ETEM:

THE
ENTREPRENEURIAL
MIND
PREPARED BY:
JAY ANN L. BONTOGON, LPT
INSTRUCTOR
UNIT 3:
Customers and Market
UNIT 3: Customers and Market

The learners shall be able to:

1. Examine the market and its customers;

2. Compare the different types of customers;
3. Distinguish the perfect customer;
4. Create a customer persona;
5. Design a customer journey map for the identified persona;
6. Assess market size using various approaches;
7. Adapt entrepreneurship marketing; and,
8. Develop one's personal brand.
UNIT 3: Customers and Market

Market and Customers

• “Market” is any place where manufacturers,
distributors and retailers sell and consumers buy.
• It may also speak of the whole group of buyers for a
product and 'or service.
• Inside the markets are competitive companies that
offer similar products and,' or services. The prices of
products and/or services are dictated by the market
due mainly from demands and competition.

Physical shops, high streets, or

websites are examples of a
market.
 UNIT 3: Customers and Market
Things customers look for when buying an offering whether a product or service or both:

1. PRICE
- Majority of the customers look at price when buying a product or availing
of a service. It is a reality that every customer purchase within budget limit.
Not unless a product and/or service is exceptional customers may be
compelled to spend outside his limitation.

2. EXPERIENCE
- These days, almost everyone is busy doing their activities. Most
customers wanted to buy things that are readily available. The market today
contains so many alternatives to choose from. Hence, it is essential to
provide a worthwhile experience in addition to good product and/or service
quality. This kind of shopping experience may create loyal customers.
 UNIT 3: Customers and Market
Things customers look for when buying an offering whether a product or service or both:

3. DESIGN
- The design of the product must always be appealing to
customers.

4. FUNCTIONALITY
- It is always expected by the customer that the product he is
buying can serve its purpose. Simply all the functionalities
that are expected oi the product should be present.
 UNIT 3: Customers and Market
Things customers look for when buying an offering whether a product or service or both:

4. CONVENIENCE - The product and/or service must

be always readily available for the customer, otherwise,
he will not buy the product and possibly look for an
alternative.

5. RELIABILITY - The product should be dependable

and it should meet the customer’s requirements and
expectations every time he buys it.
 UNIT 3: Customers and Market
Things customers look for when buying an offering whether a product or service or both:

6. COMPATIBILITY - The
product should be well-matched
with the other products that the
customer is already consuming.
UNIT 3: Customers and Market
Types of Customers

1. The Potential Pandoy (Potential customer)

• Pandoy cannot be considered a customer yet. However, he

needs a little bit of convincing and assistance to hopefully
change into quickly making him a paying customer. He may
show interest in the product and/or service offering by filling
out a contact form, signing up in a newsletter or asking a
question through live chat or personal message (PM). Said
interest should be capitalized by an entrepreneur by
providing him the information about the benefits of the
offering. The entrepreneur must make Pandoy aware that he
is available for help or advice any time for him. Surely
Pandoy shall appreciate such gesture even if he does not
have any immediate need for said assistance.
UNIT 3: Customers and Market
Types of Customers

2. New Netnot (New Customer)

• New Netnot is the fresh customer who has just bought
something for the first time from a business. An entrepreneur
must always be watchful in dealing with first time customer,
as the saying goes "first impression is the last impression".
It is understood that he bought that product and/or service for
the first time and a beginner at using it. It is vital to create a
smooth adoption period for Netnot. An investment of time to
explain how a product and/or service offering works may lead
to success in more future business from the same customer.
Hence, it is best to offer applicable assistance and make
contact option open with this customer. Establishing a
customer relationship would help in converting Netnot into a
loyal customer.
UNIT 3: Customers and Market
Types of Customers
3. Impulsive Icoy (Impulsive Customer)
• Impulsive Icoy is a customer that make instant buying decision
based on craving or whim provided that the conditions are right.
He is highly influenced by his current mood when shopping. He
needs not much convincing to buy for as long as he wants to buy
something with less steps. He is even less interested in value
proposition, so an entrepreneur must not waste said buying
impulse when it comes. When Icoy makes a query, an entrepreneur
should give a quick and short response or else his impulse will
drop. It is a challenge to handle Icoy because he always wants fast
and brief help for all the useful products available at that point of
time. He wants all the useful products in his front in order to buy
what he likes from the display. Although, when treated properly,
Icoy could provide high percentage of sales for the company.
UNIT 3: Customers and Market
Types of Customers
5. Loyal Lando (Loyal Customer)
• Loyal Lando is a satisfied customer that keeps coming back to one's
store for more purchase. Lando is a good brand's ambassador that can
make recommendation of a business to his family and friends, thus all
attracting a stream of new customers. A customer like him can help an
entrepreneur grow his business using word of mouth. The role of an
entrepreneur is to make certain that Lando stays happy about the
product and/or the service as well as the business. An entrepreneur may
ask Lando what makes him so pleased with the business and then
replicate his experience with the rest of the customers. Normally the
segment of Lando is just 20% of the total customers, but it is
responsible for the most part of the company's profit. There should be
regular communication with Lando who wants individual attention on
a polite and respectful way from the business.
UNIT 3: Customers and Market

