Customers and market (v. 2017-2018 eng)

Customers & Market

Frieda Brioschi / Emma Tracanella [email protected] / [email protected]

IED, 7 Nov 2017Lesson 4/2017-18

mailto:[email protected]

mailto:[email protected]

4. Customers & Market

Course program

1. Start-ups

2. Business Model & Canvas

3. Value Proposition Design


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4. Customers & Market3

The exam


Recap

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Greetings from Dubai!

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4. Customers & Market7 https://www.flickr.com/photos/osterwalder/7888051104/


Target market

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Target market

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• Who are your customers? Who will buy your product?

• People purchase products or services for three basic reasons:

• To satisfy basic needs.

• To solve problems.

• To make themselves feel good.

http://sbinfocanada.about.com/cs/marketing/a/targetmarket.htm


Definition of a target market

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1. Look at your current customer base

2. Check out your competitors

3. Analyze your product/service

4. Choose specific demographics to target

5. Consider the psychographics of your target

6. Evaluate your decision

http://www.successdesigns.net/articles/entry/how-to-define-your-target-market/


Segmentation

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4. Customers & Market12 BronHiggs CC BY-SA 4.0 from Wikimedia Commons


Segmentation by geographics

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• Country: e.g. USA, UK, China, Japan, South Korea, Malaysia, Singapore, Australia, New Zealand

• Region: e.g. North, North-west, Mid-west, South, Central • Population density: e.g. central business district (CBD),

urban, suburban, rural, regional • City or town size: e.g. under 1,000; 1,000–5,000; 5,000–

10,000 ... 1,000,000–3,000,000 and over 3,000,000 • Climatic zone: e.g. Mediterranean, Temperate, Sub-

Tropical, Tropical, Polar,

https://en.wikipedia.org/wiki/Market_segmentation


Segmentation by demographics

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• Age: children, teens, young, middle, elderly • Gender: male, female • Education: high school, college, university • Income: low, medium, high • Marital status: single, married, divorced • Ethnic and/or religious background • Occupation • Family life cycle: newly married, married for 10 – 20 years,

with or without children.

http://sbinfocanada.about.com/cs/marketing/a/targetmarket_2.htm


Segmentation by psychographics

15 http://sbinfocanada.about.com/cs/marketing/a/targetmarket_2.htm

• Personality

• Values

• Lifestyle: conservative, exciting, trendy, economical

• Social class: lower, middle, upper

• Opinion: easily led or opinionated

• Activities and interests: sports, physical fitness, shopping, books

• Attitudes and beliefs: environmentalist, security conscious.

• Behaviour


Segmentation by behavioral

16 https://en.wikipedia.org/wiki/Market_segmentation

• Purchase/Usage Occasion: e.g. regular occasion, special occasion, festive occasion, gift-giving

• Benefit-Sought: e.g. economy, quality, service level, convenience, access

• User Status: e.g. First-time user, Regular user, Non-user

• Usage Rate/ Purchase Frequency: e.g. Light user, heavy user, moderate user

• Loyalty Status: e.g. Loyal, switcher, non-loyal, lapsed

• Buyer Readiness: e.g. Unaware, aware, intention to buy

• Attitude to Product or Service: e.g. Enthusiast, Indifferent, Hostile; Price Conscious, Quality Conscious

• Adopter Status: e.g. Early adopter, late adopter, laggard


Here’s the problem with target markets: They’re too big.


Narrowing your target market

"Companies that try to be all things to all customers are sure to fail.”

• The Dangers of Being Unfocused

• Become an Expert in one Area (Starbucks!)

• Do the Market Research

• Tweak your Marketing

http://www.inc.com/guides/201104/how-to-narrow-your-target-market.html


The Dangers of Being Unfocused

"If you're not differentiating yourself in the marketplace, what happens is the consumer looks at price as being the motivator, and they look at the cheapest.”

- Susan Friedmann -



Do market reasearch

Look for growth markets to identify burgeoning new areas that may not be claimed by existing businesses.

OR

Find your niche first by focusing on the areas in which they already have a strong interest, or by looking at markets that already know about you and your services. Then, look for areas of the marketplace where a gaping need exists that you can fill with your company's services.



Matter of balancing

http://www.educationbusinessblog.com/2007/07/target_market_selection_1.html


ReassessLook at Your Product or Service with a Fresh Light

• There are enough potential customers within your target audience?

• Will your target market benefit from your product or service?

• Will this target market see a true need for it?

• Can your target market afford your product or service? how frequently?

• Can you reach your market with your message?


