During this session we shall look at segmentation techniques to understand why companies identify attractive market segments, what targeting strategies they will use and how they will position their products for maximum advantage.
Business can not always effectively sell to all of their customers using the same mix so instead their will target their marketing efforts.
Firstly a company will have an understanding of the variety of customers they deal with as they will hold data and information on them. The final step will be to design a marketing mix tailor-made’ to meet the needs of the target market. Jobber (2010 p261) points out that ‘marketing segmentation is useful when spotting opportunities and threats. A very good example of the statement above has been the development of the hugely successful Innocent drinks.
The article below (in the Reading box) charts the rise of this company launched by three university friends who had a very good idea which turned into a multi-million pound reality.
So Innocent noticed a gap and went for it……and who can blame them when after only a decade they now operate a multi-million pound business, albeit with a little help from Coca Cola! As identified by the success of Innocent (detailed articles above) it can help a business to identify opportunities and gaps in the market. Accessible Here, the base(s) used should ideally lead to the company being able to reach selected market targets with their individual marketing efforts.
Meaningful The base(s) used must lead to segments which have different preferences or needs and show clear variations in market behaviour and response to individually designed marketing mixes. Develop an appropriate marketing mix for each chosen target segment in order to support the product positioning strategy.
The first segmentation method looks at buying behaviour and this links into much of the theory and debate added in Week 2 as well as an understanding of customer value reviewed in Week 1. Benefits sought - with Innocent the benefits sought by customers were mostly concerned with pure ingredients in a tasty recipe. Purchase Occasion - customers can be segmented according to how times they purchase the product. Usage - customers are segmented on the basis of whether they are heavy users, light users or non-users. Companies can chose their segments based on the whether the consumer will take the risk and buy at the beginning of the product lifecycle.
What are the differences in pricing from the early adoption stage through to selling to laggards? Values and Lifestyles segmentation have been researched and used in the USA to combine demographic variables with people’s needs and wants. There are links between the personality of the buyer and the perceived personality of the brand. Demographics = the physical characteristics of a population such as age, sex, and marital status, size of family, education, geographic location, and occupation. Age is a good segmentation variable for such items as clothes where the fashion-conscious young are more susceptible to regular changes in style and older segments are perhaps more concerned with such factors as quality and comfort. Sex is a strong segment in terms of goods that are specifically targeted towards males or females and again an obvious example is clothing.
Income as a segmentation base is more popular in certain countries like the USA than others who regard such matters very privately.
The household is classified according to the CIE’s occupation, but social grade data are also available for the respondent themselves (if they are not the CIE). Education is often related to social class, because, as a generalisation, the better educated tend to get the better jobs. Nationality or ethnic background now constitutes a growing and distinctive segment for potential target marketing.
Family size will have an effect on the amount or size of purchases, so this is certainly a meaningful segmentation variable. Family life cycle (FLC) is a logical follow on to the above and this will tend to determine the purchase of many consumer durable products. There are some really good acronyms relating to family lifestyle but maybe COCOON is a little unkind!! This is a relatively new method based on the classification of homes rather than individuals. This can help you to target, acquire, manage and develop profitable relationships and improve business results.
Segmentation for industrial products uses some of the bases for consumer segmentation and adds other variables.
Types of application or uses - so types of adhesives for the home, office and industrial use. Benefits - as with consumer segmentation - the benefits of using a product so for instance industrial glass for cutting or glass for our household windows.
A combination of some the segments stated above provide business will a multi-variable approach to segmentation. Occasionally, a market analysis will show no differences in customer characteristics that have implications for marketing.
In comparison when a business has identified a range of customer or B2B segments they might use a differentiated marketing mix strategy. For example, BMW promote their cars to range of identified segments moving from the 1 series as an entry-level model to the X6 which according to BMW has been designed for the well-off empty nesters! Levis jeans have identified a range of differing consumer segments and have designed for each a differentiated marketing mix. This session started by stating some definitions of segmentation and each finished on the importance of positioning.
Consistency - we received no end of messages in a day whether on the TV, reading the newspapers, posters and billboards etc, so the consistency of the message is important. Competitiveness - to remain in the minds of customers the business offering must be competitive.
A useful tool for mapping the position of a brand in the market place is the perceptual map. The perceptual map below shows and plots some of the UK supermarkets based on research in to consumer preferences centred on the two dimensions of price and range of products.
Some of the publishers of recommended text books have their own learning sites on-line designed for students. There are case studies, internet exercises and concept tests for each chapter covered in the book.
Consumer behaviour is a complex concept, which is influenced by many different variables and situations.
Think of a product you would like to own, it may be something that you really need or something you have always thought you would like to own. Keep a note of how many web sites you visit, how long you spend on searching for the product you would like to buy, and the criteria you use to make your selection.
