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The miracle of the ’Long-Tail Strategy’. When does this strategy-approach makes sense?
Topic: The miracle of the’ Long-Tail Strategy’When does this strategy-approach makes sense?
Index
- Title Page………………………………………………... 1
- Index…….. …………………………………………...…. 2
- What is the Long Tail Strategy?..... ……………..……... 3
- Long Tail Strategy Advantages…………....................... 6
- Long Tail Strategy Advantages for Customers ……….. 7
- Long Tail Disadvantages …….……………......................8
- Before the Introduction of Long Tail……………...….....8
- The Future of the Long Tail Strategy …………...………9
- Short Tail and Long Tail….…………...…….…….……..9
- Which is advantageous strategy?.....................................11
- Goals ………………………………………………….….11
- Benefits…………………….....…………………………..12
- Example of Long Tail Business...…………………….…12
- Long Tail Concept Most Important Points…………….13
- Long Tail Strategy 3 Rule……………………………….14
- Conclusion…………………………………………….…14
- Websites……………………………………………….…15
What is the Long –Tail Strategy?
Long tail is a retailing concept. Wired magazine chief editor Chris Anderson ,for the entertainment industry and electronics "Long Tail" theory was put forward. This theory was first in 2004 by Chris Anderson in Wired magazine was published. Anderson held editorial positions in Hong Kong,London, and New York with The Economist; he’s also held positions at Science and Nature magazines. Educated in physics, Anderson has also done research at Los Alamos National Laboratory. After Chris wrote a book about this theory. This book says that there are significant changes in the demands of consumers and the people, turning to products that will meet the needs of unpopular.As an example, let the amazon.co 's shows us. I agree with this at Barnes and Noble Amazon's what makes it different from Netflix, Blockbuster's definitely Long Tail. According to this theory, thousands of kinds of products will be offered. Each product has a wide variety.This is a problem.Because,You do not keep all of these products in the shop. Amazon is first company to use this strategy. Amazon.com is an American internationalelectronic commercecompany with headquarters inSeattle,Washington, United States. It is theworld's largestonline retailer.Amazon.com started as an onlinebookstore, but soondiversified,sellingDVDs,VHSs,CDs,videoandMP3downloads/streaming,software,video games,electronics, apparel, furniture, food, toys, and jewelry. The company also producesconsumer electronics—notably theAmazon Kindlee-book readerand theKindle Firetablet computer—and is a major provider ofcloud computingservices.
Jeff Bezosincorporated the company (as Cadabra) in July 1994 and the site went online as Amazon.com in 1995. The company was renamed after theAmazon River, one of the largest rivers in the world,which in turn was named after theAmazons, the legendary nation of female warriors inGreek mythology.
Amazon has separate retail websites for United States, United Kingdom, France, Canada, Germany, Italy, Spain, Australia, Brazil, Japan, China, India and Mexico, with international shipping to certain other countries for some of its products.In 2011, it had professed an intention to launch its websites in Poland, Netherlands, and Sweden, as well.An Austrian website operates as part of the German website.
Amazon.com and other Internet retailers sell nearly all of the more than 3 million books in print. However, a typical brick and mortar store only stocks between 40,000 and 100,000 unique titles. One might argue that consumers don’t really care about the remaining 2.9 million book titles. However, the data paint a different picture. We analyzed Amazon’s sales patterns and found that 30-40 % of sales are in books that wouldn’t normally be found in a brick-and-mortar store (See “Share of Amazon Sales Above Rank 100,000”).Moreover, we found that the consumer surplus created by providing access to these relatively obscure book titles exceeds one billion dollars annually..Amazon is first company to use this strategy.Amazon offered all kinds of books to customers on the Internet. It was a very profitable business model. Amazon has grown very quickly in a short time. Amazon does not just sell boks, In addition to selling millions of products in many different sectors at the moment.
For example ; there is a book that appeals to the dentist and dentist wants to buy this book. Of course less demand for this book.But, Amazon is able to sell all over the country. Amazon has very high profit from this demand. In fact century's most successful marketing strategy is Amazon's marketing strategy. When Amazon established this marketing strategy,It did not have competitive. Many companies are using this strategy in Turkey.This strategy will be too costly to implement for new firms to enter the sector. Amazon has high profits and rapid growth , because ıt had a new marketing strategy.In addittion, Each product has a specific customer groups.
1)Product Variety
Product Variety at a serious percent share of sales of niche products is very important for grabs .Britannica's 80,000 articles in several languages ​​3.5 million against the wikipedia contains explanatory material .More than any music store , iTunes or TTNET Music album and singing can be found on site .Such as golf, horse riding or a magazine about the niche you're looking for a classic rather than a magazine stand as emecmu would recommend you to look at digital media .
