!Chapter summary
See [[Business Roadmapping Audit]]
!Defining the business
The authors start 'Defining the business' using the [[Abell Framework]] which can be summarized into three questions:
# Who do we serve?
## Define [[Customer segments]]
# What do we offer?
## Define [[Value Proposition]]
# How do we do that?
## Define [[Business Model]]
!Customer analysis
First very important question is: "Who is your customer?". This a more tricky question to answer than may seem at first and is related to the companies [[Way-to-market architecture]]. Who in a complicated delivery chain is 'the customer'??? To help discover who is really the focal customer the company should be concentrating on, three questions are important:
# ''Who makes the choices?''
## Who is the person making the purchasing decision? (See also: [[DMU]])
## Marketeers should be interested in the //customers// over the //consumer//
# ''Who pays?''
# ''Who consumes''?'
The authors warn for [[Disintermediation]] can claim that intermediate resellers have their own right of existance and value proposition: it is very difficult to create a seductive environment where a customer is tempted to buy.

It is important for a marketeer to understand the customer needs for a product or a service in the terms of how the customer experiences consuming them. Another key concept is [[Derived Demand]] which states that the demand for a product or service follows from the demand of the product or service or //their// customers.

When looking at a market, [[Customer Segmentation]] or [[Market Segmentation]] can be done in many different ways. See [[Customer Segmentation Criteria]] for guidance on this.
!Customer Value proposition
Having chosen the market segments in which to operate, a next task is to differentiate the offerings from the competition through one of the [[Market Scope Strategies]]. Whatever strategy of scope you choose, the [[Customer Value Proposition]] lies at the heart of the customers decision process. [[Critical Success Factors]] determine a companies success. 

[[The CODA framework]] contains four types of Competitive Advantage:
# The Product/Service refers tothe functional core benefit which the prodicut or service offers to the customers. What do you offer?
# Customer Processes are the interactions between the organisation and its customers. How and where do you offer it?
# Price is the sum of financial and non-financial costs a customer incures when buying. What are the costs to the customer?
# Image refers to the awareness, the beliefs, the ideas or the impression which customers hold about an organisation. What do you represent?
Mon, 27 Dec 2010 16:06:37 GMT
Mon, 27 Dec 2010 16:06:37 GMT
Marketing Strategy and Organization: Building Sustainable Business