BU121 Lecture Notes - Headphones, Washing Machine, Upselling
Document Summary
Stands for great customers, easy sales, and long life. Ease of finding (how easy is it to approach customers?) Needs to be prolific: value to you. Repeat sales (can you sell to customer repeatedly?) How important (how important is the product to customers?) Value/price relationship (is it valuable to the customers for the price they"re paying) Needs to be low (the price needs to be low for the value they"re receiving: customer acquisition cost. Get as many places as possible to provide accessibility for the customers. Needs to minimize sales support required since it costs the company. Can end up being 25-40% of revenue. High promotion costs result in more overhead, higher prices, and generally a risker business concept. Needs to have a lot of up and cross selling. To enter business (how expensive is it to start the business) Needs to be low to reduce the risk.
