1. Step 3: Build an End User Profile

2. Why target a specific demographic? Workshop
Outline
Overview
Target customer
Why target a specific demographic?
Workshop
November 23, 2018

3. Overview
Goal of this step: Use primary market research to flesh out detailed descriptions of typical end users within your beachhead market
November 23, 2018

4. Validate selection of beachhead market
Overview
Why this step? Why now?
Focus on customer
Validate selection of beachhead market
Deepen understanding of end user
Provide necessary info to calculate TAM (next step)
November 23, 2018

5. Overview
Goal of this step: Use primary market research to flesh out detailed descriptions of typical end users within your beachhead market
November 23, 2018

6. Have a beachhead market, need to learn about target customer
Overview
Have a beachhead market, need to learn about target customer
November 23, 2018

7. Why target a specific demographic? Workshop
Outline
Overview
Target customer
Why target a specific demographic?
Workshop
November 23, 2018

8. Target Customers Customer consists of: End User Decision-making Unit
November 23, 2018

9. Target Customers Customer consists of: End User - Decision-making Unit
Individual (real person) who will use your product
Usually member of household or organization that purchases product
Decision-making Unit
November 23, 2018

10. Decision-making Unit –
Target Customers
Customer consists of:
End User
Decision-making Unit –
Individual(s) who decide whether the customer will buy your product
November 23, 2018

11. Three general types of decision-making units: Champion
Target Customers
Three general types of decision-making units:
Champion
Primary Economic Buyer
Influencers
November 23, 2018

12. Three general types of decision-making units:
Target Customers
Three general types of decision-making units:
Champion – person who wants customer to purchase product
Often end user
Primary Economic Buyer
Influencers
November 23, 2018

13. Three general types of decision-making units: Champion
Target Customers
Three general types of decision-making units:
Champion
Primary Economic Buyer – person with authority to spend money and purchase your product
Sometimes end user
Influencers
November 23, 2018

14. Three general types of decision-making units: Champion
Target Customers
Three general types of decision-making units:
Champion
Primary Economic Buyer
Influencers – people who have sway or direct control over decision of Primary Economic Buyer
E.g., purchasing dept.
Someone with veto power
CFO …
November 23, 2018

15. First build profile of end user that is specific for TAM
Target Customers
First build profile of end user that is specific for TAM
TAM – Total Addressable Market (next step)
Focus on end user first
If end user doesn’t want to use your product…
Then you don’t need to bother with decision-making units
November 23, 2018

16. Building an end user profile isn’t easy
Target Customers
Building an end user profile isn’t easy
Takes time, thought, further research
Even in narrow beachhead market, not all end users are alike
Focus on specific demographic of end users
November 23, 2018

17. Why target a specific demographic? Workshop
Outline
Overview
Target customer
Why target a specific demographic?
Workshop
November 23, 2018

18. Why Target a Specific Demographic?
Even in narrow beachhead, will still find variety amongst targeted end users
Young, old
Urban, rural, suburban
Worldly, local
Different goals, fears, dreams, …
November 23, 2018

19. Why Target a Specific Demographic?
As startup- must exclude potential customers
Stay focused on relatively homogenous group of end users
Want to dominate a new market, quickly
Get initial cash flow..
November 23, 2018

20. Why Target a Specific Demographic?
Must constantly interact with target customers
Obtain information
Reconfirm information
Absolutely critical for success!
November 23, 2018

21. Why Target a Specific Demographic?
Goal: create description of narrowly defined subset of end users with similar characteristics and needs
Look for subset in same way as selecting beachhead market
Trying to sell a product to multiple end users is tough
Sales strategy for 25 year-old likely different than 50 year-old
May have different feature sets
TAKE HOME POINT: do NOT try to describe every end user
November 23, 2018

22. Why Target a Specific Demographic?
Characteristics to consider:
Newspapers? Websites? TV shows?
Gender
General reason why they are buying this product?
Age
Income
Savings?
Location
Image?
Motivations
Peer pressure?
Fears
What makes the special and identifiable?
Heroes
Vacations 
Meals
What is their story? 
November 23, 2018

23. Why Target a Specific Demographic?
Does your founding team have someone who fits the end user profile?
Huge advantage!
November 23, 2018

24. Why target a specific demographic? Workshop
Outline
Overview
Target customer
Why target a specific demographic?
Workshop
November 23, 2018

25. Develop an end user profile
Workshop
Develop an end user profile
Focus on end user, not decision making units
End user must be a person, not organization
“walk a few miles in their shoes”
November 23, 2018

26. Six common items in End User Profiles: Demographics Psychographics
Workshop
Six common items in End User Profiles:
Demographics
Psychographics
Proxy Product
Watering holes
Day in the life
Biggest fears and motivators
November 23, 2018

27. Six common items in End User Profiles:
Workshop
Six common items in End User Profiles:
Demographics - gender, age, location, education, …
Psychographics
Proxy Product
Watering holes
Day in the life
Biggest fears and motivators
November 23, 2018

28. Six common items in End User Profiles: Demographics
Workshop
Six common items in End User Profiles:
Demographics
Psychographics - attitudes, values, fears, (qualitative)
Proxy Product
Watering holes
Day in the life
Biggest fears and motivators
November 23, 2018

29. Six common items in End User Profiles: Demographics Psychographics
Workshop
Six common items in End User Profiles:
Demographics
Psychographics
Proxy Product- What other products do end users buy today?
Watering holes
Day in the life
Biggest fears and motivators
November 23, 2018

30. Six common items in End User Profiles: Demographics Psychographics
Workshop
Six common items in End User Profiles:
Demographics
Psychographics
Proxy Product
Watering holes – Reliable “place” for product information to spread by “word of mouth” by end users?
Day in the life
Biggest fears and motivators
November 23, 2018

31. Six common items in End User Profiles: Demographics Psychographics
Workshop
Six common items in End User Profiles:
Demographics
Psychographics
Proxy Product
Watering holes
Day in the life – Literally tell the story of an end user’s day
Biggest fears and motivators
November 23, 2018

32. Six common items in End User Profiles: Demographics Psychographics
Workshop
Six common items in End User Profiles:
Demographics
Psychographics
Proxy Product
Watering holes
Day in the life
Biggest fears and motivators – What keeps end users awake at night? What are their top priorities?
November 23, 2018

33. Worksheet 03A: End User Profile for Beachhead Market
Workshop
Worksheet 03A: End User Profile for Beachhead Market
NOTE: don’t waste time on a theoretical person
Use a real person instead..
November 23, 2018