Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Product planning > L5, Target market & user identification > Flashcards

L5, Target market & user identification Flashcards

1
Q

Explain and differentiate between the meaning of key terms such as customer, user and consumer!

A

?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Explain and differentiate between the meaning of key terms such as need, want, demand and engineering requirements!

A

?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Explain what is meant by market segmentation and describe aspects by which a market can be segmented

A

?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What methods can you use to get to know the company and its context?

A
  1. PEST analysis
  2. Business model canvas
  3. SWOT analysis
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What can you do to learn about competitors?

A

benchmarking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What can you do to learn about B2B customers?

A

Customer needs study

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What can you do to get to learn about customers?

A

Market identification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the end result of identifying customer needs?

A

A customer needs list including:

  1. articulated as well as latent needs
  2. All critical needs are identified
  3. Basis for stating technical requirements
  4. common understanding in the team
  5. documentation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is a customer?

A
  1. The individual or organisation that PURCHASES the product

2. the same as client, buyer, purchaser etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a user?

A
  1. The human being involved in a USE activity

2. The same as end-user and primary user

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Har is a secondary user?

A

e.g. the person who is to repair ot maintain the product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is a lead user?

A
  1. A person who experience a new product ahead of others
  2. Stand to benefit greatly from. the new product
  3. often have useful ideas to share
  4. can articulate their needs better than the average user
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

facts about lead users and innovation?

A

— A user that develop the solution that they need by themselves

— Even if the lead user themselves innovate the actual product they might trigger the product development of the innovation

— About 30% of the 30 top innovations from the last 25 years have been lead user initiated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are extreme users?

A
  1. users who use the product in special environments
    OR
  2. Have individual circumstances that require them to have an adapted product
  3. Extreme users special needs may reflect latent needs of mainstream users.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is a consumer?

A
  1. one that consumes
  2. Person that acquires goods or services for direct use or ownership rather than for resale or use in production or manufacturing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a stakeholder?

A
  1. A person, group or organization that has interest or concern in a situation
  2. someone who is involved or affected by the course of action
    e. g. investors, employees, suppliers, customers, society, community
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

name som definitions of “need”!

A

MASLOW:
“A lack of something necessary for survival and well-being”

ULRICH & EPPINGER:
1. “Statement and phrases, stated in the customer’s own words that enable the design team to focus on delivering the benefits of the customer wants”

  1. “the gap between existing situation and the desired situation”
  2. “Any attribute of a potential product that is desired by it’s customers”
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is a want?

A

the forms taken by human needs as they are shaped by culture and individual personality

19
Q

what is a demand?

A

wants when backed by buying power

20
Q

what is a customer/user requirement?

A
  1. the customer/user’s own formulation of requirements, usch as, “easy”, “fast”, “natural”,
  2. user requirements are those requirements which the user has for the product in use
21
Q

what is a technical requirement?

A
  1. the desired properties of a technical product, service or system.
  2. statements that in a clear concise and ambiguous way describe the significant aspects of the future product
  3. the customer/user requirement transformed into a “measurable” engineering term or specification.
22
Q

describe the iceberg phenomenon

A

only a very small amount of the total list of customer requirements are immediately available

Top of the iceberg:

  1. requirements of which the customer is aware
  2. problems that the customer wants solved
  3. solutions identified in other products

Below the surface:

  1. requirements associated with problems which the customer is not aware due to habits “compensating behavior”
  2. Emotional and semantic requirements
  3. requirements associated with culture and socio-historical aspects
23
Q

describe how the customers values and views on products has changes with time!

A

The customers fascination with technical functions has shifted. Functionality, reliability and cost have been replaced by e.g. comfort, enjoyment, satisfaction and usability

24
Q

describe the kano model!

A

The kano model proposes three types of need and requirements that need to be adressed from a competitive perspective

  1. basic needs/requirements
  2. Performance needs/requirements
  3. Excitement needs/requirements
25
Q

What do Johan mean with saying we often have too much focus on the product?

A

We have to little attention to the product in a context being used, maintained etc.

26
Q

what is the consequence of having too much focus on the product?

A

Requirements customer needs elicitation METHODS

  1. the methods must adress a multitude of stakeholder needs
  2. the methods must helt detecting articulated as well as non-articulated needs
  3. the methods must take into consideration that functionality and functions are not the only thing that will provide the company with a competitive edge.
    —>Its the functionality, usability AND pleasure in experience.
  4. methods must be able to elicit basic performance and excitement requirements
27
Q

describe the customer needs study process!

A

INPUT: research objectives and questions

  1. plan the customer needs study
  2. Gather raw data from customers
  3. Interpret the raw data in terms of customer needs
  4. Organize the needs in a hierarchy
  5. establish the relative importance of needs

OUTPUT:
Customer needs list

28
Q

describe some desirable characteristics of markets

A

Facts that can be used to form a market profile

  1. large market size
  2. high market growth potential
  3. strong economy - high potential for sales
  4. early appropriate time of entry
  5. competitively attractive
  6. low rivalry
  7. low investment required
  8. no specific technological development required
  9. no patent protection
  10. high reward potential
  11. low risk
29
Q

what is a target market?

