target market

Find your market

Frieda Brioschi

frieda.brioschi@gmail.com

IEDLesson 8

Course program1. Italian Startups2. Set up a startup in Italy3. I've got an idea. And now? 4. Value analysis5. Business model6. Communicate, communicate, communicate7. Being net 8. Find your market9. Funding: venture capital, business angel and other ways of financing 10. Pitch

Today's table of content

1. Pitch2. Target market

Being net: quick recap

During last lesson we discussed the launch of your product/company in term of communication, analyzing Robert Scoble’s recipe.

“What you want to do is have a story that travels to the people who are most likely to need your product.

It all starts with a story.”

Being net: quick recap

Then we went through a startupper advise, Giuliano Iacobelli's list of interesting and useful websites:

• startup directories

• tech magazines

• magazines in your field/market

Being net: quick recap

We started discovering on/off line resources, discussing what is an incubator and what are certified incubators and which characteristics have public, private and university incubators.

Then we approached a new way to work – coworking - with its italian examples and finally we listed some networking recurring events.

Pitch

A (very) short speech.

http://mindyourpitch.com/blog/what-is-an-elevator-pitch/

What is an elevator pitch?

1.Be short (less is more!)

2. Wow effect (6-10 seconds to generate curiosity)

3. Who (add some info about you)

4. KISS

http://www.ninjamarketing.it/2011/10/25/lelevator-pitch-larte-di-comunicare-unidea-in-modo-efficace-e-in-pochi-secondi/

Tips

1. Concise2. Clear3. Compelling4. Credible5. Conceptual6. Concrete7. Customized8. Consistent9. Conversational

http://elevatorpitchessentials.com/essays/ElevatorPitch.html

The nine C's of an effective elevator pitch

1. What is your product or service?2. Who is your market?3. What is your revenue model?4. Who is behind the company?5. Who is your competition?6.What is your competitive advantage?

http://www.businessknowhow.com/money/elevator.htm

Six question you must answer

• Volunteers (you’ll earn 2 extra points!)• one pitch one person (but we can discuss this)• present your project, if you’ve one or• you can present an existing product/company• slide format: pdf, ppt, Prezi (online)

Our rule

Target market

Who are your customers? Who will buy your product?

People purchase products or services for three basic reasons:

• To satisfy basic needs.• To solve problems.• To make themselves feel good.

http://sbinfocanada.about.com/cs/marketing/a/targetmarket.htm

Target market

1. Look at your current customer base2. Check out your competition3. Analyze your product/service4. Choose specific demographics to target5. Consider the psychographics of your target6. Evaluate your decision

http://www.successdesigns.net/articles/entry/how-to-define-your-target-market/

Definition

•Age: children, teens, young, middle, elderly•Location•Gender: male, female•Education: high school, college, university•Income: low, medium, high•Marital status: single, married, divorced•Ethnic and/or religious background•Occupation•Family life cycle: newly married, married for 10 – 20 years, with or without children.

http://sbinfocanada.about.com/cs/marketing/a/targetmarket_2.htm

Segmentation by demographics

•Personality•Values•Lifestyle: conservative, exciting, trendy, economical•Social class: lower, middle, upper•Opinion: easily led or opinionated•Activities and interests: sports, physical fitness, shopping, books•Attitudes and beliefs: environmentalist, security conscious.•Behaviour

http://sbinfocanada.about.com/cs/marketing/a/targetmarket_2.htm

Segmentation by psychographics

•import barriers•import quotas and currency restrictions•taxation•health regulations•'CE marking' for exports to most European nations•safety regulations•environmental standards•accreditation issues•how you will be paid for your exported products or services•legal agreements.

Challenges to exporting

http://www.nzte.govt.nz/en/export/starting-to-export/identify-your-target-market/

•tariffs or duties•industry regulations•political instability•business laws•intellectual property protection•product to market logistics•quarantine and regulatory requirements.

Country specific constraints

http://www.nzte.govt.nz/en/export/starting-to-export/identify-your-target-market/

•target audience•SWOT•marketing goals•positioning•pricing•distribution•marketing strategies•communication stratefy•media plan•schedule•budget•tracking and evaluation

Research and analysis

Strengths could include:•personal and flexible customer service•special features or benefits that your product offers•specialist knowledge or skills

Weaknesses could include:•limited financial resources•lack of an established reputation•inefficient accounting systems

SWOT/1

http://www.infoentrepreneurs.org/en/guides/create-your-marketing-strategy/

Opportunities could include:•increased demand from a particular market sector•using the Internet to reach new markets•new technologies that allow you to improve product quality

Threats could include:•the emergence of a new competitor•more sophisticated, attractive or cheaper versions of your product or service•new legislation increasing your costs•a downturn in the economy, reducing overall demand

SWOT/2

http://www.infoentrepreneurs.org/en/guides/create-your-marketing-strategy/

Here’s the problem with target markets: They’re too big.

"Companies that try to be all things to all customers are sure to fail.”

• The Dangers of Being Unfocused•Become an Expert in one Area (Starbucks!)•Do the Market Research• Tweak your Marketing

http://www.inc.com/guides/201104/how-to-narrow-your-target-market.html

Narrowing your target market

http://www.educationbusinessblog.com/2007/07/target_market_selection_1.html?p=42

Matter of balancing

Product Vs MarketAccording to Steve Blank:

• new product new market• new product existing market• "existing" product segmenting an existing market, acting on cost• new product segmenting an existing market, creating a niche

They differ for consumers, needs, perfomances, competitors and risks.

http://blog.nicolamattina.it/2011/03/i-quattro-tipi-di-startup-sencondo-steve-blank/

Kinds•B2B•B2C

http://plantostart.com/how-to-define-target-market-product/

B2BYour business model is to make a product or service and charge other companies for using it. The advantage of this model is that companies have money and they are willing to spend it on a product/service, which improves their daily operations, helps them sell more or communicate better. Google, Cisco, MySQL and others are using this model.

http://thelaukaitis.wordpress.com/2013/04/18/starting-your-business-2-business-model-and-target-market/

B2CYour business model is to make a product or service and charge consumers for using it. Even though most people think this is a very profitable model, most often companies need to have at least hundreds of thousands of users in order to earn enough money to maintain and expand the business. This model is being used by Starbucks, McDonald’s, Amazon and others.

http://thelaukaitis.wordpress.com/2013/04/18/starting-your-business-2-business-model-and-target-market/

Next week

Funding.

(with Emma Tracanella)