Term
| Experience Economy by pine and gilmour |
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Definition
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· Charge admission for experiences
· Elements:
o Customer participation
§ Passive or active?
o Connection/environmental relationship
§ Absorption or immersion
· Four kinds of experiences: entertainment; educational; escapist; esthetic
· How to design memorable experiences:
o Theme the experience: concise and compelling; not a mission statement; drive all of the design elements and staged events
o Harmonize impressions with positive cues: align the theme with visual and aural cues
o Eliminate negative cues: good service; hide negatives (ie thank you on trash cans)
o Mix in memorabilia
o Engage all five senses
- 6 starting points
o a) individualize experiences an individualized treatment of meaning
o b) value creation takes place in the individual
o c) customer is considered a guest
o d) solve any irresolvable dilemmas
o e) interaction between supplier and individual
o f) respect
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Term
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Definition
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· Why do they matter
o They make and circulate texts/entertainment that affects our fantasies, emotions, and identities; lots of time spent
o Manage and circulate creativity
o Agents of economic, social, and cultural change
· Distinctive features:
o Problems:
§ Risky business
§ High production costs and low reproduction costs
§ Semi-public goods; the need to create scarcity
o Responses:
§ Misses are offset against hits through a repertoire
§ Concentration, integration, and co-opting publicity
§ Artificial scarcity
§ Formatting: stars, genres, and serials
§ Loose control of symbol creators; tight control of distribution and marketing
examples: advertising, architecture, art, crafts, design, fashion, film, music, performing arts, publishing, R&D, software, toys, games, TV, radio, and video games
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Term
| Long Tail of the Economy by Chris Anderson |
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Definition
-Two concepts essential to this idea
a) merchandise assortments are growing because when goods don’t have to be displayed on store shelves- physical and cost constraints on selection disappear, search and recommendation tools can keep a selection’s vastness from overwhelming customers
b) online channels actually change the shape of the demand curve because consumers value niche products geared to their particular interest than they value products designed for mass appeal
- thus the tail will steadily grow not just longer but fatter as more obscure products are made available, and products better suited for customers taste/reach the niche market
- Anderson argues that products in low demand or that have a low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers and blockbusters, if the store or distribution channel is large enough. Anderson cites earlier research that showed that a significant portion of Amazon.com's sales come from obscure books that are not available in brick-and-mortar stores.
Recommendations:
· Make everything available
· Cut the price in half, now lower itàonline
· Help me find it
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Term
| Should you invest in the long tail (criticism) |
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Definition
· Merchandise assortments are growing because when goods don’t have to be displayed on store shelves, physical and cost constraints on selection disappear. Online channels change the shape of the demand curve because consumers value niche products geared to their particular interests more than they value products designed for mass appeal
· Lower rankings to obscure titles/romanticized gems
· Implications for strategy:
o Producers:
§ don’t radically alter blockbuster resource-allocation or product portfolio management strategies. A few winners will still go a long way—probably even further than before
§ keep costs for the tail end as low as possible; odds of success aren’t favorable
§ focus on marketing your most popular products in digital channels
§ leverage your scale to improve online exposure and demand for products across your product portfolio
o retailers:
§ if the goal is to cater to your heave customers, broaden your assortment with more niche products
§ strictly manage the costs of offering products that will rarely sell. If possible, use online networks to construct creative models in which you incur no costs unless the customer actually initiates the transaction
§ acquire and mange customers by using your most popular products
§ even though obscure products may have a higher profit margin, resist the temptation to direct customers to the tail too often, or you’ll risk their dissatisfaction
o Not much money to be made in the tail?
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Term
| Music in Stockholm/Kingston |
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Definition
· Stockholm:
o center of the industrial system of music production and sales in Sweden; many local and international music companies
o majors all have subsidiaries in Sweden; took licensing deals, facilities for distribution, affiliated publishing companies; own all central aspects
o parallel small companies with talented music servives
o co-operatives; lobbying
o supportive consumer base; early adapters
o retailers
o high level of technological ability and infrastructure
o effect IPLs
o competition
· Kingston
o No major labelsà”nationalistic and isolationistic prejudices”; warning to others
o Unwilling to work with local firms
o Legality problems and actors work with many firms makes it impossible to disaggregate the components of the industry
o Mix of producers, record companies, and record labels with high degrees of external transactions
o Information flows too fluidly; can’t protect products before release
o Favors diversity and encourages innovative processes
o Not enough capital to get new products
o Too sophisticated consumers—>must be very quick to market
o “links between the local production system and international circuits of capital, distribution, and effective property rights”
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Term
| Balancing act: learning from organizing practices in cultural industries |
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Definition
· Must reconcile expression of artistic values with the economics of mass entertainment
· Seek novelty that differentiates their products without making them fundamentally different in nature from others in the same category
· Analyze and address existing demand while at the same time using their imagination to extend and transform the market
· Balance the advantages of vertically integrating diverse activities under one roof against the need to maintain creative vitality through flexible specialization
· Build creative systems to support and market cultural products but not allow the system to suppress individual inspiration
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Term
| The effect of internet on cultural industries |
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Definition
· Reduction of entry and fixed costs
· Disintermediate existing retailers and offering a larger customer base
· Potential to circumvent, or order or remove key nodes within prevailing value chains
· Directly connect consumers with producers and designers/creators
· More formats of music (mp3s, rise of singles again)
· Fashion is more resistant to digitalization
· Democratize industries
· "At a distance" consumption
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Term
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Definition
· After dream manàreturn to innovation/diversity
· Self-actualizationàdoing things for the sake of satisfaction having done them; transcendence
· Network; personal growth with challenges and opportunities
· Innovative
· Personal touch/choices
· Loser: the uninventive
· Personal growth needs
· Consumption: goods that are personally adapted for individual needs; part producer (prosumer)
· Yahoo Groups
· The workplace: good creative work environment; organize your own work in order to improve work procedures or profits through your personal efforts
· Forsook material goods in order to express their creative talentsàtrend towards a smaller workforce
· Mass Media: customizable, personalized mass media; creative tools or networks; challenges its users; innovative market ideas for mass media
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Term
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Definition
· Genetic predisposition
· Early interest in the domain
· Access to a domain
· Access to field: work with your peers/network
· Ten dimensions of complexity
o Creative have a great deal of physical energy, but also quiet and at rest
o Smart, but naïve
o Playfulness and discipline; doggedness endurance, perseverance
o Imagination and fantasy; rooted sense of reality at the other
o Creative people are both extroverted and introverted at the same time
o Very humble and proud at the same time
o Escape rigid gender role stereotyping
o Rebellious and independent; cultural traditionalist
o Passionate but objective
o Suffering and pain yet also a great deal of enjoyment
o Exaggerated compared to other people
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Term
| Creative class or administrative class |
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Definition
· Salaried advertising professionals mostly functioned as a sort of administrative class of the creative economy, while the proleteriat actually creates
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Term
| How to Kill Creativity pt 1 |
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Definition
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-Intrinsic motivation: The internal desire to do something based on passion.