Target Customer Group

There are some approaches in exactly describing the perfect customer, namely:

1. Consumer or business - A product and/or service may be intended for a

business-to-business (B2B) or business-to-consumer (B2C) market.

2. Demographic - The target market here is describing by means of age, gender,

income level, educational background, marital status and other areas of an
individual customer's life.

3. Psychographic - Psychographic characteristics are based from the intrinsic

traits of a customer such as personality, lifestyle, social status, AIO (activities
interests, opinions) and attitudes.

4. Geographic - This is defining the target market according to the place where
possible customers live or work, take vacation or do business. For instance, in a
local brick-and-mortar store, potential customers may come from two-meter
radius or inside the barangay.
UNIT 3: Customers and Market

Target Customer Group

There are some approaches in exactly describing the perfect customer, namely:

5. Generation - A lot of businesses these days define their target market based
on which generation they were born in, namely Baby Boomers, Gen X,
Millennials and even Centennials.

6. Cohort - Some companies look for their target market using cohorts. A cohort
is a group of subjects who share a significant characteristic or typically
subjects who experienced a common event in a selected time period, such as
birth or graduation.

7. Life stage - Other businesses use the stage of life for target marketing whether
its infancy, childhood, adolescent, adulthood or old age.

8. Behavioral - Another way of finding the target market is based on customer

loyalty, occasion-based, consumer usage and others.
UNIT 3: Customers and Market

Customer Personas

• User persona - is a short fictional profile of an ideal

user or customer.
• Entrepreneur must need to conduct market research
to produce a brief combination of actual or
acceptable customer details.
• This user persona includes a fictional name and
photo, important demographics, user needs and
desires, goals, motivations, activities, pain points,
and quotes. Except for the name and photo, all
details are from real user data or customers that have
been served and market research or customers that
the entrepreneur would like to reach.
UNIT 3: Customers and Market

Customer Personas
Table: User Persona Example - Gilda
 UNIT 3: Customers and Market

Customer Personas
Table: User Persona Example - Gilda

Step 1: Create a Header

The header consists of a fictitious name, a

picture and a quote which sums up what is
the most important to the persona that is
related to the product and/or service
offering. These simple features are intended
for memorability, so that the designer
entrepreneur is focused on these users as he
forms his offering for them.
UNIT 3: Customers and Market

Customer Personas
Step 2: Include a Demographic Profile Table: User Persona Example - Gilda
Demographic profiles of the users are based
from facts and user research. These profiles
include personal background, professional
background, user environment, and
psychographics.

PERSONAL
BACKGROUND

PROFESSIONAL
BACKGROUND

PSYCHOGRAPHICS

USER
ENVIRONMENT
UNIT 3: Customers and Market

Customer Personas
Table: User Persona Example - Gilda

Step 3: Include End Goals

It provides the details on the

want/s and need/s of users that
can be satisfied by using the
product and/or service offering
of a company. The end goals
define the things the persona
wants or needs that have to be
fulfilled.
 UNIT 3: Customers and Market

Customer Personas
Table: User Persona Example - Gilda
Step 4: Include a Scenario
An everyday life scenario is a story that
describes the interaction of the user to a
product and/or service in a particular
situation to reach his end goal/s. The
scenario details the when, where, and how
of the story that happens. The scenario is
normally written from the data gathered
from the angle of the persona and may
describe important details about the future.
The rule of thumb here is to omit that
information which will not affect or
influence the final design.
UNIT 3: Customers and Market

Customer Journey Map

• Customer journey map - is a representation of a typical

customer's experience over time instead of a snapshot.
It is different from the discussed customer persona. The
emphasis of a persona is on the person, while a
customer journey map highlights their experience. A
customer journey map is basically a story intended to
give awareness of the customer's complex buying trip.
UNIT 3: Customers and Market

Customer Journey Map

Here is an example of the customer journey map is about an online grocery store.
UNIT 3: Customers and Market

Key Components of Journey Map

1. Actor - The actor is the viewpoint of the journey who actually the persona
or user. Coming from the data gathered, the actors must be in relation with
personas and their respective actions. Hence, there must be one map for
each persona in order to create a solid and rich story that captures their
particular journey.

