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
Multiple Costs- Segment saves multiple costs:

Inside the cost system of the product itself

No.	SIC	Year	Note
1	3571	2002	Neoware Systems, the No. 2 supplier of thin-client systems, is selling a bundled package of software and hardware that lets business customers deploy the devices. Neoware's systems run from $300 to $700 per seat, plus a $30-per-seat annual fee for software upgrades. The systems are dumb terminals on desktops that connect directly to a server. They can run on any system. The devices help customers save on administrative and hardware costs when compared with traditional PCs. Customers include Hollywood Entertainment Corp, Wal-Mart Stores and Circuit City Group. Neoware currently holds 30% of the market share, while market leader Wyse Technologies has 41%.
2	3577	2002	In offices and homes, Bluetooth, a short-range wireless technology, is being touted as a way to eliminate a cable between a PC and a printer. In an industrial setting, connectors on cables used in machinery can be very expensive, sometimes $100 in a clean-room environment for just one cable. One plant can have miles and miles of cable. So Bluetooth has huge potential for reducing costs and increasing efficiency.
3	3674	2001	Advance Micro Devices worked with partners to develop chipsets that enhanced performance and reduced the costs of other parts of the computer. The technology, called DDRAM, doubled the transfer speed of data and allowed AMD's Athlon processors to outperform Pentiums with higher speed ratings. Intel refused to build DDRAM chipsets, forcing many companies to switch to AMD. This move pushed AMD's market share to 20% from 13% in two years and gave them claim to the first PC microprocessor whose speed measured one gigahertz.
4	3731	2000	An unusual new ship that looks like a cross between a yacht and an aircraft carrier should be able to slice through ocean waves twice as quickly as typical container ships, even in the worst storms.
5	4213	2004	In a joint venture with the carmaker, UPS engineers, with input from Reynolds and other dealers redesigned Ford's entire North American delivery network, streamlining everything from the route cars take from the factory to how they're processed at the regional sorting hubs.
6	4724	2001	The study also found that online, companies can better enforce company travel policies and find money – saving air fares, car rentals and hotel rooms. In the slow economy, companies are clamping down on travel costs.
7	7041	2003	The latest twist in the vacation home industry offers access to million-dollar plus resort homes for an up-front membership fee that ranges from $150,000-$475,000 and annual dues from $8,000 to $17,500.
8	7372	2002	MSN 8 offers better and more innovations than AOL for the first time. It has photo editing, the Encarta digital encyclopedia, better parental controls, and junk e-mail filters.
9	7372	2004	Nintendo and Sega made it risky for their development partners to increase the variety of the games because of the high upfront investments to develop the software and load it onto expensive cartridges. Sony used commodity disks.
10	7372	2005	A few large companies have emerged to sell all the parts of a complete business software stack: applications, application servers, databases, and middleware. These stack vendors are Microsoft, IBM, SAP, and Oracle. Due to market uncertainty, it has become clear that size does matter for these companies as software buyers are demanding more functions, lower costs, and tighter integration.
11	7374	2000	In the 1960s, ASPs were called service bureaus and they did things like outsource payroll functions for large companies. Today, an ASP is any company that hosts, manages, and rents an application from a central location.
12	8062	2002	Tenet hospital saves money by creating a system that makes sure all the needed insurance data is collected from patients upfront, so there's a reduced chance that insurers won't pay Tenet's bills.

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