MODULE 3: Customers and Value Proposition

• The groups of people or companies that you are trying to target and sell your product or service.

  Customer Segments
• Customer groups represent separate segments if:

  • Their needs require and justify a distinct offer

  • They are reached through different Distribution Channels

  • They require different types of relationships

  • They have substantially different profitabilities

  • They are willing to pay for different aspects of the offer
• TYPES OF MARKET SEGMENTATION:

  • Geographic
  • Demographic
  • Psychographic
  • Behavioral
• GEOGRAPHICS include:

  • Country
  • City
  • Density
  • Language
  • Climate
  • Area
  • Population
• DEMOGRAPHICS include:

  • Age
  • Gender
  • Income
  • Education
  • Social Status
  • Family
  • Life Stage
  • Occupation
• PSYCHOGRAPHICS include:

  • Lifestyle
  • AIO: Activities, Interests, and Opinions
  • Concerns
  • Personality
  • Values
  • Attitudes
• BEHAVIORAL includes:

  • Benefits Sought
  • Purchase
  • Usage
  • Intent
  • Occasion
  • Buyer Stage
  • User Status
  • Life Cycle Stage
  • Engagement
• Types of Customer Segments

  • Mass market
  • Niche market
  • Segmented
  • Diversified
  • Multi-sided Market
• A business model that focuses on mass markets doesn’t group itscustomers into segments. Instead, it focuses on the general population or a large group of people with similar needs.

  Mass Market
• Here the focus is centered on a specific group of people with uniqueneeds and traits. Here the value propositions, distribution channels, and customer relationships should be customized to meet their specific requirements.

  Niche Market
• Based on slightly different needs, there could be different groups withinthe main customer segment. Accordingly, you can create different value propositions, distribution channels, etc. to meet the different needs of these segments.

  Segmented
• The market segment includes customers with very different needs.

  Diversified
• This includes interdependent customer segments

  Multi-sided markets
• Think of a substantial recent purchase you made, what benefits did you value when you made that purchase?


  Value
• Describes the bundle of products and services that create value for aspecific customer segment.


  Value Proposition
• Elements which contribute to customer value:

  • Newness
  • Performance
  • Customization
• Who initially developed the value proposition canvas?

  Dr Alexander Osterwalder
• It is a framework to ensure that there is a fit between the product andmarket.

  Value Proposition Canvas
• COMPONENTS OF VALUE MAP

  • Gain Creators
  • Pain Relievers
  • Products and Services
• The product or service feature(s) that are really responsible fordelivering the outcomes and benefits the customer needs or wants.

  Gain Creators
• The specific aspects of the products or services that remove orlessen the customer’s pains.

  Pain Relievers
• You provide that will deliver the Gains and relieve the Pains for the customer. These can be physical or digital in nature.

  Products and Services
• COMPONENTS OF CUSTOMER PROFILE:

  • Gains
  • Pains
  • Customer Jobs
• The outcomes and benefits the customer desires, what would delightcustomers and the things which may increase likelihood of adopting a value proposition.

  Gains
• The problems, barriers and negative feelings that customers experience either before, during or after they try to get the job done.

  Pains
• The functional, social and emotional tasks customers are trying to perform, problems they are trying to solve and needs they wish to satisfy.

  Customer Jobs
• It should be created for each customer segment, as each segment has distinct gains, pains and jobs.


  Customer Profile