2. Overview // Business Models
// Strategy // Customer Segments
// Direction, Future and // Value Propositions
Sustainability // Distribution Channels
// Advantage & Environment // Customer Relationships
// Understanding the Business // Partner Network
// Key Activities
// Key Resources
// Revenue Streams
// Cost Structure
// Example Business Model
// Try it yourself!
// References & Contact
Details
3. “Marketing is
building sustainable
business”
// Business: the objective of marketing is to realise
organisational goals, through the exchange of
‘offerings’ (goods and services) with customers;
// Sustainable: to ensure the survival of the
company as a going-concern, value must be
created for the company as well as for the
customer;
// Building: the results of a company are the result of
the integrated efforts of the whole organisation.
– Moenaert & Robben
4. “Visionary marketing relates to
the planning and the
implementation of marketing
activities in order to optimise the
company’s current and future
competitiveness”
// Where are you now?
// Where do you want to be?
// How do you get there
– Moenaert & Robben
5. It’s all about
Strategy…
// “Strategy is the direction and
scope of an organization over
the long term: which achieves
advantage for the organization
through its configuration of
resources within a changing
environment, to meet the
needs of markets and to fulfill
stakeholder expectations.”
Source: Johnson and Scholes (2002)
9. Advantage & Environment
//Please look outside…you’re not alone!
Product /
Service
The CODA (Customer’s
Outlook on Differentiating
Advantages)
// What do you offer?
Image // How and where do you offer it?
// What are the costs to the
customer?
Customer
Price // What do you represent?
Process
Source: Robben & Moenaert (2008)
10. Advantage & Environment
//Please look outside…you’re not alone!
Socio-cultural Technological
Environment Environment
Suppliers
Action Environment
Direct and Indirect
Competitors Company Complementors
Customers
Political Economic
Environment Environment
Source: Robben & Moenaert (2008)
11. Advantage & Environment
//Please look outside…you’re not alone!
Socio-cultural Technological
Environment Environment
Suppliers
Action Environment
Direct and Indirect
Competitors Company Complementors
Customers
Political Economic
Environment Environment
Source: Robben & Moenaert (2008)
14. Your Environment
if you are a Global
Company
// You operate in more than one country
// You gain marketing, production, R&D,
and financial advantages not available to
purely domestic competitors
// You see the world as one market
16. Questions for Global Companies
// What market position should you try to establish in your own country, in
your economic region, and globally?
// Who will your global competitors be, and what are their strategies and
resources?
// Where should you produce or source your product?
// What strategic alliances should you form with other firms around the
world?
17. Understanding
the Business
// What do you offer?
// How and where do you offer it?
// What are the costs to the
customer?
// What do you represent?
…How do you
do that?
– Moenaert & Robben
18. Business Models
“Stories that explain
how enterprises
work”
// A good business model begins
with an insight into human
motivations and ends in a rich
stream of profits.
Source: Magretta (2002)
19. Partner Key Activities Value Customer Customer
Network The most Proposition Relationships Segments
The partners and important The bundles of The types of Your group of
suppliers you activities products and relationships you customers with
work with performed to services that entertain with distinct
implement your satisfy your each customer characteristics
business model customer segment
Distribution
segment’s needs
Key Channels
Resources The channels
The key resources through which you
on which your communicate with
business model is your customers
built and offer your
value proposition
Cost structure Revenue streams
The costs you incur to run your business model The streams through which you earn your
revenues from your customers for value creation
and customer facing activities
The Business Model Canvas
// Which story are you telling?
Source: Osterwalder & Pigneur: Business Model Generation (2010)
20. The Business Model Canvas
// The building blocks
Partner Customer
Network Relationships
Key Value Customer
Resources Proposition Segments
Distribution
Key Activities
Channels
Cost Revenue
structure streams
Source: Osterwalder & Pigneur: Business Model Generation (2010)
21. Customer Segments
// For whom are you creating value?
// Who are your most important customers?
// Who pays?
24. Customer Segment
Questions
// Do you know your customers and
their needs good enough?
// Are some customer groups likely
to defect soon?
// Do you regroup different
customer segments well enough?
30. Value Propositions
// What value do you deliver to the customer?
// Which one of your customer’s problems are
you helping to solve?
// What bundles of products and services are
you offering to each Customer Segment?
