Customer And Market Types Review PDF

CUSTOMER AND MARKET known because you copied an existing market. MARKET TYPES It is called a Clone because, in this market type, Existing Market- When investors and you are going to localize all those specif...

CUSTOMER AND MARKET known because you copied an existing market. MARKET TYPES It is called a Clone because, in this market type, Existing Market- When investors and you are going to localize all those specific issues entrepreneurs go after an existing market –the for your country or region. That said, it takes a advantage is that there’s little or no market risk. foreign business model and adapts it to local In this market type: conditions. There are no competitors if you are Competitors exist the first one and the risk may be in misjudging Customers want and need better the local needs. performance In this market type: Technology is usually the driving factor Adapts a foreign business model to a local The positioning is driven by the product and condition (language, culture, import how much value customers place on its features restrictions, and local regulations) The risk is to think that competitors are dumb Needs a large number of customers, typically or too slow >100 million There is no "chasm" that you need to fill. The chasm is the gap between early adopters and MARKET SEGMENTATION the mainstream customers in a market. The practice of dividing your target market into New Market- Customers and their preferences approachable groups. You create subsets of a are unknown and direct competitors are non- market based on demographics, needs, existent. priorities, common interests, and other In this market type: psychographic or behavioral criteria used to Customers do not exist in the present, so better understand the target audience. revenue generation takes years Market size is zero 1. Geographic- City, country, population Customers need to be made aware of their density, zip-code postcode, time zone, climate needs You must consider what factors can you 2. Demographic- Age, gender, income, create that has never been offered occupation, family size, race, religion, marital The chasm is biggest here because you will status, education, ethnicity only be selling to the very early adopters Re-segmented Niche Market- The Re- 3. Psychographic- values, goals, needs, pain segmented market is a hybrid between a New points, hobbies, personal traits, interests, market and an Existing market in the sense that political party affiliation, sexual orientation it is a New Market created from a small segment from an existing market. The features 4. Behavioral- Purchasing habits, brand of this market type are: interactions, spending habits, customer loyalty, Low cost New Niche actions taken on a website In this market type: Evaluate factors that your industry has long FIND YOUR NICHE competed on and eliminate those Niche marketing strategy focuses on a micro- Evaluate what factors can be reduced well segment of the market. below the industry standards Get better referrals Evaluate what factors can be increased above More repeat business the industry standards Less competition Evaluate what factors can be created that To find your niche: have never been offered. Acquire focused knowledge about your market Clone Market- In a Clone market, customers are Develop a mental picture of your customers Understand what prompts customers to want opportunity a particular market holds at a very to buy products services stage of business growth. Niche products examples: -simple and succinct way to present the value of 1. Conscious consumers- Bee’s Wrap is looking an idea. to replace plastic wrap with options made from -gives idea of the target audience and income beeswax. The natural alternative to food opportunities for a market or niche storage is not only environmentally friendly, but -helps businesses share key insights with also more cost-effective for consumers because investors if they are seeking funding. The they’re reusable. process makes it easier to make decisions that 2. LGBTQ+ community- TomboyX, an underwear impact growth. brand saw the opportunity to hone in on a CALCULATION specific consumer group’s needs to sell TAM- Number of Customers in a market x underwear “for any body”. Annual Value per Customer -best way to calculate TAM is by running a ESTIMATE YOUR MARKET SIZE bottom-up analysis of an industry. After segmenting the market and finding niche SAM- Target segment of TAM x Annual Value TAM- Total addressable market or TAM(100 % per Customer of the market) -refers to the total market -count up all the potential customers that demand for a product or service. It’s the would be a good fit for your business. maximum amount of revenue a business can SOM- Last Year’s Market Share x This Year’s possibly generate by selling their product or SAM service in a specific market. -to calcu the last year MS, divide the last year’s -to objectively estimate a specific market’s revenue by last year’s SAM potential for growth. This data also helps companies figure out product market fit. THE MORE MARKET RESEARCH YOU DO AND SAM- Serviceable Addressable Market(% of te THE MORE HISTORICAL DATA YOU BUILD UP, TAM within the business operate territory) - THE MORE PRECISE YOUR PLANNING WILL BE. estimates the portion of the TAM, that you can acquire given your limitations- geographic CUSTOMER PERSONA demographic, marketing and advertising spend, Innovators- they are these buyers who love to