Topics in

Technology and Marketing

The Economic Backstory

The Manufacturing Story

Pre-Industrial Era< 1800

Industrial Revolution1800-2000

Flat World> 2000

Barriers to Entry

Production Capacity

Product Customization

Distribution Range

Worker Flexibility

Unit Price/Cost

The Information Age

Pre-Gutenberg Era

< 1450

Media Revolution1440-2000

Digital Revolution> 2000

Barriers to Entry

Production Capacity

Product Customization

Distribution Range

Worker Flexibility

Unit Price/Cost

Advantage Lilliputians

● Advantage shifts from Gulliver (big corporations) to the Lilliputians (individuals)

Corporations

(Then)

Corporations

(Now)

Individuals

(Then)

Individuals

(Now)

Resources ($$$)

Organization Size

Global Presence

Real World Example: Blendtec

http://budurl.com/RismanSocialMedia084http://www.willitblend.com/

Real World Example: Blendtec

● Most viral ad series ever - 138MM+ views

● Ad Agency?● In-house

● Production Cost● Video camera: < $250

● Editing software: $0

● Soundtrack: < $50

● Super Bowl XLV ad● $3MM for 30s

● Production Cost > $1MM

● Audience = 100MM / Views = ??? (< 100MM)

Real World Example: Lady Gaga● Social Media Empress (reputedly also a musician)

● 12MM+ fans on Facebook● 5MM+ followers on Twitter

● ‘Lady Gaga’ is searched 151MM times a month on Google

● 1 billion YouTube views● Last.fm’s most listened-to artist of 2009 with 18MM hits

● 6MM more than 2nd 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 (CwF) + Reasons to Buy (RtB) = The New Music Business Model

● Trent Reznor uses this model to earn millions while making fans happy.

● Connect with Fans (CwF)● A comprehensive website, with

forums, chat rooms and many other ways of interacting.

● A free iPhone 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 (RtB)● 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 Reznorhttp://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: $1.6MM● 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 (CwF) + (RtB)

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. 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

Questions?