communities of consumers and producers implications for marketers

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Communities of Consumers and Producers Implications for Marketers

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Page 1: Communities of Consumers and Producers Implications for Marketers

Communities of Consumers and Producers

Implications for Marketers

Page 2: Communities of Consumers and Producers Implications for Marketers

User Innovation Community

user-community in which information, assistance, and innovations are freely shared. Open source communities (Apache, Linux,

Apple) Innovation communities: InnoCentive,

Kitesurfing Open source hacker communities (Apple) Brand communities (Coca Cola, Harley

Davidson, LEGO, or Barbie)

Page 3: Communities of Consumers and Producers Implications for Marketers

User and Manufacturer Innovations Differ

Users tend to develop Functionally Novel innovations: The first sports-nutrition bar The first scientific instrument of a new type

Manufacturers tend to develop Dimension of Merit Improvements: A better-tasting sports-nutrition bar Improvements to an existing type of

scientific instrument

Page 4: Communities of Consumers and Producers Implications for Marketers

Consumer Innovation Communities (Prosumers)

Displacing manufacturers as product developers? What are marketers to do?

Motivation? What are marketers to do?

Taking Control over experience. What are marketers to do?

Page 5: Communities of Consumers and Producers Implications for Marketers

Effect of Democratizing Innovation

The multiple – the social Superiority in design and functionality Leverages the playful element of

consumers Changes attribution of product/service

outcome

Page 6: Communities of Consumers and Producers Implications for Marketers

Customers involvement in the product development process:

especially in idea generation, product conceptualization, prototyping

We know that online user communities allow a firm to leverage the creativity of its customers in all stages of the product development process.

Page 7: Communities of Consumers and Producers Implications for Marketers

But what kind of online user community should you have?

Different types of online user communities can influence product innovation and development.

Groups can be classified by characteristic of community members and interaction level

There are five types: Virtual customer community beta testing volunteer corps user content collaboration innovation community user development community user product collaboration innovation community.

Page 8: Communities of Consumers and Producers Implications for Marketers

Virtual customer community

Consumers as consultants Composed of customers who have experience using

your product. Customers chat online and exchange personal

experiences, disseminate news through bulletin boards, and comment on products, services, and even marketing activities (investment communities).

reputation management product and service support users’ hidden behaviors (understanding wants and

needs).

Page 9: Communities of Consumers and Producers Implications for Marketers

User content collaboration innovation community

Customer as collaborator a model of a volunteer community of

collective creation through networks. Members don’t have to be tech-savvy

Netscape’s open directory Or Yahoo’s http://slashdot.org/

Page 10: Communities of Consumers and Producers Implications for Marketers

User development community

Customer as collaborator Allow users to customize your

product/service Allows for the development of

supplementary products by others (e.g., PalmPilot’s software community).

Page 11: Communities of Consumers and Producers Implications for Marketers

User product collaboration innovation community

Not much known about these groups yet.

Difficult to say how this community format may affect company.

Mozilla, Linux

Page 12: Communities of Consumers and Producers Implications for Marketers

What community is possible and useful for

Apple computer iPod Paper manufacturer Home improvement retailer Hotel chain One of your own choosing

Page 13: Communities of Consumers and Producers Implications for Marketers

Goldcorp

Go to course website

Page 14: Communities of Consumers and Producers Implications for Marketers

Brand Community A brand may pass through several stages before it reaches the

COMMUNITY STAGE. the classic Unique Selling Proposition (USP stage) where we find Hyundai.

Emotional Selling Proposition (ESP) which Coke and Pepsi are working with.

Organizational Selling Proposition (OSP) where he places Nike.

Brand Selling Proposition (BSP) such as Harry Potter, Pokamon, and Teenage Mutant Ninja Turtles. Product pretty irrelevant. Ex.: seven Harry Potter books have been published to date, yet over 3,000 related products have been released!

“Me Selling Proposition” (MSP) is the pinnacle of brand-building success. At this altitude, consumers assume ownership of the brand and do most of the communication work for you as part of the community.

Page 15: Communities of Consumers and Producers Implications for Marketers

Fournier on brand community

Business strategy Exists to serve the people in it Strong community = strong brand Embrace conflict Mass participation (not opinion leaders) Online networks just one tool, not a

community strategy If done well, it can’t be controlled