Please note: The aim of this exercise is to analyse your own purchase behaviour up to the point of purchase. Given the non-profit nature of our venture, our primary source of uniqueness and distinctiveness is built on the core idea of intangible value. At BizBricks, we are pursuing a non-profit business model with a possibility of adopting a hybrid model in the future.
The lack of financial incentive will help us gain donors and supervisors, who are genuinely driven by the passion and idea of dynamic social change. Additionally the environment of a university will allow for ease in the recruitment of volunteers when working with the portal. Moreover, the use of a non-profit business model has given members of the entrepreneurship division the opportunity to gain insight into a sector that is not as widely used. 1) If the For-Profit division is created as a separate entity, the non-profit remains tax exempt and still qualifies for various foundation grants.
2) Using the for-profit division, larger amounts of funds can be raised from angel investors and venture capitalists. 3) The portal can be somewhat self sustaining since the profit generated can be used for expansion purposes and support the portal until sufficient amounts of grants and donations are collected.
The primary challenge any organization with a hybrid model faces is the risk of mission drift – the stray from original goals. Our aim is to initially provide this service offering to the iGEM community within the Americas. In every business plan, it is imperative that as financial backing is being sought, the investors understand that there is a structure in place for them to receive a return on their investment. The above equation is a simple and highly versatile measure of an investor’s returns as a positive value indicates a gain for the investor whereas a negative value indicates a loss from the investment. Furthermore, the magnitude of the positive (or negative) value can be used to compare different company performances since the ROI value can be expressed as a percentage. In the case of our website portal, BizBricks, it is important to list out all the gains and costs that will be derived from investment into the portal. Due to the fact that the portal will be launched as a non-profit project, and that all financial contributions will be directly placed to help the BizBricks portal grow, monetary returns ought not be in the primary interests for investors.
The portal is an initiative to bridge the gap between Synthetic Biology in the lab and in entrepreneurship; this gap leaves a business vacuum that an educational tool is required to fill.
However, given the eventual social good that may possibly be generated with more entrepreneurs from a rapidly emerging scientific field such as more successful start-ups and subsequent job creation, this is an opportunity for an investor to play a part in correcting a form of market failure. The return which causes an influential change onto the community to be more engaged in the portal. An example of the potential benefits of a good corporate image being reflected on the bottom line is Whole Foods. Networking within this community in such a niche field may ultimately lead to greater levels of trust within the industry and lower levels of suspicion which ultimately fuels protectionist measures such as heavy patenting.
This refers to the manner in which the actual portal itself will be able to grow and result in a greater positive social change.
As mentioned earlier, there exists a market failure whereby the Synthetic Biology industry does not have enough access to entrepreneurial literature and accounts relevant to their field.
The trickle down effect of a synthetic biology startup with access to the information on best practices and accounts from industry leaders in the local community cannot be understated. From another perspective, it is likely that synthetic biology may have answers for social issues that affect the livelihoods of a community.
The gap that exists between this innovation and successful commercialization slows down the speed at which synthetic biology can see its products creating a positive change in the affected community. In the table above, we outlined possible avenues in which the BizBricks portal could potentially generate revenue.
Based on the growth and popularity of the educational portal, it is possible to charge users for content. Several business models have been based around the offering of free content first and ultimately charging users for more detailed and expanded content. As an emerging field such as Synthetic Biology, there are few structured settings in place whereby entrepreneurs can meet and share their experiences.
For existing entrepreneurs there is an opportunity to learn from the experiences of others in the same industry and exchange ideas on how to deal with industry challenges such as regulations and intellectual property.
Given this opportunity for networking, having gathered a large and diverse user base, it would be possible to introduce a networking service amongst users. The potential return on investment as outlined above gives the monetary and non-monetary returns that are measurable. Hence, exposure to opportunity is a very feasible opportunity for large returns on investment for an investor into the BizBricks portal. In order to attract potential investors, there are many different aspects of the company which must show the company’s well-being. In addition, it is also important to show detailed financial information in terms of running the portal. Also, clearly demonstrating your short-term and long-term goals can be beneficial in attracting investors since it can also help to show specifically the areas of the business which require aid, whether it be in terms of funding or content verification. For the online portal, it is also important to outline the future benefits that the investors will receive if interested in contributing to the portal.
Companies, more specifically more well-established synthetic biology companies may give donations to help fund the operations of the portal.
