Market Research

Studenti: Dumbrava MariaCazacu AlinaAmza Cristina

Steven Blank

Content

• The product development model• The customer development model

o Customer discoveryo Customer validationo Customer creationo Company building

• Trends

The product development model diagram

• Liniar model• All the investments are based on first assumptions• Where are the customers? • Hard publicity before the product is known• Premature scalling • Focus on first customer ship- The death spiral • Unrealistic expectations• Multiple types of market.

Customer development model

• focuses on understanding customer problems and needs• recursive steps• initial product specifications comes from the founders vision.• takes in consideration multiple types of market.• product features emerge by successive refinement against known customers and market requirements and a known competitive environment

Customer Discovery

Customer Creation

Company Building

Customer Validation

Customer discovery

• a startup begins with a vision

• initial believe about the market and potential customers are guesses.

• undestand the needs and wants of all customers

• make a list of all the deatures customers want before they buy the product

• earlyvangelists - the most imporant customers

• find clients that provides valuable feedback

Customer Discovery Process

Customer discovery process

• Recursive process

o phase 1 - assumptions about the product, customers, pricing, demand, market and competition

o phase 2- test these hypotheses in front of potential customers

o phase 3- take revised product concept and test its features in front of customers

ophase 4- stop and verify understanding of customers' problems, if the product solves the problems, if customers will pay for the product and how much.

Customer Validation

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Customer Discovery

Customer Creation

Company Building

Customer Validation

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Customer validation

• Goals:o develop a sales process

� standardized, predictable, repeatable, scalable� sales strategy� sales road map

o understand distribution channelo position product and company

Customer Validation Process

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On your marks, get ready:

• Articulate a value propositiono clear, compelling message describing the company

• Preliminary sales materialso presentations, product and solution data sheets

(different for different audiences), price lists, ROI

• Preliminary distribution channel• Preliminary sales roadmap• Sales closer

o get meetings set up, push for follow-up meetings, close a deal

• Advisory boardo technical, business, customer, industry,

sales/marketing

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Straight forward channel?

Publisher National wholesaler

CustomerRetailerDistributor

Allowances

Wholesale costs

Bills

Payment guarantees

Payment guarantees

Return rights

Credit guarantees

Credits

Payments

Promotional incentives

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Roadmap

• Organization and influence maps• Customer access maps• Sales strategy

o Who do you sell to in a company?o What approval is needed?o Perception of each department in a companyo What’s the approach order?

• Implementation plano Financial issues of the customero Other systems that need to be working first

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Sell:or not• To who?

o visionary customers in operating roles� have a problem, tried to solve it� can see the beauty of the new solution� risk to buy an unfinished product� have a budget

• Other types of customers: early evaluators, scalable customers, mainstream

• 95% will say no• The goal is not revenue, but refined sales road

map• Giveaways do not prove customers will buy• Do not confuse distribution channel partners for

customers

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Positioning - who we are

• Product

• Company

• Get feedback from industry analysts and influencers

Existing market New market Resegmented market

Describe how product features/attributes are better than competitors

Describe the problem the new type of product solves and the benefits

If a niche, describe how the product solves a problem in a way competitors don’tIf low-cost, focus on price and features

Existing market New market Resegmented market

Describe how the company is different and credible

Communicate the innovative idea and vision

Communicate the value of the market segment and the innovation the company brings to it

Who we are?

Customer Creation

1/6/2012 Sisteme de regasire a informatiei

Customer Discovery

Customer Creation

Company Building

Customer Validation

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Lanchester strategy

Market share Cost of entry(vs leader sales

budget)

Entry Strategy

Monopoly >75% 3x Resegment/New

Duopoly >75% 3x Resegment/New

Market leader >41% 3x Resegment/New

Unstable market >26% 1.7x Existing/Resegment

Open market <26% 1.7x Existing/Resegment

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Customer creation

• Marketing activities necessary to help customers learn about a product and create desire to buy it

• Activities:o Choose market type, year one objectiveso Position the company and product

� Select PR agency, positioning audits, positioning to market type

o Launch company and producto Demand creation activities

Customer Creation Process

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One size fits all?

