ENTR 3310 - Chap 5,6,7,8,9
What are the channels for the delivery of the value proposition?
1. Distribution 2. Sales 3. Communication
When considering customers, entrepreneurs must ask themselves ______.
1. How will you maintain customer relations once they're established? 2. How will you reach your target audience? 3. Who will pay for what I am offering?
What are sources for data from customers?
1. Website Analytics 2. Social Media Tools 3. Direct Customer Contact
What are the three main types of approaches to creating value propositions?
1. all-benefits 2. points-of-difference 3. resonating-focus
In order to cross the chasm after the beachhead market is identified, the entrepreneur should ______.
1. create the entire product first 2. position the product 3. Distribute the product through the right channels.
What is the difference between a customer and a consumer?
A customer buys the product while the consumer uses it.
What is most challenging in identifying market opportunity?
A large enough market exists.
______ personas are profiles or representations of the ideal customer based upon information and market research.
Buyer
What is a way in which entrepreneurs solve the customer's problem of lack of money?
Deliver previously unaffordable products or services for less.
______ personas save you time and resources by identifying the people who will not buy the new product.
Exclusionary
A successful CVP is focused on how the customer does things now.
False
Businesses should identify a single type of customer.
False
Diet Coke and Coca-Cola Zero have the same target markets
False
Getting feedback directly from customers is not useful because it is difficult to organize.
False
Imitation is an acceptable business model.
False
Infrastructure includes financial forecasts.
False
Segmenting markets is not a good way to generate more business.
False
Similar to design thinking, CVP means thinking about your business from an organizational perspective.
False
Analyzing demographics is the most important piece in creating an end user.
False Demographics can provide useful data but is not always accurate for understanding end user
General Mills had to change its business model to make new yogurt with less sugar.
False General Mills stayed true to its business model of selling nutritional food.
When analyzing the market, entrepreneurs need to go for it and not worry about if the numbers are wrong.
False If the numbers do not make sense, an adjustment should be made.
The four parts of the business model exist on their own.
False The four parts must coexist.
The only definition of the market is the place where people sell goods.
False The market also means the demand by customers for the product.
All customer journey maps are detailed and complicated in order to ease the planning process down the line.
False While there are extremely complicated customer maps, there is a range from simple to complex.
All five categories of customers in the adoption life cycle will adopt the new innovation.
False Not all categories of customers will adopt the new innovation.
Why is the BMC important?
It fills in the details of the business model.
For a CVP to be effective, it needs which of the following qualities?
Offer better value than the competition. Be measurable in monetary terms. Be sustainable.
What was Tata's CVP for its product to replace scooters in India?
Provide an affordable, safer mode of transportation.
______products give you an idea of what else the user is likely to buy.
Proxy
What is the stage in the customer journey where a decision is made?
Purchase
______ are customers that veto or slow down purchasing.
Saboteurs
______ refers to the people who compete for customers in the marketplace.
Supply
What did Justin Gold, from Justin's nut butters brand, discover about the infrastructure needed for his company?
The original food processor from his kitchen made a better product.
An example of a lack-of-access problem is solar energy.
True
Bryan Bitticks, a Great Clips franchise owner, targeted younger customers by creating a virtual online experience.
True
Building personas is an important exercise in understanding customers.
True
Fulfilling unmet needs of customers using an existing product is called differentiation.
True
The business model canvas is a type of visual plan that depicts the business on one page by filling in nine blocks of the business model.
True
A big part of entrepreneurship is discovering the market opportunity for a new idea.
True Market opportunity is usually identifiable by degree of customer or market demand for product application.
When novice entrepreneurs are identifying market opportunities, they tend to focus on novelty.
True Novices focus on novelty and newness, while experienced entrepreneurs focus on product viability.
The CVP helps delineate the value of the entrepreneur's idea.
True The CVP helps prove that customers want to buy the product or service
In the textbook's donut café example, what was the total available market?
United States
______ are customers who actually use the product.
Users
Which components of the BMC are part of infrastructure?
activities, resources, partners
The technology ______ life cycle is a model describing the process of acceptance of new innovation over time.
adoption
When entrepreneurs check out all the data for customers by going to where they will sell the products and then estimating realistic sales, they are using the ______.
bottom-up analysis Bottom-up analysis involves collecting data and then making a conservative estimate for a realistic result.
