Market Evaluation/Research

Question 1

What is the buyer utility map?

Answer 1

The buyer utility map helps us pinpoint visually where to innovate or see how other companies have innovated.

Question 2

What is the row of the buyer utility map?

Answer 2

Buyer Experience cycle

Question 3

What are the components of the buyer experience cycle?

Answer 3

• Purchase: how long does it take, place of purchase safe/secure/accessible/attractive?
• Delivery: how long does it take to get it, how difficult to unpack/install?
• Use: require training, easy to store, effectiveness of features?
• Supplements: need any other products or services to make it work, how much?
• Maintenance: is it required, how easy to maintain and upgrade?
• Disposal: does the product create waste items?

Question 4

What is the column of the buyer utility map?

Answer 4

Utility levers

Question 5

What are the components of the utility levers

Answer 5

• Customer productivity: can you help me do something better and faster?
• Simplicity: is it easier than my other alternatives?
• Convenience: how much less hassle do I experience with your alternative?
• Risk: what do I perceive as the possible downsides to buying?
• Fun and Image: will this have an associated cool factor?
• Green-ness: is this environmentally friendly?

Question 6

What is the price corridor of the mass?

Answer 6

• Helpful to understand strategy to employ pricing
• Critical to price at level that will attract most customers
• Beware: low-cost customer will leave when prices rise.
• Critical to price for value
  Consider NBA.
• Strategic pricing: get customers quickly and retain them
• Best price not necessarily the lowest price

Question 7

What are the 2 steps to identify the price corridor?

Answer 7

1) Look at the competition.

2) Specify a level within the price corridor.

Question 8

What are the components of step 1 of the price corridor?

Answer 8

Different form, same function

Quicken vs. pencil vs. CPA
Southwest vs. train vs. bus

Different form and function, same objective

Kinepolis vs. just dinner

Question 9

What are the components of step 2 of the price corridor?

Answer 9

Upper level: high degree of legal and resource protection, difficult to imitate
Dyson vs. other vacuum cleaners
Mid level: some degree of legal and resource protection, relatively easy to imitate
Low level: low legal and resource protection, easy to imitate
Not enough differentiation

Question 10

What are the 3 questions within the Business Model Guide?

Answer 10

1) What is the cost target?
2) Whom can you partner with?
3) Which pricing model to use?

Question 11

What are porter’s 5 forces?

Answer 11

1) Bargaining power of customers/buyers
2) Threats of new entrants
3) Threats of substitute products
4) Bargaining power of suppliers
5) competitive rivalry within an industry

Question 12

What are some value proposition attributes?

Answer 12

Newness
    Performance
    Customization
    Design
    Brand/status
    Price
    Cost reduction
    Risk reduction
    Accessibility
    Convenience/usability

Question 13

What are some Customer Segment Types?

Answer 13

Mass market
    Niche market
    Segmented
    Diversified
    Multisided platforms

Question 14

What are some Channel Phases?

Answer 14

Awareness
    Evaluation
    Purchase
    Delivery
    After sales

Question 15

What are some Customer Relationship Types?

Answer 15

Transactional relationship
    Long-term relationship
    Personal assistance
    Dedicated personal assistance
    Self-service
    Automated services
    Communities
    Cocreation

Question 16

What are some Revenue Streams?

Answer 16

Asset sale
    Subscription fee
    Licensing
    Lending/renting/leasing
    Usage fee
    Brokerage fees
    Advertising

Question 17

What are some Key Resources within the Business Model Canvas model?

Answer 17

Intellectual property
Human
Physical
Financial

Question 18

What are some Key Activities within the Business Model Canvas?

Answer 18

Production
        Design
        Manufacturing
    Problem solving
        Coming up with solutions
        Knowledge management
        Continuous training
    Platform/Network

Question 19

What are some Key Partners with the business model canvas?

Answer 19

Motivations

Acquisition of a particular resource
Optimization and economy of sale
Reduction of risk

Question 20

What are Mullin’s Seven domains of attractive opportunities?

Answer 20

1) Market Domain/Macro Level: Market Attractiveness
2) Market Domain/Micro Level: Target Segment Benefits and attractiveness
3) Industry Domains/Macro Level: Industry attractiveness
4) Industry Domains/Micro Level: Sustainable advantage
5) Team Domain: Mission, Aspirations, Propensity for Risk
6) Team Domain: Ability to Execute on Critical Success Factors
7) Team Domain: Connectedness Up, Down, Across Value Chain

Question 21

What is Market Domain/Macro Level: Market Attractiveness?

Answer 21

Look at the whole market. How big is it, in terms of the number of customers, the value of sales, and the quantity of units sold? Then, look at trends within the market. Has it grown in recent years? If so, is this growth likely to continue?

Question 22

What is Market Domain/Micro Level: Target Segment Benefits and attractiveness

Answer 22

You’ll be more successful if you target your idea at one market sector or segment, and aim to meet its needs fully.

Question 23

What is Industry Domains/Macro Level: Industry attractiveness?

Answer 23

How attractive your industry is on a macro level

–
From secondary data
Centered on industry attractiveness for greater profit opportunity
Can be assessed using Porter’s Five Forces:
Threat of entry
Threat of substitutes
Bargaining power of suppliers
Bargaining power of buyers
Rivalry among existing competitors

Question 24

Industry Domain/Micro Level: Sustainable Advantage

Answer 24

Requires primary research
Centered on company being hard to imitate, sustainability of competitive advantage
Intellectual property
Patents, trademarks, trade secrets, etc.
Superior organizational processes, capabilities, or resources

Question 25

What is a CSF?

Answer 25

Critical Success Factor - Identifying the Things That Really Matter for Success