ES 212 Lecture Notes - Lecture 1: Ideo, Costco, Value Proposition
1 Feb 2017
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Total cost of ownership, relative to alternatives. Ex) swell water bottle keeps cold for hours: experiential. Ex) animal protection groups such as aspc, nordstrom: social. Offers benefits based on social relationships, network. Objective: buy food, supplies for long period of time. Costs: sales relieves pain of expensiveness; parking; long checkout lines; when something you"re looking for isn"t stocked. Customers value different things; firms have different target customers: costco. In and out easily, not long lines bc membership required to shop there. Customers: big families that can go through bulk food; businesses: walmart, whole foods, customer segmentation. Segmentation: group customers based on similar needs, 6 criteria (gupta): Personalized experience: ex) amazon customer segmentation. Track what customers look at; use this data to tailor advertisements. Empty chair represent customer at meetings. Ads and offers unique to customer: power of understanding customers. Reversal of funnel bill gurley; when want to buy something don"t go to google, go to amazon.
