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
Purchase costs- Segment saves purchase costs:

Inside the cost system of the product itself

No. SIC Year Note
1 100 1987 Seeds of Tomorrow claims it has an affordable hybrid cotton. One variety matures 2-3 weeks faster than regular plants. Farmers pay more for the seeds, but save on irrigation & pesticide costs.
2 2821 2005 Westlake Chemical's Lake Charles plant is the first and largest of Westlake's 14 facilities. It's also one of the largest chemical complexes in the country. Westlake has a project in the works at Lake Charles that will let the plant switch from ethane, derived from natural gas, to naphtha, an oil product, depending on which commodity is cheaper.
3 3571 2001 IBM will step up competition with Sun Microsystems and Hewlett-Packard in the Unix operated server market. The market is dominated by Sun Microsystems. IBM introduced the Regatta, a server that utilizes the Power4 Microprocessor which features two processors on a single chip of silicon. The machines are priced between $450,000 and $1.8 million. These computers are geared for company databases, websites or for scientists and engineers for high-speed calculations. Because of the processing speed, a customer may be able to buy half as many software licenses as they would with an older machines, pleasing users but creating concern with software companies.
4 3575 2003 Analog Devices late last month unveiled its latest DSP, called Blackfin. It runs at up to 600 MHz and features low power use.
5 3577 1987 Hitachi introduced a color transfer printer that uses plain paper and low-cost ribbon to reduce the cost of each printed page.
6 3577 2001 3Com aligned itself with chipmaker Broadcom to make high-end cards. Features such as security and encryption can be built into cards so they won't drain the computing power.
7 3585 1988 Carnegie-Mellon developing air-conditioner for cars that is more environmentally safe. The units are expected to be more costly and larger than existing auto units, but are powered by heat given off by a car's engine which will increase gas mileage.
8 3651 2003 Microsoft's next video game-console, known currently as Xenon, is anticipated to use Power PC architecture, the same employed by some of IBM's servers and Apple Computer. Power PC, originally developed by Motorola, uses less electrical power to operate and generates less heat than Intel chips.
9 3674 2000 Transmeta Corp. is starting to battle chip giant Intel. Transmeta has designed software that goes right onto its chips. It says that makes for simpler designs that use less power and cost less. It's aimed at the portable PC market. It lets power usage float up or down, depending on the need. Basically, it reduces the amount of power used when a computer does easy tasks. That saves battery life on laptops. Intel offers a power-saving feature but it is manual.
10 3674 2001 AMD delivered the Athlon 4, a new version intended for notebook PCs and a mobile version of the Duron. Both are equipped with a battery-saving technology called Power Now-AMD's answer to Intel's SpeedStep, which is included in most mobile PCs.
11 3674 2003 Intel unveiled the first result of its new design focus on processor utility over raw speed as the Pentium M. It used less than one-third the power of earlier chips, and in tests, it performed calculations more quickly than many existing microprocessors with higher clock speeds.
12 3674 2003 Intel got a big boost from one of the first fruits of its new strategy: the Pentium M, a specially designed microprocessor for laptop computers. It's no speed demon, but it gobbles a lot less power than typical chips, giving portable computers a couple extra hours of battery life. Intel is whipping up demand with a huge advertising blitz for a combination of chips called Centrino, which includes the Pentium M plus wireless networking and other accessory chips.
13 3711 1999 Struggling with slimmer profit margins and overcapacity in the light-truck market, automakers are rushing to craft new strategies. Ford Motor is banking on sales from hybrids.
14 3799 2002 Despite sluggish spending, Thor Industries has no plans to exit the midsize bus business. In fact, the company is pushing ahead with new technology. It recently unveiled a 30-foot bus that's powered by fuel cells, the first of its kind in commercial service.
15 3900 2003 Zimmer's latest endeavor- minimally invasive surgery- should help the company maintain its growth pace. At places like Rush-Presbyterian-St. Luke's Medical Center in Chicago, surgeons working with Zimmer now replace hips on an outpatient basis.
16 4512 2004 Pogo, a proposed air taxi service, is looking to use the new A700 jets. They weigh 4,000 pounds and are durable and simple. They consume about 400 pounds of fuel per hour, a third less than competitors.
17 4812 2003 For the past nine months some 2,500 employees at IBM Research's facilities have been testing a Nextel system that allows handsets to use both cellular and Wi-Fi networks, indoor and out.
18 4911 1988 One Florida electric company installed radio-controlled switches on water heaters & swimming pool pumps of willing homeowners, allowing devices to be turned off during peak consumption times. Others give rebates for energy-efficient refrigerators.
19 7372 2004 Microsoft demonstrated functions expected to be in Longhorn, the next version of the Windows operating system. The demonstration focused on the software's ability to organize digital images and video based on features such as whether they are of people or indoors or outdoors.
20 8111 1998 In Utah courthouses, anyone with $10 can get legal documents for divorces and landlord-tenant cases from a machine that resembles an ATM. Before the user inserts a credit card, the state's former chief justice appears on the screen to offer some encouraging words about do-it-yourself legal work. The user then answers a long series of preprogrammed questions about his case, and the machine spits out a completed document.

<< Return to Use Steps