// Which customer needs are you satisfying?
35. Value Propositions
Questions
// Does your value proposition still cater well
enough to your clients’ needs?
// Do you know how your customers perceive
your value proposition?
// Are your competitors offering similar value
propositions at similar or better prices?
// How well are your customers served by
other competitors?
36. Distribution Channels
// Through which Channels do your Customer Segments want to be reached?
// How are you reaching them now?
// How are your Channels integrated?
// Which ones work best?
// Which ones are most cost-efficient?
// How are you integrating them with customer routines?
37. 1. Awareness 2. Evaluation
3. Purchase 4. Delivery 5. After sales
// How do you // How do you // How do you // How do you // How do you
raise help allow deliver a provide post-
awareness customers customers to Value purchase
about your evaluate your purchase Proposition to customer
company’s organization’s specific customers? support?
products and Value products and
services? Proposition? services?
Distribution Channel
Phases
38. Distribution
Channels Questions
// Do you have a well thought-through
communication and distribution channel
design?
// How well do you reach your clients?
// Do you know how successful your channels
are in terms of customer acquisition?
// How well are your different channels
integrated?
// Do you know how cost efficient are your
channels are?
// Do you use the right channels for the right
clients (e.g. in terms of profitability)?
39. Customer
Relationships
// What type of relationship does
each of your Customer Segments
expect us to establish and
maintain with them?
// Which ones have you
established?
// How are they integrated with the
rest of your business model?
// How costly are they?
41. Customer Relationships Questions
// Do you have a customer relationship strategy?
// How good are your relationships with your best customers?
// Do you spend too much time and money in relationships with unprofitable
clients?
// How well are you doing in managing your customer relationships (e.g.
follow-up, etc.)
42. Partner Network
// Who are your Key Partners?
// Who are your Key Suppliers?
// Which Key Resources are you acquiring from partners?
// Which Key Activities do partners perform?
44. Partner Network Questions
// Do you use partners enough?
// How well do you work with your existing partners and suppliers?
// How dependent are you on your existing partners and suppliers?
45. Key Activities
// What Key Activities do your Value
Propositions require?
// Our Distribution Channels?
// Customer Relationships?
// Revenue Streams?
47. Key Activities Questions
// How efficient are you in performing your activities?
// Do you perform too many activities ourselves, leading to a lack of focus?
48. Key Resources
// What Key Resources do your Value
Propositions require?
// Our Distribution Channels?
// Customer Relationships?
// Revenue Streams?
54. Key Resources Questions
// Do you dispose of the right key resources in terms of
quality and quantity?
// Do you dispose off too many resources internally,
leading to a lack of focus?
55. Revenue Streams
// For what value are your customers really
willing to pay?
// For what do they currently pay?
// How are they currently paying?
// How would they prefer to pay?
// How much does each Revenue Stream
contribute to overall revenues?
58. Revenue Streams
Questions
// How sustainable are your current revenue streams?
// How diversified are your revenue streams?
// Are you dependent on too few revenue sources (e.g.
from some big clients or one single business)?
// How well do you price your value proposition?
59. Cost Structure
// What are the most important costs inherent in your
business model?
// Which Key Resources are most expensive?
// Which Key Activities are most expensive?
Is your business more:
// Cost Driven (leanest cost structure, low price value
proposition, maximum automation, extensive
outsourcing)
// Value Driven ( focused on value creation, premium
value proposition)
61. Cost Structure Questions
// Is your cost structure appropriate (e.g. low cost business model = low cost
structure)?
// Do you clearly understand which parts of your business model have the
highest costs?
// How lean is your cost structure?
62. Partner Key Value Customer Customer
Network Activities Proposition Relationships Segments
Key Distribution
High-end
Resources Restaurant Channels
quality
espresso at
home
Cost structure Revenue streams
The Business Model Example
// Nespresso
Source: Osterwalder & Pigneur: Business Model Generation (2010)
63. Partner Key Value Customer Customer
Network Activities Proposition Relationships Segments
Key Distribution
Resources Channels
Cost structure Revenue streams
The Business Model Example
// Charles den Tex (writer)
64. Partner Key Value Customer Customer
Network Activities Proposition Relationships Segments
Key Distribution
Resources Channels
Cost structure Revenue streams
The Business Model Example
// YOU!