Market

reframing and

new market

share

Customer

education and

drive demand

into sales

channel

New basis of

competition

Segment

delivery and

innovation

Resegmented

market

Market

adoption

Customer

education

Market

education,

standards

setting

Credibility and

innovation

New market

Market shareDrive demand

into sales

channel

Existing basis

of competition

Credibility and

delivery

Existing market

Year one

objectives

Demand

creation

Product launchCompany

launch

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Finally and forever:launch

• By market typeo Onslaught launch

� expensive, full assault on a market with every available demand creation tool

� Audience: the user/organization responsible for choosing the product

o Early adopter launch� Targeted, low cost� Audience: visionary customers ready to diffuse a new idea into

the collective consciousness

o Niche launch� Targeted to the chosen segment

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Messengers

• Well placed, highly leveragedo Experts: industry analysts, consultantso Enthusiastic paying customerso Connectors: bloggers, newsgroups writers,

conference organizers

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Messages

• Memorable, sticky• The way they are presented can have

dramatic impacto `slaughtered cow, frozen and reheated`/`Have

a break today`o `Diet beer`/`Light beer`o `anti-abortion`/`pro-life`o `pro-abortion`/`pro-choice`

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Create demand

• Public relations, advertising, trade shows, seminars, brochures, data sheets

• Goals for demand creation ~ goals for saleso Gain as many users as possible for existing

marketo Gain and educate customers about the

benefits resegmenting the marketo Educate about new market and gain early

visionaries

Company Building

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Customer Discovery

Customer Creation

Company Building

Customer Validation

What makes a winner or a loser?

• Why some companies are still run by their founder and other not?

• When should the company hire more people and invest more?

• Or when should they cut loses?

• Doing more of the same is enough?

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Company Building

Reach mainstream customers :

o Transition from earlyvangelists to mainstream customers� New Market

- Creating Niche Markets - Creating tipping points� Existing Market

� Visionaries and pragmatists are the same� Why your product?

� Resegmented Market- Expensive -Positioning & Branding

o Manage sales growth

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Review Management

• The Board reviews the CEO and Executive Staff• In which group the executive team falls into.• Role of founders

• Develop “Mission-Centric” Cultureo Staging corporate missiono Corporate mission statement

o Why employees come to worko What they need to do all day? o How they succeed?o Profile goals

o Following through

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Transition

• Is needed to: o Create department mission statements

o Saleso Marketo :

o Define department role by market type: � Existing market� New market� Resegmented market

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Fast-response departments

• Foundation of this phase:o Decentralized decision making

� Mission driven culture� bottoms-up decentralized management style

o OODA loop (Observe , Orient, Decide, Act)• Steps:

o Implement mission-centric managemento Mission intention -Employee initiativeo Mutual trust and communicationo “Good enough” -Mission synchronization

o Create an “Information culture”o Build a leadership culture

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Online marketing trends - 2012

• social media conversations• incorporate video, design, content marketing, search (SEO and SEM) and other creative tactics• Mobile is the new social• Green is the new "black"

Online marketing trends - 2012

•So small business owners should consider also:

oOnline reputation management.

oUsing Google +

oLocal search

•geo-targeted local search

oOnline Reviews

Trends for 2010 and Beyond

Market Research Trends for 2012

• From Insight Consultant to Knowledge Inculcator

• Synthesis improves corporate agility and knowledge

• Broadening data inputs

• Big Data ≠ Big Action

• Emerging markets are for understanding, not

offshoring

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Thank you!

References

•http://www.amazon.com/Four-Steps-Epiphany-Steven-Blank/dp/0976470705•http://www.boston.com/business/blogs/global-business-hub/2012/01/print_lives_and.html•http://searchenginewatch.com/article/2133524/Video-Marketing-Trends-in-2012• http://www.miamiherald.com/2011/12/18/2548375/5-online-marketing-trends-worth.html•http://trendwatching.com/briefing/•http://blog.allen.com/2010/01/marketing-trends-for-2010---an.html•http://smallbiztrends.com/2009/01/top-small-business-marketing-trends-2009.html•http://mreb.exbdblogs.com/2011/12/27/5-market-research-trends-for-2012/