Class Notes (837,435)
Canada (510,273)
Business (3,287)
BU121 (464)
Lecture

Business Planning - day 2 cont'd.docx

4 Pages
78 Views
Unlock Document

Department
Business
Course
BU121
Professor
Roopa Reddy
Semester
Winter

Description
Business Models – Week 2 GEL - G-Great Customers o Characteristics of that customer  Number of customers – you want a lot  Ease of finding  Spending pattern – you don’t want them to be cheap, understand spending patterns (young mothers are good targets) o The Value that the customer brings you  High dollar value of sale – you want a higher value  Repeat sales – you want to build and relationship and loyalty with your customers  Ongoing sales support – cuts into costs sometimes - E – Easy Slides o Value to the customer  How important is your product to your customers  Competitive advantage  Price/Value Relationship – when customers buy your product they should feel the price is low for what they are getting – relative to the benefit that they are perceived to get o Customer acquisitions costs – time resources you are using to make the potential customer your customer  Entry Points – have many entry points –being able to get your product in many different ways  Sales Support Required – little  Promotional Activities – little – it is very expensive but you want to try to keep it low - L – Long Life o Profit per sale  Margins – the difference between the price you sell your product and how much it cost you to make the product – profit basically  Up-Selling and Cross-Selling – e.g. fast food, retail stores, banks, movies  Up-Selling – when you try to get someone to buy the bigger more expensive product  Cross-selling – when they try to sell you another product to go with your other product e.g. you go buy a washer and they sell you a dryer to match  Ongoing Product Costs – you want low o Investment Required – how much money you need up front, how much to stay ahead of others, etc.  To enter business  To keep market share  To stay on the cutting edge There will be a few of these that will be flags of worry – but there are a few that you truly need to be successful Must have winners - Customer – ease of finding - Values to customer – Price – Value Relationship -> relative to what they get for how much they pay - Profit per sale – margins Must not be large concern - Customers – spending patterns - Customer value to company – ongoing sales support - Investment required – to keep market share - Winners vs. concerns **winners need to outnumber concerns by three to one in order to proceed What is a business model? – how a company intends to make money and how your business actually makes money - Business Model Generation – Book * related to throughout the course 9 Building Blocks: - Customer Segments (Who are you serving? & What are your customers looking for from your product?) o Mass markets o Nich
More Less

Related notes for BU121

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit