Class 2

Question 1

4 Characteristics of a market:

Answer 1

-Group of potential customers
-Given set of products/services
-Shared customer needs/wants
-Interactions between customers with other buyers and sellers.
(Must have buyers and sellers and a place to conduct business)

Question 2

Market sizing:

Answer 2

Estimating the number of potential customers to predict and forecast the potential revenues and profitability of your idea.

Question 3

Total available market (TAM):

Answer 3

The overall demand for a product/service.

Question 4

Serviceable available market (SAM):

Answer 4

The total number of customers available within your target market.

Question 5

Share of market (SOM):

Answer 5

The percent of the SAM that you believe you can capture.

Question 6

Launch market:

Answer 6

The niche within your SOM that you will use as a beachhead market.

Question 7

When to group customers into segments:

Answer 7

Customers share need/preference, different distribution channels, want different relationship with company, different willingness/ability to pay, willing to pay for different parts of CVP.

Question 8

Ways to define customer segments:

Answer 8

Who are they, where are they, how do they behave, what are their needs and wants.

Question 9

Solution clarity:

Answer 9

“I think there are two types of client needs.” 1. Cases where clear instructions given based on recognition of issue. 2. Client doesn’t know what problem is, hazy solution.

Question 10

Strategic focus:

Answer 10

“Know what is within and what is out of our scope.” Share info from experience or from industry, and know when to keep quiet when something is not in company scope.

Question 11

Knowledge contribution:

Answer 11

See the big picture while ensuring details were handled.

Question 12

Resource embeddedness:

Answer 12

Seek outside expertise, understand the needs of the company and how candidates fit into it.

Question 13

Interpersonal style:

Answer 13

Effective at driving aggressive project agenda while maintaining highly collaborative and positive relationships with stakeholders.

Question 14

Functional autonomy:

Answer 14

Employees taking full ownership and offering solutions to problems.

Question 15

Customer expectations of value creation differ based on:

Answer 15

What they want (opportunity identification), who they want to do business with (partner selection), how do they want work to be performed (stakeholder engagement).

Question 16

Customers assess the value proposition before they consume it based on:

Answer 16

Pre-existing expectations, the quality of the solution.

Question 17

Customers buy your product based on expected ________ benefits, if they do not expect enough net _______ gain, they will not buy your product.

Answer 17

Future, value.

Question 18

You can improve your customer’s success by:

Answer 18

Proactively identifying consumer tensions from the start, understanding abilities to meet these demands, setting realistic expectations about what cannot be delivered.

Question 19

You can improve your success by:

Answer 19

Identifying/pursuing customer relationships that fit your skills, developing your capacity to satisfy competing customer/stakeholder demands, managing customer expectations throughout customer relationship.

Question 20

Customer journey:

Answer 20

Visual representations of every aspect of the customers experience with your product.

Question 21

Reasons to create customer journey map:

Answer 21

Creates a day in the life view, understand customers full experience, identifies potential issues in the customer experience, helps organize journey steps, enables you to empathize and relate to your customer.

Question 22

Confirming your customer journey:

Answer 22

Website analytics, social media, direct customer contact, system testing.