Income from the forest
Classified in Economy
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Business Model Canvas A business model describes the rationale Of how an organization creates, delivers, And captures value.
Costumer Segments
Customers comprise the heart of any
Business model. Without (profitable)
Customers, no company can survive
For long. In order to better satisfy
Customers, a company may group
Them into distinct segments with
Common needs, common behaviors,
Or other attributes
• Gender
Gender is one of the most simple yet important bases of market segmentation. The interests, needs and
Wants of males and females differ at many levels. Thus, marketers focus on different marketing and
Communication strategies for both. This type of segmentation is usually seen in the case of cosmetics,
Clothing, and jewellery industry, etc.
• Age group
Segmenting market according to the age group of the audience is a great strategy for personalized
Marketing. Most of the products in the market are not universal to be used by all the age groups. Hence,
By segmenting the market according to the target age group, marketers create better marketing and
Communication strategies and get better conversion rates.
• Income
Income decides the purchasing power of the target audience. It is also one of the key factors to decide
Whether to market the product as a need, want or a luxury. Marketers usually segment the market into
Three different groups considering their income. These are
• High Income Group
• Mid Income Group
• Low Income Group
This division also varies according to the product, its use, and the area the business is operating in.
• Place
The place where the target audience lives affect the buying decision the most. A person living in the mountains
Will have less or no demand for ice cream than the person living in a desert.
• Occupation
Occupation, just like income, influences the purchase decision of the audience. A need for
An entrepreneur might be a luxury for a government sector employee. There are even many products which
Cater to an audience engaged in a specific occupation.
• Usage
Product usage also acts as a segmenting basis. A user can be labelled as heavy, medium or light user of a
Product. The audience can also be segmented on the basis of their awareness of the product.
• Lifestyle
Other than physical factors, marketers also segment the market on the basis of lifestyle. Lifestyle includes subsets
Like marital status, interests, hobbies, religion, values, and other psychographic factors which affect the decision
Making of an individual.
The Value Proposition is the
Reason why customers turn
To one company over
Another. It solves a customer
Problem or satisfies a
Customer need. Each Value
Proposition consists of a
Selected bundle of products
And/or services that caters
To the requirements of a
Specific Customer Segment.
In this sense, the Value
Proposition is an
Aggregation, or bundle, of
Benefits that a company
Offers customers.
Newness
Some Value Propositions satisfy an entirely new set of needs that
Customers previously didn’t perceive because there was no similar
Offering. This is often, but not always, technology related. Cell phones,
For instance, created a whole new industry around mobile
Telecommunication. On the other hand, products such as ethical
Investment funds have little to do with new technology.
Performance
Improving product or service performance has
Traditionally been a common way to create value.
The PC sector has traditionally relied on this factor by
Bringing more powerful machines to market.
But improved performance has its limits. In recent
Years, for example, faster PCs, more disk storage
Space, and better graphics have failed to produce
Corresponding growth in customer demand.
Customization
Tailoring products and services to
The specific needs of individual
Customers or Customer Segments
Creates value. In recent years, the
Concepts of mass customization
And customer co-creation have
Gained importance. This approach
Allows for customized products and
Services, while still taking
Advantage of economies ofscale.