Step 1 Market Segmentation + PMR MIT Global Startup Labs Peru 2018

Transcription

1 Peru 2018 Step 1 Market Segmentation + PMR MIT Global Startup Labs Peru 2018

2 Nucleation is done You have your initial idea You have your initial team Both idea & team could change throughout the summer!!! Set up Google Drive for all of your team documents Set up WhatsApp groups for communication Get to know each other more outside the class Make sure there are energy amplifiers who have a Common Vision, Shared Values, and Complementary Skills Now what?

3 Step 1: Market Evaluation

4 What is the singular necessary and sufficient condition to have a company?

5 What is the singular necessary and sufficient condition to have a company? A PAYING CUSTOMER!!!

6 Paying Customers Paying Customer = End User + Economic Buyer Sometimes End User + Economic Buyer are the same person Focus on the End User for now. Because you ll be solving their problem with your product. Target Customer: a group of potential customers that share many characteristics and would have similar reasons to buy a particular product Same Product Similar / same sales process the most expensive startup cost (don t want to re-tool) Word of mouth want customers to sell your product for you by sharing their experience

7 Complex Paying Customers: Primary & Secondary Primary (end users) and Secondary (economic buyers) Customers Primary customer charged at below cost (or free) Secondary customer, a third-party, pays for access to the customer or the customer s information Example: Google

8 Complex Paying Customers: Two-sided Markets Two-sided Markets You need multiple target customers for business to exist Supply and demand: you need sellers and buyers Example: ebay In this case, you will need to do PMR for both sides; you will likely find that one side of the market needs more attention than the other

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10 Market Segmentation

11 Stage 1: Brainstorm

12 Stage 1: Brainstorm Try to come up with 5-10 markets Get the right people in the conversation Be clear on the dual purpose Get in the right place with the right tools Get the right rules (IDEO Defer judgement, 1 Conversation, Stay focused on topic, Encourage wild ideas, Build on ideas of others) Facilitator Right Mood Specificity Get the ideas out!

13 Example If you are expressing your idea as I want to create an online social network for high school teachers and parents to communicate about their children s progress in school, you may lock yourself into a path that does not produce a sustainable business. Start instead with I want to improve education with technology. Who would be your end user? Teachers, administrators, parents, and students are all potential end users. Each category can be further subdivided. Are you focusing on end users in universities or in grade school? What different types of schools are these end users associated with? Which countries and regions do the end users work and live in? Next, identify the different tasks your end user performs. For a high school science teacher in a suburban area, these tasks may include teaching, grading, preparing lessons, training, discipline, dealing with parents, ordering chemicals, and more. An elementary school teacher in a major city may not need to order chemicals, but may need to buy classroom supplies, sometimes out of pocket. A useful question to ask is why the consumer would purchase a product in a particular industry segment. For the education segmentation above, why would a parent purchase a product that improves education?

14 Stage 2: First Pass Narrowing of Field Start with your 5-10 market list Narrow to 2-4 markets, by ranking them using the following categories Well funded? Readily accessible to our sales force? Compelling reason to buy? Whole product? Entrenched competition? Leverage to additional segments? Consistent with passions, goals & assets of team?

15 Stage 3: Primary Market Research Start now And never ends Underlies almost every single step of 24 steps

16 Example: SensAble Technologies Market Segment Name Entertainment Industrial Design End User Animator Task/Application Benefits Lead Customers Market Characteristics Partners/Players Sculpt Animation Paint Ease of use Reduce cycle Disney ILM Dreamworks Early adopters High-priced talent High growth Alias Soft Image Discrete Logic Stylist Designer Sculpt Paint Modeling Reduce cycle Increase accuracy Toyota Ford Rollerblade Dislike CAD & computers High-priced talent GE Siemens Picker Size of Market 40,000 X0,000 Competition Watcom None yet Platform Complementary Assets Required SGI Windows NURBS Stylus Dynamics SGI SUN NURBS Stylus

17 PMR I - What is it and what is it not? Direct interaction with potential customers; bottoms up Secondary research - do homework before talking to end users You are in INQUIRY mode not sales mode Qualitative and Quantitative Start with qualitative - open ended questions, interviews, exploration You want to encourage the flow of ideas Ethnographic research - learning through observation Outside of economic or rational reasoning People are bad at explaining their habits Customer discovery and customer development Watering holes are those places where your target customer congregates physically or digitally.

18 PMR II - Goal of PMR Understand the customer in all dimensions Not up to them to design the solution, that is your job Pure gold...

19 PMR III - Biggest Obstacles to Success Lack of a structured process - TODAY s goal! Not getting started Confirmation bias - asking questions to get the result you want Selection bias - how are you selecting who to interview? Social acceptability bias - people will say what they think you want to hear; they have a tendency to not say things that will reflect poorly on them

20 PMR IV - Structured Process 1. Write out the goals and objectives of the research, and a detailed description of the research technique 2. Define recruitment criteria for interviewees 3. Develop a recruitment questionnaire 4. Develop supporting content (e.g. discussion guide, landing page, online survey, etc.) 5. Recruit subjects 6. Run the research program 7. Digest results, next steps

21 PMR V - Results See the pattern Create another hypothesis to test Trust but verify Never ends

22 PMR VI - Techniques used Customer interviews Observational research Immersion User tests Focus groups - too expensive User-driven innovation Workarounds used by user with most pain Outcome-driven innovation analysis People have to meet certain results at work/home and they find innovative ways to get there

23 PMR VII - References and Resources Elaine Chen - A Primer on Primary Market Research Talking to Humans Book Takeaways Detective Not asking to design the product Not selling Looking for clues to confirm or deny assumptions 3 approaches Day in customer s shoes pain Observe a customer honesty Talk to the customer motivation

24 PMR FAQs

25 Time to work on brainstorming your market and preparing for PMR

26 PMR Activity Sit with your teams Work through these two worksheets: Market Segmentation Worksheet A Practical Guide to Primary Market Research Goal: 30 PMR interviews by end of week