Customers and market (v. 2019 ita)

Customers & Market
Frieda Brioschi / Emma Tracanella
frieda.brioschi@gmail.com / emma.tracanella@gmail.com
IED, 19 Mar 2019

Lesson 4/2019

4. Customers & Market
Course program
1. Start-ups
2. Business Model & Canvas
3. Value Proposition Design
!2

4. Customers & Markets
Nine out of ten start-ups  
will fail…
!3

3. Value proposition design2. Business Model & Canvas!4

3. Value proposition design3. Value proposition design!11
https://www.forbes.com/sites/groupthink/2016/03/02/top-20-reasons-why-startups-fail-infographic/#4ccde2753911

4. Market, Value and Business Model
Elon Musk
• https://blog.adioma.com/how-elon-musk-started-
infographic/
• http://www.ﬁveminded.com/elon-musk-an-animated-
biography/
• https://simplylifetips.com/elon-musk-success-story-
biography/
!12

Business model canvas.
Let’s start!
!25

4. Customers & Market!27 https://www.ﬂickr.com/photos/osterwalder/7888051104/

Target market
!28

Target market
!29
• 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
!30
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/

4. Customers & Market!31
Here’s the problem with target
markets: They’re too big.

Segmentation
!32

4. Customers & Market!33 BronHiggs CC BY-SA 4.0 from Wikimedia Commons

Segmentation by
geographics
!34
This segmentation is based on geographic areas
such as a country, regions, different cities, or
postal codes.
https://en.wikipedia.org/wiki/Market_segmentation

Segmentation by
geographics
!35
• 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
!36
The demographic segmentation is based on
customers demographics characteristics.
Things like age, gender, occupation, education
level, income level and much more.
http://sbinfocanada.about.com/cs/marketing/a/targetmarket_2.htm

Segmentation by
demographics
!37
• 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
!38 http://sbinfocanada.about.com/cs/marketing/a/targetmarket_2.htm
This segmentation is achieved by studying
activities, interests, and the opinions of your
customers.
You’re thinking about the lifestyle of your
customer.

Segmentation by
psychographics
!39 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
!40 https://en.wikipedia.org/wiki/Market_segmentation
Behavioural segmentation considers a few things
such as the knowledge of your product. Users
attitude towards your product.
How and how often they use your product or how
they respond to your product. Their loyalty to the
product.

Segmentation by behavioral
!41 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

Other Segmentations
!42
• Occasional segmentation - focuses
on certain occasions that are
completely independent of customer.
• Cultural segmentation - classiﬁes the
markets according to the cultural
origin

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

Reassess
Look 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 & Market!54 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/

5. From Customer Relationship to Costs!59
Case study:
Lezé the label
Fit, Form, Function. Dress shirts made from recycled
coffee that will change the way you work... and live.
https://www.kickstarter.com/projects/1997686972/the-
worlds-ﬁrst-recycled-coffee-dress-shirt
https://www.kickstarter.com/projects/1997686972/leze-
the-label

4. Customers & Markets!60 http://technorian.com

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