WEEK 6 Branding- process of creating distinctive and

memorable identity. Encompasses the

Competitive Advantage- essential for long-term
emotional and psychological associations.
success in a competitive marketplace.
Marketing strategies- planned actions and
Unique Value Proposition differentiation
tactics to promote products and services to
strategies are approaching those businesses use
achieve its goals.
to distinguish themselves from competitors and
communicate their unique value to customers. It COMPETITION (Branding and Marketing
helps a company to standout. strategies)

COMPETITION (UVP) a. Strong Brand Identity- develop a

strong brand identity and positive
a. Differentiation- offer products or
reputation in the market.
services that are distinct. Can justify
b. Effective Marketing
higher prices and build customer loyalty.
Communication- UVP should
b. Innovation- Continuously invest in
express a clear, concise and
research and development to develop.
memorable manner.
Can create a first-mover advantage.
c. Customer Engagement and
c. Customer Service- Provide exceptional
Relationships- Utilize data and
customer service.
customer feedback to gain insights
Operational Excellence- a business philosophy into customer behavior and
and management approach focused on preferences.
continuously improving operations and
WEEK 7
processes. Often associated with principles such
as Lean, Six Sigma, Total Quality Management. Business Model- company’s plan for making a
Enhance the overall performance. profit.

COMPETITION (OE) Business Model Canvas- a visual representation

of a business model, highlighting all key strategic
a. Efficient Processes- workflows,
factors.
procedures and operations are
optimized to reduce and minimize waste • Proposed by Alexander Osterwalder.
and unnecessary steps. Maximizes • Provides the central, common source of
productivity while maintaining or knowledge through which each
improving quality. department can add their unique input
b. Quality and Reliability- consistent from their respective domains.
delivery of products or services to meet • Defines the business - specifically, how
or exceed customer expectations and each section interacts with the others.
adhere to high standards of quality and • can be used by organizations to plan,
reliability. assess or execute new models
c. Scalability and Flexibility- Ability to altogether.
adapt and grow in response to changing a. Customer Segment
demands, without sacrificing efficiency b. Value Propositions
or quality. c. Customer Relationship
d. Channels
 e. Key Activities will willingly pay, but which also
f. Key Resources maximize profits and business success.
g. Key Partners
Cost- is the amount you spend to get your
h. Revenue Streams
product or service to market.
i. Cost Structure
Margin- the price you have left over once the
Lean Model Canvas- defined as an adaptation of
costs have been taken out.
the traditional business model canvas that is
optimized to consolidate a plan focused on Markup- what you add on to the cost of
maximizing user value. Lean startup producing or providing your products and
methodology, a technique that is crucial in services to arrive at the price your customer
understanding the possibilities of the Lean pays.
Canvas. It's tailored specifically for startups and
focuses on the most critical aspects of a business Pricing Strategy- way the price is set
model. a. Penetration Pricing- A new
Lean Methodology- is the idea that drives the business enters the market with
unique value of the lean canvas. goods priced well below what its
competitors are charging.
Customer Segment- target customer and users. Customer interest is drawn by
the low price and good value on
Early Adopters- characteristics of ideal
offer. Once the brand is
customers.
established and has acquired a
Problem- customers top 3 problems. strong customer base, it begins
to bring its prices in line with
Existing Alternatives- how these problems are
what’s typical for the industry.
solved today.
b. Premium Pricing- If an item
UVP and High-Level Concept costs more, a customer will
perceive it as having more value.
Solution- possible solution for each problem. c. Price Skimming- This approach
Channels- path customers. has the obvious advantage of
bringing in more revenue early
Revenue Streams- sources of revenue. in the product’s lifecycle, and
Cost Structure- fixed and variable costs. maximizing profit by taking
advantage of every level of price
Key Metrics- key numbers telling how business tolerance within the customer
is doing. base.
d. Bundle Pricing- useful
Unfair Advantage- something that can’t be
psychological nudge technique
easily copied or brought.
to motivate customers,
Monetization Strategies especially if you let them know
that the collective value of the
a. Pricing Model- A pricing strategy is a
items in the bundle is greater
method for deciding the price to charge.
than the bundle price.
The right price is the one that customers
e. Loss-Leading- uses very low
prices to grab customer
 attention. This might be in the
form of a special offer, or single
product line which is sold at a
heavily reduced margin.
Pricing Model- kind of price format.
1. Freemium- Your basic product or service
is free, or ad-supported. Users can opt to
pay more for premium features or a
better / ad-free experience.
2. Flat-rate subscriptions- Users pay a set
cost on a regular basis.
3. Tiered Subscriptions- the user pays a
regular fee, but they can choose how
much to pay depending on their
expected usage levels or desired
features.
4. Pay as you feel/ pay what you want-
The customer can pay as much or as little
as they want to. This approach is often
used for charity sales or fundraising.
5. Bulk Pricing- Price goes down as the
volume of goods or services goes up.
6. Market Pricing- Price fluctuates
according to the market, rising and
falling in line with supply and demand.
7. Sliding scale Pricing- Price varies
according to the means of the customer.
There is a recommended or standard
price published, and prices outside that
are negotiated on a case-by-case basis
between business and customer.
b. Cost Structure- is the aggregate of the
various types of costs, fixed and variable,
that make up a business’ overall
expenses.
a. Cost driven- businesses
specialize in low-cost products
and services.
b. Value-driven- businesses try to
give their customers the best
value for their money, but they
may not have the cheapest
goods or services.
1. Fixed Costs- costs are business
expenditures that don't change,
regardless of how many
products or services the
company sells.
2. Variable Costs- change
depending on how many
products or services a business
sell.
3. Economies of scale- describe
how much a company lowers its
costs proportionately when it
increases its production or
output.
4. Cost allocation- a way of
tracking business expenses that
lets it assign expenses to a
specific product or service to
determine whether it's
profitable.
5. Cost pool- to group fixed
expenses, which lets
accountants divide them on a
per-project or product basis. A
cost pool is a key aspect of cost
allocation.
6. Economies of scope- how a
business can benefit when it's
able to manufacture multiple
products at the same time for a
lower cost than manufacturing
them separately.
c. Scalability and Growth
WEEK 8
Venture capital funding- a suitable option for
businesses that are beyond the startup period,
as well as those who need a larger amount of
venture capital for expansion and increasing
market share.
Angel investors- generally wealthy individuals
like friends and family members. They are
business owners, executives and/or other
successful individuals that have the means and
ability to fund deals that are presented to them.

Crowdfunding- is the use of small amounts of

capital from a large number of individuals to
finance a new business venture. For
crowdfunding that operates on a donation basis,
the company does not need to pay back
investors.

Financial forecast- is an estimation, or

projection, of likely future income or revenue
and expenses, while a financial plan lays out the
necessary steps to generate future income and
cover future expenses.

Financial plan- can be looked at as what an

individual or company plans to do with income
or revenue received.

Financial projections- use existing or estimated

financial data to forecast your business’s future
income and expenses.

Pre-money startup- valuations are the

estimated value of a company before the new
investment is taken into account.

Post-money- is comprised of the pre-money

valuation with the new investment amount
added.

Capital structure- is the particular combination

of debt and equity used by a company to finance
its overall operations and growth.

Debt- is one of the two main ways a company

can raise money in the capital markets.

Equity- allows outside investors to take partial

ownership of the company. Equity is more
expensive than debt, especially when interest
rates are low. However, unlike debt, equity does
not need to be paid back. Equity represents a
claim by the owner on the future earnings of the
company.