There may be potential future opportunities for the portal to merge, or partner with other companies. Initially, our portal will be a relatively unknown source of information on synthetic biology. Two authors from the Wall Street Journal wrote an article outlining the various techniques and steps new companies need to follow and take to gain credibility and in turn investors and sources of information. Not only this, but it has been proven that pooling information onto an open sourced service is beneficial to all companies and inputters involved. Considering that our portal will be completely online, it is very important that the website has the proper web security in place, as the users of the portal are the top priority of creating a successful bioentrepreneurship portal. By ensuring the user that the portal has the proper web security parameters in place, this will give the users a sense of protection and make them feel more comfortable with using the portal; this will ultimately lead to the users returning to the portal in the future. There are two main methods of protection for a website: countermeasures and legal protection. On the other hand, it is important to ensure that the information which is posted on the portal by users have been referenced properly, and the users are responsible for the information which they post on the portal, in order to avoid copyright infringements and plagiarism issues. This year, the University of Waterloo iGEM Entrepreneurship team focused on comprehensively identifying the value, assessing the feasibility and defining the features of the BizBricks service. Before launching any business, it is important that the entrepreneur understands its competition. In this portion of the business plan, we will analyse the competition faced by the proposed BizBricks portal.
As seen from the competitor matrix below, the BizBricks portal, despite having a seemingly niche market, caters for its users in all aspects that would have been provided to them in several different places.
All businesses, non-profit or not, must deal with certain risks when starting-up.The online Biz Bricks portal is no different.
Since the online Biz Bricks portal is a non-profit project, there is no”tangible” profit to be shared with investors.
Being that the online portal is created using information, that cannot be protected through copyrights or patents. Overestimated demand is a risk that exists for all companies or groups attempting to release a new product, technology or service to consumers. Although the Biz bricks online portal is not a physical product, it still runs the risk of overestimated demand if resources are wasted on areas of the portal, which are not aligned with its current number of users. Overestimating demand for a product or service is a large risk as it creates inefficiency in a company and it shows that sufficient market research was not conducted. A shortage of capital is a high risk for non-profit organizations, which may face a tough task of finding investors and raising capital. With the expansion of the internet it has become increasingly important to maintain a high level of security online. Not meeting these points will negatively impact the Biz Bricks’ brand and therefore deter users from its future projects. Although there have been drastic technological advances worldwide there is still a large gap in capabilities between developed and undeveloped nations.
Suppliers for the online Biz bricks portal include the content suppliers as well as our financial investors. Our buyers include our users, their bargaining power is a high threat for the Biz bricks online portal.
This online Biz Bricks portal is tailored made for synbio start-ups that wish to commercialize their technology. Threat of rivalry is always evident within an industry, however once the online portal is released; this threat should increase substantially. Given that the idea is currently not protected, there is the likeability for another organization or group to adopt the value proposition we have presented and integrate it into their existing e-learning platforms.
A contingency plan is a risk management tool used once a risk has been found unavoidable to salvage what is left of the project with as little damage to the business as possible. 1) By going back to the drawing board and reviewing the strategic model; the Biz bricks team is able to learn lessons from its previous strategy and therefore alter the strategy.
2) The option of becoming a premium service provides channels for revenue for our business if necessary; however this option is only viable if there is already high web traffic to our portal. 4) Forming a strategic alliance or joint venture partnership may prove to be a necessary measure if the team decides that the information on the portal has proven to be useful, but it no longer has the resources to maintain it.


The Mozilla Foundation is a non-profit organization that aims to promote innovation on the internet through the development of open sourced technologies and communities. Mozilla is an open-sourced organization that operates as a meritocracy – a common organizational structure for open-sourced projects where those who contribute more tend to have more seniority and influence. In terms of their business model, the Mozilla Foundation started as a non-profit however, it adapted to a hybrid model by establishing a wholly-owned taxable for-profit subsidiary, the Mozilla Corporation in 2005.
As an organization that operates with a hybrid business model, there is a significant risk as the company becomes increasingly dependent on single partnerships like Mozilla is with Google. The Mozilla foundation has successfully pursued the type of model Bizbricks aims to implement.
When you consider the functional areas of businessa€”accounting, finance, management, marketing, and operationsa€”marketing is the one you probably know the most about. If everyone is responsible for marketing, can the average organization do without an official marketing department?
At the same time, you need to achieve organizational goals, such as profitability and growth.
The marketing concept puts the customer first: as your most important goal, satisfying the customer must be the goal of everyone in the organization. Declaring that you intend to develop products that satisfy customers and that everyone in your organization will focus on customers is easy. Wea€™ll use FigureA 9.3, a€?Marketing Strategya€? as a blueprint for our discussion of target-market selection, and wea€™ll analyze the concept of the marketing mix in more detail in the next major section of the chapter. The next step in identifying a target market is to divide the entire market into smaller portions, or market segmentsmarket segmentGroup of potential customers with common characteristics that influence their buying decisions.a€”groups of potential customers with common characteristics that influence their buying decisions.
Maybelline and Cover Girl use segmentation strategies to target their predominant consumers: women.