Of course ensure that this diversity but if you offer products at low cost can be realized . To add a new article for Britannica ; content creation, printing , broadcasting and brings costs , but these costs are close to zero for wikipedia . Users create content and controls , inventory and distribution costs are very low. R & D in "hit" rate of sales of the album in digital media is higher than any similar platform . Because R & D movies devotes to the shelf cost digital media than in the higher ( for a DVD annually about $ 20 ) digital media in the inventory cost per unit is close to zero , therefore, "hits " s and "niche" s to access the same path is followed. Queen fan someone ( eg me ) very old and easy to obtain non- "A Day At The Races" album or " Sail Away Sweet Sister" song at each store may not find it but this album and the songs find over the internet is much easier , therefore niche market for sale these platforms at share is more .
"Or " instead of " and" s consider : Products for a long time the only options ( color, version , language, etc. . ) Is not available . Yet, the famine, the product has the options of the show as an alternative . iPhone products are offered as a single color , but color of complementary products and by -shaped casing of the phone multiple media , by the clothes lovers the chance to use and not a few of those who spend the money for it . Now the DVDs in different languages, sound system has options for viewers under a certain age even longer censored versioning of certain scenes even able to see alternative finite DVDs . Your product can be personalized , flexible and low cost way to design the product you serious profits from the sale of complementary products as well as to enrich , to follow trends better and more will allow you to gain the loyalty of your customers
2)Try to reach everyone.
Radios in cars, the internet, Digiturk, D-Smart, as satellite receivers, iPhone applications, iTunes, Keeping the rest of the distribution channel targeted at niche products is the best way to reach your customers.
Different products, or purchasing the same product in different formats (wholesale, retail, tally registered letter, etc.). Applying different rates per can cater to more customers. Niche products by reducing prices and high tail can keep longer. Of course, the cost of each product one way or another we must not forget the fact that
3) Create new requests Make redirect .
First of all we have provided the digital environment friendly and multi- categorization must adapt our products accurately and clearly . When you go to a D & R stores DVDs , opportunity products , romantic comedy, action, documentary , thriller , etc. . has been categorized as one can find them . But the opportunities in products , starring Tom Hanks romantic comedies, if you want to find is you need to spend quite a time . Each criterion combined queries Ability to make the classic media do on how hard the digital platforms at the make it as easy and efficient multiple categories, and choose products Imjin new users niche products to direct an essential functionality is . So how this type can lower the cost of providing access ? "Let 's work makes customers get " milliyet news for the required keywords users girdirerek access is easy , also customers' products on the evaluation, most popular products, product X that examines customers viewed other products keeping track products in terms of linking and categorization can use.
Only categories could not be questioned together , the number of categories and sub- categories can be increased much more in the digital environment . In any bookstore for books about 20 - 30 but idefix.com.t category you can find it on a number of topics that just is close to 200 . Meanwhile, publishers , authors , new releases , bestsellers , recommended that the editor , e-books, you will find categories such as groups ( the word you want to search from the independent category , not to mention you will ) . When viewing a book , of course , hints of similar books , this book examines those who viewed and purchased other books hits you as you not only features all the products that lead to increases in the share of niche markets .
To ensure profits in the long tail than one third of these three substances are supposed to provide . Failure to provide fairness even with a substance from a serious income you can and can preempt the investment you make in Article 2 . This case as an example of Migros' virtual store when I saw the long tail strategy appropriate access channels encountered pleased to hear , but product inventory your location as close to just one store's inventory is limited to seeing that dream was disappointed . Personally closer to my house while two more distant Migros grocery store just received the products in a store's inventory will not be able to access a variety of products for both speed and negative factors . This long tail strategy I mentioned above, 2 ( customers access channel diversity) and 3 ( access to products provided for convenience ) agents fulfill Although Article 1 ( " product diversity " ) in need of improvement points that show . As a result, to be loved and provide ease of use , although this application on my phone to order t use my old thrown for this application is no more than an investment .This Article is actually you market your application will allow you to see more clearly the message . A wide audience , a wide range of products (or version) If opening . To track the movement of the market do not need a very high IQ . They would not apply in cases in which the purchase of products " estimate" case to stay .Use the power of free ... Especially popular in digital world and the business model that works ; providing free basic services attract many users and more useful features for a fee to provide a portion of these users . Skype works in this way , many games sold on the apple store ( like angry birds ) and you'll find the lite version of the application . In the digital world and provide product storage costs are so low that the free version of this product at a very low percentage of those who try to buy your product, even if you can profit .Of course , and only focus on niche products is not very correct strategy . Capacity to create and attract customers "hits " s investment to be made should not be cut . Both " hits" as well as " niche" s should be marketed at the right rate . Hit pull them into your shop with the preferences of the people you will find in or create an environment where everyone will be happy that you have at most grocery stores ..
