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 from the creation of economies of scale for customer segments who incur costs at levels above those of currently available through economies of scale

No.	SIC	Year	Note
1	3571	2001	IBM said it would invest about $4 billion to build 50 computer-server farms around the world. With this move, the company is betting that users eventually will be able to buy computing power from a grid instead of owning large computers.
2	3572	2002	StorageTek would unite files in a cohesive package, meaning businesses could manage more storage with fewer people.
3	4800	1986	Handar has developed an automatic, 24-hour weather reporting system for aircraft which employs hundreds of sensors to measure wind, temperature, visibility, cloud cover. A computer analyzes the readings and broadcasts continuous reports via radio and phone.
4	8741	2004	Businesses that sell low-cost information technology services or business transformation outsourcing take over entire IT networks for big banks, retailers or manufacturers. The companies now provide accounting, customer service, human resources and industrial systems support. Centers are located in countries such as India as they have pools of educated, English-speaking workers. Rates often run 40% lower than the U.S. IBM, Accenture and Hewlett-Packard have all shifted operations.

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