Entrepreneurial Opportunity Search and Identification-Market Intelligence-Market analysis-Market research-Customer validation-Developing your business model-Crafting your value proposition-Product Development , Managing the product development process, -Long Tail markets-Product launch goals-Go-to- Market Strategy-The role of selling in a startup-Sales forecasting for startups-Mapping buyer response modes. Social media Promotion tools.

1. -Entrepreneurial Opportunity Search and Identification
-Market Intelligence
-Market analysis
-Market research
-Customer validation
-Developing your business model
-Crafting your value proposition
-Product Development , Managing the product development process,
-Long Tail markets
-Product launch goals
-Go-to- Market Strategy
-The role of selling in a startup
-Sales forecasting for startups
-Mapping buyer response modes. Social media Promotion tools.
UNIT 2:Customer Discovery

2. Opportunity: The entrepreneurial process is opportunity driven.
An opportunity sets the business context for something to be done
that has value.
Opportunity identification can be facilitated by individuals and teams
that work in environments that encourage communication and
creativity.
Catalysts for opportunities can also be new business teams, venture
groups, etc.
The parameters of an opportunity can be defined in terms of market
demand, market size and structure, and margin potential/financial
contribution.
If numbers can’t be developed to help describe an opportunity, then it
is probably nothing more than an idea.

3. How do entrepreneurs identify opportunities
for new business ventures?
• One possibility, suggested by research on human cognition, is that they
do so by using cognitive frameworks they have acquired through
experience to perceive connections between seemingly unrelated events
or trends in the external world.
• In other words, they use cognitive frameworks they possess to “connect
the dots” between changes in technology, demographics, markets,
government policies, and other factors. The patterns they then perceive
in these events or trends suggest ideas for new products or services—
ideas that can potentially serve as the basis for new ventures.

4. • This pattern recognition perspective on opportunity identification is useful
in several respects.
• First, it helps integrate into one basic framework three factors that have
been found to play an important role in opportunity recognition: engaging
in an active search for opportunities; alertness to them; and prior
knowledge of an industry or market.
• In addition, it also helps explain interrelations between these factors (e.g.,
the fact that active search may not be required when alertness is very high).
• Second, a pattern recognition perspective helps explain why some persons,
but not others, identify specific opportunities. Third, a pattern recognition
framework suggests specific ways in which current or would-be
entrepreneurs can be trained to be better at recognizing opportunities.

5. Market Intelligence and Market Research:
• Briefly, MI is a way of working with data and information on a very
high level. Basis of MI is a standardized system of data collection from
many different sources and its complex analysis.

7. Market Analysis:
•Is your market growing or shrinking?
•Is there room for one more company?
•Will you be bringing something different to
the market?

12. • Market research: the “systematic gathering, recording, and analysing
of data with respect to a particular market, where ‘market’ refers to a
specific group in a specific geographic area.”
• Primary research is information that comes directly from the source--
that is, potential customers. You can compile this information yourself
or hire someone else to gather it for you via surveys, focus groups and
other methods. Secondary research involves gathering statistics,
reports, studies and other data from organizations such as
government agencies, trade associations and your local chamber of
commerce.
• Secondary Research
The vast majority of research you can find will be secondary research.
While large companies spend huge amounts of money on market
research, the good news is that plenty of information is available for
free to entrepreneurs on a tight budget. The best places to start? Your
local library and the internet.

13. • If you choose a direct-mail questionnaire, the following guidelines will increase
your response rate:
• Questions that are short and to the point
• A questionnaire that is addressed to specific individuals and is of interest to
the respondent
• A questionnaire of no more than two pages
• A professionally-prepared cover letter that adequately explains why you're
doing this questionnaire
• A postage-paid, self-addressed envelope to return the questionnaire in.
Postage-paid envelopes are available from the post office
• An incentive, such as "10 percent off your next purchase," to complete the
questionnaire
For Eg: https://www.surveymonkey.com/r/9PX7GG5 [Tea Consumption Survey]

14. Customer Validation:

16. • Customer validation is the phase of the Customer Development
model where you obtain hard evidence regarding the possible success
of your business model.
• You cannot just assume that customers will buy your product – even if
they tell you they might!
• Dealing in hypothetical scenarios does not help you affirm whether
you have a solid business plan.
• This is why you must validate all of the information that you think you
know.

