Customers and Markets Learning Objectives: The learners shall be able to: Examine the market and its customers; © Compare the different types of customers; © Distinguish the perfect customer; * Create a customer persona; * Design a customer journey map for the identified persona; * Assess market size using various approaches; ¢ Adapt entrepreneurship marketing; and, * Develop one’s personal brand: ["Service, in short is not what you do, but who you are. its.a way of living that youneed to bring to everything you do if you're to bring it to your customer interactions.” Betsy Sanders Customers are the core of every business. Every business should always try to attract new customers for profit and to stay in its industry. The customers are the real bosses of any company. Having an increasing number of customers is the only way to grow a business. For an entrepreneur, he needs to reflect on the market he is about to enter the moment he starts the process of creating a good business concept and model. He needs to understand the needs of his customers, satisfy their needs and retain them. The key to always being successful in business is to understand very well the market and those customers inside. Market and Customers A market is any place where manufacturers, distributors and retailers sell and consumers buy. Physical shops, high streets, or websites are examples of a market. The term may also speak of the whole group of buyers for a product and/or service. Inside the markets are competitive companies that offer similar products and/ or services. The prices of products and/or services are dictated by the market due mainly from demands and competition. Markets are always dynamic, hence businesses must always monitor the trends and the changing needs of customers. Factors that influence the changes in the marketplace could be the economicsituations, innovations, lifestyles and new fashions.In starting a new business, an entrepreneur must understand the market and those that are inside it. He needs to identify first those customers he intends to sell to and how to reach them. Then he must understand all the potential factors that contribute to the market he is entering into. Certainly these factors shall determine how will he market to consumers, beat competition and create his own business plan. Itis essential really to understand customers, their needs, their personality, their attitudes and even their budgets. A company needs to bring to mind a “hunger” ina customer to buy its certain products. Essentially, here are the things that customers look for when buying an offering whether a product or service or both. 1. Price - Majority of the customers look at price when buying a product or availing ofa service. Itis a reality that every customer purchases within his budget limit. Not unless a product and/or service is exceptional customers may be compelled to spend outside his limitation. 2. Experience - These days, almost everyone is busy doing their activities. Most customers wanted to buy things that are readily available. The market today contains so many alternatives to choose from. Hence, it is essential to provide a worthwhile experience in addition to good product and/or service quality. This kind of shopping experience may create loyal customers. 3. Design - The design of the product must always be appealing to customers. 4, Functionality - It is always expected by the customer that the product he is buying can serve its purpose. Simply all the functionalities that are expected of the product should be present. 5. Convenience - The product and/or service must be always readily available for the customer, otherwise, he will not buy the product and possibly look for an alternative. 6. Reliability - The product should be dependable and it should meet the customer’s requirements and expectations every time he buys it. 7. Compatibility - The product should be well-matched with the other products that the customer is already consuming. Customers are the essential component of every business because they are the ones who uses and judges the quality of those products and/or services being bought from the market. In order for the business to flourish, every business needs to retain old customers and make new ones. Therefore, for an entrepreneur, he needs to consider that every customer is valuable and profitable. Types of Customers Every customer is unique, hence there is no single formula to approach them. In order to identify the best approach on how to handle customers, it is necessary to know them first. Here are some types of customers that an entrepreneur may encounter in his business. Customers and Market The Potential Pandoy (Potential customer) In principle, Pandoy cannot be considered a customer yet. However, he needs a little bit of convincing and assistance to hopefully change into quickly making him a paying customer. He may show interest in the product and/or service offering by filling out a contact form, signing up in a newsletter or asking a question through live chat or personal message. (PM). Said interest should be capitalized by an entrepreneur. by providing him the information about the benefits of the offering: The entrepreneur must make Pandoy aware that he is available for help or advice any time for him. Surely Pandoy shall appreciate such gesture even if he does not have any immediate need for said assistance. New Netnot (New customer) New Netnot is the fresh customer who has just bought something for the first time from a bissiness. An entrepreneur must always be watchful in dealing with first time customer, as the saying goes “first impression is the last impression”. It is understood that he bought that product and/or service for the first time and a beginner at using it. It is vital to create a smooth adoption period for Netnot. An investment of time to explain how a product and/or service offering works may lead to success in more future business from the same customer. Hence, it is best to offer applicable assistance and make contact option open with this customer. Establishing a customer relationship would help in converting Netnot into a loyal customer. Impulsive Icoy (Impulsive customer) Impulsive Icoy is a customer that make instant buying decision based on craving or whim provided that the conditions are right. He is highly influenced by his current mood when shopping. He needs not much convincing to buy for as long as he wants to buy something with less steps. He is even less interested in value proposition, so an entrepreneur must not waste said buying impulse when it comes. When Icoy makes a query, an entrepreneur should give a quick and short response or else his impulse will drop. It is a challenge to handle Icoy because he always wants fast and brief help for all the useful products available at that point of time. He wants all the useful products in his front in order to buy what he likes form the display. Although, when treated properly, Ico could provide high percentage of sales for the company. Discount Daboy (Discount customer) Discount Daboy is a customer who never buys a product and/or avail of service on full price but only on a discounted rate. Said customer never shop for anything off-sale. Itis difficult to retain Daboy as a customer once the discount stops applying. An entrepreneur must offer an extra added value or even go beyond the initial offering such as a good customer service to make Daboy have a second thought before switching to the competitor, In reality, the group of Daboy has the biggest slice of the pie in the total customers of any business. Daboy is the least loyal among customers as he moves easily from one store to another when availing better offers. The more discounts, the more Daboy will visit the store and makes purchase. Customers and MarketLoyal Lando (Loyal customer) Loyal Lando is a satisfied customer that keeps coming back to one’s store for more purchase. Landois a good brand’s ambassador that can make recommendation of a business to his family and friends, thus attracting a stream of new customers. A customer like him can help an entrepreneur grow his business using word of mouth. The role of an entrepreneur is to make certain that Lando stays happy about the product and/or the service as well as the business. An entrepreneur may ask Lando what makes him so pleased with the business and then replicate his experience with the rest of the customers. Normally the segment of Lando is just 20% of the total customers, but it is responsible for the most part of the company’s profit. There should be regular communication with Lando who wants individual attention on a polite and respectful way from the business. Target Customer Group A target market is a group of possible consumers or organizational buyers to whom acompany wants to sell its products and/or services. Therefore, it makes sense to focus all the marketing efforts to reach them with the company’s marketing message. An entrepreneur needs to identify exactly the pain points and preference that his product and/or service offering would be resolving for the intended users. It must be clear who those people that are in need or want of this offering whether they are individuals, families or businesses. When the pain points and those concerned are determined then there is a possibility that the entrepreneur has define his target market. There are some approaches in exactly describing the perféct customer, namely: 1. Consumer or business - A product and/or service may be intended for a business- to-business (B2B) or business-to-consumer (B2C) market. 2. Geographic - This is defining the target market according to the place where possible customers live or work, take vacation or do business. For instance, in a local brick-and-mortar store, potential customers may come from two-meter radius or inside the barangay. 3. Demographic - The target market here is describing by means of age, gender, income level, educational background, marital status and other areas of an individual customers life. 4. Psychographic - Psychographic characteristics are based from the intrinsic traits of a customer such as personality, lifestyle, social status, AIO (activities, interests, opinions) and attitudes. Generation - A lot of businesses these days define their target market based on which generation they were born in, namely Baby Boomers, Gen X, Millennials and even Centennials. 6. Cohort - Some companies look for their target market using cohorts. A cohort is a group of subjects who share a significant characteristic or typically subjects who experienced a common event in’a selected time period, such as birth or graduation. 7. Life stage - Other businesses use the stage of life for target marketing whether its infancy, childhood, adolescent, adulthood or old age. or Customers and Market 8. Behavioral - Another way of finding the target market is based on customer loyalty, occasion-based, consumer usage and others. Customer Personas In order to solve a real user problem, an entrepreneur needs to have a clear Problem statement in mind. In order to write this problem statement, he first need to understand the users of his product and/or service and their needs. The use of the user persona clarifies who the target users are. Knowing the target users will help influence the features and design elements the entrepreneur chooses, making his Product and/or service more useful. A user persona is a short fictional profile of an ideal user or customer. An entrepreneur must need to conduct market research to produce a brief combination of actual or acceptable customer details. This user persona includes a fictional name and photo, important demographics, user needs and desires, goals, motivations, activities, pain points, and quotes. Except for the name and photo, all details are from real user data or customers that have been served and market research or customers that the entrepreneur would like to reach. The important consideration here in creating a user persona is to take in all items that are applicable to the product and/or service and those useful things to remember the real needs and motivations of the people they are designing the offering for. The user persona must accurately represent the company’s users because it is essential to the overall value proposition. The essential elements of each user persona is normally written in one page. Personas help find the ideal customers in real life situation in order to test the product with real people. The entrepreneur must be certain that each persona is specific, accurate and can be found in real life among customers. In general, personas are helpful throughout the entire product development phase: from deciding on which features to have in a prototype, to evaluating the end product. Here is an example of a user persona that includes some of the common elements: GILDA-The Event Goals and Needs Activities Piannet, a The | 4. Atripto great beaches every | 1. Gilda get children out of bed and amily, ‘summer for the immediate and get them ready for school extended family 2. She prepares her children’s “baon” 2. Romantic places for to school “staycation” with hubby 3. Run errands for the family on a 3. She needs simple apps regular basis to connect with possible 4. Scheduling of meetings and dates destinations to visit with friends and colleagues 4, Require to create outdoor 5. Cooking dinner, cleaning and activities for the family while on decorating the house Bacau 6. Goes to work from Monday to Friday Customers and MarketGilda’s Vital Motivations. Pain Points Information 1. Create memories for thie 1. Gilda has little time to plan for *Gilda is a45-year- | — whole family ‘outdoor activities for her family old married emale | 2. Make relaxation, unwind and | 2. Having to check a lot of websites living in Manila, Phikepines lessen stress together with {for activity planning sclide ‘: aa | 3. She is not always at home; she sx children aged | Havefun with children, hubby, | Wants to plan while on the go 12 to 22, great wife | 02d andMomand siblings | 4. Guides must be readily available toher hubby who’ | 4 Loves spending time outdoor as soon as her family arrives in a she loves dearly with family.but trap with hectic place. * Gilda is always on office schedules . the go due to busy office and meeting schedules everyday +Gilda loves her Dad ‘and Mom and her two siblings “Even with busy schedule,a family Device and internet Usage Notable Quotes “love to go on an out-of-town Laptop needs to bond to te relax and build ‘Mobile Phone 95% | | Vacation date with hubby. ener Tablet 20% | | ‘Itried TripAdvisor but not satisfied.” “!want someone who can provide me ‘Social Media = with a trip package.” ‘Computer Knowledge Table 8: User Persona Example-Gilda Once the entreprenei is able to identify his user groups, he can now create user personas through these steps: Step 1: Create a Headet The header consists of a fictitious name; a picture and a quote which sums up what is the most important tothe persona thatis telated to the product and/or service offering. These simple features are intended for memorability, so that the designer/_ entrepreneur ig focused on these users as he forms his offering for them. Step 2: Include A Demographic Profile Although the name and picture are fictitious, the demographic profiles of the users are based from facts and user research. These profiles include personal background, professional background, user environment, and psychographics. 1. Personal background, - The pérsonal background consists of the age, gender, ethnicity, education, persona group (working moms, single professionals, working students, etc.), and family status (single, married with children, widowed, etc.). 2. Professional background - The professional background contains details like , occupation, income level, and work experience/s: 3, User environment -The user environmentis the physical, social, and technological context of the user. This section may include the technological devices the users Customers and Market ace e - have access to; and where they spend most of their time such as in a corporate office or a home office. rs Psychographics - Psychographics-contain facts, for example attitudes, interests, motivations, and pain points. This profile makes the entrepreneur understands the reasons for the user’s behavior including the use of the company’s product and/or service. ~ Step 3: Include End Goal(s) The end goal is the encouraging factor that stimulates action, It provides the details on the Wwant/s and need/s of users that can be satisfied by using the product . and/or service offering of a company. The end goals define the things the persoria wants or needs that have to be fulfilled.. . : Step 4: Include a Scenario : An everyday life sceriario is a story that describes the interaction of the user to a product and/or service in a particular situation to reach his end goal/s. The scenario details the when, where, and how of the story that happens. The scenario is normally written from the data gathered from the angle of the persona and may describe important details about the future. The rule of thumb here is to omit that information which will not affect or influence the final design. Customer Journey Map A most popular and favorite tool for imagining the customer's experience/s is the customer journey mapping. A customer journey map is a representation ofa typical customer's experience over time instead of a snapshot. It is different from the discussed customer persona. The emphasis of a persona is on the person, while a customer journey map highlights their experience. A customer journey map is basically a story intended to. give awareness of the customer's complex buying trip. Most journey mapping format looks like a timeline that consists of a series of user actions, Then the timeline is elaborated- containing thoughts and emotions to form a story. This story is summarized and refined to create visualization. The map helps to set where customers become frustrated on their way to buying and beyorid. This also combines the data on personaé and user behavior. Each persona may have his own map, which may serve as a reference point. ‘A well-thought out customer journey map is very helpful but not all companies are taking full advantage of it in order te discover more opportunities. Mapping customer journeys must every time aim for business impact. Unfortunately,-most customer journey map donot consider the company side and focus’ only the customer side. It is vital to include both sides to map and cultivate the connections between the company and customers. It is also important to modify the map based on the unique needs of the company and the goal that has been set.. ” Here is an example of the customer journey map is about an online grocery store. Customers and Marketrnaunsdny ‘e0inog depy Koumnof somoysn> Surddoys aurtug 6 >1quy- uidjydysa10) _ ewinor 40 sobes, ssuojeyoodxs, sewo3sn3, CoC soy61 unco5ip uuergo 0 Ase | won6 o1paioea seoueyodca woge Busnjuon ado Abus oso kde ‘u6v0 yaieos ‘Uo epiottoy| spo Kipssecouun ‘py 01 It SuMomtons Bo [a] ei fmm GE Peaks e ie te as es ‘aly, § a] te 4 iy ike i Etpoidesuedo. | npold e suodo Crore suet | aa7 i 3) bfE ak GE mf S 0 Keen so "youl pies en un ay ‘doy oj2o10s ‘un Speyv00 Customers and Market 1. Actor - The actor is the viewpoint of the journey w! or user. Coming from the data gathered, the actors must personas and their respective actions. H for each persona in order to cteate a so particular journey. 2. Scenario + Expectations - map talks about in relation to the actor's goals, the product is still in the development stage, scenarios coul projected. However, for existing products and services, scenarios s are real. Journey maps are usefull w! like the online grocery shopping, designing a process or those of switches over time or those that considers using several channels: 3. Journey Phases - Journey phases are the various high- of an actor. These phases are responsible for the i thoughts, and emotions in the map. Obviously, for be different phases. Each company should have data in order to various phases for a particular scenario. Here are some examples, such as: Key Components of a Journey Map Journey maps come inall forms and dimensions. Regardless of their appear: journey maps have the following five key elements incommon: - ance, ho is actually the persona be in relation with lence, there must be one journey map lid and rich story that captures their The scenario is simply the situation which the journey needs and expectations. When Jd be those that are jhould be what yhen scenarios are created as a series of events that comprise a set -level stages in the journey information about actions, each scenario there would determine the a. An ecommerce scenario - Buying, a set of Bluetooth speakers may have discover, try, buy, use, seek support phases. b. A huge or expensive purchases - Test driving and buying a car may inc! stages such as engagement, education, research, evaluation, justification. c. A business-to-business (B2B) scenario - Rolling out an internal tool may consider the stages like purchase, adoption, retention, expansion, advocacy. ‘lude 4. Actions, Mindsets, and Emotions - These include behaviors, thoughts, and feelings the actor has during the journey and that are drawn within each of the journey phases. a. Actions - These are the concrete behaviors and steps engaged by users. This element is not meant to be a granular step-by-step record of every isolated interaction. Rather, it is a story of the steps the actor undertakes during that phase. b. Mindsets - These correspond to the thoughts, questions, motivations, and information of the actor at various steps in the journey. Ideally, these are customer exact words from research. . Emotions - They are drawn as distinct line across the journey phases. This line accurately indicates the emotional “ups” and “downs” of the experience. This line gives the idea of the related layer of emotion that the actor feels such as very happy against unhappy. Customers and Market‘ 5. Opportunities - Opportunities are insights that are obtained from mapping. These opportunities they can used to identify the ways of optimizing the actor's experience. Insights and opportunities are useful in getting knowledge from the Steps to Craft a Customer Journey Map The following are the steps in creating a customer journey map: journey map in terms of: f. needs to be completed with this knowledge ~ 8. owner of respective change h. the biggest opportunities i. ways of measuring improvements as they are implemented Importance of a Customer Journey Map Although it is true that an entrepreneur understands the needs and pain points of his customers, but it could actually be surface-level. Although, in maximizing customer success, an entrepreneur must focus on the essential steps such as breaking down the customer journey phase by phase, making parallel each step with a goal, and restructuring the touchpoints. Nevertheless, the intention is really to solve customers’ problems and help them be successful in using the product and/or service for a long period of time. Here is some importance of a journey map: 1, Refocus a company with an incoming perspective - With inbound marketing an entrepreneur may discover his customers. Inbound marketing also known as content marketing is creating blog posts, social media, infographics, white papers, email newsletters, and other content that people actually want to read. Customers are actually interested and searching for this content. It catches the attention of customers first and then later starts to buy things that they have read about. Through journey mapping, an entrepreneur can understand what interest and help his customers about his company and website as well as what drives them away. The company may construct the type of content which will draw the attention of customers and help to keep them. 2. Form a new target customer base - On the part of the entrepreneur, it is risky not to know fully the demographics and psychographics of his customers because he will not also correctly realize his customer's journey. It’s actually of time, money and effort to target a broad segment who shows interest in the company’s products and/or services. The needs and pain points of usual customers must be researched on. Journey mapping will actually provide a good picture of the types of people who are trying to accomplish a goal with the entrepreneur's company. 3. Forma customer-focused mindset all over the company - Asa company becomes bigger, it turns to be challenging to be as customer-focused like the customer service, support, and success teams. Most often, sales and marketing goals are no longer what the customers want, Since, the journey map outlines each single step of the customer journey from initial attraction to post-purchase support that concerns marketing, sales, and service, then it can be shared with the whole company. customers and Market 1. Set clear objectives for the map - Before creating a map, an entrepreneur Saal know the goals he is directing the map and the experiences it is based pea other words, he may create a buyer persona. As presented earlier in this chap i persona is a fictitious customer withall of their demographics and psychographics who embodies a typical customer. With a distinct persona drawn an entrepreneur he may direct each phase of his customer journey map towards them. 2. Profile personas and define their goals - The next step is to make researches Py, getting valuable customer feedback using questionnaires and ee ne Here only actual customers or prospects are reached out to make feec ess . Feedback must come to people who had shown interest in buying ae entrepreneur's products and/or services and those that have dealt with the company already or plan to do so. 3. Emphasize the target customer personas - Although an entrepreneur must know those customer personas that interact with his business, he needs to narrow down his focus to one or two of them. Each customer has his own journey map that takes a definite path with his experience in the entrepreneur's compe Grouping excessive number of personas into just one journey may Tesu i ‘0. inaccurate disclosure of the customers’ experience. For an entrepreneur drawing his first journey map, the rule of thumb is to select the most common customer persona and study the path he normally takes when doing business with the company. A marketing dashboard may be created to make comparison of the different personas that would fit in with the journey map. Personas that have been eliminated could still be reconsider through a new map- 4, Write down all the touchpoints - Touchpoints are those places in the website that customers may use to interact with the company. An entrepreneur must write down all the touchpoints his customers and prospects are presently using and those that they must use based from research. This step is vital in creating a customer journey map since the insights into what action his customers are doing are revealed here. The touchpoints are tools that can help an entrepreneur understands the comfort and purposes of customer journeys. An entrepreneur may consider others way in which a customer may come across his online such as social channels, paid ads, e-mail marketing and third party review sites or mentions a. Actions - An entrepreneur may write down all the actions his customers are doing as they interact with his brand or company. He may Google search for the keywords or may click on an email sent to him. It is alright to have a long list of actions. b. Emotions and motivations - Every action that a customer takes is triggered: by an emotion, Said emotion/s may change based on which part of the journey a customer is at. Normally, what drives the emotion of a customer is a Customers and Marketpain point or problem. The knowledge on these emotions and motivations will give the fitting content at the right time so that there will be a smooth customer's emotional journey through the entrepreneur’s brand. c. Obstacles and pain points - Here the road blocks that are preventing the customer to take the preferred action must be revealed. Cost is one of the prime problem. High shipping rates may cause a customer not to buy the product even he so desires it. Emphasizing these possible difficulties in the customer journey may help lessen them. 5. Identify the elements of the map to show - There are several types of customer journey maps with corresponding benefits. Here are some of them: a. Current state - This is most commonly used type of customer journey map- It tries to create in one’s mind the actions, thoughts, and emotions that customers presently experience while interacting with the entrepreneur's company. Thisis bestapplied for continuously refining the customer journey: b. Day in the life - This type of customer map tries to create in one’s mind the actions, thoughts, and emotions that customers presently experience when he participates on daily basis whether it includes the company oF not. It offers a wider viewpoint into the lives of the customer and their pain points in real life. This is best applied for fulfilling unmet customers’ needs before customers even know they exist. c. Future state - This journey map is designed by an entrepreneur to imagine the actions, thoughts and emotions of his customer’s experience as the latter interacts with his company in the future. The reference is the present experience though the plan heads towards what the entrepreneur wants the customer journey to be. The best application of this map is illustrating, vision and planning a clear objective. d. Service blueprint - This journey map starts with the simple version of the above mentioned maps. The later add further those factors in charge of providing the experience such as people, policies, technologies, and processes. This is best applied when determining the main reasons of the present customer journeys. or determining the steps required to accomplish the preferred future customer journeys. 6. Identify the resources on hand and those that arestill needed-Every partof the business could be touched by the customer journey map. Obviously, the entrepreneur must emphasize all the resources that goes with the customer experience. Hence it is necessary for the entrepreneur to come up with the inventory of the resources he has on-hand and those resources he will be needing to improve the customer's journey. For instance, if the customer service does not have the tools to appropriately follow up with customers after a service interaction, then the entrepreneur must invest on these resources. Experience the customer journey himself - After designing the customer journey map, the entrepreneur must analyze the results himself. For instance, he must know the number of people clicking his company’s website but never really Customers and Market make a purchase. This will make him decide on how he could better support customers. The results of the analysis can confirm where customer needs are being unmet. With this a valuable experience can be guaranteed and that customers are able to find solutions to their problems through the entrepreneur’s company products and/or services. Mapping the customer journey remains hypothetical unless the experience has been tried by the entrepreneur himself. The entrepreneur may follow the journey of each personas using their social media, reading their emails and searching online. 8. Create the rieeded changes - The analysis of data can give the entrepreneur the idea on what his website must be. The entrepreneur may create the applicable changes to his website to accomplish his goals for the business. He may place numerous distinct call-to-action links. He may also write vivid and detailed descriptions of each product to make its purpose and benefits clear to the customers. Market Sizing The market size refers to the aggregate number of possible buyers of a product and/ or service in an industry and the aggregate revenue that these sales may produce over the course of a year. It is vital and beneficial to know the possible market size prior to the introduction of a new product, a new product line or new line of business. This would provide a better understanding of the entrepreneur's investment worthiness in terms of time, money and effort. For an existing type of business, one may refer to the existing sales number in an industry to know the market size. The market size is divided into four broad categories, namely: DR a a > eee ac Dog S Steck tic tae See kaseu NCCU What proportion of that market can you reach? Figure 7: Four Categories of Market Size ‘Source: https:/www.process.sUtam-sam-som 1. Potential Available Market (TAM)- The potential available market is the total possible value that represents the global market of products and/or services sold over a definite timeframe without any limits of geography and other factors. This assumes the 100% market share. 2. Total Addressable Market (TAM) - TAM is the potential value of product and/ or service sold to a particular customer segment. This shows the numberof customers in the core market around the world who are in need of the entrepreneur's product and/or service offering. TAM is irrespective of competition. These may not necessarily be those who can afford to buy the offering but they must have a need of the item. Hence, in estimating the TAM, the type of customers who are in need of the product and/or service and their volume requirement must be known. An entrepreneur in order to know his TAM must define first his own company and should know where his company is heading to. For instance, the TAM for Uber is not merely the size of the taxi market but includes the whole transportation industry. Say an entrepreneur for his service business wanted to know his TAM. In this case his TAM consists of all people who have a need for help doing tasks and running, errands in his community. Based from market research, if his community has 150,000 constituents, the TAM could probably be 33% which is 50,000 people. This percentage is obtained by excluding people who are below 18 years of age and those people who has no capacity to buy his service offering, 3. Serviceable Available Market (SAM) - SAM is the subset customer of the total addressable market (TAM) who can be reached and ready to buy goods or services using a one revenue stream/channel. Going back to the example of an entrepreneur with a service business, his SAM is the slice of that 50,000 who he is targeting in his present business model. He may qualify to serve only those people between the age of 35-55 years old with small children and disposable income. With these limitations, he may realize that this is 40% of his TAM which is 20,000. 4. Serviceable Obtainable Market (SOM) - This is the subset of the SAM that will realistically get to use a product and/or avail of the service. This is the target market who the entrepreneur shall primarily sell to. Here, there is much consideration to strategic development of the market and the competitors’ actions. An entrepreneur should have a strong understanding of his local market, a deeper knowledge of his own company and what he can deliver. When starting a business, simple things such as the amount of traffic that is on the'road may really have a big impact. Using again the example of the entrepreneur with a service business, he must estimate the portion of his SAM that his business model can realistically serve at present. He may have himself and his two employees who can serve people within a 2-kilometer radios say 10% of his SAM which he can reach in the first 2 to 3 years of operation. So this means his SOM is 2,000 people a year. Market Sizing Approaches There are two ways to sizing a market which are the top-down analysis or bottom-up analysis. In order to guarantee the correct reliability of the data and identify any areas that will need more research for understanding, the combination of these approaches is recommended, Top Down This type of sizing is normally completed by using demographics such as company size, industry type, location, population, age, income and others. It Customers and Market requires the determination of an existing dependable top-line demand estimate. For this estimate, there are several sources that the entrepreneur can turn to. Of course, each has its own pluses and minuses that need to be well-adjusted in the performance of this analysis. Most of the times, these approaches are combined to get the best result. 1. Multi-client research from publishers - There are a lot of publishers on the market selling products with different range underlying research and accuracy such as The Freedonia Group, Packaged Facts, and Simba Information. Hence if the entrepreneur decides to use this method he must get his information from reliable sources which is the MarketResearch.com which consists of those publishing brands mentioned above. In the Philippines, an entrepreneur may go to Esomar Directory to find market research companies such as ASCEND, Cogencia, InsightsImpact, IPSOS Philippines and the rest. Pluses, : Minuses 4. Often the quickest way to get an | 1. Multi-client studies are intended to estimate demand provide a broad overview of large industries. 2. The scope and segment definitions in multi-client studies may not align with those desired. Table 10 Pluses and Minuses of Research Publishers ‘Source: freedoniagroup.com 2. Apparent consumption calculated from government production and trade statistics - There are dependable industry shipment/production statistics and import/ export data fora given industry using sources such as Philippines Trade Data, Philippine Statistics Authority, Foreign Trade Statistics of the Philippines and even Department of Trade and Industry. It is possible to estimate demand through estimating apparent consumption. The formula for this is: Apparent Consumption = Domestic Production — Exports + Imports ne Pluses Minuses 1. Government and trade statistics | 1. Multi-client studies are intended to are widely available provide a broad overview of large industries. 2. Government statistics bureaus are |2. The scope and segment definitions trusted sources of data in multi-client studies may not align with those desired. 3. Government statistics bureaus are |3. Trade codes for product trusted sources of data classifications may vary by country. Table 11 Pluses and Minuses of Government and Trade Stats ‘Source: freedoniagroup.com customers and Market3. A production census of leading suppliers in markets with a concentrated supply base - When the supply base consists of only few suppliers such that they ~ are less than ten (10), top-line demand estimates can be established easily by adding all the sales or production of leading manufacturers of the-product being studied. Minuses 1.,A good method for estimating demand when no other top-line estimates exist, the market does not lend itself to bottom-up analysis and the supply-base is concentrated. 2. Provides a way to .cross-check estimates derived from other top- down approaches or those derived through bottom-up analysis 2. Data availability may be limited 14. May be dependent on information obtained from primary research. Given the sensitive nature of sales information, there is a risk respondent will not provide this information. when the leading suppliers are privately held companies or small divisions within large publicly held companies. Table 10 Pluses and Minuses of oLeading Suppliers ‘Source: freedoniagroup.com Bottom Up It is actually recommendable to use both approaches in solving a problem although often they generate dissimilar results. However, said results must be close enough to offer a more precise solution. What is Entrepreneurship Marketing Entrepreneurial marketing is more about a marketing spirit that distinguishes itself from traditional marketing practices. This type of marketing for entrepreneurs avoids many of the fundamental principles of marketing are usually aimed for big and well-kriown companies. It makes use of new and non-traditional marketing practices that makes entrepreneurs stand out from their competitors. Entrepreneurial marketing campaigns try fo emphasize the company’s greatest strengths while stressing their value to the customer. Here are some of the marketing strategies that makes a lot of entrepreneurs successful when use in combination: 1. Relationship marketing - The emphasis of this is on building a solid connection between the brand and the customer. 2. Expeditionary marketing - This involves forming markets and creating innovative products. Here the entrepreneur's company. acts as a leader rather than a follower. — 3. One to one marketing - Here customers are ‘marketed to as individuals. All marketing efforts are tailor-fitted. 4. Real time marketing -This makes use of the power of technology-to interrelate with a customer in an actual time. ' 5. Viral marketing - It places marketing messages on the Internet like Facebook and Instagram so they can be shared and expanded on by customers. : Digital marketing -"This considers leveraging the power of Internet tools like e-mail and social networking to back-up marketing efforts. The bottom-up is only considered if there are no dependable sources of top-line demand present. However, if this approach can give a more dependable estimate though analysis of product consumption in relation to a direct indicator (the product being consumed) then this can be useful. Compared to a top-down methodology, this approach can be more time consuming. It is also sensitive on the face of small assumptions that falls through the analysis. In this method, an entrepreneur may be able to make extrapolation until he reaches an applicable scale. a Ina journal article written by Michael H. Morris, the concept of entrepreneurial Here are-two examples of how an entrepreneur can arrive at a market size marketing consists of six elements, which are: estimate using a bottom-up approach: hoa 7 y : ' 7 1. Customer intensity - This feature concentrates on the enthusiasm, passion, zeal, and belief in marketing that makes the company successful. It is believed that a customer-intensity component makes stronger the primary values of the ‘Assumption _ jemand Estimate Windows | During 2017, 1,200 | Newly constructed | Demand for windows company and the passion for the customer. ew, Homes Were [homes jeaiuits on Was some 16M units In 2. Continuous innovation - An entrepreneurial company must constantly create Constructed inthe j.average 15 windows — | 2017 innovative ideas and transform them into new or improved products and/or ua steal services or processes. Paper towels | In 2017, there An average quick Demand for paper 3. Strategic flexibility - An entrépreneurial company must display ar-enthusiasm to always evaluate and fine-tune its strategies, action plans, techniques of resource allocation, structure, culture, and management systems. were 240,000 quick service . restaurants service restaurant spends $500 per year on paper towels towels‘used in quick service restaurants was some $120M in 2017 : 4. Calculated risk-taking - Risk-taking refers to pursuing novel opportunities. Table 13 Examples of Bottom up Approach Entrepreneurs take calculated risks, but some can be serious for the future of ‘Sourcerfreedoniagroup.com : "the company: Q Customers and Market ‘customers and Market@ . Here are some of the benefits of personal branding: 5. Proactiveness - Entrepreneurs are conscious of the significance, of the external- marketing, environment, however, they do not take it as a given. They recognize itasa horizon of possibilitiés. Simply, entrepreneurs try to reassess ents of the external environmerit to lessen its ambiguity, moderate reliance and exposure of the co fi i : Cao oes mpany, and/or transform the environment in a oe age Entrepreneurs’ ambitions usually go beyond their resources; ari rie ni igated to utilize their resources in the best possible way. They eatin oa gid so that they ca use them longer than others have used They use jolie . o use resources that others do not regard as resources. Te Use other people’s/companies’ resources to accomplish their own goals, a ine one resource with another to produce a greater shared value. Creating a Personal Brand For indivi aa : iduals who form their businesses using their expertise such as an autor pubic apes cat constant and ean the es of personal ending : ide them: It makes sense too for an entrepreneur to A personal brand is the one that differentiates an entrepreneur from the rest of his competitors. This type of branding forms a lasting impression on the minds of the « customers about the quality of his product and/or service. Actually this convincing personal brand draws the target custom. 7 ita lucrative ard sustainable business: 'Y 7O™ the company which makes In personal branding customers do not think of #4 the company but the talented ee anmat nd them. For example) Apple is Steve Jobs, Microsoft is Bill Gates and Facebook is Mark Zuckerberg. Personal branding is not only meant for big _ companies. It is also applicable for startups or new ventures because customers shall gauge the value of the offering b: ; remerber that his product and/or serie i here oe ene AD entrepreneur must branding is the “why”. service is the“what” of his business and personal 1. Trust and authority - With a personal brand with his customers and position himsel in the industry. 2. Get featured in media. With a personal brand, it easi 7 be , it easier for an entrepreneur to pitch and be. found by media like online publications, magazines, Television, radio, podcasts, and others. The media is in contin aaa : contiriuou: can share their visions with the audience. is search of experts that an entrepreneur can build trust If as an authority and a thought leader 3. Buildanetwork-Witha personalbranditclearly arti ! ly articulates who the entrepreneur .is, what he does, and how he helps others. The brand makes it easier for other re and ae entrepreneurs to see value in connecting with the owner of e business. A personal brand can leverage to build bot i and offline, quickly and effectively. [ ee Customers and Market 4. Attract more ciustomers~Building a personal brand that positions an entrepreneur ~ as the go-to expert irt a particular industry or niche helps him to draw a lot of his ideal customers. When an entrepreneur is positioned as an expert, it’s also easier for people to refer customers to him. : 5. Premium.pricing - With a strong personal brand charging premium prices for products and servicesis justifiable. Without a brand, an entrepreneur becomes a commodity that competes on price. Besides there will always be competitors that can beat his price. 6. Create a lasting platform - Over time, a business will surely évolve. An entrepreneur may eveh jump to multiple businesses in diverse industries over the course of his career. A personal brand stays with him as he moves from one venture to the next. Some social media platforms can do a lot’ for an entrepreneur's personal branding. Here are some of them: + 1. LinkedIn - This networkis really designed to let others know who are professional. It can display information such as school graduated from, line of study and expertise, work history, passion, and the likes, basically, everything that has to do with being a professional. When used effectively this can creaté a powerful background for the current business and what a company can provide to its customers. The entrepreneur should always make his profile, complete, detailed - and updated. He must engage his connections with having regular posts. He may join with other personal and businesses interests. He may make write ups about something ‘that shall display his expertise especially about his new company. knowledge about something, ideally about the business of your startup company. 2. Twitter - This is another influential and popular platform for posting business news and developments. This cari also be used for simply sharing information. Hence, this social channel is a very powerful for personal branding. It allows an entrepreneur to communicate on current issues through comments which may have something to do with his business. Twitter can also be a great platform for starting a conversation besides sharing important matters with customers and employees. Using hashtags, an entrepreneur may get people into a particular topic, discover possibilities and stir motivation. * Pinterest - This is perfect for communicating the entrepreneur's numerous interests. The graphic nature of Pinterest makes it distinctive. An entrepreneur can post high definition. photos of his products here, or something casual about what his business does. He can even pin his packaging and logo, besides interesting and beautifully made infographics to relate to his personal brand or his business. Every now and then, an entrepreneur can-also pin the beautiful places he had visited by adding a more personal touch to his online persona. id Customers and MarketSuggested Readings Richardson, A. (2010, November 10). Using Customer Journey Maps to Improve Customer Experience. Retrieved from Harvard Business Review: https://hbr: org/2010/11/using-customer-journey-maps-to Here Are 10 Buyer Persona Examples to Help You Create Your Own. (n.d.). Retrieved from Alexa Blog: https://blog.alexa.com/10-buyer-persona- examples-help-create/ Suggested Videos Personal Branding Basics for Entrepreneurs and Influencers. (2019, March 6). hitps://www.youtube.com/watch?v=B0o0WJLqVkg How to Use Pinterest For Business! My 7 Step Strategy. (2020, January 9). hittps://www.youtube.com/watch?v=Q_YSFv4jWxY Customers and Market ING THE ENTREPRENEUR IN ME ff Student’s Name: Date : Year/Section: _ Grade/Score: ACTIVITY 1 Direction: Using the template below create a Customer Persona of your prospective customers. You may have several customer personas if needed. Goals and Needs Activities Picture here Vital Motivations Information Pain Points Device and internet Usage Notable Quotes Customers and MarketDISCOVERING THE ENTREPRENEUR IN ME a ” as * v Student’s Name: Date : Year/Section:_ Grade/Score: ACTIVITY 2 Direction: Using the template below create a Customer Journey using the Persona you identified in Activity 2 of this Chapter Exercise. If you have several, personas created, each must have its own customer journey map. Eig Research | Purchase BET Questions Emotions Pete tet ed PC SET Ty Customers and Market Customers and Market @Customers and Market ENTREPRENEUR Student’s Name: Date : Year/Section:. Grade/Score: Direction: Read the article and answer the questions required below it. The Entrepreneur's Guide to Building a Personal Brand By: Sophia Matveeva Source: https://wwwe forbes. com/sites/Sophiamatveeva/2019107/28/the-entrepreneurs-guide-to- building-a-personal-brand/#311438366695, Busy entrepreneurs often think working on their personal brand makes them an ego-maniac, creating a personality cult worthy of Stalin. While for most people it feels easier to talk about their company’s achievements, the fact is that the startup leader's personal brand is a company asset. As any company asset, if it is tended to with care, it will bear fruit. The company’s leader its public face, and it is inevitable that the company will be evaluated on that individual's strengths and weaknesses. If they are seen as chaotic, their company will be seen as chaotic. If they are known to have strong personal values, then their company will be perceived to have values too. Good investors assess founders first, before they evaluate their ideas. While promoting yourself should not become an obsession, the simple question is: when people Googie you, what do you want them to find? To build a personal brand that helps you grow your company and achieve your career aims, approach it like any other business strategy. Assess what you already have: begin by evaluating what you are already known for and which of your skills people need. If you have already written content on Medium, your blog or in industry publications, which articles have had the most views? If you do not yet have any content up, think about what you most frequently get asked about. 1 Your specialty does not necessarily have to be exactly the same as that of your company, but it should translate. For example, Richard Branson is known as an adventurer, which translates to Virgin being seen as a risk-taking exciting brand. I run a fashion tech startup, but began my career in PR, and am often asked by fellow entrepreneurs how to get press coverage for their startups. Marketing skill in one area translates easily to another. Show your strengths: when you are clear on your special strengths, you need to show them to people in a way they find useful and interesting. Create content that shares your knowledge, not just your views, For example, if you believe that AI isgoing to play a big role in creating advertising content in future, give advice to what creatives, advertisers or clients should do to prepare. Just stating a view is not enough. You can begin by self-publishing on Medium, but after you get some traction, pitch your guest articles to industry publications. Becoming a guest contributor takes work, but it will establish you as an expert and lead to new opportunities. My guest posts have led to speaking opportunities at international conferences, partnership offers and advisory positions. Get other people to promote you: beware of being seen as a self-promoter. While building your personal brand is hugely important, in his book “Power” Stanford Business School Professor Jeffrey Pfeffer warns that self-promoting, behavior can turn people off and make you lose your credibility. Instead he suggests asking other people to help you establish your brand. For example, if you are a web design expert who has helped a friend out with their new website, ask them to make a public post about how you helped them on their social media or geta LinkedIn recommendation. Make a business plan. Since your personal brand is a company asset, treat it as such. Create a three-month plan, with goals, actions you plan to take to achieve them, and how much time you plan to invest. Be specific, for example, aim to create two pieces of content per month, and have you first guest post in an industry publication in the three-month period. Accountability is crucial to making, any plan stick. If you already have a coach or an accountability buddy, ask them to keep you on track. Every month, review what worked, what did not and adjust accordingly. Building a personal brand pays increasing dividends throughout your career. The more time and effort you invest in becoming known as an expert, the better opportunities you get. However, do not expect the conference of your dreams to invite you to be a keynote speaker after your first blog post. Building a personal brand takes time, effort and lots of trial and error. But you owe it to your company to start. Customers and Market Critical Thinking Questions 1. What makes creating a personal brand critical? Explain your side. 2. What is your personal brand? How would you describe it? Explain. 3. What venture do you want to put up? How will you create a personal brand and relate it to the venture you want to create? Customers and MarketCustomers and Market ENTREPREN Student’s Name: Date : Year/Section: __ Grade/Score: Direction: On the space provide write your answers. Answer some questions by making a cross inside the box @. In case you want to change the answer, just place a line through the box @ and then mark the new answer with across W. Do not leave any questions blank. 1. Which one of these is the customer that needs a little bit of convincing and assistance to hopefully change into quickly making him a paying customer? (1) QA. Discount Daboy QB. Impulsive Icoy New Netnot Potential Pandoy Loyal Lando ooo BoO 2. Which three of these are examples of a market? (3) O A. networking QB. social media QC. physical shops QD. highstreets QE. websites 3. State the two importance of a customer journey map? (2) A. B. $$ 4. Explain who a user persona is. (2) A. EES B. 5. Which four of these are types of customer journey maps? (4) QA. Current state QB. Day inthe life . Future state . Service blueprint . Journey Phases Qa Q Q moo6. Which two ofthese are social media platforms that can do a lot for an . . entrepreneur's personal branding? (2) QA. Current state QB. Dayin the life QC. Future state QD. Service blueprint QE. Journey Phase 7. State two ways to sizing a market. (4) A. —_ B. a 8. State five elements in the concept of entrepreneurial marketing (5) 9. State two market sizing sources that the ‘entrepreneur can turn to in top down approach. (2) 10. Which one of these is the eileen ‘of the journey who is actually the persona or user? (1) QA. Scenario OB.- Actor OC. Expectation: QD. Mindsets QE. Emotions . customers and Market