Marketing Management: Chapter 1

- understands the customers problems and needs
- has customers, products/services, sales channels
- can execute its business model by (1) writing the operating plan and financial forecast (business plan) and (2) putting it into practice
- objective is to (mostly) execute its business model and create value: value to the customers (V2C) and then value to the firm (V2F)

=> Has to execute the business model and strategy (but also has to search for the perfect one)

- is not simply a smaller version of a large company
- does not yet understand the customers problems and needs
- has no customers, products/services, sales channels
- cannot execute its business model by (1) writing the operating planend financial forecast (business plan) and (2) putting it into practice
- a startup is a temporary organization (very early stage of development - mostly rather young) whose objective is to search for a repeatable and scalable knowledge - and/or technology - based business model
- searching for a repeatable and scalable business model => established company

=> is searching for a business model and strategy

a startup is searching for a business model

an established company spends most of their core time executing their business model (but they do have to do both: executing and searching)

A business model is how a company creates values for its customers by delivering products or services to fulfill their needs (V2C) and thereby extracts value itself (V2F)

- innovating, producing, distribution, branding, relationship, management
- value to the customers

- extracting profits, cash flows etc. in the marketspace
- value to the firm

- it works today, next week, next month and years to come (V2C)
- serving customers needs with firms product or service for a long time
- developing a long lasting, fruitful relationship for both sides
- processes to fuel that lasting, fruitful relationship

- it works in your hometown, region, country and the world (V2F)
- processes and systems that will adapt quickly to greater volume and evolving market demand (preparing for growth)
- ways to benefit from economies of scale
- ways to quickly ramp up production/service without similar increase in resources

- solution (product/service)
- where is the problem/market?

- new segment/market and needs (e.g. seniors, veggies)
- what can I do in order to fulfil that need?

- what to do in order to fulfil needs better, introduce new products to existing customers and/or reach to a new market/segment?
- in todays era of uncertainty problems require a different approach

Product
Place (Distribution)
Price
Promotion (Communication)

deliver the right experience...
... to the right customer...
... with the right efficiency...
... at the right time ...
... trough the right channel.

Technology => Moore's law and new scientific discoveries => typically applies to hardware, clean tech and biotech

Market => Deregulation and value chain disruption => changes how people work, live, interact and what they expect