!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?