17. Developing Business Model:
Lets come back to the Lemonade Selling Business Example

28. Eg: Amazon, Netflix
Eg : Facebook, Paypal, Alibaba
Eg: Skype
Eg: Wordpress, Lego

30. Product Launch Goals:
• Clearly and effectively establish new product name, brand, and position
• Build awareness and credibility for the new product and the company
• Create immediate opportunities for sales, VAR[Value added reseller], and
distributor channels
• Extend awareness and strengthen the product/company brand through partner
co-marketing
• Execute a benefits-oriented launch that addresses the learn, try, and buy
purchase phases
• Cross-sell new product to existing customer base
• A best practice is to set goals that are “S.M.A.R.T.” (specific, measurable,
attainable, realistic and timely). Using the S.M.A.R.T. guidelines (especially the
"measurable" element) helps ensure that in the end, you'll be able to judge
whether or not you accomplished your goal, rather than just make guesses.

31. Go to Market Strategy:
• A go-to-market strategy (GTM) is the plan for targeting the right pain
point with the right sales and marketing process, so you can grow
your business at the optimum pace. You can create a GTM strategy
for a new business but also for a new feature, brand or location.
• For large companies with existing products, GTM strategies might
revolve around correct communication and branding for new
markets.
• For those of us who are building new businesses, an incorrect GTM
strategy can cost years in going the wrong direction with
development and marketing.

32. If you’re marketing-
intensive, the
product is bought.
If it’s sales-
intensive, the
product is sold.

33. Process:
• Step 1: Define Your Target Markets. No product is appropriate for
every market. ...
• Step 2: Define Your Target Customer. ...
• Step 3: Define Your Brand Positioning. ...
• Step 4: Define Your Offering. ...
• Step 5: Define Your Channels. ...
• Step 6: Build Your Budget Model. ...
• Step 7: Define Your Marketing Strategy.

34. The inside sales
business model is
when a prospect
needs to be nurtured
by a sales rep to
convert into a deal.
This type of model
works best with a
product of medium
complexity and price.
Self-Service business
model: We typically see this
model with B2C purchases in which
a customer can find and buy a
product via a website, like Netflix or
Amazon.
The field sales
business model is
when you have a full sales
organization that closes
large enterprise deals.
These are typically
complex products with
high price points, which
also means there’s
typically a low volume of
deals with a long sales
cycle.
In the channel
model, an outside
agency or partner sells
your product for you. This
is hard to build, as the
people can be difficult to
recruit and educate on the
benefits of your product.
They are also often less
motivated to sell than your
own sales team would be.

39. • As an example of the importance of sales and marketing, he
cites Salesforce.com: "When they launched, there were
already two 'cloud-based' CRM solutions available. Salesforce
won because [CEO] Benioff marketed the benefits of moving
your sales data online, while his competitors
were marketing features and functions." Benioff also did an
"excellent job" of building a sales team that could articulate
that benefit to potential customers.
• Salespeople selling new products spend 32% more face-to-
face time with customers.

40. • A sales forecast is a projection of what your sales revenue
will be for a specific period in the future—for example, the
next month, quarter or year. A sales forecast is essential not
only to understand and manage sales activities, but also to
facilitate the growth and development of the entire
company.
• Sales forecasts are based on capturing and
analyzing metadata about your company’s sales activities.
(Metadata is data about your data—in this case, it is the
collected body of statistics about your sales activities,
including cold calling, deals closed, expenses, and so forth.)

41. 1. Sales forecasts help you to understand and manage your
cash flow
2. Sales forecasting assists in planning your procurements,
production and logistics capacity
3. Sales forecasts help you to develop your medium-term
revenue projection (needed if you seek external financing)
For example, if you’re starting a restaurant, you don’t want to
create forecasts for each item on the menu. Instead, you
should focus on broader categories like lunch, dinner, and
drinks. If you’re starting a clothing shop, forecast the key
categories of clothing that you sell, like outerwear, casual
wear, and so on.

