Final Customer Purchasing from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

2. Emotional: Segment customers according to the personal emotional needs of the segment.

B. Needs to avoid sources of anxiety

3. Economic limitations: Segment customers according to the limitations set by their economic interests and concerns

Savings of potential product vs. current solution
Savings on customer building block costs
Capital costs- Segment saves capital costs:

Inside the cost system of the product itself

No.	SIC	Year	Note
1	3500	1987	With Pangborn plate descalers, one machine often cleans many shapes and sizes.
2	3571	1964	In April 1964, IBM introduced its System/360. That was the first computer system that let customers start small and build up without a total reinvestment in software and peripherals. After that came the minicomputer, the personal computer and the Internet. Now, technology is everywhere. The proliferation of handheld devices will also lead to a redesign of global communications networks. These handheld products are becoming the most prominent trend in the computing world. Next up, little embedded chips or sensor-based chips too small to see are expected to explode onto the technology scene.
3	3571	2004	Orion's founders went for the fastest chip they could find that would draw no more than eight watts of power to minimize heat, Transmeta's Efficeon. By comparison, Intel's fastest chip for desktop computers runs at 103 watts. Orion wanted to be able to run up to 96 processors off the same office socket. This was to avoid the system being housed in a computer room, which would require more space and a technical staff.
4	3572	1986	PA has improved the performance of optical-disk storage systems. It allows a laser of much lower power to record digital data, which trims the cost of the disk-drive system.
5	3575	1990	IBM & AST have pioneered a new design that makes it easy for customers to upgrade their machines with new microchips.
6	3575	1990	Apple's new operating system, System 7, is late coming out, mainly because of a delay in making it backwards compatible. System 7 helps Macs communicate with different kinds of computers.
7	3577	2001	3Com designed its switches with a circuit board module that can be easily upgraded to gigabit from lower speeds.
8	3600	2004	None of the Taiwanese LCD companies build finished TV sets, while their rivals in Korea and Japan have in-house customers for TV-size screens. Samsung not only produces television sets itself, but it is also providing them to Sony after the companies joined forces to build an LCD factory.
9	3663	2001	Bluetooth is inferior to its competitor, Wi-Fi for two reasons. Wi-Fi is ten times faster with ten times the range and it costs the same as Bluetooth.
10	3674	2003	Altera's creation, PLDs (programmable logic devices), caught on everywhere and are widespread today. PLDs can be reprogrammed after leaving the factory, which give them a clear advantage over traditional chips. PLDs are also ideal for the fast-changing technology.
11	3694	1987	Lasa has a new chip-making system that pares the turnaround time for prototype chips to an hour or less. The system is totally automated & doesn't need a clean room because it is self-contained.
12	4221	2001	By loading an entire 110-car grain train at a single facility such as Alton's the railroad can operate the train intact from origin to destination without the costs and delays of switching cars. The system leads to faster trips and more efficient use of fuel.
13	4899	2002	FHP has developed a way to broaden the deployment of 802.11 networks- the broadband wireless technology- and make it even more mobile. Companies, schools, and even consumers could soon establish 802.11 connections in places that don't have Ethernet cable connections.
14	7372	1990	Barrister bought most of Legal Eagle in order to offer software that runs on IBM machines.
15	7372	2004	VMware products divide the processing power of computer hardware into smaller pieces, so that several "virtual" computers can run side-by-side on a single machine. Four virtual machines on one larger computer server is usually cheaper than four servers and allows for use of more than one operating system. Virtual machines can also be created in minutes and accessed by users over a network or packed into a portable storage device to be reconstituted on other hardware.

<< Return to Use Steps