Kinds B2B B2C

http://plantostart.com/how-to-define-target-market-product/


Kinds B2B B2C

http://plantostart.com/how-to-define-target-market-product/

+ B2G


B2B

Your business model is to make a product or service and charge other companies for using it.

The advantage of this model is that companies have money and they are willing to spend it on a product/service, which improves their daily operations, helps them sell more or communicate better.

Google, Cisco, MySQL and others are using this model.


B2C

Your business model is to make a product or service and charge consumers for using it. Even though most people think this is a very profitable model, most often companies need to have at least hundreds of thousands of users in order to earn enough money to maintain and expand the business.

This model is being used by Starbucks, McDonald’s, Amazon and others.


B2G

Your business model is to make a product or service or information and charge the government for using it.

“B2G networks or models provide a way for businesses to bid on government projects or products that governments might purchase or need for their organizations. This can encompass public sector organizations that propose the bids. B2G activities are increasingly being conducted via the Internet through real-time bidding. “


B2B, B2C, B2G?

• B2C: building emotional connections

• B2B: building relationships

• B2G: building expertise

https://www.bluetreedigital.com/marketing-businesses-b2c-vs-b2b-vs-b2g/

4. Customers & Market29 https://petovera.com/b2b-v-b2c-content-marketing-which-is-the-best-approach-for-your-audience/


H2H?

http://www.hellosoutherly.com/what-does-h2h-instead-of-b2b-b2c-mean-for-business-storytelling/


B2B Vs B2C e-commerce

http://blogs.bazara2z.com/b2b-e-commerce-not-b2c/


Customer relationship

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Customer relationshipCR could rely on different motivations, three common ones are:

1. Customer acquisition

2. Customer retention

3. Increased sales (upselling)

Consider the mobile phone market: at the beginning CR were driven by acquisition strategies, but when the market was saturated, operators switched to customer retention and tried to increase the average revenue per customer.

http://www.ecommerce-digest.com/customer-relationships.html


Categories of CR

• personal assistance

• dedicated personal assistance

• self-service

• automated service

• communities

• co-creation

http://www.whittakercpas.com/what-type-of-customer-relationship-builds-value-for-your-business/


Personal assistance

This is based on human interaction. Customers can communicate directly with company representatives throughout the sales process and after the sale is complete. This may happen in person, by email, through call centers, etc. Nordstrom’s would be a good example of this. There is usually a customer service representative in the department that can help you find your perfect fit, help you with the sale, and help if there is a problem down the road.



Dedicated personal assistance

This is also based on human interaction, but adds the specificity of a dedicated customer service representative. This is the deepest type of customer relationship and normally develops over a long period of time. Think of this with an investment advisor, CPA or an attorney.



Self-service

In this relationship, the company does not maintain a direct relationship with its customers. Instead, it provides all the necessary means for the customer to help themselves. Think of how you buy music through iTunes. This service does not require any customer service; you can begin and complete the transaction on your own. Another example would be how you purchase gas for you cars. This transaction typically happens at the pump and you never speak to an attendant.



Automated service

This relationship mixes customer self-service with automated processes. Automated services can recognize individual customers and their characteristics. While iTunes is an example of self-service, Pandora (a web-based music service) is an example of an automated service. With Pandora, you create a profile and populate a couple of “stations” you like to listen to. As you continue to listen to music, you can give the songs a ‘thumbs-up’ or a ‘thumbs-down’ when you like or dislike music. Over time, the software actually tailors the music it plays to your liking.



CommunitiesMany companies are using communities to become more involved with their customers/prospects and to facilitate connections between community members. Many companies maintain online communities to exchange knowledge and solve problems. There are several examples of this that come to mind. Most technology companies have online communities where people share questions and solve problems. If you have ever Googled a computer or software problem, you were probably provided with several online communities that had answers. Some of these forums (online communities) are established and monitored by the software and hardware companies.



Co-creation

This is a model in which the company and the customer co-create value, done quite frequently with technology. When you purchase something online, you typically get to peruse through the reviews of the item that you are buying prior to making your decision. In this instance, the seller and previous customers are working together to co-create value. The customer reviews add value to the product as well as to the customer service of the seller. This can also be done with testimonials for typical brick and mortar companies.



Case study: Wolffepack

The unique orbital backpack

https://www.wolffepack.com/#

https://www.kickstarter.com/projects/wolffepack/wolffepack-luna-ultraeasy-baby-changing-backpack-d/description

https://www.wolffepack.com/#




Customers and market (v. 2017-2018 eng)

Education

Transcript of Customers and market (v. 2017-2018 eng)