Demographic segmentationdemographic segmentationProcess of dividing the market into groups based on such variables as age and income. Geographic segmentationgeographic segmentationProcess of dividing a market according to such variables as climate, region, and population density.a€”dividing a market according to such variables as climate, region, and population density (urban, suburban, small-town, or rural)a€”is also quite common.
Dividing consumers by such variables as attitude toward the product, user status, or usage rate is called behavioral segmentationbehavioral segmentationProcess of dividing consumers by behavioral variables, such as attitude toward the product, user status, or usage rate.. Some companies segment consumers according to user status, distinguishing among nonusers, potential users, first-time users, and regular users of a product. Psychographic segmentationpsychographic segmentationProcess of classifying consumers on the basis of individual lifestyles as reflected in peoplea€™s interests, activities, attitudes, and values.
Typically, marketers determine target markets by combining, or a€?clustering,a€? segmenting criteria. Marketing is a set of processes for creating, communicating, and delivering value to customers and for improving customer relationships. The philosophy of satisfying customersa€™ needs while meeting organizational profit goals is called the marketing concept and guides all of an organizationa€™s marketing activities.
To apply this approach, marketers need a marketing strategya€”a plan for doing two things: selecting a target market and then implementing strategies for creating, pricing, promoting, and distributing products that satisfy customersa€™ needs.
A target market is a specific group of consumers who are particularly interested in a product, would have access to it, and are able to buy it. To identify this group, marketers first identify the overall market for the product (from the consumer market, the industrial market, or both). Then, they divide the market into market segmentsa€”groups of customers with common characteristics that influence their buying decisions. If you were developing a marketing campaign for the Volkswagen Beetle, what group of consumers would you target? As customers become more affluent, seek new experiences and develop new values, new segments emerge.
It should also be capable of measurement in terms of the potential customers in each segment. Jobber (2010) illustrated this point as well by giving an example of Classic FM who identified a segment based on benefits sought. Those who are heavy users of the product often link to customer loyalty and the Pareto Rule of 80:20. He started with innovators who are adventurous and eager to try new ideas to the final category of laggards, the last to adopt new products.
When Sony first produced a range of plasma TVs, pricing was high and innovators wanted the products at any price.
Here, fashion is a powerful element when purchasing, and a whole industry surrounds this criterion.
Questions include not only what the CIE’s job is, but also details such as their qualifications and the number of people they are responsible for. Accordingly, (a generalization too!) newspapers are designed to aim their news and newspaper content towards either the upper (Sunday Times) or lower ends (The Daily Mirror) of the social spectrum, and encourage advertisers to target their advertising appropriately.
Food products, clothing and hair care products are obvious examples of products that fit into this segmentation variable.
An individual’s political leanings might well influence the way he or she behaves in terms of purchases made.
This is based on the notion that consumers pass through a series of quite distinct phases in their lives, each phase giving rise to different purchasing patterns and needs. It helps you learn the who, what, where, when, how, and why of their relationship with you. They will listen to their key account customers and devise pricing, promotional campaigns to the needs of their customers.
This exercise should enable you to analyse parts of the buying process in an online context.
Our idea is a concept of competence-enhancing innovation, our information is customized to the needs of the synthetic biology entrepreneurs and our goal is to build a collaborative space to connect scientists to all stakeholders in the synthetic biology business development process via the introduction of a virtual directory.
The type of operation we pursue is consistent with our mission to provide free entrepreneurial education in the synthetic biology community. They use their revenues and surplus revenue to achieve a goal rather than distributing it as a profit via dividends etc.
Given the foundation of the division, within a university, the presence of supervisors who are willing to put aside time for the portal is essential. Because of the large variety of students, the volunteers and members required to efficiently run and build the portal are easily accessible. Members found it necessary to learn the general business model: where to get funding, how to write grants, tax exemptions, contacting potential donors etc. This is because a for-profit division creates a return on investment (profit) that can attract a larger amount of investors versus a non-profit. To avoid this at BizBricks, we plan on keeping our core services free and with the non-profit division of our organization. The iGEM community is a prime example of an inclusive network that has not only expanded in terms of number of participants, but also in terms of its diversity. Essentially the plan indicates that a pilot phase with the 2012 iGEM Entrepreneurship participants will allow us to gage the interest level and also identify opportunities for enhancements.
For every dollar the investors put in, it is critical they understand to what end their money is going and the manner in which they can expect to get it back.
The portal will provide several intangible benefits as well as potential avenues for revenue generation which shall be factored into the gains. They simply represent potential avenues for growth and opportunities to leverage the success of the portal itself. As with most public goods, the market will fail to provide this service whereby there is no direct monetary return on investment. By investing in an open portal, companies will have the opportunity to actively participate in the growth of a young field with plenty of opportunity in both the corporate and educational world.
