CHAPTER 5

• Market


  Any place where manufacturers, distributors and retailers sell and consumers buy. Physical shops, high streets, or websites are examples of a market. The term may also speak of the whole group of buyers for a product and/or service.
• Markets


  • They are always dynamic, hence businesses must always monitor the trends and the changing needs of customers
  • Factors that influence the changes in the marketplace could be the economic situations, innovations, lifestyles and new fashions
• Understanding the market and customers


  1. Identify the customers an entrepreneur intends to sell to and how to reach them

  2. Understand all the potential factors that contribute to the market he is entering into
• Things customers look for when buying an offering

  • Price
  • Experience
  • Design
  • Functionality
  • Convenience
  • Reliability
  • Compatibility
• Customers


  The essential component of every business because they are the ones who uses and judges the quality of those products and/or services being bought from the market
• Types of customers

  • Potential Pandoy (Potential customer)
  • New Netnot (New customer)
  • Impulsive Icoy (Impulsive customer)
  • Discount Daboy (Discount customer)
  • Loyal Lando (Loyal customer)
• Target market


  A group of possible consumers or organizational buyers to whom a company wants to sell its products and/or services
• Approaches to describe the perfect customer

  • Consumer or business
  • Geographic
  • Demographic
  • Psychographic
  • Generation
  • Cohort
  • Life stage
  • Behavioral
• Customer persona


  A short fictional profile of an ideal user or customer, including a fictional name and photo, important demographics, user needs and desires, goals, motivations, activities, pain points, and quotes
• Customer persona

  • Gilda - The Event Planner of The Family
• Steps to create a customer persona


  1. Create a header with a fictitious name, picture and quote

  2. Include a demographic profile with personal background, professional background, user environment, and psychographics

  3. Identify the user's goals, needs, activities, motivations, pain points, and device/internet usage
• User Persona


  A fictional representation of a company's ideal customer based on research and data about the target audience
• User Persona Example - Gilda


  • Mobile Phone (95%)
  • Tablet (80%)
  • Social Media (90%)
  • Computer Knowledge (85%)
• Steps to create a User Persona


  1. Create a Header

  2. Include a Demographic Profile

  3. Include End Goal(s)

  4. Include a Scenario
• Header


  Consists of a fictitious name, a picture, and a quote which sums up what is most important to the persona related to the product/service offering
• Demographic Profile


  Personal background, professional background, user environment, and psychographics
• End Goal


  The encouraging factor that stimulates action, the wants/needs of users that can be satisfied by the product/service
• Scenario


  An everyday life story that describes the interaction of the user with a product/service in a particular situation to reach their end goal
• Customer Journey Map


  A representation of a typical customer's experience over time, highlighting their experience
• Key Components of a Customer Journey Map

  • Actor
  • Scenario + Expectations
  • Journey Phases
  • Actions, Mindsets, and Emotions
  • Opportunities
• Customer journey maps come in all forms and dimensions but have the 5 key elements in common
• Importance of a Customer Journey Map: Refocus a company with an incoming perspective, Form a new target customer base, Form a customer-focused mindset all over the company
• Steps to Craft a Customer Journey Map

  1. Set clear objectives for the map

  2. Profile personas and define their goals

  3. Emphasize the target customer personas

  4. Write down all the touchpoints

  5. Identify the elements of the map to show
• There are several types of customer journey maps with corresponding benefits: Current state, Day in the life
• Cost is one of the prime problems. High shipping rates may cause a customer not to buy the product even he so desires it. Emphasizing these possible difficulties in the customer journey may help lessen them.
• Types of customer journey maps

  • Current state
  • Day in the life
  • Future state
  • Service blueprint
• Current state customer journey map


  Tries to create in one's mind the actions, thoughts, and emotions that customers presently experience while interacting with the entrepreneur's company. Best applied for continuously refining the customer journey.
• Day in the life customer journey map


  Tries to create in one's mind the actions, thoughts, and emotions that customers presently experience when he participates on daily basis whether it includes the company or not. Offers a wider viewpoint into the lives of the customer and their pain points in real life. Best applied for fulfilling unmet customers' needs before customers even know they exist.
• Future state customer journey map


  Designed by an entrepreneur to imagine the actions, thoughts and emotions of his customer's experience as the latter interacts with his company in the future. The reference is the present experience though the plan heads towards what the entrepreneur wants the customer journey to be. Best applied for illustrating vision and planning a clear objective.
• Service blueprint customer journey map


  Starts with the simple version of the above mentioned maps. The later add further those factors in charge of providing the experience such as people, policies, technologies, and processes. Best applied when determining the main reasons of the present customer journeys or determining the steps required to accomplish the preferred future customer journeys.
• Every part of the business could be touched by the customer journey map. The entrepreneur must emphasize all the resources that goes with the customer experience.
• The entrepreneur must come up with the inventory of the resources he has on-hand and those resources he will be needing to improve the customer's journey.
• If the customer service does not have the tools to appropriately follow up with customers after a service interaction, then the entrepreneur must invest on these resources.
• Experiencing the customer journey

  1. Analyze the results himself

  2. Know the number of people clicking his company's website but never really make a purchase

  3. Decide on how he could better support customers

  4. Confirm where customer needs are being unmet

  5. Follow the journey of each personas using their social media, reading their emails and searching online
• Creating the needed changes

  1. Analyze the data

  2. Create applicable changes to his website to accomplish his goals for the business

  3. Place numerous distinct call-to-action links

  4. Write vivid and detailed descriptions of each product to make its purpose and benefits clear to the customers
• Market size


  The aggregate number of possible buyers of a product and/or service in an industry and the aggregate revenue that these sales may produce over the course of a year
• Categories of market size

  • Total Addressable Market (TAM)
  • Serviceable Available Market (SAM)
  • Serviceable Obtainable Market (SOM)
• Total Addressable Market (TAM)


  The potential value of product and/or service sold to a particular customer segment. Represents the number of customers in the core market around the world who are in need of the entrepreneur's product and/or service offering, irrespective of competition.
• Serviceable Available Market (SAM)


  The subset customer of the total addressable market (TAM) who can be reached and ready to buy goods or services using a one revenue stream/channel.
• Serviceable Obtainable Market (SOM)


  The subset of the SAM that will realistically get to use a product and/or avail of the service. The target market who the entrepreneur shall primarily sell to.