Laying The Foundation - Module 2 Understanding and Defining the Market Flashcards
What is a value proposition?
A value proposition is a statement that explains how a product solves customer problems, meets needs, or provides gains.
What is the purpose of a Value Proposition Canvas?
The Value Proposition Canvas helps identify customer jobs, pains, and gains to create a product that fits market needs.
What are customer ‘jobs’ in the Value Proposition Canvas?
Customer ‘jobs’ refer to the tasks customers are trying to complete or problems they are looking to solve.
What are ‘customer pains’?
Customer pains are negative aspects or challenges customers want to reduce or eliminate.
What are ‘customer gains’?
Customer gains are the benefits or positive outcomes customers want to experience.
What are TAM, SAM, and SOM?
TAM is Total Available Market, SAM is Serviceable Available Market, and SOM is Serviceable Obtainable Market.
How does market sizing help in defining a target market?
Market sizing helps assess the potential market size, identifying if it is large enough to support growth.
What is PEST analysis used for?
PEST analysis examines Political, Economic, Social, and Technological factors affecting an industry.
What is the purpose of Porter’s Five Forces?
Porter’s Five Forces assesses industry competition and attractiveness by analyzing factors like supplier power and threats.
What is product-market fit?
Product-market fit occurs when a product meets the needs of its target market effectively, attracting customer interest.
What is the difference between top-down and bottom-up market sizing?
Top-down sizing estimates market size using broad industry data, while bottom-up uses specific product or customer data.
Why is market research important for startups?
Market research helps startups understand customer needs, market trends, and competition, enabling informed decisions.