They would be an example of a company whose CSR has definitely helped them to be known to the public; they have donated $10 million in low-interest loans to help fund local and microentrepreneurs. Often in an industry that has been greatly tainted by intellectual property battles and heavy patenting, entrepreneurs may be hesitant to move into the industry for fear of getting caught up in litigation.
On the flip side, the potential for creation of employment opportunities via more successful start ups will remain untapped in the current conditions.
Consider an innovation that allows for quicker sanitization of water or a more efficient sewage system in lower income communities. We will briefly expound on these opportunities since we shall include them as part of the ROI model.
However, it is important to note that this will have to occur once the portal has crossed a certain user base threshold and level of activity. Due to the fact that this field is emerging, extensive authoritative peer-reviewed literature is also hard to come by hence entrepreneurs seeking information on current trends and practices in the field would find opportunities to network with existing entrepreneurs a huge resource. However, there is another avenue whereby the investor may gain in a manner that could far outweigh the above benefits. It is also difficult to include it as a concrete benefit in the return on investment chart. The fact that synthetic biology is still such a young field means that the early exposure to the current happenings in the industry could have large payoffs in the long run for an early investor. Firstly, the web portal must have a large user database, meaning that the portal will be more well-known in the synthetic biology community. Having detailed financial information will attract investors looking to invest in the portal and wanting to know exactly how the business is doing initially, and how their contributions will be used to improve the portal.
Since the portal is a non-profit project, the investors will receive non-tangible assets, such as goodwill and publicity from honourable mentions. In return for the charitable contributions, the companies can be placed in a special contributions list on the portal. By merging with synthetic biology companies, this can not only allow for greater funding of the portal, but it can also allow for a greater verification of the content posted on the portal. To bring more and more traffic onto our website, it will be a great advantage to have verified contributors of information such professors, entrepreneurs, experts in the field of microbiology and any figures of authority that can contribute to our goal.
Research has shown that companies can often make more money by combining their data rather than hoarding it.
The presence of hackers and malware on the portal could be detrimental to the integrity of the portal’s information.
Technical countermeasures are usually expensive and not user friendly so the primary technique most websites use is legal protection, more specifically copyright.
A web portal is an open source service where individuals can input their research, information and data. Indeed an entrepreneur seeks to fill a market gap by offering a product whose value addition is greater than what is already being proposed in the market for his target market. To do this effectively, we will map out the attributes that characterize portal as well as others and compare them in a Competitor Matrix. Due to the pioneering nature of the BizBricks portal in the synthetic biology industry, the portals in this matrix were not necessarily intended for synthetic biology but their end goal was similar to that of BizBricks: to educate the end user through freely available and at times open-sourced content. Making a quick analysis of the competitor matrix, the portal is the only one that is open sourced and hence allows for input from several knowledge sources of different backgrounds.
One drawback is that in such a niche industry and a pioneering portal it is very difficult to find a direct competitor.
However, it would be foolhardy to assume that the rest of the synthetic biology entrepreneurs are not consulting online tools in their entrepreneurship adventure. This may pose as a risk when trying to find investors who would be willing to invest in our portal without receiving some sort of monetary ROI.
This risk emphasizes the importance of keeping the online portal up-to date and reliable, so that it is providing a higher level of trustworthy information to its users, than our competitors. The risk of competitive reaction is very important since we cannot protect our idea of an online open source synbio portal from being stolen.
The Samwer Brothers are known for creating international copycats of various American websites and claiming ownership.
For example, if the Biz bricks team spent the majority of its resources focusing on the online portal’s functionality worldwide and its ability to host a large number of users, but in reality the portal does not have as many users early users, then resources that could have been used marketing the portal or keeping it updated were wasted. Market research tools that can decrease this risk include: surveys, focus groups, marketing mix analysis, analyzing market trends and segmentation.
It is important that the steps taken to raise capital for our online portal due not infringe on the regulations set in place for non-profit organization’s tax exempt status.
The same way mortar and brick businesses must protect their merchandise from vandalism and theft, so too do online businesses. Therefore, it is important that the information given to our users has been vetted by reliable sources. The sources we use to populate the content on our online portal are key for the portal’s success and therefore these sources, whether they are individual people or knowledge bases, can ask for some sort of recognition in return for their input into the creation of the portal. Since the portal is a non-profit, its users do not need to pay to use it and therefore do not feel inclined to use only our portal, since they haven’t invested in it financially. If they do not view this portal as relevant to their needs, then we’ve lost our largest target market. Large information databases such as Wikipedia and Webopedia have the deep pockets to invest heavily in creating a copycat of our portal. As of now there is no large threat that a new type of learning tool will cause e-learning tools to become obsolete, however the possibility of some users preferring face to face interaction in a classroom setting is always present. If the BizBricks team is able to achieve a high level of loyal relationships with investors and stakeholders, this may provide us with a slight competitive advantage.
