business model marketing

bmm, an

advanced course

goal -to recognize new business models -to discover new marketing tools -to learn more about the industry -to create a holistic view -to fire up entrepreneurship -to stimulate creativity -to cooperate -to inspire

me? -John Verhoeven, 33 -dutch -lecturer marketing & branding -development group CE IEMES -researcher lectureship -freelance marketing advisor -freelance tour manager -musician

and you? -name? -background? -expectations?

hello, is there somebody out there? -J.Verhoeven@fontys.nl -room 1.02 -ma, di, do -0031 6-57 31 21 14

today introduction, definitions, the goal, getting to know each other, planning, het importance ad relevance, looking at business models, searching for business mode l s , c h a ng i n g mar ke t s , changing people

TO INSPIRE

L  

changing the rules of the game…

and changing the game…

but.. has this game got rules anyway?…

When you thought that marketing is about numbers and rational

decisions…

It is not!

marketing is NOT an exact science

Marketing is looking around you and learning from the successes and

mistakes of others and of yourself!

overview advanced course

-2: business model canvas (BMG 52 / 121)

-3: business model patterns (BMG 122 / 195)

-4: business model design (BMG 196 /261)

-5: business model strategy + process (BMG 262 /273 + presentation)

-6: business model presentations

about the book.. -Alexander Osterwalder & Yves Pigneur

-(@alexosterwalder) -5 chapters -1 method -lots of examples -real life!

you canʼt write about business model innovation without an innovative business model

“”

Osterwalder:

sharing knowledge.. -book ‘Business model generation’ -businessmodelmarketing.wordpress.com -facebook page -slides/articles/background info/movies

DIY.. -exercise “act different” -go through the business model design process -stay within the creative industry -pick an existing organisation -or come up with a new organisation -you will create a total business plan -making use of several BMG figures -working in groups -exercise = 50% of your final grade -more info later

why this course?..

“…the present economical, ecological and technological changes are so big and also so fundamental, that you cannot deny that we

are in the middle of a system shift.

But now matter how you look at it, fact is that many structures are rapidly eroding.

Big organisations are busy looking for new

markets and alternative ways to keep existing markets profitable. And smaller organisations question themselves how to react on the fast changing environment..”

Source: Businessmodellen.. Houtgraaf en Bekkers

which leads to.. -”branding and brand activation” -”blue ocean strategy” -”the long tail” -”the experience economy” -”the challenge economy” -”the conversation manager” Lots of theories… But what does really happen?

business changes..

.. the traditional model.. Competitors: Sony, Microsoft Target group: hardcore-gamers Buying criteria: graphics, game quality and processor speed Average price: console: €400 game: € 88

Result: production of expensive

consoles, which are sold with a loss, earnings from their own game and

licences sold to third parties (e.g. EA-games)

.. the traditional model.. New game consoleà

attracting game playersà attract new game developers à

offer of games à attractiveness of console increases à

attracting game playersà etc.

Result: heavy competition and Nintendo almost bankrupt

.. the Wii-model.. Target group: very big group casual gamers Buying criteria: fun, simple, family Average price: console €135 game €30 Competitors: ? Result: production of cheap consoles, selling consoles with profit, also earnings from their own games and and licences sold to third parties

“…Wii doesn’t intend to be a best-of-breed videogame console. Nintendo is trying to bring non core gamers back to gaming with the Wii. Wii won’t equal video game but Wii aims at meaning fun. N i n t e n d o f o c u s e s o n t h e consumer’s feeling rather than its product…” (source: Nintendo)

organisations change, because business models

change..

totally new organisations

emerge ..

a group coupon “…Groupon negotiates huge discounts—usually 50-90% off—with popular businesses. We send the deals to thousands of subscribers in our free daily email, and we send the businesses a ton of new customers. That's the Groupon magic…”

L  

but how does it work?..

free music? “..Spotify launched in Europe three years ago, and in the U.S. this past August. The basic idea behind the company isn't brand new. Music streaming services — sites where you pay a monthly fee for access to zillions of songs — have been around for a decade. But they've never broken through to a mass market..”

L  

how does it work?..

how does it work?..

and what about the artists?

“..ondanks de vele fans zijn er ook mensen die minder blij zijn met Spotify. Spotify zou namelijk weinig per stream uitbetalen aan platenmaatschappijen en artiesten. De precieze cijfers zijn niet bekend, maar naar schatting krijgen de maatschappijen voor het afluisteren van een nummer via Spotify maar een duizendste van wat ze krijgen als iemand een nummer downloadt via iTunes.

Woordvoerder Butcher wil niet praten over geld. Niet over hoeveel geld het bedrijf verdient aan abonnementen en advertenties, noch over wat het de platenmaatschappijen betaalt. "We hebben ze sinds de start meer dan honderd miljoen betaald, dat is alles wat ik zeg."

Hoeveel het ook is, artiesten als Adele, Coldplay en The Black Keys, vinden het te weinig. Zij gaven aan hun muziek niet meer te willen delen. In november trok ook het Britse ST Holdings 238 labels terug van Spotify. Volgens de platenmaatschappij zou het 'de verdiensten van traditionele digitale diensten (iTunes, red.) kannibaliseren..”

new organisations with totally new business models

emerge

looking for the ‘five’! “..leave this room and start

searching for five (new) organisations with a totally new

business model..”

“..try to find out how these organisations earn their money and in which way they can distinguish

themselves from other competitors..”

“..make a drawing of the business model (like the spotify example)..”

definitions.. -  Earning model -  Business model - Organisation model -  Selling model -  Publishing model -  Advertising model (zie boek Interactieve marketing)

-  Branding model (zie boek Interactieve marketing)

new business models..

-  In every part of the world -  In every industry -  In big and small organisations -  Profit and non-profit -  Totally new business models are created

- With a totally new shape or -  By simply altering the current model

huh? “.. the definitions in management science confuse entrepreneurs

and marketeers.

How often don’t we use the definition ‘business model’, hoping

our listener understands us..”

Source: Business modellen, focus en samenhang in organisaties, D. Houtgraaf en M. Bekkers

so what is a business model exactly?

revenue generation?

“..a business model makes clear how an organisation generates its

revenues in order to survive..”

Bron: Interactieve marketing, H. Janssen, M. Van Reijsen & T. Zweers

but also.. -distribution model: how does the organisation deliver the product? -(co-) creation model: how do the products originate? -user model: what about the power of the customers?

Business    models  

Earning    model  

Subscrip5on  model  

Bait  and  hook  model  

Freemium    model  

Package    deal  

Service  model  

Adver5sing  model  

Auc5on  based  model  

Brokerage  model  

Yield    management  

Long  tail    model  

Unbundling  models  

Insurance  model  

Distribu5on  models  

Tupperware    model  

Online  sales  model  

Clicks  &  bricks  model  

Franchise    model  

Labeling  model  

Mul5-­‐channel  model  

Affiliate  model  

(Co-­‐)crea5on  models  

Mass  customiza5on  

Open  source  model  

User-­‐generated  content  

Open  business  model  

User  models  

Mass-­‐effect  model  

Community    model  

Mul5-­‐sided    plaNorm  

Bronnen:  Interac5eve  marke5ng,  Business-­‐modellen,  Business  model  genera5on  

act different.. Exercise: -in groups -deadline January 11th -businessplan -a new or existing organisation -making use of the models from ‘BMG’ -exercise = 50% of final grade -read the hand-out thoroughly

homework.. Literature/theory/background -study today’s slides Act different: -read the hand-out -pick your industry and search for articles about trends that may lead to opportunities and threats (1 a4 + min. 3 articles)

till next week! (9 o’clock)