42. Here’s an example:
• 10,000 people see my company’s ad online
• 1,000 people click from the ad to my website
• 100 people end up making a purchase

44. Mapping buyer response mode[In B2B sales, the term
“response modes” describes how potential customers react to
your proposition and helps explain buyer behaviour.]
Buyer response modes, there are four potential buyer response modes to
change:
• Growth[Buyers in Growth mode perceive that by buying your product or
service, they are meant to generate growth for the company]
• Trouble[In Trouble mode, buyers perceive that the business is failing (that
is, it is losing customers, losing money, decreasing productivity) and
understand that something must change]
• Even Keel[They believe that progress is steady and there is no urgency to
change anything. As a result, these buyers are not open to vendor
offerings. They do not see the value such offerings would represent or why
they should go through the trouble that change represents.]
• Overconfident[Buyers in Overconfident mode have a somewhat delusional
outlook and perceive that they are succeeding]

45. Social media Promotion tools
Different lead sources produce buyers at different
stages of the customer buying cycle:
•People that are later in the buying cycle are most likely
to be using tools like Google, and review sites to
search for vendors and products to solve a problem.
Those leads are highly valued because there is a high
level of buyer intent. They are usually in the
Consideration or Purchase stages of the buying cycle.
•Many other lead sources (e.g. social referrals, Twitter,
Facebook ads, banner ads, pr stories, educational
presentations at conferences, etc.) produce buyers that
are earlier in their cycle, and frequently just becoming
aware that there is a potentially interesting product now
available.
Market maturity also plays an important role in the
stage that your leads. For early stage markets where
there is still a lot of education required, most leads will
be very early in their buying cycles.

46. • Google Analytics. This is probably one of the top free Google tools available. The
genius of Google lies in its ability to keep a lot of its products free to use. From a
marketing perspective, three Google tools are a must have: Google Analytics (aka GA),
Google Tag Manager (aka GTM) and Google AdWords Keyword Planner.
• Google Analytics and Google Tag Manager are two important tools to track visitor data
on your website. Together, both of them work in tandem to give better visitor data to
analyze. All startup teams need data, a lot of data to enhance their products and
services.
• MailChimp. Email marketing is crucial for many businesses if they want to succeed.
An estimated 205 billion emails a day were sent in 2015. That equals 2.4 million
emails in a second and 74 trillion emails in a year. The math is mind-boggling and
points to a growing use of email as a communication tool for brands. Out of this
humongous mass of emails, almost 50% is spam.
• Out of the 205 billion emails sent daily, Mailchimp boasts of sending at least
a billion of those. That would equate to around 0.5% of all emails sent worldwide in a
day that Mailchimp sends on behalf of its customers. An interesting figure to
understand the rising popularity of email marketing services and why marketers need
to sign up for one.
• HubSpot: HubSpot Marketing is essentially a lead capture and management tool. It
has great features to create campaign landing pages, track leads, manage
communication with leads in one place, and increase traffic and conversions.

47. • Marketo: Another marketing automation service that works
in a similar fashion as Hubspot is Marketo. It allows brands to
build marketing strategies from the ground up and integrate
across channels, be that on the website, social media
platforms or email campaigns.
• Optimizely is one of the best tools for optimizing your
campaigns. They are pioneers in providing tools to
successfully conduct A/B testing, a technique that is a hot
thing in the startup world. A/B testing is a simple way of
testing two versions of a webpage or an app to see which
one fares better.

48. • Buffer is one tool that will help to streamline your brand’s social
media strategy. It is essentially a publishing platform used
for scheduling and publishing content on social media. If it weren’t
for tools like Buffer, posting numerous times on 5-6 different
platforms in a day would be a nightmare. As we optimize social media
post frequencies, tools like Buffer help in maintaining a relevant social
media presence.
• The most important factor for posting on social media is creativity.
User engagement increases only if your posts are designed beautifully
and have something interesting to say. And for creating beautiful
designs we need products like Canva. It’s a cloud-based service that
enables non-design people to start designing. Their tagline sums it up
quite nicely:
• “Empowering the world to design”
• Design unplugged with Canva

49. …End of Unit 2