1. business model
marketing

2. bmm,
an
advanced
course

3. goal
-to recognize new business models
-to discover new marketing tools
-to learn more about the industry
-to create a holistic view
-to fire up entrepreneurship
-to stimulate creativity
-to cooperate
-to inspire

4. me?
-John Verhoeven, 33
-dutch
-lecturer marketing & branding
-development group CE IEMES
-researcher lectureship
-freelance marketing advisor
-freelance tour manager
-musician

5. and you?
-name?
-background?
-expectations?

6. hello, is there
somebody out there?
-J.Verhoeven@fontys.nl
-room 1.02
-ma, di, do
-0031 6-57 31 21 14

7. today
introduction, definitions, the goal,
getting to know each other,
p l a n n i n g , h e t i m po r t a n c e a d
relevance, looking at business
models, searching for business
models, changing markets,
changing people

8. TO INSPIRE
L

9. changing the rules of the
game…

12. and changing the game…

16. but.. has this game got rules
anyway?…

18. When you thought that marketing is
about numbers and rational
decisions…
It is not!
marketing is NOT
an exact science

19. Marketing is looking
around you and learning
from the successes and
mistakes of others
and of yourself!

20. overview advanced course
-2: business model canvas
(BMG 52 / 121)
-3: business model patterns
(BMG 122 / 195)
-4: business model design
(BMG 196 /261)
-5: business model strategy + process
(BMG 262 /273 + presentation)
-6: business model presentations

22. about the book..
-Alexander Osterwalder
& Yves Pigneur
-(@alexosterwalder)
-5 chapters
-1 method
-lots of examples
-real life!

27. Osterwalder:
“ you canʼt write about
business model innovation
without an innovative
business model
”

28. sharing knowledge..
-book ‘Business model generation’
-businessmodelmarketing.wordpress.com
-facebook page
-slides/articles/background info/movies

30. DIY..
-exercise “act different”
-go through the business model design
process
-stay within the creative industry
-pick an existing organisation
-or come up with a new organisation
-you will create a total business plan
-making use of several BMG figures
-working in groups
-exercise = 50% of your final grade
-more info later

31. why this
course?..

32. “…the present economical, ecological and
technological changes are so big and also so
fundamental, that you cannot deny that we
are in the middle of a system shift.
But now matter how you look at it, fact is
that many structures are rapidly eroding.
Big organisations are busy looking for new
markets and alternative ways to keep
existing markets profitable. And smaller
organisations question themselves how to
react on the fast changing environment..”
Source: Businessmodellen.. Houtgraaf en Bekkers

33. which leads to..
-”branding and brand activation”
-”blue ocean strategy”
-”the long tail”
-”the experience economy”
-”the challenge economy”
-”the conversation manager”
Lots of theories…
But what does really happen?

34. business
changes..

37. .. the traditional model..
Competitors: Sony, Microsoft
Target group: hardcore-gamers
Buying criteria: graphics, game quality and
processor speed
Average price: console: €400 game: € 88
Result: production of expensive
consoles, which are sold with a loss,
earnings from their own game and
licences sold to third parties
(e.g. EA-games)

38. .. the traditional model..
New game consoleà
attracting game playersà
attract new game developers à
offer of games à
attractiveness of console increases à
attracting game playersà
etc.
Result: heavy competition and
Nintendo almost bankrupt

40. .. the Wii-model..
Target group: very big group casual gamers
Buying criteria: fun, simple, family
Average price: console €135 game €30
Competitors: ?
Result: production of cheap consoles, selling
consoles with profit, also earnings from
their own games and and licences sold to
third parties

41. “…Wii doesn’t intend to be a
best-of-breed videogame console.
Nintendo is trying to bring non
core gamers back to gaming with
the Wii. Wii won’t equal video
game but Wii aims at meaning fun.
Nintendo focuses on the
consumer’s feeling rather than
its product…” (source: Nintendo)

42. organisations
change, because
business models
change..

43. totally new
organisations
emerge ..

45. a group coupon
“…Groupon negotiates huge
discounts—usually 50-90% off—with
popular businesses. We send the
deals to thousands of subscribers
in our free daily email, and we
send the businesses a ton of new
customers. That's the Groupon
magic…”
L

47. but how does it work?..

