1. Channel Management

2. Tools to Explore Demand
Quizzing: cursory feature mapping for market- differentiation
Visualization: to explore architecture of component assembly
Mind mapping: clusters and prioritizes the features that influence potential customers
Consumption chain analysis: identification of the potential marketing channel activity and target customers
Detailed feature map for each activity to identify what should be managed

3. Tension
On the one-side are arguments about what the customer wants (demand-side)
Remember that the customer doesn’t care about us or our products
We have to make them care
On the other-side are arguments about what we can do (supply-side)
These are determined by our core capabilities

4. Costs and Revenues The demand feature map identifies
revenue generating opportunities through the differentiators and exciters, or
revenue destroying risks through the dissatisfiers and enragers
The supply feature map identifies
Costs that must be controlled
And matched to revenue generation opportunities

5. Feature or Attribute Map

6. Channel Activities
Each bubble on the consumption chain represents a channel activity that must be managed
Either the customer proceeds to the next activity
Or you have lost that customer
Feature or Attribute Maps identify the features that need to be closely managed

7. Toolsets Consumption Chain Analysis
Determine the main steps in consumption
You should only list the 3 or 4 most important steps
These will determine whether the potential customer proceeds to the next step (good)
Or leaves the consumption process (not good)

8. Toolsets Feature-Attribute Map the 3-4 Key Steps in the Consumption and Manage those 3-4 Steps
Identify Discriminators and Energizers
Describe how you will manage each of these features of the consumption process
Basic
Discriminator
Energizer
Positive
Nonnegotiable
Differentiator
Exciter
Negative
Tolerable
Dissatisfier
Enrager
Neutral
So What?
Parallel

9. E-Marketing Three Approaches
Keywords (Google’s Adwords)
Social (Facebook Ads)
Banner (Demand Side Platforms, e.g. Distlry)
Video (Hulu, Youtube)
You need to define many things about your product and services before building a campaign

10. Platforms

11. Platforms

12. Channels + Venture Capital Challenge
Determine the main steps in consumption chain – conversion cone
One of these should be your AdWords campaign
Venture Capital Challenge
What is your business worth, and why?
Costs of each of the consumption chain activities
How will these expenditures keep the customer from leaving the chain-cone
Conversion value, rate and risk

13. Your Capabilities Automatically differentiate your Innovations

14. The Purpose of a Business is to Create a Customer -- Peter Drucker
Even if you create marvelous inventions
Your customers won’t care
Unless that is exactly what they need
Business customers are especially impatient
With any product that doesn’t help them gain competitive advantage

15. The Business Plan & Final Project
And a supporting ‘Canvas’

16. What Investors Expect (The Business Plan)
Elevator Pitch (25 seconds-25 words)
How Much Money do you Need? (est. ROI) and When
Customer (demographics, characteristics, motivation)
Size of market and major competitors
Your product + substitutes, competitors and complements
Business model (Map Revenues vs. Costs over time) and benchmark businesses
Vision, Milestones, Benchmarks
Financial Projections: Timeline, ROI, Risk (be specific)
Ice Breaker / Hook
Narrative / Story
Numbers / ‘The Beef’

17. Activity 1: Select a Product or Service
Design a Product or Service Innovation that you are convinced can “Be Successful“ (however you define success) in the next 5 years
Clearly articulate the necessary Core Capabilities (Capabilities =Assets + Competences) required by this business
Describe its significant features-attributes
Briefly articulate its main customer channels (markets)

18. Activity 2: Define your Product Attributes and Value Proposition

19. Activity 2: Customer Centered Product Innovation
Detailed look at target customer usage and decision making regarding your product
Looks at the customers “stream of consciousness”
Who?
… is with customers while hey use the product
How much influence do they have
If we could arrange it, who would we want the customer to be with …
What?
… Do our customers experience when the use the product
… needs provoked our offering
What else? … might customers have on their minds
When? … do our customers use this ..
Where? … are our customers when they use this
How? … do customers learn to use the product ..
Looks for ideas to Change the Customer’s Experience (i.e., redifferentiate your product)
Experience is dynamic

20. Toolsets Organize Answers with a Mind Map

21. Summarize Product and Customer Value Proposition in the Attribute Map
The Attribute Map compares your product to those of others
Do not fill in all of the 3*3 cells
let this be a map where you locate the characteristics of your 3 to 4 key features or attributes of your product or service
Basic
Discriminator
Energizer
Positive
Nonnegotiable
Differentiator
Exciter
Negative
Tolerable
Dissatisfier
Enrager
Neutral
So What?
Parallel

22. Activity 3: CRM = Channels+Customer Segments + Customer Relationships
Determine the main steps in consumption
Each step on the consumption chain has an attribute map
You should only list the 3 or 4 most important steps
These will determine whether the potential customer proceeds to the next step (good)
Or leaves the consumption process (not good)

23. Activity 4: Complementary Assets Capabilities held by others that you need for your business What else is needed to complete your Commercialization?
Complementary products create value
Petroleum has little use without internal combustion engines
Or Cars without Roads (US Road costs are around $5-10 per gallon of gasoline)
Or Electricity without Electric Motors
Or iPods without MP3s
… you get the idea
What are your ‘Killer Apps’?
The complements that sell your product

24. Activity 5: Financial Forecast

25. Business Models Matter
Telling a good story
Part of selling your strategy / investment
Tying Narrative to Numbers
Strategy becomes less philosophy
More performance and outcome
When business models don’t work
It’s because the fail either
The ‘Narrative’ test
Or the ‘Story’ test
(1) must produces revenue by satisfying customer demand
i.e., that meets the ‘Framing’ challenge; and
(2) controls costs and generates a high return on investment,
where expected revenues significantly exceed expected costs,
and thus can be argued to meet the ‘Venture Capital’ challenge.

26. Forecast your Revenues From CRM and Value Proposition

27. Forecast your Costs From Capabilities and Market Entry

28. Estimate the profitability of your venture
Put together your Value Proposition, Revenue forecast and Cost forecasts to estimate a time-series of expected profits
Draw a value map describing your companies proposed business model, and
provide some indication of the costs and revenues that will flow into and out of the parts of the business.
Define your product’s top competitor in each of these attributes or features.

29. Activity 6: Vision, Milestones, Benchmarks
‘Vision’: Trajectory of your Markets and Capabilities
Each new business model
will demand shifts in your firm’s capabilities
to allow you to compete in new markets
with unfamiliar competitors
You will need to decide how ‘best’ to:
Choose your competitive terrain
To enter your chosen market(s)
And to marshal your assets, investments and competencies
Where you think your firm, product and market will be at some point in the future
Is how you summarize your view of the competitive trajectory you will take