Form a strategic alliance with a relatively more established academic institute, organization which focuses on e-learning tools or commercializing technology.
If there is low web traffic to our portal, the best option would be to make it easier for new users to switch to our portal,and not to charge the few existing users we already have attracted. By forming a partnership, not only do we prevent the online portal from “dying” put it creates opportunities to make it even more successful than ever before. Earlier this year Harvard University and MIT presidents Drew Faust and Susan Hockfield announced the formation of a joint venture non-profit, EdX, which will aim to provide online post-secondary level courses to the general public, as well as provide insight on distance education and classroom learning. Their most popular projects include: the mozilla firefox web browser, and numerous other open-source software projects such as the firefox mobile operating system, the thunderbird email client and marketplace - a platform for creating and distributing mobile apps. The Mozilla foundation is governed by a board of directors and has numerous employees and volunteers that contribute to their projects.
There are certain rules and regulations that govern a non-profit organization and so the Mozilla Corporation is able to handle various lucrative dealings (like establishing contracts with other companies to generate revenue) while the Mozilla foundation can retain its non-profit status. As a non-profit, this is one of the primary ways Mozilla is able to cover its expenses, maintain its current technologies and continue to expand product line. For instance, Mozilla has an ongoing contract with Google in which Mozilla receives royalties for making Google its default search provider on its Firefox browser. Therefore, Mozilla is actively seeking new methods of generating revenue for long-term financial viability. Mozilla started as a non-profit foundation but has since established for-profit subsidiaries like the Mozilla Corporation.
After all, as a consumer and target of all sorts of advertising messages, youa€™ve been on the receiving end of marketing initiatives for most of your life. Not necessarily: most organizations have marketing departments in which individuals are actively involved in some marketing-related activitya€”product design and development, pricing, promotion, sales, and distribution. This basic philosophya€”satisfying customer needs while meeting organizational goalsa€”is called the marketing conceptmarketing conceptBasic philosophy of satisfying customer needs while meeting organizational goals., and when ita€™s effectively applied, it guides all of an organizationa€™s marketing activities. But this doesna€™t mean that you ignore the bottom line; if you want to survive and grow, you need to make some profit. It would be nice if everybody in the marketplace was interested in your product, but if you tried to sell it to everybody, youa€™d spread your resources too thin. First, they usually identify the overall market for their producta€”the individuals or organizations that need a product and are able to buy it. A farmer, for example, might sell blueberries to individuals on the consumer market and, on the industrial market, to bakeries that will use them to make muffins and pies. Climate is crucial for many products: try selling snow shovels in Hawaii or above-ground pools in Alaska. As exhilarating as urban life can be, for example, ita€™s a hassle to parallel park on crowded city streets. Companies selling technology-based products might segment the market according to different levels of receptiveness to technology. Through research they discovered that consumers were concerned about what went into their drinks and also where the materials needed for manufacture were sourced from.
A group of music lovers wanted to listen to accessible ‘classical music with pleasant down-to earth presenters.


The laggards will wait until pricing has reduced (social class might be important here) but on the whole laggards are suspicious of anything new and will wait until any problems are ironed out. Whereas now the same model of TV is available in supermarkets at a fraction of the original price. Such purchases are of course reflected in the types of newspaper and other media that is read, and this, in turn, contains advertising which is aimed at people who read such media, so political leanings might be more significant than it initially seems.
For example, an unmarried person living at home will probably have very different purchasing patterns from someone of the same age who has left home and is recently married. In the example below an industrial electronics supplier sells to a range of B2B customers who all have varying needs and who operate in very different market sectors.
Have a look at the link below - Fortnum and Mason have done rather well in this very ‘well to do’ niche sector! With that said, in order to sustain, expand and freely distribute education from this portal, we will require an inflow of capital.
Their primary objective generally lies within the need of a social change on a global scale. Therefore though finding those who can put in the effort may be difficult, but when obtained, the dedication of supervisors and donors will be resilient and essentially guaranteed. The non-profit is a reflection of the desire of these students to help sustain the service-motivated social change that the entrepreneurship division is attempting to instill.
Thus embodying the social change that we hope to see in the entrepreneurs whom will becomes the users of the e-learning portal.
Therefore, we will stay true to our mission and vision of bridging the gap between synthetic biology and entrepreneurship. Teams are not only bringing forth ideas, but prototypes that have the opportunity to be commercialized.
Thereafter, the portal will be launched to the iGEM community within the Americas, and soon to the rest of the international cohort. This means that a metric to measure the performance of their investment needs to be created. Corporate financial backing is a win-win situation for the company as their name radiates positively in their involvement in a non-profit venture and they also get a first hand opportunity to interact with community members in an emerging field with potential for exponential growth. This helped Whole Foods to be ranked in Corporate Responsibility Officer’s “Top 100 Best Corporate Citizens” in 2007, as well as an array of other environment-friendly awards which helped move their brand name forward through its good reputation. Consider the success of Genentech, considered among the premier biotechnology firms employing 13,000 in 2011# and one of the best places to work according to several rankings over the years.
