Professional Documents
Culture Documents
Production Concept
Period: Until 1950s
Sales
Order-to-Payment
Information
Cycle
System
Databases, Marketing
Warehousing, Intelligence
Data Mining System
Table 3.2
Secondary Commercial Data
Sources
Nielsen SAMI/Burke
MRCA Simmons
Information
Arbitron
Resources, Inc.
Needs and Trends
Fad
Trend
Megatrend
Trends Shaping the
Business Landscape
• Profound shifts in centers • Increase in demand for
of economic activity natural resources
• Increases in public-sector • Emergence of new global
activity industry structures
• Change in consumer • Ubiquitous access to
landscape information
• Technological • Management shifts from
connectivity art to science
• Scarcity of well-trained • Increase in scrutiny of big
talent business practices
Environmental Forces
Demographic
Political-Legal Economic
Technological Socio-Cultural
Natural
Population and Demographics
• Population growth • Educational groups
• Population age mix • Household patterns
• Ethnic markets • Geographical shifts
Household Patterns
Economic Environment
• Income Distribution
• Savings, Debt, and Credit
Increased
energy costs
Anti-pollution
pressures
Governmental
protections
Technological Environment
Pace of change
Opportunities
for innovation
Varying R&D
budgets
Increased regulation
of change
Political-Legal Environment
Increase in
business legislation
Growth of special
interest groups
Experience concept
• Pine and Gilmore argue that businesses must
orchestrate memorable events for their
customers, and that memory itself becomes the
product - the "experience". More advanced
experience businesses can begin charging for
the value of the "transformation" that an
experience offers.
• e.g. as education offerings might do if they were
able to participate in the value that is created by
the educated individual. This, they argue, is a
natural progression in the value added by the
business over and above its inputs
Stages of Marketing
Products/Services
• A commodity business charges for
undifferentiated products.
• A goods business charges for distinctive,
tangible things.
• A service business charges for the activities
you perform.
• An experience business charges for the feeling
customers get by engaging it.
• A transformation business charges for the
benefit customers (or "guests") receive by
spending time there.