? ? ? (< 100 MM)

Real World Example: Lady Gaga ● Social Media Empress (reputedly also a musician) ● ● ● ‘Lady Gaga’ is searched 151 MM times a month on Google 1 billion You. Tube views Last. fm’s most listened-to artist of 2009 with 18 MM hits ● ● 12 MM+ fans on Facebook 5 MM+ followers on Twitter 6 MM more than 2 nd place The Killers The greatest source of Lady Gaga content is Gaga herself http: //www. ip-seo. com/latest/2010/07/lady-gagas-extensive-and-successful-social-media-strategy/

Real World Example: Music Biz ● ● ● Connect with Fans (Cw. F) + Reasons to Buy (Rt. B) = The New Music Business Model Trent Reznor uses this model to earn millions while making fans happy. Connect with Fans (Cw. F) ● ● ● A comprehensive website, with forums, chat rooms and many other ways of interacting. A free i. Phone app that allows fans to locate and communicate with each other, while sharing photos and videos. All about connections: fans feel like a part of a club. http: //www. techdirt. com/articles/20091119/1634117011. shtml

Real World Example: Music Biz ● Ghosts I-IV album ● ● All tracks released under Creative Commons (share online for free) Reasons to Buy (Rt. B) ● ● 2 disc CD = $10 Deluxe Edition Package = $75 – ● A box set with the two CDs, a DVD, a Blu-ray and a photobook of images. Ultra-Deluxe Limited Edition Package = $30 – Limit of 2500 – A more impressive "box" that also included the songs on high quality vinyl, and some beautiful giclée print images. – All autographed by Reznor http: //www. techdirt. com/articles/20091119/1634117011. shtml

Real World Example: Music Biz ● The results? ● All 2500 Ultra-Deluxe box sets sell out in 30 hours – ● ● ● $750, 000 in about a day Total of all offers: $1. 6 MM For free music given away Trent Reznor knows it’s all about the sauce. The music is just the pasta. Article has examples of 8 bands/musicians you’ve never heard of making great money using (Cw. F) + (Rt. B) http: //www. techdirt. com/articles/20091119/1634117011. shtml

Real World Example: Julie & Julia ● ● 2002: Julie Powell is a young writer trapped in an unpleasant call center job. She decides to cook every recipe in Mastering the Art of French Cooking ● ● Blogs to motivate herself and document her progress. August 25, 2002 - “ 365 days. 536 recipes. One girl and a crappy outer borough kitchen. How far will it go? We can only wait. And wait… The Julie/Julia Project. Coming soon to a computer terminal near you. ” Julie's blog is highlighted in a story published in The New York Times Her project begins to receive the attention of journalists, literary agents, publishers… http: //blogs. salon. com/0001399/2002/08/25. html

Real World Example: Julie & Julia ● ● 2009: Julie & Julia is an American comedy-drama film Written and directed by Nora Ephron Starring Meryl Streep, Stanley Tucci, Amy Adams, and Chris Messina. Nominated for an Academy Award http: //en. wikipedia. org/wiki/Julie_%26_Julia

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