logistics, etc. have innovative products. They are seeking this -to objectively estimate the part of the market all the time and it is part of their lifestyle. they can acquire to figure out their targets. Early adopters- appreciate innovators and are SOM- Serviceable Obtainable Market(% of SAM ready to adopt new products even if they a business can realistically achieve)- determines perfect or not developed from a technical point that how many customers from the SAM would of view. realistically purchase your product. The SOM is Early Majority& Late Majority- innovative a subset of the SAM that is restricted by: technology is not the key for making their Natural barriers such as distance or language decision. They are driven by analysis of different Limited capacity, for example production standard factors such as Price, quality, needs, capacity or marketing reach etc. Loss of market share to competitors Laggards- They are the last to adopt an -to determine short-term growth targets. It can innovation. Unlike some of the previous also help with competitive awareness and categories, individuals in this category show strategizing. little to no opinion leadership. These individuals typically have an aversion the change-agents. TAM, SAM, SOM- essential to business strategy and growth planning. It shows how much Customer Persona- name, face, demography f. What will help your customers sleep better at geography, a day In the life, Fears and night? Motivations. g. What will limit or eradicate common mistakes that customers make? VALUE PROPOSITION CANVAS h. What will make customers adopt your -helps you understand the customer and how solution? your products and services create value. Two sides: GAIN CREATORS SUB-SECTION Value Map- describes the features of specific a. How can you create savings to make your value proposition in your business model in a customers happy? structured and detailed way. b. What will produce outcomes that your Gain Creators- describes how your products and customer expects or that go beyond their services create customer gains expectations? -what do you offer that makes the customers c. How can you copy or outperform to delight happy? your customer? Products& Services- a value proposition is built d. What will make your customer’s job or life around. easier? -What is the product or service that you are e. What will create positive social consequences offering? that your customer desires? Pain Relievers- describe how your products and f. What else should you do to meet your services alleviate customer pains. customer expectations? -Which features of your offering relieve the g. How can you fulfill your customer’s dream? customer’s pains? h. What will produce positive outcomes Customer Profile- describes a specific customer matching your customers’ success and failure segment in your business in a structured and criteria/ detailed way. i. What will make adoption easier? Gains- describe the outcomes customers want to achieve or the concrete benefits they are SOLUTION seeking. Describe your solution: -What would make the customer happy? The details of our offering consist of -What do the clients want when facing the List the Benefits of your Solution problem? Customer Jobs- what customers are trying to COMPETITION ANALYSIS get done, as expressed in their own words. Direct Competitor- offers the same products, -What do the clients do (actions) when facing within the same category as you. Ex: McDonalds the problems? and Burger King Pains- describe bad outcomes, risks, and Indirect Competitor- sells a product or service in obstacles related to customer jobs. the same category as you, but it’s different -What are the pains of the clients when facing enough to act as a substitute for your product the problem? or services. Ex: McDonalds and Subway PAIN RELIEVERS SUB-SECTION Replacement Competitor- sells a product or a. What will help your customer save more? services that’s both different in category and b. What will make your customers feel better? type than you, but one which your customers c. How can we make the solution more robust? could choose to spend their money instead. Ex: d. What will put an end to the difficulties and McDonalds and ready to eat / frozen dinner challenges that your customers encounter? meal. e. What will eliminate risks your customers fear?  Benefits Competitor Target market- is a group of people that have 1 been identified as the most likely potential Product customers for a product because of their shared Price characteristics, such as age, income, and Branding channels lifestyle. Packaging -defines a product as well as vice versa. Once a Market reviews target market is identified, it can influence a UVP (unique value product's design, packaging, price, promotion, proposition) and distribution. Market segmentation- is the practice of dividing Add more as required your target market into approachable groups. -creates subsets of a market based on TEAM COMPOSITION demographics, needs, priorities, common (Who are the members of the team?) interests, and other psychographic or CEO- Key Strengths and abilities behavioral criteria used to better understand COO/CTO- Key Strengths and abilities the target audience. CFO/CMO- Key Strengths and abilities Marketing mix- includes multiple areas of focus What makes us a good team to solve the as part of a comprehensive marketing plan. problem we choose? Product, Price, Placement, and Promotion. The goal is to demonstrate teams commitment. In