The lack of information on how to successfully commercialise this innovation leads creates a lag from innovation to potential consumer. At this point, once the portal has greatly advanced and evolved to have several users who will have been greatly satisfied by the free content, only then can premium content be created. Currently it has over 106 million users of which 15 million are premium subscribers# who opted for an enhanced product having been subscribed to the free service. Greater publicity of the website will allow more investors to have been familiarized with the portal and its strategies.
If the portal can be well-recognized within the community of synthetic biology, it may allow the investors to gain positive recognition and augment their reputation. However, the company could also add information that would be advantageous for in their favour, but not necessarily for the growth and well-being of the portal.
Networking at prominent science conferences and events will allow us to gain more of these contributors. Pamela Silver, a professor of systems biology at Harvard University says she hopes one day “you will be able to sit at a computer, design an experiment and get DNA the next day.” But for that to happen, she says it needs to be “cheap, fast, predictable, accurate - and open to all”.
In addition, if there are any cyber-attacks on the users themselves, this could hamper its reputation and scare users away from using the portal.
To gain copyright protection on the portal, the source of the content needs to verified where it was from. Any information that is uploaded onto the website will need to sorted out as to whose property it is.
We believe that the service has true potential and will add great value in the discipline of synthetic biology. Hence, to clearly know just what their value proposition will be, an entrepreneur must understand those of his competitors. In order to appreciate the value proposition presented by the BizBricks portal, it is essential to juxtapose it against existing comparable but not completely similar sites.
There is thus large potential for providing novel insight in an industry still in its formative stages and doesn’t have the luxury of lots of published and easily available literature. Without a direct competitor it is difficult to analyse the strengths and weaknesses of the competition in direct relation to BizBricks. Hence, in place of these tools, BizBricks offers an informative, valid and practical tool in one place.
However, this online portal will be providing important information on successfully launching a startup in a clear and concise manner to entrepreneurs that need it most; thus helping the greater good. If this does occur, our copycats can enter the market and take away from the market share, we would have already gained. Their overestimated demand for the device forced them to aggressively reduce the price of the playbook, thus decreasing their overall gains. However, if this is not possible it may be in the best interest of the group to drop its non-profit status and gain revenue, either by getting advertisers for the portal; licensing services to various start-ups or offering our portal as a premium service to our users. If precautions are not taken to protect the portal’s online content it will be susceptible to viruses, hackers, malware and theft. Fortunately, with time the gap between these nations continue to decrease, therefore reaching these markets is a goal for the future.
This recognition may be expressed in monetary terms and therefore may impact the availability of important resources.
Therefore, their reaction to our portal plays a key part in our long term plans whether it be to expand our services or initiate a contingency plan.
Certain key points to look at to make the portal more successful would be to offer it as a smart phone application for the “on-the go scientist”; or provide a hard-copy of the online information to users who may not be technologically savvy.
By sharing resources, it is possible to achieve a level of success the Biz Bricks team could not have achieved on its own. The mozilla foundation also promotes innovation through grants by providing funding to projects that relate to their mission of an open internet.
Volunteers and employees are recruited for a variety of tasks ranging from web development, market research, visual designers and beta testers. Mozilla generates most of its revenue through partnerships; an estimated 85% of Mozilla’s revenue in 2006 was derived from Google’s contract. To do so, Mozilla continues to diversify its partnerships by seeking contracts and developing technologies for a wide variety of platforms like mobile devices. This is a route BizBricks can potentially follow to generate commercial revenue while staying true to our mission. What you probably dona€™t appreciate, however, is the extent to which marketing focuses on providing value to the customer. Ita€™s easy to see how the person who decides what movies to show is involved in marketing: he or she selects the product to be sold.
As specialists in identifying and satisfying customer needs, members of the marketing department managea€”plan, organize, direct, and controla€”the organizationa€™s overall marketing efforts. What youa€™re looking for is the proper balance between the commitments to customer satisfaction and company survival. You need to identify a specific group of consumers who should be particularly interested in your product, who would have access to it, and who have the means to buy it. Age, for example, will be of interest to marketers who develop products for children, retailers who cater to teenagers, colleges that recruit students, and assisted-living facilities that promote services among the elderly.
Thus, Toyota engineers have developed a product especially for city dwellers (at least in Japan). Credit-card companies use this approach when they offer promotional gifts to college students in order to induce them to get their first card.
