3. Objectives
1. To understand how the business model canvas can help
us to think about intelligently marketing a business
2. To look at how different business models require different
kinds of marketing
3. To apply these techniques to our own businesses or
clients that we work with
4. Business Model Definition
A business model describes how an
organization creates, delivers and
captures value
7. The act of transporting your product to
your market of customers
In the days of Rockefeller oil companies debated
endlessly if they were marketing companies or
production companies
13. Customer Segment Types
Mass Market
Business models focused on one large group with of
customers with broadly similar needs and problems.
The Value Propositions, Distribution Channels and Customer
Relationships all focus on one large group of customers with
broadly similar needs and problems.
Example: Consumer Electronics
14. Customer Segment Types
Niche Market
Business models focused on specific, specialized Customer
Segments.
The Value Propositions, Distribution Channels and Customer
Relationships are all tailored to the specific requirements of a
niche market.
Example: Supplier-Buyer relationships such as car part
manufacturers.
15. Customer Segment Types
Segmented
Business models focused on market segments with slightly
different needs and problems.
The Value Propositions, Distribution Channels and Customer
Relationships are all slightly tailored to the specific
requirements of a niche market.
Example: The retail arm of Credit Suisse distinguishes
between customers with under $100k affluent clients with
over $500k.
16. Customer Segment Types
Diversified
Business models focused on Customer Segments with
completely unrelated needs and problems.
The Value Propositions are completely different for each
Customer Segment.
Example: Amazon's retail business and its cloud computing
services.
17. Customer Segment Types
Multi-sided Markets
Business models that serve two or more interdependent
Customer Segments.
Example: Credit Card companies need a large base of
credit card holders and a large base of merchants who
accept them.
Example: A free newspaper needs a large reader base to
attract advertisers and advertisers to finance production and
distribution.
19. Value Propositions
The reason why customers turn to
one company over another.
Value propositions solve a customer
problem or satisfy a customer need.
23. Channel Considerations
● Through which channels do our Customer Segments
want to be reached?
● How are we reaching them now?
● How are our Channels integrated?
● Which ones work best?
● Which ones are most cost-efficient?
28. Customer Relationship Types
Personal Assistance
This relationship is based on human interaction. The
customer can communicate with a real customer
representative to get help during the sales process or after
the purchase.
This can happen on-site, through call centers, by e-mail or
other means.
Examples: Clothing stores, cell phone companies
29. Customer Relationship Types
Dedicated Personal Assistance
This relationship involves a dedicated customer service
representative for each individual client. This is the deepest
and most intimate type of relationship and normally develops
over a long period of time.
Examples: personal bankers, account managers
30. Customer Relationship Types
Self-Service
In this relationship the company maintains no direct
relationship with customers by providing all the necessary
means for customers to help themselves.
Examples: A toy company, many retail products.
31. Customer Relationship Types
Automated Services
This type of relationship uses personalized services based
on data about the customer to deliver customized services.
Examples: Google's search service, Amazon.com.
32. Customer Relationship Types
Communities
This type of relationship facilitates user communities that
allow members to exchange information and solve each
other's problems.
Examples: Many of Google's services, etc.
36. Revenue Streams
1. Transaction revenues resulting from one-time customer
payments
2. Recurring revenues resulting from ongoing payments to
either deliver a Value Proposition to customers or to provide
post-purchase customer support
37. Revenue Stream Types
Asset Sale
Selling ownership rights to a physical product.
Examples: Honda sells cars which buyers are free to drive,
resell or even destroy (Cameron's car).
38. Revenue Stream Types
Usage Fee
Generated by the use of a particular service; the more the
service is used, the more the customer pays.
Examples: Ritz-Carlton (per night of stay), UPS (per
package), Phone Service (per minute of long distance)
39. Revenue Stream Types
Subscription Fee
Generated by selling continuous access to a service.
Examples: Gym (monthly or yearly subscription), Online
Gaming Services, etc.
41. Revenue Stream Types
Licensing
Generated by giving customers permission to use protected
intellectual property in exchanged for licensing fees.
Examples: Media, Technology Patents
42. Revenue Stream Types
Brokerage Fees
Generated by intermediation services performed on behalf of
two or more parties.
Examples: VISA, Insurance / real estate brokers, etc.
43. Revenue Stream Types
Advertising
Generated by advertising a particular product, service or
brand. Traditionally the media industry and event organizers
relied heavily on this.
Examples: Huffington Post, Google, Sports Teams, etc.
49. Application
1. CURRENT STATE - Partner up and complete the
business model canvas for a client or your own business
2. MARKETING & MODEL INNOVATION - Based on the
results, identify three possible ways that the marketing and
business model could be changed.
