Slides from Lean Venture Series Stage 1 Lesson 5, based on Arizona State University Startup School. Focus - target marketing and market segmentation.

1. Lean venture series
Stage 1, Lesson 5:
Determining the Types of People You’ll Serve
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2. workshop agenda
01 review
02 learning objectives
03 customers and consumers
04 brainstorming
05 profiling consumers and customers
06 prioritization
07 market type
08 summary and next steps
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3. 01
review
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4. consider and reflect:
01 what would success look like to you as an
entrepreneur?
02 what problem are you solving with your
product or service?
03 what value are you creating with your product
or service?
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5. Steve Blank on Startups
• A startup is an organization formed to search for a
repeatable and scalable business model.
• The goal of your early business model can be
revenue, or profits, or users, or click-throughs –
whatever you and your investors have agreed upon.
• Customer and Agile Development is the way for
startups to quickly iterate and test their hypotheses
about their business model
• Most startups change their business model multiple
times.
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6. 02
learning objectives
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7. by the end of this lesson you should be able to:
01 define and differentiate between customers and
consumers.
02 summarize and apply customer segmentation
strategies.
03 interpret and apply steps to determine how to prioritize
segments.
04 compare and contrast market types.
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8. 03
STEP 1: customers and
consumers
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9. differences between
consumers and customers
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10. share some examples for consumer vs. customer:
01 education
02 technology
03 service
04 others?
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11. 04
STEP 2: brainstorm
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12. activity
01 identify your value proposition
02 who are you creating value for?
03 collaborate with your neighbor
04 share
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13. 05
STEP 3: profiling
consumers and
customers
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14. STEP 3A: segments versus segmentation
why is it important?
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15. STEP 3B: draw a day in the life of your
consumers and customers.
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16. consider
01 is the need crucial or trivial?
02 what are the benefits consumers or customers would gain
from your service?
03 what would make consumers or customers want your
solution?
04 (barriers) what would prevent your solution being
adopted by consumers or customers?
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17. 06
STEP 4: prioritization
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18. consider
01 prioritizing markets
02 beachhead market
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19. segmentation goals
• Homogenous: Are consumers or customers in the segment
mostly the same? Do they buy similar products and expect
products that they buy will provide value in similar ways?
• Differentiated: Can you differentiate between the
consumers/customers in this segment and the
consumers/customers in other segments?
• Responsive: Will the consumers/customers in the segment
respond differently to your product or service than customers in
other segments? Are your segments willing to pay for different
aspects of your product or service?
Small market size
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20. customer or consumer groups:
01 niche
02 segmented
03 diversified
04 multi-sided
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USED CARS

21. market types based on demand:
1 existing: http://bit.ly/21liS9F
2 re-segmented: http://bit.ly/1R9ZFYV
3 clone: http://bit.ly/1pjb8sZ
4 new market: http://bit.ly/1P2vprb
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22. 07
summary and next steps
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23. reflect:
01 define and differentiate between customers and
consumers
02 why is customer profiling and prioritizing markets
important?
03 what is a niche, segmented, diversified, and multi-
sided market?
04 what is an existing, re-segmented, clone, and new
market?
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24. Your thoughts on Stage 1
• LESSON 1 – ENTREPRENEURSHIP AND BUSINESS MODEL CANVAS
• LESSON 2 -- PROBLEMS, NEEDS / OPPORTUNITY IDENTIFICATION
• LESSON 3 – ALIGNING WITH HUMAN NEEDS: RESEARCH & “PROBLEM INTERVIEW” (QUICK
OVERVIEW OF BEGINNING OF CUSTOMER DEVELOPMENT – STAGE 2); PRETOTYPING
• LESSON 4 – VALUE PROPOSITION; CUSTOMER VALUE PERCEPTION, TYPES OF VALUE
PROPOSITIONS, VALUE PROPOSITION CANVAS
• LESSON 5 – CUSTOMERS AND CONSUMERS; CUSTOMER SEGMENTATION: IDENTIFYING &
PRIORITIZING SEGMENTS; MARKET TYPES
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25. questions?
comments?
Thank you
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