Anita Elberse Case Summary

1. My views are more inline with Anita Elberse’s point of view. The enhancement in the Internet markets provided unlimited shelf space, broader customer preferences to capitalize on, marginal distribution costs and also lower marketing and promotion costs (thanks to the social media). This also lowers the barriers for new entrants. With this revolution in digital space, a viable strategy for the musicians, writers and other content producers is to diversify their product portfolio. Where a blockbuster release leads to a high risk - high pay-off business model, a niche or obscure content is a lower risk - lower returns model. So, providing a mélange of complementary products will lead to enhanced sales and lower the risks in the investments. Rather than tailoring a product as per a particular customer base, having a broader target audience will be more profitable. Also, applying appropriate bundling and pricing strategy for Long-tail products is important.

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Digital revolution has given the fans and consumers a power to make-or-break a release. Leveraging the social media channels as marketing tool helps to make a product viral. Its thus important to utilize these channels and publicize a product (well in advance of the product launch). Creating a loyal fan base is thus essential for successful spread of the product. Recommendations and reviews/ratings systems aid in word-of-mouth marketing, and utilizing these online channels is an essential marketing strategy. Marketers need to be watchful of the new entrants and niche products and strategize their products as per the changing customers and