Reading (long tail theory) after the realization of sharing

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I do not know if you have read Anderson's long tail theory of this book. A book that was very hot a few years ago. In Chen Nian began to involve Web site optimization and data analysis, and accumulated a certain website operation and data statistics, again take out the "long tail theory" read through it, found that many problems are suddenly enlightened. According to some of the current understanding of the book to share with you. (will continue to be supplemented in future)

The definition of Long tail theory

When the location and channel of commodity storage flow are wide enough, the cost of production is so steep that individuals can produce, and when the cost of goods is drastically reduced, almost any product that previously seemed to be extremely low in demand would be bought as long as it was sold. These demand and the low volume of products occupy a common market share, can be compared with the market share of mainstream products, or even greater.

Long Tail theory

This definition was later summed up, Anderson did not give a clear definition of the long tail effect in his book, but it is undeniable that his book "The Long Tail" does elaborate a new theory that subverts the 28 rule.

Limitations of the Long tail theory

The advantage of Long tail theory is self-evident, but it also has its limitations, it is these limitations that make the long tail theory does not apply to any industry. The author thinks that the limitation of the long tail theory is mainly in these aspects.

1. Cost limitation

As can be seen from the definition of the long tail theory, when the storage and circulation of goods show a wide range of venues and channels, the cost of production has plummeted so that individuals can produce, and the cost of goods sales sharply reduced, almost any previously seemingly low demand for products.

Traditional sales channels simply can't do the above, venues, people, day-to-day operations are constraints, unless you have a lot of money at unlimited investment to verify the long tail theory, or you have a strong background support, such as train ticket sales, although the sale of railway tickets need to invest huge funds to build sales network, But there is a strong national support, and train ticket sales can also explain the long tail theory: Even if the remote again a short road, there will still be a small number of people to buy tickets, so want the long tail effect of the miracle is the need for a very important prerequisite. Even Anderson himself found that the long tail theory is also through itunes, a platform that does not require a large cost of sales, rather than based on Wal-Mart's performance reports, and internet marketing is perfect to break through this limit.

2. Product Limitations

The long tail in the long tail theory is not sales or traffic, Chen Nian that it refers to the product. You have to have a lot of long tail products and then through a nearly 0 cost of the way to show that the long tail effect of the benefits, long tail products are unpopular sales of poor products. Most enterprises do not have enough ability to produce some unpopular products for a long time, most of them adopt the way of innovation, that is, old products and unpopular products are discontinued, concentrating on the production of new hot products, including Nokia, which is short of the product renewal period, cannot maintain the permanent production line of a product, So the limitations of long tail products allow traditional companies and retailers to scoff at the long tail theory. Long tail theory advocates the elimination of all product atoms, instead of these atoms is the product byte, with information instead of physical, can also say that the long tail theory can only be born in the era of highly developed Internet.

The rule of the long tail theory

Rule 1. Let survival concentrate or scatter

For an e-commerce platform, the ultimate goal is to keep the focus on survival, whether it is the company, Consumer-to-consumer, Business-to-business, is to concentrate more manufacturers of products in their own advantage platform, because the cost of increasing the product is almost 0 (no more than the needs of the server and personnel). For manufacturers, they want their products to be distributed on more platforms as much as possible, because that means more opportunities for display and more sales.

Rule 2. Let the user participate in production

What does the user produce? Of course it's information! Baidu know, Wikipedia, Sina Blog, Odd art film critics, almost all the network platform are trying to encourage users to produce information, the enterprise would have to spend money to do the work, users are happy to do it for free, this is not outsourced, this is crowdsourcing. The information provided by the user is often insightful, witty and, most importantly, trusted by other users.

Rule 3. Let the market work for you

In a scarce market, you have to guess what the next product will sell; In a rich market, you just have to put the product out and let the market choose for itself. This is the difference between "prediction" and "evaluation". The biggest advantage of the online market is the evaluation ability of the group intelligence, because it contains a lot of information, it is easier to compare the advantages and disadvantages of the products. In a word: do not predict, to evaluate, to reflect.

After comparing the advantages and disadvantages of the long tail theory, Chen Nian that the long tail theory has brought a new method for internet marketing, especially the development of e-commerce, and hope that more stationmaster can find a suitable promotion way from the long tail theory.

Article from Chen Nian Blog original, original address: http://www.chennianseo.com/469.html