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Business Model Canvas - Part 1

Business Model Canvas - Part 1. By Peter Baskerville. A Business Model Explains …. Business Model Canvas. Customer segments. The customers for whom the business will create value? Behaviors , demographics, attitudes Which to ignore ? Trying to serve everyone – you serve no one

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Business Model Canvas - Part 1

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  1. Business Model Canvas - Part 1 By Peter Baskerville

  2. A Business Model Explains …

  3. Business Model Canvas

  4. Customer segments • The customers for whom the business will create value? • Behaviors, demographics, attitudes • Which to ignore? Trying to serve everyone – you serve no one • Primary, 2nd & tertiary (profitable?)

  5. Customer segments

  6. Customer segments • Mass – mobile phone • Segmented – Banks – small & large business • Diversified - Amazon – Books + servers • Multi-sided – Newspapers – Readers + Advertisers • Niche – Specific – car parts

  7. Value proposition • How customers benefit from our products – Why should they care? Solveproblems & meets needs. • Features Vs Benefits • Quantitative – physical, price, speed of service. • Qualitative – subjective, brand status, experience

  8. Features & Benefits Feature = what it does. Benefit = how it helps. Antibacterial for Odour Free Shoes Moisture absorbent linings for Cool Dry Feet Light flexible sole for All day Comfort

  9. Customers don’t buy products with features … they buy a better life.

  10. Customers value … Newness- Technology Performance – CPU (computer) Customisation – Tailors Design – Fashion Price – no frills restaurant Brand/status – Rolex Costreduction – MYOB Riskreduction – Insurance Accessibility – Rental Convenience - iTunes

  11. Channels • How a business communicates anddelivers value? • Communication – personal brand, adv., online. • Deliver – direct online, door to door, market stall, shop, Value Added Resellers, affiliate programs

  12. Channels phases • Awareness – advertising, personal brand, curating. • Evaluation – testimonials, try before you buy, freemium. • Purchase – Bricks ’n mortar, online • Delivery – post, vehicles, download • After sales – telephone, visit, return.

  13. Customer relationship • What type of segment relationship? • Personal – human • Dedicated – Account managers • Self-service – Coles • Automated – Amazon recommend • Communities – online forums • Co-creation – Youtube

  14. SYOB - 2016 Initial Business Scan Convenience Store CAFE Personal Trainer Affiliate marketing – Electronic Accessories

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