Understanding customer need, wants and demands: Product, Reasons(need and want), Benefits(characteristics), Add value (demand): mom with two kids (safety).
The business model canvas: Key Partners: ID buyer-supplier relationships or strategic alliances with competitors or non-competitors to focus on core activities through joint ventures. Key Activities: ID most important activities to execute in a company’s value proposition. Key Resources:ID assets that are needed to sustain or support the business, while creating value for customers(financial, physical or intellectual). Value Proposition: ID products and services offered to meet the needs or solve problems for the customer. It distinguishes us from competitors. (quantitative/qualitative) Customer Segments: ID which customers the business will serve. (mass market, niche market, segmented, diversified.Channels: ID how the product will be distributed in fast, efficient and cost-effective ways. (own stores, partner channels, via web). Customer Relationships: ID type of relationship the business wants to create with customer segment. (personal assistance/dedicated personal assistance/self-service/automated service).Cost Structure: identify classes of business structure and characteristics of cost structure: a)Classes of business structure: 1-Cost-driven: business model focused on minimizing costs, 2-Value-driven: business model focused on creating value. B)Characteristics of cost structure: 1-Fixed costs. 2-Variable costs. Revenue Streams: way the company makes income(asset sale/usage fee/subscription fee/lending-leasing-renting/licensing/advertising).
The business model canvas validation steps: 1-Problem identification:V a customer segment with a burning problem/need that they are willing to pay to fix. 2-Problem/solution fit: Va solution to their problem that they will buy right now it is were available. 3-Product/market fit: V a channel to reach customers for sale and delivery of solution. 4-Scalability V that the business model can be scaled profitably and sustainably.