50. free music?
“..Spotify launched in Europe three
years ago, and in the U.S. this past
August. The basic idea behind the
company isn't brand new. Music
streaming services — sites where
you pay a monthly fee for access to
zillions of songs — have been around
for a decade. But they've never
broken through to a mass market..”
L

52. how does it work?..

53. how does it work?..

54. and what about the artists?
“..ondanks de vele fans zijn er ook mensen die minder blij zijn met
Spotify. Spotify zou namelijk weinig per stream uitbetalen aan
platenmaatschappijen en artiesten. De precieze cijfers zijn niet
bekend, maar naar schatting krijgen de maatschappijen voor het
afluisteren van een nummer via Spotify maar een duizendste van
wat ze krijgen als iemand een nummer downloadt via iTunes.
Woordvoerder Butcher wil niet praten over geld. Niet over
hoeveel geld het bedrijf verdient aan abonnementen en
advertenties, noch over wat het de platenmaatschappijen
betaalt. "We hebben ze sinds de start meer dan honderd miljoen
betaald, dat is alles wat ik zeg."
Hoeveel het ook is, artiesten als Adele, Coldplay en The Black
Keys, vinden het te weinig. Zij gaven aan hun muziek niet meer te
willen delen. In november trok ook het Britse ST Holdings 238
labels terug van Spotify. Volgens de platenmaatschappij zou het
'de verdiensten van traditionele digitale diensten (iTunes, red.)
kannibaliseren..”

55. new organisations
with totally new
business models
emerge

56. looking for the ‘five’!
“..leave this room and start
searching for five (new)
organisations with a totally new
business model..”
“..try to find out how these
organisations earn their money and
in which way they can distinguish
themselves from other competitors..”
“..make a drawing of the business
model (like the spotify example)..”

57. definitions..
- Earning model
- Business model
- Organisation model
- Selling model
- Publishing model
- Advertising model (zie boek Interactieve marketing)
- Branding model (zie boek Interactieve marketing)

58. new
business models..
- In every part of the world
- In every industry
- In big and small organisations
- Profit and non-profit
- Totally new business models are
created
- With a totally new shape or
- By simply altering the current model

59. huh?
“.. the definitions in management
science confuse entrepreneurs
and marketeers.
How often don’t we use the
definition ‘business model’, hoping
our listener understands us..”
Source: Business modellen, focus en samenhang in organisaties, D. Houtgraaf en
M. Bekkers

61. so what is a business
model exactly?

62. revenue generation?
“..a business model makes clear
how an organisation generates its
revenues in order to survive..”
Bron: Interactieve marketing, H. Janssen, M. Van Reijsen & T. Zweers

63. but also..
-distribution model: how does the
organisation deliver the product?
-(co-) creation model: how do the
products originate?
-user model: what about the power
of the customers?

64. Business
models
Earning
Distribu5on
(Co-­‐)crea5on
User
model
models
models
models
Subscrip5on
Bait
and
hook
Tupperware
Online
sales
Mass
Mass-­‐effect
model
model
model
model
customiza5on
model
Freemium
Package
Clicks
&
bricks
Franchise
Open
source
Community
model
deal
model
model
model
model
Service
Adver5sing
Labeling
Mul5-­‐channel
User-­‐generated
Mul5-­‐sided
model
model
model
model
content
plaNorm
Auc5on
based
Brokerage
Affiliate
Open
business
model
model
model
model
Yield
Long
tail
management
model
Unbundling
Insurance
Bronnen:
Interac5eve
marke5ng,
Business-­‐
models
model
modellen,
Business
model
genera5on

65. act different..
Exercise:
-in groups
-deadline January 11th
-businessplan
-a new or existing organisation
-making use of the models from ‘BMG’
-exercise = 50% of final grade
-read the hand-out thoroughly

66. homework..
Literature/theory/background
-study today’s slides
Act different:
-read the hand-out
-pick your industry and search for
articles about trends that may
lead to opportunities and threats
(1 a4 + min. 3 articles)

67. till next week!
(9 o’clock)