enes210

Product Line Pricing

Different products in the same range may be set at different prices

Unworkable

Does your solution fix a broken situation or process in which there are real, measurable consequences to inaction?

hustler

The business/sales/marketing person who can find a way to sell the product or service, scale customer acquisition, and distribute the product or service.

Skimming Pricing

gray area: The initial price is set high and is gradually reduced over time

Price Discrimination

gray area: When the same product is sold at different prices to different sets of consumers

Price Fixing

gray area: starting low price than fixing so that all companies sell at high price= harmful to consumers

Opportunistic Pricing

gray area: the value attached to a product may be much higher than its cost(allows premium charger for a lil)

Trust

important because plenty of ways to embezzle funds, cheat and lie, or engage in nasty or illegal activities

Vertical Partnerships

partnerships between firms and their suppliers or distributors

batch or wave

preferred # is 5-10 people

Hacker

An engineer and developer who can build the functional prototype and alpha.

primary goals for your team in the first three to six months

-3-6 months to build and develop the first sellable product -Demonstrate the product or service concept, -Reduce product risk, -Test functional use, -Develop metrics, and -Collect data to support future fundraising efforts.

Penetration Pricing

-A low price is set by the startup to grow sales and market share -Once an initial position is created by the startup, the prices can be raised.

reasons for partnerships

-Access resources and skills beyond those of the startup, -Develop new innovations and new products, -Speed time to market, -Access new markets, and/or -Develop complementary products.

develop your skills to lead

-Bring Your Whole Self to Work -Find Time to Reflect (double-loop learning) -Recognize Leadership Development as an Ongoing Practice

prerequisites for co-founders

-Complementary skillsets-co-founder with different skills that are valuable -Shared vision and values

risks of outsourcing

-Cost savings that don't materialize as planned since it's difficult to calculate true cost in advance -Quality concerns due to suppliers not understanding customers' needs and/or not delivering as planned, -Over-dependence on outsourced vendor can harm a business if the vendor's operations are disrupted, -Dilution of competitive advantage due to less differentiation from competitors that may use the same or similar vendors -Risk of fostering new competition due to loss of differentiation and/or loss of trade secrets -Public backlash that can result in political issues or other public relations problems

distribution channels

-Direct: The manufacturer directly provides the product to the consumer -Indirect: A company will use an intermediary to sell a product to the consumer. -Dual Distribution: A company may use a combination of direct and indirect selling. -Reverse Channels: The last, most non-traditional channel allows for the consumer to send a product to the producer

key traits of co-founders

-Eagerness to learn -Self-sufficiency -Empathy -Emotional intelligence -Ability to work through disagreement

selecting advisors

-Excitement for Your Idea -A Passion for Something Other Than Making Money -Experience -Deep Industry Knowledge -Commitment -An Action-Oriented Personality -Communication Skills -Networking Skills -Culture Fit -The Ability to Tell the CEO That She Is Wrong

Sales & Customer Services

-Handling Problems -Assisting in Sales -Clerical Tasks

minimize the risks

-Interdependence -Governance Structure -Commitment -Effective Communication -Trust

Key Features of the Marketing Mix

-Interdependent Variables -Specific Marketing Targets -Flexible Concept -Constant Monitoring -Role of Marketing Manager -Customer as the Focal Point

What factors affect pricing

-Internal Factors:Fixed and variable costs, Company objectives and strategies, and Market segments, targeting, and positioning decisions. -External Factors:Competitors, Target market behavior and willingness to pay, Industry trends, and Industry or legal constraints.

risks of partnering

-Loss of intellectual property, particularly trade secrets, -Loss of autonomy and control, -Lack of attention in managing the relationship -Incompatible cultures.

Research and Development

-New Product Research -New Product Development -Existing Product Updates -Quality Checks: R&D -Innovation

models for outsourcing

-Offshoring: Performing functions outside of client's home country -Captive Offshoring: Company-owned facilities in another country -Nearshore Outsourcing: Outsource provider near company's own boundaries in the same time zone -Home Shoring: Domestic outsourcing, hiring domestic workers in a person's own home -Farm Shoring: Outsourcing to domestic, rural areas -Reverse Outsourcing: An outsourced company opens an office in the original country.

typical initial team structure

-One to three co-founders with complementary skills and a common interest in the startup's mission, -Membership in an incubator environment, such as a university-based entrepreneurship program or a local co-working space, -Several active advisers that bring experience, wisdom, and relationships to the team, -Multiple startup peers that you can learn from and share with, and -Minimal investment of $0 to $100,000.

Four Ps of marketing

-Product -Promotion -Price -Placement (how the product will be delivered to the customer)

pricing objectives

-Profit Maximization -revenue maximization -Maximize Quantity -maximize profit margin -Partial Cost Recovery -quality leader -survival -status quo

Typical Startup Activities

-Research & Development (R&D) -Production -Marketing -Sales & Customer Services

Production

-Selection of Product and Design -Selection of Production Process -Selecting the Right Production Capacity -Production Planning -Production Control -Quality and Cost Control -Inventory Control -Maintenance and Replacement of Machines

Marketing

-Strategy -Market Research -Product Development -Communications -Sales Support -Events

consumer categorization

-The groups have a particular need which justifies the creation of a product to match this need. -The group needs a separate distribution channel in order to be reached. -The groups require relationships of different kinds. -There is a very clear difference in the level of profitability each group represents for the organization. -Each consumer group feels strongly enough to pay for a different version of the product or service, tailored to meet their preferences.

Identify and profile potential competitors

-The industry enjoys relatively high profit margins. -Entering the market is relatively easy and inexpensive. -The market is growing. The more rapidly it is growing, the greater the risk of competition. -Supply and demand is unbalanced. If supply is low and demand is high, expect competitors to enter the market to serve this unmet demand. -If minimal competition exists, there may be space for new competitors to enter the market

Profile current competitors

-What are their strengths? -What are their weaknesses? -What are their basic objectives? -What are their marketing strategies? -How can you capture market share from them? -How will they respond when you enter the market?

preparing for advisors

-What do you need right now? -Do they care about your space? -Are you prepared to answer tough questions? -What are you hoping to gain? -How will you compensate the adviser?

Develop your competitive position

-Who are my current competitors? -Which market do current competitors target? -Are competing businesses growing or scaling back their operations? -How will your company be different from the competition? -What will you do if competitors drop out of the marketplace? -What will you do if new competitors enter the marketplace?

five methods of the promotional mix

-advertising -Public Relations & Sponsorship -personal selling -Direct Marketing -sales promotions

target customer segment

-community of customers or businesses that you are aiming to sell your product or services to -based on needs, behaviors, demographics such as age, ethnicity, profession, gender or on psychographic factors such as spending behavior, interests, and motivations that they may share -you may choose to target a single group or multiple groups with your products and services.

outsourcing

-contracting of service, typically through monetary means -minimize or limit the resources that would normally be required to perform business functions internal to the company -Contract Manufacturing: Production of Products -Business Process Outsourcing: Call Centers -Information Technology Outsourcing: Software Development -Innovation Outsourcing: R&D or Product Design

value proposition

-describes the benefits customers can expect from your product or service. -primary reason a prospective customer will use your product or service.

Advisers

-do not have decision-making control on the startup company -bring advice, ideas, lessons learned, contacts, and other such aid

intermediary

-facilitate the distribution process through their experience and expertise. -Agents: The agent is an independent entity who acts as an extension of the producer by representing the company to the user. -Wholesalers: Wholesalers are also independent entities. But they actually purchase goods from a producer in bulk and store them in warehouses.(many diff brands/companies) -Distributors: will only carry products from a single brand or company. -Retailers: Wholesalers and distributors will sell the products that they have acquired to the retailer at a profit.

Push Strategies

-his is when the product is taken to the customer by the startup. This is typically used when the product is an impulse purchase, or if the company has an established relationship with the customer base. -less need for advertising buzz

price

-only source of income -will change according to circumstances and time -flexible variable (quick and short change) -trigger for first impressions -key to sales promotions

Horizontal Partnerships

-partnerships operating in the same business arena

customer discovery

-process used to identify your target customer segment -goals are to first validate the problem and later validate the fit of your solution to that problem. -you can begin to identify and test your first version of your product or service, called the minimum viable product (MVP) -job is to learn from prospective customers... not sell -best face to face

Determine your target customer

-should use market segmentation -Personas= great to understand who you are designing product for

Competition Pricing

1) Price higher to create a higher quality perception or target a niche market, (2) Price the same to show more benefits for the same price (3) Price lower to try to gain a wider customer base.

steps to create value proposition

1. Define the problem to determine whether it's a problem worth solving 2. Evaluate whether your solution solves the problem uniquely. 3. Measure the potential for customer adoption 4. Craft the value proposition

strategic leadership

1. Distribute Responsibility 2. Be Honest and Open about Information 3. Create Multiple Paths for Raising and Testing Ideas

Optional Pricing

A company may add optional extra items within the price to increase a product's attractiveness.

Cost Based Pricing

A company may determine the exact cost of producing and selling a product, add a markup that may be desirable for profits, and price accordingly

Psychological Pricing

A company will make small changes to prices to make a customer think the item is priced lower than it is

Bundle Pricing

A group of products may be bundled together and sold at a reduced price

Premium Pricing

A high price is set to establish that the product is exclusive and of high quality

Exclusive Distribution

A higher priced item may be sold at a single outlet

Cost Plus Pricing

A percentage is added to the costs as a profit margin to determine the final price.

Urgent

Is it one of the top few priorities for your target customer?

Unavoidable

Is the problem driven by a mandate, one with implications associated with governance or regulatory control?

Underserved

Is there an absence of viable solutions to the problem that you aim to solve?

Lean Product Process

Iterative process: 1.Determine your target customer 2.Identify underserved customer needs 3.Define your value proposition 4.Specify your Minimum Viable Product (MVP) feature set 5.Create your MVP prototype 6.Test your MVP with customers

Elements of a Value Proposition

Newness Performance Customization Price Design Cost reduction Brand Convenience Accessibility

Developing Your Marketing Mix

Step 1: Defining the Unique Selling Proposition Step 2: Understanding the Consumer Step 3: Understanding the Competition Step 4: Evaluating Placement Options Step 5: Developing Communication / Promotion Strategy Step 6: Cross-check of the Marketing Mix

compensate advisors

The specific amount of equity compensation for an adviser depends on the stage of your company, the amount of time you expect the advisor to spend with you, what you need them to do, and what the market rate is for their services.

4 Us of Problem Definition

Urgent Underserved Unworkable Unavoidable (plus conspicuous and critical)

hipster

a person with design and user experience (UX) know-how to improve UX and conversion.

Selective Distribution

a product may be sold at a select number or outlets. These may include items such as computers or appliances that are costly, but need to be widely available to allow consumers to compare choices.

winning value proposition

clear succint- who it is for, what product, what benefits, and what is unique

competitive analysis

step 1- Profile current competitors step 2- Identify and profile potential competitors step 3- Develop your competitive position

Pull Strategies

there is an attempt to pull customers towards the brand or product. Through mass media campaigns to sales promotions and personal references, a company attempts to create brand loyalty and attractiveness.

Intensive Distribution

this strategy may be used to distribute low-priced products that may be impulse purchases.

pre-protype

when you should engage with customers to get their insights on what features and values matter to them critical to understand market size and potential