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.