Resource Curse Theory Pdf

Clay Christensens Milkshake Marketing. When planning new products, companies often start by segmenting their markets and positioning their merchandise accordingly. This segmentation involves either dividing the market into product categories, such as function or price, or dividing the customer base into target demographics, such as age, gender, education, or income level. Unfortunately, neither way works very well, according to Harvard Business School professor Clayton Christensen, who notes that each year 3. The jobs to be done point of view causes you to crawl into the skin of your customer and go with her as she goes about her day, always asking the question as she does something Why did she do it that wayThe problem is that consumers usually dont go about their shopping by conforming to particular segments. Rather, they take life as it comes. And when faced with a job that needs doing, they essentially hire a product to do that job. To that end, Christensen suggests that companies start segmenting their markets according to jobs to be done. Its a concept that he has been honing with several colleagues for more than a decade. The fact that youre 1. Christensen says. Drivers Hp Psc 2175 Series 6. It may be correlated with the decision, but it doesnt cause it. Understanding Evolution History, Theory, Evidence, and Implications. By March 5, 2006 Updated May 2, 2006. Index. Introduction Origin Mythology. In economics, a Kuznets curve graphs the hypothesis that as an economy develops, market forces first increase and then decrease economic inequality. We developed this idea because we wanted to understand what causes us to buy a product, not whats correlated with it. We realized that the causal mechanism behind a purchase is, Oh, Ive got a job to be done. And it turns out that its really effective in allowing a company to build products that people want to buy. Christensen, who is planning to publish a book on the subject of jobs to be done marketing, explains that theres an important difference between determining a products function and its job. Looking at the market from the function of a product really originates from your competitors or your own employees deciding what you need, he says. Whereas the jobs to be done point of view causes you to crawl into the skin of your customer and go with her as she goes about her day, always asking the question as she does something Why did she do it that wayHiring A Milkshake. In his MBA course, Christensen shares the story of a fast food restaurant chain that wanted to improve its milkshake sales. Compilation of academic papers on various models. An index with brief explanations and bibliographies. Resource Curse Theory Pdf' title='Resource Curse Theory Pdf' />The company started by segmenting its market both by product milkshakes and by demographics a marketers profile of a typical milkshake drinker. Next, the marketing department asked people who fit the demographic to list the characteristics of an ideal milkshake thick, thin, chunky, smooth, fruity, chocolaty, etc. The would be customers answered as honestly as they could, and the company responded to the feedback. For all his fame and celebration, William Shakespeare remains a mysterious figure with regards to personal history. There are just two primary sources for information. Theres a great deal of ridicule being aimed at Pat Robertson for describing the catastrophic earthquake in Haiti as Gods retribution on the country for a deal. Resource and Energy Economics publishes theoretical and empirical papers, firmly grounded in economic theory, that advance our understanding of and. But alas, milkshake sales did not improve. The company then enlisted the help of one of Christensens fellow researchers, who approached the situation by trying to deduce the job that customers were hiring a milkshake to do. First, he spent a full day in one of the chains restaurants, carefully documenting who was buying milkshakes, when they bought them, and whether they drank them on the premises. He discovered that 4. The next morning, he returned to the restaurant and interviewed customers who left with milkshake in hand, asking them what job they had hired the milkshake to do. Christensen details the findings in a recent teaching note, Integrating Around the Job to be Done. Click to watch. Most of them, it turned out, bought the milkshake to do a similar job, he writes. They faced a long, boring commute and needed something to keep that extra hand busy and to make the commute more interesting. They werent yet hungry, but knew that theyd be hungry by 1. And they faced constraints They were in a hurry, they were wearing work clothes, and they had at most one free hand. The milkshake was hired in lieu of a bagel or doughnut because it was relatively tidy and appetite quenching, and because trying to suck a thick liquid through a thin straw gave customers something to do with their boring commute. Understanding the job to be done, the company could then respond by creating a morning milkshake that was even thicker to last through a long commute and more interesting with chunks of fruit than its predecessor. The chain could also respond to a separate job that customers needed milkshakes to do serve as a special treat for young childrenwithout making the parents wait a half hour as the children tried to work the milkshake through a straw. In that case, a different, thinner milkshake was in order. Proven Success And Purpose Branding. Several major companies that have succeeded with a jobs to be done mechanism Fed. Ex, for example, fulfills the job of getting a package from here to there as fast as possible. Disney does the job of providing warm, safe, fantasy vacations for families. On. Star provides peace of mind. Procter Gambles product success rate rose dramatically when the company started segmenting its markets according to a products job, Christensen says. He adds that this marketing paradigm comes with the additional benefit of being difficult to rip off. Nobody, for example, has managed to copy IKEA, which helps its customers do the job of furnishing an apartment right now. Christensen also cites the importance of purpose brandingbuilding an entire brand around a particular job to be done. Quite simply, purpose branding involves naming the product after the purpose it serves. Kodak, for example, has seen great success with its Fun. Saver brand of single use cameras, which performs the job of preserving fun memories. Milwaukee Electric Tool Corp. Sawzall, which does the job of helping consumers safely saw through pretty much anything. Its Hole Hawg drills, which make big holes between studs and joists, are also quite popular. The companys other tools, which rely on the Milwaukee brand, are not nearly as celebrated. The word Milwaukee doesnt give you any market whatsoever, Christensen says. So, if jobs to be done market segmentation is so effective, why arent more companies designing their products accordingly For one thing, future product planning usually involves analyzing existing data, and most existing data is organized by customer demographics or product category. Ive got a list of mistakes that God made in creating the world, and one of them is, dang it, he only made data available about the past Christensen says. All the data is organized by product category or customer category because thats easy to get. To go out and get data about a job is really hard. But there are a lot of people who hire consultants to tell them how big the market is. And because the data is organized in the wrong way, you start to believe thats how the market should be organized. Furthermore, its difficult for product developers to break the mold when many of their customers organize their store shelves around traditional marketing metrics. Christensen gives the example of a company that developed a novel tool designed to help carpenters with the daunting task of installing a door in a doorframe, a job that usually took several tools to do.