-Creativity has three parts
1. expertise
2. The ability to think flexibly and imaginatively
3. motivation
-It is more cost effective to increase employee intrinsic motivation
strategies:
-Challenge the employees
- Give the employees freedom
- Design work groups strategically
- The level of encouragement given
- The organizational support given
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Term
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Definition
- The author divides Danish fashion companies into five distinct categories
- Start-ups
- One designer owned
- Try to gain markets
- Talents
- From 5-15 employees
- Upcoming CPH designers who gain the media headlines
- Heroes
- More than 15 employees
- 10 years old or more
- International recognition brands
- High degree of internalization
- Commercials
- Located in Jutland
- Started from production and merchant tradition
- Medium size
- Commercial-driven, high expansion
- Giants
- More than 100 employees
- Multibrand conglomerates (consolidated)
- Provide platform to create synergies and economies of scale
- Strong international expansion
- Fashion entrepreneurs entering the market have two options
- keeping design identity to grow into luxury fashion houses
- lowering the target to compete in the commercial market
- A big issue that the Danish fashion designers face is lack of proper funding
- cash injections are critical to brand growth and this can be difficult to secure as designers sometimes lack business sense
- the reciprocal is also true, investors are not always very knowledgeable about the fashion industry
- This mismatch makes finding funding incredibly difficult
- The industry is consolidating quickly as investors look to create a strong business platform for fashion entrepreneurs to freely concentrate on creative work
- Danish fashion brands must open themselves up to foreign investment in order to grow further
- The authors argue that it is nearly impossible for Danish designers to compete with large international fashion houses like Gucci, Prada, etc... Instead they argue that the Danish designers should integrate speed into their design process, limiting risk and maximizing innovation
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Term
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Definition
· Must reconcile expression of artistic values with the economics of mass entertainment
· Seek novelty that differentiates their products without making them fundamentally different in nature from others in the same category
· Analyze and address existing demand while at the same time using their imagination to extend and transform the market
· Balance the advantages of vertically integrating diverse activities under one roof against the need to maintain creative vitality through flexible specialization
· Build creative systems to support and market cultural products but not allow the system to suppress individual inspiration
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Term
| Lecture 8: technology and the creative industries? |
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Definition
· Must reconcile expression of artistic values with the economics of mass entertainment
· Seek novelty that differentiates their products without making them fundamentally different in nature from others in the same category
· Analyze and address existing demand while at the same time using their imagination to extend and transform the market
· Balance the advantages of vertically integrating diverse activities under one roof against the need to maintain creative vitality through flexible specialization
· Build creative systems to support and market cultural products but not allow the system to suppress individual inspiration
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Term
| Killing creativity part 2: |
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Definition
- The biggest challenge for the manager is assigning the right tasks to the right employees
- In business an idea must also be appropriate and useful. The idea has to influence the way business gets done.
- Creativity can benefit every business function
- Expertise: everything a person knows and can do in the broad domain of their work
Creative thinking: How people approach problems
Expertise and creative thinking are the individuals raw materials. Motivation determines what actually gets done.
-Extrinsic motivation: Comes from outside
Money doesnt always work because people feel bribed. It doesn’t make people passionate.
-Challenge: You have to spend time figuring out the best employee/job match
-Freedom: Creativity with the process, not necessarily the end goal.
Freedom is mismanaged when managers change goals or the goals are unclear.
Resources:
-Time. It is good when a lac of time creates a pressure that heightens creativity, but not when it makes people rush.
-Too many resources doesn’t do anything, too little resources leads to wasting time to create new resources
- Physical space: Important but not more important then job fit.
Work-group Features:
-Diversity of perspectives/ backgrounds
-Must share excitement over the team’s goal
- Members must show a willingness to help teamamtes
- Each member must recognize the knowledge every member brings
- KILL CREATIVITY BY CREATING HOMOGENIOUS TEAMS
Supervisory Encouragement
Organizational support:
1. mandating information sharing/ collaboration and by ensuring problems don’t arrise. |
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Term
| How to manage a dream factory |
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Definition
-Go back to old ways of fostering creativity
-Entertainment
hugely hit driven
managers hace to be able to handle talent
It’s really hard to manage the collaboration between creative thinkers and corporate
HBO does a good job giving the writers freedom |
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