2. KEY ISSUES
• Explain the need for customer buy-in
and a separate customer development
process.
• Discuss the different steps of the
customer development process and its
relationship with product development.
• Explain the role of marketing and sales
in the customer development team.
• Illustrate different roles customers may
have in the customer development
process.
• Link customer development with
business model development.
3. 6.1 THE NEED FOR CREATING
CUSTOMER BUY-IN
• Then, customers would appear automatically on
the entrepreneur’s doorstep and demand the
product. The entrepreneur would only have to
ensure product availability to make the sale.
Business growth would be instantaneous and
success hard to avoid.
• If every innovation satisfied customer needs
perfectly, the only marketing and sales activities
needed would be creating awareness and
ensuring availability.
• However, innovations are usually far from perfect and entrepreneurs
struggle to interest customers and persuade them of the new
product’s unique customer value. Based on this observation, the value
of marketing for any innovation and start-up should be obvious.
4. First, latent customer
needs are complex and
multifaceted, and
customers frequently
cannot express them
clearly.
WHY DO ENTREPRENEURS SO OFTEN DESIGN
PRODUCTS THAT CUSTOMERS DO NOT WANT?
Another reason may be
that the start-up
encounters technological
problems and lacks the
funds to develop a
complete and
suitable new product.
Third, many entrepreneurs
lack marketing and sales
knowledge; as a result,
they fail to understand that
there is more to a product
than just the nuts and
bolts.
5. TABLE 6.1
The result of different marketing efforts in
combination with quality of an innovation
• The table shows the interaction between technical and marketing quality for a new product. While
excellent marketing can compensate for a less than perfect new product, it cannot salvage a very
poor one.
• Similarly, a perfect new product may survive poor marketing support, but could have done much
better if marketing had been adequate.
• So, the conclusion is that a firm should aim to get both its product and marketing right. A new
product’s quality and marketing effort complement each other.
14. KEY ISSUES
• Discuss the idea of a simple one-page
marketing and sales plan to guide the
effectual effort.
• Identify the three core elements of the
plan: build customer value, market
presence and customer relationships..
• Discuss in detail the four Ps: promotion,
product, place and price
• Illustrate different roles customers may
have in the customer development
process.
• Emphasize the importance of creativity
and social media to compensate for a
limited marketing budget.
15. 7.1 A ONE-PAGE MARKETING AND
SALES PLAN
• A marketing and sales plan identifies
the goals, market strategy, and
marketing and sales tactics that will
be used to approach the market
segment best fitting the start-up’s
technology and application.
Create product
awareness and market
presence;
Approach and persuade
prospects; and
clearly specify the
product and its customer
value
It should help to :
1
2
3
• The brief plan will give structure to
your start-up’s marketing and sales
activities and draws attention to goals
and allocation of resources in a
systematic but flexible way.
16. Building Customer
Value
Building Market
Presence
Building Customer
Relationship
PRODUCT PRICE
CONTENT OF THE PLAN AND MARKETING INSTRUMENT
• The one-page plan should focus on creating the right customer experience for the
start-up’s new product application.
• It requires paying attention to three core elements:
• The four marketing instruments:
PLACE PROMOTION
20. DESIGNING A PRODUCT A PRODUCT APPLICATION AND
PRODUCT LINE
PRODUCT:
Product design process
model:
21. DESIGNING A PRODUCT A PRODUCT APPLICATION AND
PRODUCT LINE
PRODUCT:
Product line issues:
GoPro’s product line development
In 2002, a brand-new camera maker emerged: GoPro. Inventor Nick
Woodman got the idea for the small action-camera during a long
vacation, after his first start-up on online gaming had crashed.
22. DESIGNING A PRODUCT A PRODUCT APPLICATION
AND PRODUCT LINE
PRICING METHODS: PRICING STRATEGIES:
23. PROMOTION: CREATING AWARENESS WITH A LIMITED BUDGET
The communication process and promotion mix
The communication process model
24. PROMOTION: CREATING AWARENESS WITH A LIMITED BUDGET
The communication process and promotion mix
The promotion mix model