The Long Tail of Keywords
Money,make Money,make money online,make money from home filling out surveys,make money online with a membership site for photographers,make money online selling t-shirts and make money online publising ebooks for kis.
Long Tail Strategy Advantages
Maybe less demand
Monopolistic
Has specific customer group
Many types of products
Customer satisfaction
Profit
Lower competition
More specific
New customers
Customer’s preferences and behaviours
High demand
Nich marketing
Increases target market
More products on offer to customers
Long Tail Strategy Advantages for Customers
New versions
Complements
Special edition
Long Tail Disadvantages
Risk
Maybe less demand
High costly
Less profit
Limited customers
You may not sell your products in short time
Slow consumption
Before the Introduction of Long Tail
An intensive search for one- size –fits- all products
Companies trying to predict demand for their goods
Products that don’t sell immediately getting pulled quickly
A limited range of popular products being available
The Future of the Long Tail Strategy
Always think in terms of abundance,not scarcity
Blockbusters will stil come along,they are here tos tay
The niche revolution will reach every industry
Long Tail Strategy:According to this theory, thousands of kinds of products will be offered.
Short Tail Strategy:According to this theory,best selling products will be offered
Long Tail Strategy:has various customer segments.
Short Tail Strategy:has limited customer segments
Long Tail Strategy:High risk
Short Tail Strategy:Low risk
Long Tail Strategy:wants to provide all customer’s satisfaction
Short Tail Strategy:wants to provide own satisfaction and profit
Long Tail Strategy:High cost
Short Tail Strategy:Low costly
Long Tail Strategy:Difficult
Short Tail Strategy:Easy
Long Tail Strategy: should have a large warehouses
Short Tail Strategy:enough small warehouse
Long Tail Strategy: people buy products in a long time
Short Tail Strategy: people buy products in a short time Long Tail Strategy:focusing on a large number of products Short Tail Strategy:focusing on a limited number of products Long Tail Strategy:Low volume
Short Tail Strategy:Large volume Long Tail Strategy: generally on the Internet Short Tail Strategy: on not the Internet Long Tail Strategy: changing revenue Short Tail Strategy: fixed revenue
Which is advantageous strategy?
If you want to be a good supervisior,you want to select long tail strategy.Because, Everything is not money.The most important of all customer satisfaction and important to have all kinds of products in market. If you want to succeed, You should have risk ın sector.
GOALS in Long Tail Strategy
setting the right price,
gaining market share,
displacing an established technology
finally, becoming ubiquitous.
The Benefits of the Long Tail
Adds more diversity to our marketplace
Reduces the issue of Economics of scarcity
Deters us from a ‘Hit’ driven economy
Examples of long tail business
Netflix
Amazon
iTunes
Long Tail Concept Most Important Points
Make everything available
Help the customer find it
Make as much as possible available to as many people as possible
Help them to locate what they need,quickly and easily
Customize supply chain in terms of niche markets
Maximize its efficiencies and economies
Long Tail Strategy 3 Rule
keep varieties
reduce prices
helped me
Conclusion
There is a customer of each product.But right time and right customer is very important for sell.
According to this theory, thousands of kinds of products will be offered.
Customer satisfaction is very important for management
The development of information communication technologies, variegation of media tools, and in accordance the global economy, has affected the process of marketing and it has become inevitable that developments should be adjusted to by the new entrepreneurs. It has become easier for companies to reach target markets or their products to be recognized by means of the digitized communication platforms. Thanks to the internet, one of the most important actors of media technologies, the companies’ potential for reaching existing customers has varied compared to traditional tools. Marketing strategies used have changed greatly by the aforementioned variation. One of the concepts seen as a small caliber revolution and that is raised by the advancements in communication technologies is the “Long Tail” concept.
The concept of long tail invented by Chris Anderson at the end of the 80’s and which is having new areas of application recently, basically expresses the exceeding sale of the many varieties of items over the sale of a favorite item. This is a case where people who deal with trade come across often in reality. Thinking of high trafficked trade environments, this case makes up the statistical range known as the “Long Tail”.
The long tail pattern which can find easy access to every aspect of life and communication has created for itself a brand new life area specifically by the evolution of internet and communication tools and has emerged as a marketing strategy.
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