In the end there are only two markets: those who handle the customer and those who don’t

Two articles that confirm my creeping thought of the polarisation of the the valuechain Cutting out the middle: distribution and marketing.

Excerpt from Seth Godin’s post about web4:

I’m about to buy something from a vendor (in a store with a smart card or online). At the last minute, Web4 jumps in and asks if I want it cheaper, or if I want it from a vendor with a better reputation. Not based on some gamed system, but based on what a small trusted circle believes.

I think it’s fascinating that Web4 is coming from the edges (we see all sorts of tribal activities popping up in blogs, communities, rankings, Digg, etc.) as opposed to from the center. Web 2.0 happened in largely the same way. Even online, big organizations seem to have the most trouble innovating in ways that change the game.

Excerpt from Article of Doc Searls about Intention Economy:

The Intention Economy grows around buyers, not sellers. It leverages the simple fact that buyers are the first source of money, and that they come ready-made. You don’t need advertising to make them.

The Intention Economy is about markets, not marketing. You don’t need marketing to make Intention Markets.

The Intention Economy is built around truly open markets, not a collection of silos. In The Intention Economy, customers don’t have to fly from silo to silo, like a bees from flower to flower, collecting deal info (and unavoidable hype) like so much pollen. In The Intention Economy, the buyer notifies the market of the intent to buy, and sellers compete for the buyer’s purchase. Simple as that.

The Intention Economy is built around more than transactions. Conversations matter. So do relationships. So do reputation, authority and respect. Those virtues, however, are earned by sellers (as well as buyers) and not just “branded” by sellers on the minds of buyers like the symbols of ranchers burned on the hides of cattle.

The Intention Economy is about buyers finding sellers, not sellers finding (or “capturing”) buyers.

Both articles touch the same point of a “customer loyal group” of companies facilitating the customer. These companies probably emerge from the edges oh what we now know as web 2.0. Maybe some operator who dares takes on this role. As the middle man is out, production is not the bottom of the value chain but the foundation. Margin in production will probably increase. This due to felxibility, research, co-creation, crowdsourcing and open innovation. Can’t wait what power will be unleashed when China will open up production platforms with direct links to the customer markets. Already mentioned before that Amazon is one of the players who will play this game for sure.

This entry was posted in Co-creation, Connected Society, Consumer Facilitation, Contribution Marketing, Intrinsic Values, Strategy, Uncategorized, User Generated Products, Valuechain. Bookmark the permalink.

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