Technology and Marketing The Economic Backstory Topics in Technology and Marketing The Economic Backstory 1

The Manufacturing Story Pre-Industrial Era < 1800 Industrial Revolution 1800-2000 Flat World > 2000 Barriers to Entry Production Capacity Product Customization Distribution Range Worker Flexibility Unit Price/Cost                   2

                  The Information Age Pre-Gutenberg Era < 1450 Media Revolution 1450-2000 Digital Revolution > 2000 Barriers to Entry Production Capacity Product Customization Distribution Range Worker Flexibility Unit Price/Cost                   3

Advantage Lilliputians Advantage shifts from Gulliver (big corporations) to the Lilliputians (individuals) Corporations (Then) (Now) Individuals Resources ($$$) Organization Size Global Presence             4

Real World Example: Blendtec http://budurl.com/RismanSocialMedia084 http://www.willitblend.com/ 5

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) 6

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/ 7

Real World Example: Pomplamoose “The group has made no hard copies of its albums; no CDs have been printed. Nevertheless, they make their living on sales, having sold about 100,000 songs last year.” 8

Real World Example: Trent Reznor 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 9

Real World Example: Trent Reznor 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 = $300 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 10

Real World Example: Trent Reznor 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 11

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 12

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 13

Real World Example: The Hyrtl Simulacrum Reconstructing a Past: Raising $8500 for a project http://www.kickstarter.com/projects/1902733134/the-hyrtl-simulacrum-reconstructing-a-past 14

Real World Example: The Christmas Gift Card Miracle of 2010 Jenny Lawson writing as “The Bloggess”: “I'll email a $30 Amazon gift card to the first twenty people who leave a comment explaining why it would make a difference in their lives right now.” What started off as 20 $30 gift cards turned into $40,000 in donated gifts, all between strangers, all paired up on Lawson's spreadsheet One donor wound up paying someone's rent for the month A doll-store owner sent off seven dolls to seven little girls in need A man donated $1,000 for 10 different PayPal accounts, giving strangers $100 each http://voices.washingtonpost.com/blog- post/2010/12/a_bloggess_miracle_blog_inspir.html 15

Real World Example: Eben Pagan Begin at 8:05 “How To Turn What You Know Into Money.” 16

CwC + RtB = $$$ The Secret Formula CwC = Connect with Customers RtB = Reasons to Buy Looking for a business to build an internet marketing plan? Can you deliver on CwC + RtB? What would it look like? 17

Questions? 18