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:

Outside the cost system of the product

No.	SIC	Year	Note
1	3500	2003	The Stitch and Wirca systems let vending companies track sales per machine. Stitch may have a small lead over Wirca as it has been in talks with Coca-Cola.
2	3571	2000	The Mac OS X contains a new service called the iDisk. It provides every Mac user with 20 megabytes of free data-storage space on the company's servers giving the user a place to build online archives of digital photos, documents, and digital film clips.
3	3571	2004	Blade servers are super thin devices that plug into a larger chassis framework, optimizing space and power.
4	3572	2003	EMC built a new industry by selling added data-storage capacity to big customers of IBM and others in the 1990s, allowing them to safeguard their digital files in refrigerator-sized cabinets.
5	3661	2000	Videoconferencing is becoming popular with a lot of organizations as the Net can't yet handle the amounts of data necessary for online conferencing. It does however, allow slides and documents to link to desktops during audio conferences.
6	3661	2003	Polycom is working on making conferencing products easier to use, and that may help raise the overall adoption rate of conferencing technology. A more dispersed work force suggests a greater need for all kinds of at-a-distance conferencing.
7	3669	2003	With such gear as the IP phone, companies promise, corporate network users can conduct instant desktop video-conferencing sessions, turn their laptops into portable offices, or surf scaled-down Web pages on phones with displays.
8	3674	2005	For Texas Instruments, shifting to China would be expensive. Although salaries in China are cheaper, the workforce in Baguio is more highly educated. TI pays overtime wages for customs officials to ensure that shipments can be quickly flown out late at night or on weekends from former US military bases. "We've organized our logistics in such a way that we can cut a lot of red tape." As a result, TI is able to turn around shipments faster than several of the company's other facilities in Asia.
9	4221	2001	With its large concrete silos and high-speed loading gear, Alton can fill a mile-long train of about 110 cars, with grain in 15 hours or less. By contrast, a traditional grain elevator would load about half that number of cars or fewer.
10	4522	2001	The newest trend in air travel is fractional private jet ownership, where customers purchase a share of a jet for a reduced-but still quite high-price. For example, the 18-passenger Boeing jet equipped with two bedrooms, three bathrooms and two showers, can fly long intercontinental flights nonstop It is available for $6.1 million for 100 hours plus a monthly management charge of $41,000 and $4,360 an hour.
11	4522	2001	Executive Jet's NetJets fractional private jet ownership program has over 2,500 customers, all of whom have guaranteed availability 365 days a year with as little as four hours advanced notice. NetJets owns and operates about four aircraft of each model, as well as chartering other companies' planes during peak holiday times, just for safe measure.
12	4800	2003	Polycom and other video-confrencees are branching into desktop and Web conferencing, where groups can meet via their PCs and online connections.
13	6141	2005	Discover plans to test an apartment-industry specific money-management system that allows renters as well as landlords and property managers to keep better track of rent-related expenses. PropertyBridge and Visa recently announced a collaborative effort that promises landlords and apartment managers integrated data reporting and reduced overall account administration.
14	7372	2004	Spending is up for product lifestyle software. Originally used to help make techie or complex products such as cars, jets and cell phones, the product is now growing fast among companies that manufacture consumer goods, drugs and clothes. Companies such as J. Crew, Procter & Gamble and GE Plastics have all increased spending on product lifestyle software. Companies are using the software to cut costs and boost growth by developing better products. Product lifestyle software can cut the cost and time it takes to develop products by up to 80%, improve success rates and help meet regulations. The software can help improve communication and cooperation within a company.

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