addition to the 4 Ps, three approaches can Mention who’s on your team, why them and also be integrated including People (staff their extremely relevant credentials. member), Process, and Physical evidence to reinforce a consumer-centric type of marketing MARKETING strategy. Marketing- refers to the activities a company Product- item or service designed to satisfy undertakes to promote the buying or selling of customer needs and wants. its products or services. Price- The sale price of the product reflects -includes advertising and allows businesses to what consumers are willing to pay for it. sell products and services to consumers, other Place- When determining areas of distribution, businesses, and organizations. it's important to consider the type of product Market- consists of all the possible consumers sold. sharing a certain need or want who would be Promotion- Activities might include ready and able to participate in trade advertising, sales promotion, personal selling, To fulfill that need or desire. - Philip Kotler and public relations. 3 TYPES OF MARKET 1. Existing Markets – when you enter into Market research- is the process of collecting competition with a product that is already vital information about a company’s target serving a customer base (example: Facebook in audience, market, and competition. competition with MySpace) -companies can understand their target 2. New Markets – when you build a product audience better. They can make better that isn’t in demand yet but you envision products, improve user experience, and design customer demand (example: SpaceX – Space a marketing strategy that attracts quality Tourism) leads. 3. Clone Markets – when you take a successful business model in one location and “copy” it to Marketing Plan- details the strategy that a another location (example: Baidu – Chinese company will use to market its products to version of Google’s Search Engine) customers. The plan identifies the target market, the value proposition of the brand or the product, the campaigns to be initiated, and the metrics to be used to assess the BUSINESS MODEL effectiveness of marketing initiatives. -describes how an organization creates, delivers, and captures value, in economic, Marketing Strategies- are the techniques you social, cultural or other contexts. The process use to reach your target audiences. They can of business model construction and use a variety of formats, including traditional modification is also called business model innovation and forms a part of business forms like radio, print and TV campaigns and strategy. digital techniques like pay-per-click Map Existing Business Models- Visualize and advertisements, search engine optimization, communicate a simple story of your business website content and social media posts. model. Design New Business Model- Use the canvas to SWOT analysis- (Strengths, Weaknesses, explore new business models whether you are a Opportunities, Threats) is a useful tool for start-up or an existing business evaluating a business idea's viability. Manage Portfolio of Business Model- Use the It helps entrepreneurs assess internal and canvas to easily juggle between "Explore" and external factors that may impact their venture's "Exploit" business models. success. Lean Canvas is a 1-page business plan template Competitor analysis- also referred to as a created by Ash Maurya that helps you competitive analysis, is the process of deconstruct your idea into its key assumptions. identifying competitors in your industry and It is adapted from Alex Osterwalder's Business researching their different marketing strategies. Model Canvas and optimized for Lean Startups. Competitive analysis- the process of gathering 1. Fast- Compared to writing a business plan data about the products, sales, and marketing which can take several weeks or months, you strategies of your competitors (i.e., other can outline multiple possible business models businesses in the same industry). on a canvas in one afternoon. -businesses use that data to identify their 2. Portable- A single-page business model is strengths and weaknesses and discover much easier it share with others which means it potential opportunities. will be read by more people and also more -essential for any business that wants to frequently updated. succeed in a crowded and competitive market. 3. Concise- forces you to distill the essence of BENEFITS OF COMPETITIVE ANALYSIS your product. You have 30 secs to grab the -understand your market and industry attention of a customer on your landing page. -compare your results with your competitor's 4. Effective- Whether you’re pitching investor’s performance or giving an update to your team or board, our -identify gaps in your strategy that your built-in presenter tools allow you to effectively competitor address document and communicate your progress. -develop strategies and tactics that promote THE 9 BLOCKS OF LEAN CANVAS your unique value proposition 1. Problem -stay on top of market changes to gain a 2. Customer Segment competitive edge over your competitors 3. Solution Market share- is the percent of total sales in an 4. Unique Value Proposition industry generated by a particular company. 5. Channels -is calculated by dividing the company's sales 6. Revenue Streams over the period by the industry's total sales 7. Cost Structure over the same period. 8. Key Metrics -the market leader in an industry is the 9. Unfair advantage company with the largest market share.