Entrepreneurship 4543
VALUE PROPOSITIONS
what are you offering them? what is that getting done for them? do they care?
images by JAM
Agenda
Customers Customers Customers
CUSTOMER SEGMENTS
which customers and users are you serving? which jobs do they really want to get done?
images by JAM
Mind You
Be Focused & Diligent Start-ups are ONLY meant for NICHES, so always find one You are SO SO SO full of constraints Learn to say NO!
Market Type
Existing Customers Customer Needs Competitors Risk Known Performance Many Lack of branding, sales and distribution ecosystem Google Resegmented Possibly Known Better fit Few Market and product redefinition Southwest New Unknown Transformational improvement None Evangelism and education cycle
Examples
Groupon
Market Type determines: Rate of customer adoption Sales and Marketing strategies Cash requirements
Existing Market
Characteristics: Customers are always hungry for better performance Incumbents exist Usually technology driven
Positioning driven by product and how much value customers place on its features Risks: Incumbents will defend their turf Network effects of incumbent Continuing innovation
Resegmented Market
Low cost provider (Southwest) Unique niche via positioning (Whole Foods)
What factors can you eliminate that your industry has long competed on? Which factors should be reduced well below the industry standard? Which factors should be raised well above the industrys standard? Which factors should be created that the industry has never offered? (blue ocean)
New Market
Customers dont exist today How will they find out about you? How will they become aware of their need? How do you know the market size is compelling? Which factors should be created that the industry has never offered? (blue ocean) High rewards
Day to day users May actually have zero influence in buying process
Influencer / Recommender
Economic Buyer
The person who controls the purse strings or is in charge of the budget
Decision Maker
Customer Types
Corporate? Consumer?
Business to Business (B to B)
Use or buy inside a company
Business to Consumer (B to C)
Use or buy for themselves
Corporate Customers
Business to Business (B to B)
New Market?
Consumer Customers
Business to Consumer (B to C)
Market Type
Existing Market? Resegmenting an Existing Market?
niche or low cost
New Market?
Consumer Customers
Do they buy it by themselves? Do they need approval of others? Do they use it alone or with others?
Multi-Sided Markets
Business to Business to Consumer (B to B to C)
In Class Exercise
Draw the customer segment block for the given business concept What market type? Why?
Existing, resegmented and/or new?