1. LLP@Tecnico
Class 4
Luis Caldas de Oliveira

2. Agenda for Class 4
• QA about Customer Segments
• Team Presentations: Customer Segments
Findings
• Summary about Channels
• Work for Next Week

3. QA CUSTOMER SEGMENTS

4. 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

5. Market Types

6. 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

7. Market Type Trade-offs

8. One-sided Market
• Product/service serves a single class of
customers
• The value propositions does not depend on
interaction between classes of customers

9. Multi-sided Market
• Product/service serves multiple customer
classes
• Some of the value propositions depend on
interaction between multiple classes of
customers

10. Customer Knowledge
Value Proposion: defines the MVP
Customer Segment: defines the archetype/
persona

11. Customer Workflow

12. TEAM PRESENTATIONS: CUSTOMER
SEGMENTS

14. CHANNELS

15. Two Questions
1. How do you want to sell your product?
2. How does your customer want to buy
your product?

16. How do you want to
sell your product?
ü Yourself
ü Through someone else
ü Retail
ü Wholesale
ü Bundled with other products/services

17. How does your customer
want to buy your product?
ü Same day
ü Delivered and installed
ü Downloaded
ü Bundled with other products/services
ü As a service
ü …

18. Types of Channels
• Direct: sell it yourself
• Indirect: OEM, VAR, Reseller, Distributor
• Licensing: they make it and sell it

19. 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)

20. Channel Economics
• Commission
• Percentage of sales price
• Discounted pre-purchase

21. Channel Economics:
Distributor/Reseller
SGA – selling, general and administrative expenses
RD – research and development expenses

22. Book Publishing

23. Book Publishing
Economics

24. Channel Diagram
(Direct)

25. NEXT WEEK

26. 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

27. 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

28. Obrigado