STHM 1113 Lecture Notes - Lecture 7: Hang Gliding, Location, Location, Location, The Experience Economy
6 May 2018
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• Law of Supply and Demand
o the state here as supply ireases the prie ill ted to drop or ie ersa, ad
as dead ireases the prie ill ted to irease or ie ersa.
o Point of equilibrium in the middle where supply = demand and markets are
effecient
o Its Alive! Ad the it Ist
▪ Produt Life Cle
• Intro, growth, peak, plateau – leads to adequate base
▪ No product has unlimited growth – o straight lie foreasts
• About knowing will it last…or just a fad
• Ex. Cross Fit
• Is it a Fad?
• What is the long-term market?
o Location and Seasonality
▪ Location, location, location!
• A good oept i the rog plae is liale to fail
• How about a ski shop in downtown Philadelphia??? Good or bad
idea?
• Where is your target market located?
▪ Seasonality
• Are you operating year around or just part of the year?
• Sports teams, ski mountains, Jersey shore establishments,
wedding planning
• Peaks and valleys in demand
o Leisure Markets are Weird
▪ The 80/20 Rule
• Not a lot of constant leisure participation
• Only 20-25% consistently
• 20% of market provide 80% of participants
▪ “peialized ad Nihe Markets
• ½% of 1% Rule
• Success from a small amount of users – highly devoted and
specialized
• Possible growth areas
o Get Good Data, from which to make decisions
▪ Trend data
▪ Demographic numbers – millennials, Gen Xers, baby boomers?
▪ Bureau of Labor Statistics
▪ Where is the $$$?
▪ Competing (or substitute) markets.
▪ Scrutinize data and be skeptical (depends on who is providing)
o Quality & Experience Matters
▪ Will you return?
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