3- Choosing Business Idea Flashcards
Through which eyes should see world
Customers‘ eyes NOT company‘s eyes
Two pitfalls of choosing business idea
- selling to everyone
- „China syndrome“: assume a tiny market share translates to huge sales because of the vast population (forget the importance of defined target segment)
Competition/perceptual mapping, what does it show us about company
How consumers perceive brand in relation to competitors, according to various attributes
- market positioning of company
Market segmentation: classic criteria (3)
1) demographic: age, gender, ethnicity, family size, occupation, income, geography, education
2) psychographic: social class, lifestyle, personality
3) behavioral: purchasing/spending habits, user status, brand interactions
Market segmentation: essential (4)
- needs
- preferences
- pain points
- buying behavior
Customer persona
Represents significant segment of target audience
6 elements of customer persona
- demographic
- profession
- psychographic
- goals and motivations
- buying behaviour
- pain points
Customer persona: demographic
Age, gender, income, education…
Customer persona: profession
Job title, industry, work environment, challenges at work
Customer persona: Psychographic
Values, interests, hobbies, lifestyle
Customer persona: Goals and motivation
Personal and professional objectives
Customer persona: buying behaviour
How purchasing decisions, preferred communication channels, what influences trust/loyalty
Customer persona: pain points
Why they buy: problems that your product solves
