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
Level of savings over the current product cost system

Medium-product saves 25% or less of current solution cost, including user time

No. SIC Year Note
1 4213 2004 Ford's reliance on UPS has cut the time it takes autos to arrive at dealer lots by 40%, to 10 days on average. That saves Ford millions in working capital each year and makes it easy for its 6,500 dealers to track down the models most in demand.
2 4813 2003 Vonage has managed to solve the DSL phone problem by providing a free device that lets customers choose the amount of bandwidth desired for their call. They can talk and still surf.
3 7372 2005 Software from UGS lets designers, execs, and other collaborate easily. The technology allows companies like P&G to handle 25% more art changes than before, with the same staff. UGS was spun off Electronic Data Systems in 2004. The company is now on track to surpass $1 billion in sales and $200 million in cash from operations this year. It is the leader in the fastest-growing segment of the corporate software market: product life-cycle management.

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