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

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

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

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

5. Real World Example: Blendtec 5

6. 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

7. 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 7

8. 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

9. 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. 9

10. 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 10

11. 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) 11

12. 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, “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… 12

13. 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 13

14. Real World Example: The Hyrtl Simulacrum
Reconstructing a Past: Raising $8500 for a project 14

15. Real World Example: The Christmas Gift Card Miracle of 2010
Jenny Lawson writing as “The Bloggess”:
“I'll 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
post/2010/12/a_bloggess_miracle_blog_inspir.html 15

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

17. 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

18. Questions? 18