Nicolas Pujol Investor, advisor, author of The Mind Share Market

$0

Skype: $8.5B

Google: $160B

Facebook: $55B?

Apple: $320B

Before

Now

After

Non-monetary transactions

Gift economics

Barter exchange

井

1

Reference: Federal Trade Commission Guide 251.1 on the use of the word “free” in commerce

Source: http://web.mit.edu/ariely/www/MIT/Papers/zero.pdf, expanded in The Mind Share Market

P>0

P=0 P=0

Productive marketing:

The product is the ad

Classic marketing:

Ad is a message

Commercial transaction

The opacity problem of market shares

By nature, new demand (P2=0; Q2=maximum value)

is not visible before: a) product release and b) awareness

Product 1:

90% market share

Priced at P1>0

Product 2:

10% market share

Priced at P2>0

P1 P2

Product 3 appears, priced at P3=0

P1 P2 P3

Commercial markets Mind share markets

New commercial market

Productive marketing: Producing value to customers before a commercial transaction occurs

The product is the ad, and affordable to everyone

Downloadable software SaaS (digitization of bricks and mortar)

Higher education

Telephony Physical product trials Healthcare? Insurance?

1. Two-sided platform: Different categories of users

Ad-funded models, video games, shopping malls, credit cards

2. Freemium: Same category of users

Sub-categories to upsell

(Semi-applicable: Tying)—“It’s free if you pay”

More info: Scholarly papers on www.SSRN.com (technical) or The Mind Share Market (illustrated)

Conventional marketing Productive marketing

The subtractive future and what you can do

Price gaps will be filled

Address pent-up demand, upfront

If customers want freedom… Strains don’t belong (nuances)

Maximizes market share and profit, even in the absence of competition (Parker, Van Alstyne)

Will solve other problems

info@nicolaspujol.com