~Key trends, industry forces, market forces, macro economic forces
Value Proposition - Answer--What value do we deliver to the customer?
-Which one of our customer's problems are we helping to solve? -What bundles of
products and services are we offering to each Customer Segment?
-Which customer needs are we satisfying?
Value proposition-textbook definition - Answer-Value propositions describe the bundle
of products and services that create value for a specific customer segment
-The value proposition is the reason why customers turn to one company over another
-It solves a customer problem or satisfies a customer need
-The value proposition is an aggregation or bundle of benefits that a company offers
customers
Value Proposition Characteristics (11)
(things that contribute to customer value creation) - Answer--Newness (satisfy an
entirely new set of needs that customers previously didn't perceive because there were
no similar offerings. Usually tech related-cell phones)
-Performance (improving product or service performance)
-Customization (tailoring products and services to the specific needs of individual
customers or customer segments)
, -"Getting the Job Done" (Helping customers get certain jobs done)
-Design (a product may stand out because of superior design)
-Brand/Status (customers find value in wearing a brand)
-Price (similiar value at a lower price)
-Cost Reduction (helping customers reduce cost)
-Risk Reduction (reducing risk they incur when purchasing products or services)-1 yr
service guarantee
-Accessibility (making products/services available to customers who previously lacked
access to them)
-Convenience/Usability (making things more convenient or easier to use)
NPCG DBP CR AC
Customer Segments - Answer--For whom are we creating value?
-Who are our most important customers?
-What are the criteria for segmentation (gender, age, income, geographic, needs,
wants, behavior)?
-What are potential customers - know but not reached or addressed?
-What are future customers - existing groups not yet on the radar?
Customer Segments textbook definition - Answer-The different groups of people or
organizations an enterprise aims to reach and serve
-In order to better satisfy customers, a company may group them into distinct segments
with common needs, common behaviors, or other attributes
-Once a business decides which segments to serve and which to ignore, a business
model can be carefully designed around a strong understanding of specific customer
needs
Customer Segments examples (5) - Answer--Mass Market (don't distinguish between
different customer segments. Focus on one large group of customers with broadly
similar needs and problems-consumer electronics)
-Niche Market (cater to specific, specialized customer segments)
-Segmented (Distinguish between market segments with slightly different needs and
problems)
-Diversified (serves two unrelated customer segments with very different needs and
problems)
-Multi-sided Platform (serves two or more independent customer segments)
M
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