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LLP@Tecnico
Class 4
Luis Caldas de Oliveira
Agenda for Class 4
• Q&A about Customer Segments
• Team Presentations: Customer Segments
Findings
• Summary about Channels
• Work for Next Week
Q&A CUSTOMER SEGMENTS
Common Errors on
Customer Segments
• Poorly designed and vague data from
customer interviews (“they liked our
product”)
• No articulation: hypotheses/experiments with
pass/fail tests
• Confusion between
users/payers/recommenders, etc.
• No customer archetype
Market Types
4 Market Types
• Existing Market: faster/better (high-end)
• Re-segmented Market: niche
(marketing/branding), cheaper (low-end)
• New Market: innovative or cheaper/good
enough
• Clone Market: copy of an existing business
model
Market Type Trade-offs
One-sided Market
• Product/service serves a single class of
customers
• The value propositions does not depend on
interaction between classes of customers
Multi-sided Market
• Product/service serves multiple customer
classes
• Some of the value propositions depend on
interaction between multiple classes of
customers
Customer Knowledge
Value Proposion: defines the MVP
Customer Segment: defines the
archetype/persona
Customer Workflow
TEAM PRESENTATIONS: CUSTOMER
SEGMENTS
CHANNELS
Two Questions
1.How do you want to sell your product?
1.How does your customer want to buy
your product?
How do you want to
sell your product?
üYourself
üThrough someone else
üRetail
üWholesale
üBundled with other products/services
How does your customer
want to buy your product?
üSame day
üDelivered and installed
üDownloaded
üBundled with other products/services
üAs a service
ü…
Types of Channels
• Direct: sell it yourself
• Indirect: OEM, VAR, Reseller, Distributor
• Licensing: they make it and sell it
The Channel can be the
customer
• Products embedded in others (OEM –
original equipment manufacturer)
• Products resold by others (VAR – value
added reseller)
• Products distributed by others
(Distributor)
Channel Economics
• Commission
• Percentage of sales price
• Discounted pre-purchase
Channel Economics:
Distributor/Reseller
SG&A – selling, general and administrative expenses
R&D – research and development expenses
Book Publishing
Book Publishing
Economics
Channel Diagram
(Direct)
NEXT WEEK
Presentation for Next
Week
• Slide 1: Cover slide
• Slide 2: Business Model Canvas (changes marked in red,
different colors for multi-sided markets)
• Slide 3-n: What is the distribution channel: hypothesis,
experiments, results, action
• Slide n+1: Channel diagram with annotated channel
economics
• Slide n+2: Images of your prototype
Before Next Class
• Talk to 10 customers and channel partners
• Update LPC Narrative and Canvas
• Work on your MVP: site or wireframe
(web/mobile), prototype, model,
crowdfunding (physical product)
• Prepare Class Presentation
• Watch Lecture 5: Customer Relationships
Obrigado

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