1. Communities of Consumers and Producers Implications for Marketers

2. User Innovation Community  user-community in which information, assistance, and innovations are freely shared. Open source communities (Apache, Linux, Apple) Apple Innovation communities: InnoCentive, Kitesurfing Kitesurfing Open source hacker communities (Apple)Apple Brand communities (Coca Cola, Harley Davidson, LEGO, or Barbie)

3. 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

4. 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?

5. 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

6. 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.

7. 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.

8. 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).

9. 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/http://slashdot.org/

10. 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).

11. User product collaboration innovation community  Not much known about these groups yet.  Difficult to say how this community format may affect company.  Mozilla, Linux

12. What community is possible and useful for  Apple computer  iPod  Paper manufacturer  Home improvement retailer  Hotel chain  One of your own choosing

13. Goldcorp  Go to course website

14. 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.

15. 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