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• Business to Business to Consumer (B to B to C) – Sell a business to get to a consumer – Other Multi-sided Markets with multiple customers
Market Type & Ignoring Customers•
Clone Market?• Existing Market?• Resegmenting an Existing Market? – niche or low cost• New Market?• When do I ignore customer feedback?
General Heuristics• You need to
talk to more customers than you ever thought possible – 100’s physically, 1000’s on the web• “I left a message” or “I sent an email” doesn’t count – it’s confusing motion with action• Do NOT start at the top. You only get one meeting. You’ll almost certainly look like an idiot – First figure out the order of battle
Definitions: Four Types of Markets
Clone Market Existing Market Resegmented New Market Market• Clone Market – Copy of a U.S. business model• Existing Market – Faster/Better = High end• Resegmented Market – Niche = marketing/branding driven – Cheaper = low end• New Market – Cheaper/good enough, creates a new class of product/customer – Innovative/never existed before
Market Type Existing Resegmented NewCustomers
Known Possibly Known UnknownCustomer Performance Better fit TransformationalNeeds improvementCompetitor Many Many if wrong, Nones few if rightRisk Lack of branding, Market and Evangelism and sales and distribution product re- education cycle ecosystem definitionExamples Google Southwest Groupon Market Type determines: Rate of customer adoption Sales and Marketing strategies Cash requirements
Market Type - Existing• Incumbents
exist, customers can name the mkt• Customers want/need better performance• 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
Market Type – Resementing Existing•
Low cost provider (Southwest)• Unique niche via positioning (Whole Foods)• What factors can: – you eliminate that your industry has long competed on? – Be reduced well below the industry’s standard? – should be raised well above the industry’s standard? – be created that the industry has never offered? (blue ocean)
Market Type – New• Customers
don’t 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)
For Oct 18th Presentation• Talk
to 10-15 customers face-to-face• What were your hypotheses about users and customers? Did you learn anything different?• Did anything change about Value Proposition?• What do customers say their problems are? How do they solve this problem(s) today? Does your value proposition solve it? How?• What was it about your product that made customers interested? excited?• If B-B, who’s: decision maker, size of budget, what are they spending it on today, how will this buying decision be made?• Update your blog/wiki/journal
Contacting…• Flir (Fido). Action:
Sent email and made calls (703-678-2118). Feedback: No answer on the phone. Waiting for email reply.• CEIA (metal detector company in Italy). Action: Sent email. Feedback: Waiting for email reply.• United Nations (UN). Action: Sent email (email@example.com) and called (212-963-3344) to Mr. Justin Brady, Acting Director, United Nations Mine Action Service (UNMAS). Feedback: Waiting for reply.• Smith Detections. Action: Sent email and called (973 496 9280) to Reno DeBono, Director of Chemistry and Applications. Feedback: Waiting for reply.
Landmine Clearance Customer Customer Customer
Discovery Validation Creation PivotSpeed: Government entities too slow for this process/programMinimum feature set: Included too many variables (environmental, deployment) PivotObtain Near instantaneous customer feedbackBe: Fast, agile and opportunistic and formulated a dramatically new model
Landmine Clearance Explosive Detection for
Transportation Hubs Customer Customer Customer Discovery Validation Creation PivotSpeed: Government entities too slow for this process/programMinimum feature set: Included too many variables(environmental, deployment) PivotObtain Near instantaneous customer feedbackBe: Fast, agile and opportunistic and formulated a dramatically new model
The Business Model Canvas 1
1.US Army1. Manufacture of 1. Production 1. Dedicate Personal 2. Other Gov. Entitiesmachine 2. Distribution 1. Reliable Assistance 3. UN 2. Cheap 2. Demo 3. Easy to use 3. Training 4. Rapid 5. Large scale 1. IP 2. Chemicals Direct sales. 3. Facilities 1 Machine sales Distribution Production Sensing materials
The Business Model Canvas 2
1.US Army1. Manufacture of 1. Production 1. Dedicate Personal 2. Other Gov. Entitiesmachine 2. Distribution 1. Reliable Assistance 3. UN2. Existing 2. Cheap 2. Democompanies: Smiths 3. Easy to use 3. TrainingDetection. 4. Rapid Airports 5. Large scale 4. Wider spectrum 1. IP 2. Chemicals Direct sales. 3. Facilities Partner’s distribution channels 1 Machine sales Distribution Production Sensing materials
Target Market • Who am
I going to sell to? • Airports • How large is the market be (in $’s)? Total Served Target • $100 MAvailable Available Market Market Market • How many units would that be? $4.8 B $1 B $100 M • 200 M units
From Canvas version 1 to
version 2• What we thought: Government entities get to need landmine clearance techniques.• What we did: contacted with the major demining organizations and the UN.• What we found: Government entities too slow for landmine clearance program.• What we have done: modified our business model.• Here’s what are going to do: Contact with airports and Smith Detection.
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