A ______ describes the rationale of how a new venture creates, delivers, and captures value.
business model
A(n) ______ is a formal document that provides background and financial information about the company, outlines the business's goals, and describes how you intend to reach them.
business plan
(LaFleur Winery video) What one item was identified as the biggest change that occurred for LaFleur Winery?
change in club membership
Customer segments are part of ______.
customer groupings of a market
What is the visual representation that captures the customer experience across multiple touchpoints of the entrepreneur's business?
customer journey map
The ______ is a statement that describes exactly what products or services your business offers and sells to customers.
customer value proposition
What is the most important part of your business model?
customer value proposition
The customer segment defined by who they are is ______.
demographic
How can entrepreneurs make products and services attractive to more than one customer segment?
different CVPs for each customer segment
Entrepreneurs use ______ to try to encourage existing customers to switch to their product.
differentiation
The Quip toothbrush is an example of the ______ business model.
differentiation
What is the stage in the customer journey where the need is identified?
discovery
The advent of Massive Open Online Courses (MOOCs) is an example of the business model ______.
disruption
A ______ market serves two or more customer segments with different needs and problems which have no relationship to each other.
diversified
Who are the people who tend to buy a product once it begins to have mass appeal?
early majority
(LaFleur Winery) The most important aspect of building community can be summarized as
engagement and connectedness
What is important to building customer relationships?
engendering positive feelings about business
When Smart Skin Care patented a slow-release medication, they found what beachhead market?
extreme sport competitors
Companies have realized that they must treat users like ______ to increase profits.
families
Building buyer personas will generate which key buying insights?
features buyers need and those features not relevant types of buyers and their influence interested buyers and disinterested buyers
(LaFleur Winery) Which of the following represent LeFleur Winery's concept of building community?
great place to be participate with guests place to tell stories
n the United States, people waste $1.5 billion annually by waiting for ______.
hospital visits
What does the "value" part of customer value proposition mean?
how much the product or service is worth to the customers
In traditional marketing, the most viable customer segment is ______.
identified
What is the business model that offers a product without differentiation?
imitation
When the customers are segmented and an end user profile created, the entrepreneur has a better understanding of ______.
important groups to target The important groups to target come out of customer segments.
A(n) ______ is someone who uses status to promote a product without necessarily using it himself.
influencer
The ______ includes people, technology, products, suppliers, and other resources that an entrepreneur must have in order to deliver the CVP.
infrastructure
Who are the first customers to try a new product?
innovators
Companies group customers into specific groups to gain ______ about who might buy their product.
insight
The component that describes managing such stock and design is ______.
key activities
Which category of customers tends not to buy the new innovation?
laggards
The all-benefits approach to CVP involves ______.
little regard for the competition identifying and promoting all the benefits of the product
What is the method of estimating the number of potential customers and possible profitability?
market sizing
A ______ market comprises a large group of customers with similar needs and problems.
mass
In order to create the business model canvas, the business ______ is broken into nine components.
model
The business intends to create, deliver, and capture value for customers is known as the business ______.
model canvas
The first part of the business model is ______, which identifies the product or service, the value generated by it, and how you will reach the customers.
offering
The CVP for selling luxury yachts might combine which of the following?
people living close to water, professionals between ages 30 and 65 with high income, people with an interest in water sports
(LaFleur Winery video) Receiving feedback from ______ was essential for moving forward with the original business plan.
people they trusted
What is the message of CVP?
promising value to the customer
What type of customer is a mother who buys her son a toy train she noticed at the grocery store?
purchaser
What is the type of CVP that describes why people really like your products and focuses on the customers and what they really need and want?
resonating-focus
(LaFleur Winery video) Building a customer value proposition for LaFleur Winery includes:
revamping their membership in a truly unique way
Financial viability includes ______.
revenue streams cost structure
Current buyer's decisions occur without ______.
seller input
(LaFleur Winery video) Taking steps to build the business model for LaFleur Winery included which items from below?
shared with trusted friends examined mentor's business put own twist on business
The business model presented in the textbook is a journey to gather evidence and prove the startup can be ______.
sustainable
Efficient changes to the business model can be made during the startup stage because ______.
the business is small in the beginning
According to author Doug Hall, what is the one big benefit for the customer?
the overt benefit
What is the share of the market?
the portion of the market realistically reached
If the bowling strategy is successful, the company may enter the ______.
tornado
If the projected numbers exceed the market, the entrepreneur rechecks the ______.
total available market Total available market covers the entire area where you can sell the product.
Financial ______ defines the revenue and cost structures a business needs to meet its operating expenses and financial obligations.
viability