2. Scenario + Expectations - is simply the situation which the journey map

talks about in relation to the actor's goals, needs and expectations. When the
product is still in the development stage, scenarios could be those that are
projected. However, for existing products and services, scenarios should be
what are real. Journey maps are useful when scenarios are created as a series of
events like the online grocery shopping, designing a process or those that
comprise a set of switches over time or those that considers using several
channels.
UNIT 3: Customers and Market

Key Components of Journey Map

3. Journey Phases - Journey phases are the various high-level stages in the
journey of an actor. These phases are responsible for the information about
actions, thoughts, and emotions in the map. Obviously, for each scenario there
would be different phases. Each company should have data in order to
determine the various phases for a particular scenario. Here are some
examples, such as:

a. An e-commerce scenario - Buying a set of Bluetooth speakers may

have discover, try, buy, use, seek support phases.
b. A huge or expensive purchase - Test driving and buying a car may
include stages such as engagement, education, research, evaluation,
justification.
c. A business-to-business (B2B) scenario - Rolling out an internal tool
may consider the stages like purchase, adoption, retention, expansion,
advocacy.
UNIT 3: Customers and Market

Key Components of Journey Map

Actions, Mindsets, and Emotions - These include behaviors, thoughts, and feelings
the actor has during the journey and that are drawn within each of the journey phases.

1.Actions - These are the concrete behaviors and steps engaged by users. This
element is not meant to be a granular step-by-step record of every isolated
interaction. Rather, it is a story of the steps the actor undertakes during that phase.

2.Mindsets - These correspond to the thoughts, questions, motivations, and

information of the actor at various steps in the journey. Ideally, these are customer
exact words from research.

3.Emotions - They are drawn as distinct line across the journey phases. This line
accurately indicates the emotional "ups" and "downs" of the experience. This line
gives the idea of the related layer of emotion that the actor feels such as very
happy against unhappy.
UNIT 3: Customers and Market

Key Components of Journey Map

5. Opportunities - Opportunities are insights that are obtained from

mapping. These opportunities they can be used to identify the ways of
optimizing the actor’s experience. Insights and opportunities are useful in
getting knowledge from journey map in terms of:

a. needs to be completed with this knowledge

b. owner of respective change
c. the biggest opportunities
d. ways of measuring improvements as they are implemented
UNIT 3: Customers and Market

Importance of a Customer Journey Map

1. Refocus a company with an incoming perspective - With

inbound marketing entrepreneur may discover his customers.
Inbound marketing also known content marketing is creating
blog posts, social media, infographics, white papers, email
newsletters, and other content that people actually want to
read. Customers are actually interested and searching for this
content. It catches the attention of customers first and then
later starts to buy things that they have read about. Through
journey mapping, an entrepreneur can understand what
interest and help his customers about his company and
website as well as what drives them away. The company may
construct the type of content which will draw the attention of
customers and help to keep them.
UNIT 3: Customers and Market

Importance of a Customer Journey Map

2. Form a new target customer base - On the part of the

entrepreneur, it is risky not to know fully the demographics
and psychographics of his customers because he will not
also correctly realize his customer's journey. It's actually of
time, money and effort to target a broad segment who
shows interest in the company’s products and/or services.
The needs and pain points of usual customers must be
researched on. Journey mapping will actually provide a
good picture of the types of people who are trying to
accomplish a goal with the entrepreneur's company.
UNIT 3: Customers and Market

Importance of a Customer Journey Map

3. Form a customer-focused mindset all over the

company - As a company becomes bigger, it turns to be
challenging to be as customer-focused like the customer
service support, and success teams. Most often, sales and
marketing goals are no longer what the customers want.
Since, the journey map outlines each single step of the
customer journey from initial attraction to post-purchase
support that concerns marketing, sales, and service, then it
can be shared with the whole company.
*** End of Presentation***