Assignment 21A Reading Reflection No. 2: The Long Tail, by Chris Anderson

Assignment 21A Reading Reflection No. 2: The Long Tail, by Chris Anderson

• What was the general theme or argument of the book?

• The general theme of The Long Tail, by Chris Anderson, discusses the “power law” that demonstrates the 80/20 rule, the idea that small things can have a big impact. I am oversimplifying Anderson’s assertion that over time, products with low demand or sales volume, assuming that the distribution channel is large enough, can take over enough market share to rival the relatively few “big hits” and blockbusters. Profiting from this marketing strategy requires truth to the theory that consumers are moving away from mass markets and migrating toward niche markets. There is also an assumption of reduced marketing investment for these hard-to-find products.
• How did the book, in your opinion, connect with and enhance what you are learning in ENT 3003?
• The process of developing a product or service in a marketing environment that supports the Long Tail, as it was assigned in ENT 3003, is a fantastic exercise for prospective entrepreneurs. As such, we should be encouraged by this theory that offering a lower cost, niche product can provide profitability over the long haul. Entrepreneurs have already jumped all over this in e-commerce, when offering lower demand, obscure products without having to carry the inventory. I think the way that this class has presented the need for identification of target markets and buyer behaviors challenges us to recognize where one would fit into that popularity/product mix.
• If you had to design an exercise for this class, based on the book you read, what would that exercise involve?
• I would have a student, for one week, track their consumption habits, including shopping without purchasing. They should record where they made those purchases: on-line or on brick-and-mortar establishments. I would have them list every item that they bought or sought out and break those items into categories of big dollar “Big Hits (or Blockbusters)” and lower cost items that appeal to them specifically. Which category made up the majority of their interest? Were the products in those categories marketed differently? I want the students to examine whether or not their habits reflect the Long Tail phenomenon. What could this tell us about consumers in our markets?
• What was your biggest surprise or 'aha' moment when reading the book? In other words, what did you learn that differed most from your expectations?
• I was not familiar with the “Long-Tail” marketing technique so I honestly had no expectations. This may seem silly, but I genuinely had that “AHA” moment when it sunk in that the real 80/20 mix is closer to 80/10, which made no sense to me. I foolishly thought that was a related percentage breakdown, but the 80 and the 20 are always measuring two different things. The long tail takes that Pareto distribution to the next level, so as not to let it limit or define what is possible when a distributor adopts the technique. I was reminded once again how distributors like Amazon have directed this evolution in consumption and profitability.