A

A group of customers that:
—> is interested in product
—> has the resources to purchase the product
—> is permitted by law or other regulations to acquire the product

30
Q

How do you define different markets?

A

The market definition begins with total population and progressively narrows down
e.g.

  1. total population
  2. potential market
  3. available market
  4. qualified available market
  5. Targeted market
  6. penetrated market
31
Q

how do you define a market segment or target market?

A

A target market is defined by the measures or criterion used to definite. The criteria describe customers or competitive products.
E.g.

  1. demographics
- Individual
—> sex
—> age
—> nationality
—> income
—> education
—> occupation
—> marital status
—> family size
—> geographical location
  • corporate
    —> size of company
    —> numer of manufacturing sites
    —> geographical sites
  1. attitudes
    - beliefs
    —> religion
    —> politics
    - attitudes
    —> family
    —> health
    —> self-achievement
  2. preference
4. price sensitivity
Willingness to pay for the product
—> low cost
—> medium cost
—> premium
  1. decision making processes
  2. usage
    - way of use
    —> professional
    —> do-it-yourself
  • extent of use
    —> daily
    —> weekly
    —> monthly
  1. competitive products
    Segmentation based on clusters of products rather than customer characteristics
    —> e.g. cars segmented in mini, light, compact and so on..
32
Q

give some examples of segmentation of vacation travel market

A
  1. “The demanders”
    want exceptional service and expect to be pampered
  2. “The escapists”
    Want to get away and use relax
  3. “The educationalists”
    wants to see new things, go to museums, go on safari pr experiment new cultures
33
Q

Step-by-step procedure for market identification, segmentation and selection

A

INPUT???: Product idea, PEST, SWOT, Benchmarking analyses

  1. create a list of customers/users that suffer from the problem that you adress
  2. Group customers, e.g. by geography, to form an initial list of target market segmentations
  3. Collect additional market and customer information as needed. Review and refine market segmentation
  4. Screen out infeasible taget market segmetns
  5. rate with respect to desired market characteristics
  6. evaluate and decide on remaining potential target market segments

OUTPUT: Prioritized list of viable target markets (segments)

34
Q

Difference between target market and segments?

A

?

35
Q

Step 3, “collect additional market and customer information as needed”

Describe models for estimating sales volume

A
  1. Estimate sales volume (1)

Q=NAP

Q= estimate of sales volume during a period
N=number of potential customers who will buy during the period
A= fraction of customers for which the product is available and who are aware of it
P= probability that the product will be purchased

where P=:

P=CdefFdef+CprobFprob

Fdef=fraction of survey respondents who would “definitely buy”
Fprob= fraction of survey respondents who will “probably” buy
Cdef= experience value 0.1-0.5
Cprob= experience value 0-0.25

36
Q

what is the real-win-worth method?

“screen out inferable target market segments”

A

A market screening method suggesting a set of market screening criteria

37
Q

what is quantitative market evaluation?

A
  1. generate weight market selection criteria
    —> chose form “desirable characteristics of markets”
    —> assign relative weight to different criteria
  2. Rate each market on each criterion
  3. calculate the overall weighted sum of the ratings for each market
  4. evaluate the ratings to identify the markets with the best opportunities
38
Q

how can a market selection decision-making process be?

A
  1. choices can be made based o formal decision analysis
  2. choices can be Mae based on communication and dialog, consensus between managers but supported by the market profile analysis
  3. strategic considerations must include role position of the new product in the firm’s portfolio
  4. the result is a prioritizes portfolio of market opportunities
39
Q

What is the essential difference between a lead user and the first adopters?

A

A lead user have to develop the solution thats needed by themselves

40
Q

Give examples on organizations that uses lead users for development!

A
  1. Military or medical organizations are frequently involved in lead user innovation because:
  2. Their need are acute and compelling
  3. Their need is linked to Saving human lives
41
Q

Describe lead user innvoations?

A

Tend to be radical as compared to incremental

42
Q

Give example of the Kano model on tesla

A

EXITORS
—> acceleration
—> 17” screen

PERFORMERS
—> range
—> high performing sound system

BASIC
—>anti-lock breaks
—> anti-theft system

43
Q

Give example of the Kano model on an office chair

A

EXITORS
—> drink bottle cooler
—> back massage system

PERFORMERS
—> adjustable armsets
—> quality letter seat

BASIC
—> seat height adjustment
—> ability to rotate

44
Q

Considerations when defining target markets?

A
  1. If defining the the market too broad
    —> difficult to evaluate the market
    —> difficult to define target customers
    —> difficult to understand competition
  2. If defining the market too narrowly, the market may be too small to be of any commercial interest

Product planning (22 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions