Customer and Solution:: Entrepreneurial Mind

CUSTOMER AND SOLUTION:
❖ Customer and Markets

❖ Customer Segments and Niche
❖ Finding Opportunity through Jobs, Pains
and Gains of Customers
❖ Crafting the Value Proposition
ENTREPRENEURIAL MIND
CUSTOMER AND SOLUTION
LEARNING OBJECTIVES:
At the end of the lesson, the student is expected to:
✓ Differentiate between a customer and a consumer,
✓ Learn about the different market types and their specific
requirements,
✓ Identify your customer segments and niche, and understand
their jobs, pains, and gains,
✓ Identify the early adopters and understand the importance of
this customer segment, and
✓ Craft your solutions using the left section of the Value
Proposition Canvas by defining the gain creators and pain
relievers.
THE DIFFERENCE BETWEEN CUSTOMER AND THE CONSUMER
CUSTOMER CONSUMER
- The person who BUYS the -The person who USES
product. the product.
WHO SHOULD WE GIVE ATTENTION TO?
It depends on the product that you have designed.

If the consumer does not like using the product, the customer might
not want to buy it.
However, if the customer cannot afford the product, they might not
also buy it even though the consumer likes it.
Therefore, both of them are equally important.
FOUR TYPES OF MARKETS FOR STARTUPS
➢ Existing Market – the advantage is that there is little to no market

risk.
✓ Competitors exists.
✓ Customers want and need better performance.
✓ Technology is usually the driving factor.
✓ The positioning is driven by the product and how much value
customers place on its features.
✓ The risk is to think that competitors are dumb or too slow.
✓ There is no "chasm" that you need to fill. The chasm is the gap
between early adopters and the mainstream customers in a
market.
➢ New Market – in this market:
✓ There are no customers yet, so
revenue generation takes years.
✓ Market size is zero (0).
✓ Customers need to be made aware of
their needs.
✓ You must consider what factors can
you create that has never been
offered.
✓ The chasm is biggest here because
you will only be selling to the very
early adopters.
➢ Resegmented Market – is a hybrid between a New market and an
Existing market in the sense that it is a New Market created from a
small segment from an existing market.
✓ Evaluate factors that your industry has long competed on and
eliminate those.
✓ Evaluate what factors can be reduced well below the industry
standards.
✓ Evaluate what factors can be increased above the industry
standards.
✓ Evaluate what factors can be created that have never been
offered.
✓ There is a bit of a chasm in this type of market.
➢ Clone Market - customers are known because you copied an
existing market. It is called a Clone because, in this market type, you
are going to localize all those specific issues for your country or
region. There are no competitors if you are the first one and the risk
may be in misjudging the local needs.
✓ Adapts a foreign business model to a local condition (language,
culture, import restrictions, and local regulations).
✓ Needs a large number of customers, typically >100 million.
EXAMPLE OF CLONED BUSINESSES
How the Market Affects Your Venture
➢ Market
✓ Market size
✓ Cost of entry
✓ Launch type
✓ Competitive Barriers
✓ Positioning
➢ Sales
✓ Sales Model
✓ Margins
✓ Sales Cycle
✓ Chasm Width
➢ Finance
✓ Ongoing capital
✓ Time to profitability
➢ Customers
✓ Needs
✓ Adoption
SEGMENTATION and TARGETING
➢ Segmentation – it is the process of

defining and subdividing your
customers into distinct segments
having similar needs, wants, or
demands.
➢ Targeting – deciding which potential
customer segments your idea or
your product or service will focus on.
SEGMENTATION BY:
➢ Geography – which place should I cater to?

➢ Demographics – gender, age, religion, occupation, education,
income.
➢ Psychographics – based on interests and activities.
➢ Behavior – based on consumer behavior.
➢ Benefits – based on what benefits the customer wants.
MARKET TARGETING STRATEGIES
➢ Single Segment Strategy - focus is on one marketing segment which

is either the most profitable or the most aligned with the offered
products/services.
➢ Multi-Segment Strategy – targeting several segments at once either
because some segments seem attractive or there are some
significant synergies in marketing to multiple segments.
➢ Unsegmented Strategy - marketing the products or services to the
entire market because either the market is very small or it is
believed that the needs of the various segments do not vary
significantly.
➢ Micro Segment or Niche Strategy - focusing all the energies on the
Niche segment.
NICHE MARKETING
➢ Niche – it is a specialized segment of the

market for a particular kind of product or
service.
➢ Ideal for starting entrepreneurs.
➢ Reason for targeting niche market:
✓ Allow sensible use of resources
✓ Identify clients easily
✓ Easily become the expert
✓ Obtain repeat business
✓ Makes marketing easy
CUSTOMER SEGMENTS
➢ Customer Jobs – what jobs your

customers would like to be done?
➢ Pains – what are the problems that
your customers are experiencing?
➢ Gains – what does your customer
want to have?
THE VALUE PROPOSITION

➢ Pain Relivers - what will put an end to the difficulties and
challenges that your customers encounter?
➢ Gain Creators - what will produce outcomes that your customer
expects or that go beyond their expectations?
➢ Products and Services – what is the product or service that will
answer to your customers needs?
THE EARLY ADOPTERS
➢ They are a sub-segment of the customers who need the

product/service the most and are often as visionary as the
venture.
➢ According to the Law of Diffusion Innovation, early adopters
are among the first set of people to adopt a new
technology/product/service. The early adopters form 13.5%
of any customer base. Therefore, it is important to identify
and qualify them right at the beginning.
CUSTOMER ADOPTION PATTERNS
➢ Innovators - the first customers who try a new

product/service. They are the risk-takers who would like to
explore and are ok even if the product/service does not meet
their expectations.
➢ Early adopters - the most influential customers and are very
active on social media. They are moderate risk-takers but have
a high stake in providing feedback on the products/services.
They ask many questions for clarification before making a
buying decision.
➢ Early Majority - the wise spenders. They often consult with
the early adopters before making buying decisions. They are
reasonable risk-takers and have average social status.
➢ Late Majority - the risk-averse people, who are comparatively
low in social status and are basically from the low-income
groups. They evaluate various pros and cons before taking a
buying decision.
➢ Laggards - the last to adopt a product/service, especially
when it is in its declining phase. They are risk-averse people
and not open to change. They are traditional buyers who
consult only within close connections when taking a buying
decision.
Trott, P., 2017. Innovation Management and New Product
Development. 6th ed. United Kingdom: Pearson Education
Limited.
LearnWISE. (2022). Retrieved 12 May 2022, from

https://lms.learnwise.wfglobal.org/IN/en/home

Customer and Solution:: Entrepreneurial Mind

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CUSTOMER AND SOLUTION:

❖ Customer and Markets

It depends on the product that you have designed.

➢ Existing Market – the advantage is that there is little to no market

➢ Segmentation – it is the process of

➢ Geography – which place should I cater to?

➢ Single Segment Strategy - focus is on one marketing segment which

➢ Niche – it is a specialized segment of the

➢ Customer Jobs – what jobs your

THE VALUE PROPOSITION

➢ They are a sub-segment of the customers who need the

➢ Innovators - the first customers who try a new

LearnWISE. (2022). Retrieved 12 May 2022, from

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