This is done principally to alert advertising agencies who will place their clients’ advertising according to social class and product positioning. To ensure that BizBricks continues to prosper ( and become self sustainable, we can look into profit generation so that we do not solely rely on donations, sponshorships, and grants for sustainability and further expansion). The iGEM entrepreneurship team hopes to pursue this model by presenting an e-learning portal. Any for-profit services we implement will complement our core services and will simply be “add-ons” to enhance user experience. The regionals are being held in cities where the integration of synthetic biology technology and entrepreneurship are highly valued. This would definitely assist in aggregating and attracting potential future stakeholders in the field of bioentrepreneurship. This represents just under 15% of users who opted to enhance their experience and pay for premium content. There are many strategies that our organization can take to increase the public’s awareness of our portal. Also, when our website has gained some attention, verifiability and prestige, we expect credible sources will WANT to contribute to our portal seeing as it will build their reputation as a free supplier of knowledge.
The advantages of this matrix are evident from its presentation: the traits are easily comparable and several competitors can be compared at once. Certain risks remain evident throughout the operation of the business but proper foresight can prevent a risk from transforming into a major issue. Also, the potential of transforming our portal into a premium service is always an option that will attract and keep investors interested. On top of this, they were also left with a large inventory that accrues holding costs and because more obsolete everyday. According to Statistics Canada, in 2009 45.9% of the funding received by non-profit institutions was from the sales of goods and services.
Any sign of security issues with our portal will damage its reputation and users may no longer trust the site.
Without investors, the Biz bricks team will not have the capital needed to launch and sustain the operations of the bioentrepreneurial portal. Depending on the parties that choose to engage in a similar branch of learning, the team’s accumulated knowledge plays a key role in maintaining a competitive advantage as well. Volunteers allow Mozilla to keep growing as a company while keeping their costs that are associated with full time employees at a minimum. With that said, Mozilla states that as a hybrid, open-sourced organization, it focuses on building its projects first, and then it seeks revenue streams to sustain these projects. All in all, The Mozilla Foundation’s business model is one that allows open-sourced organizations to successfully pursue their projects while remaining self sufficient.
According to the American Marketing Association, marketingmarketingSet of processes for creating, communicating, and delivering value to customers and for improving customer relationships.
Ita€™s even easier to see how the person who puts ads in the newspaper works in marketing: he or she is in charge of advertisinga€”making people aware of the product and getting them to buy it. Consider the case of Medtronic, a manufacturer of medical devices, such as pacemakers and defibrillators. This group is your target markettarget marketSpecific group of customers who should be interested in your product, have access to it, and have the means to buy it., and youa€™ll aim your marketing efforts at its members.
The wedding industry, which markets goods and services to singles who will probably get married in the near future, is interested in trends in marital status. The Japanese version of the Prius, Toyotaa€™s hybrid gas-electric car, can automatically parallel park itself.
For each of these products, identify at least five segmentation characteristics that youa€™d use in developing a profile of your customers. Ironically though, Innocent has kept where their manufacturing takes place, a well guarded secret. This was based on buying behaviour, social class, customer loyalty and usage, so a range of multi-variable segmentation options. The purpose of the portal is to give an outline of how to pursue and a life of entrepreneurship in the synthetic biology market. Our portal is a method to retain the connections that were built within iGEM events, but also help to facilitate those that were missed. This model can be replicated onto the BizBricks portal as an avenue for revenue generation. They include: social media, content marketing, public relations, and search engine optimization methods.
However due to the fact that it is not open sourced and is a broad-spectrum tool for all sorts of businesses it is difficult to assess challenges that BizBricks will face in it’s growth as a portal. Since Biz Bricks is offering the online portal as a free service to its users, we are potentially losing almost half of the funding we would expect to receive. This is why it is essential to continuously ensure that proper security parameters are in place to protect users, which will allow the portal to gain a reputation as a trusted source. Given that the business model is non-profit, our opportunities exist within the existence of partnerships, to optimize on growth. If the Biz bricks team can find a suitable partner for this type of relationship, it could certainly help catapult the success of the portal to a new level.
Furthermore, the use of volunteers ensures that these individuals are passionate and devoted to the Mozilla mission as they are willingly donating time to work on various Mozilla projects. But what about the ticket seller and the person behind the counter who gets the popcorn and soda? The company boasts more than 50 percent of the market in cardiac devices and is considered the industry standard setter.
Gender and ethnic background are important to TV networks in targeting different audiences. Because the Hummer can go off-road and performs well on rugged terrain, geography could also be a factor. Explain the segmentation category into which each characteristic fallsa€”demographic, geographic, behavioral, or psychographic.
Through the portal we hope to engage the everyday innovator with the possibility of pursuing their passion in synthetic biology. Items that can be copyrighted and protected on the website include text, graphics, text and script, data and the code used to create the website. This should be a major concern for us; however the fact that, currently, it is not very expensive to maintain the portal, we should be fine. Everyone in the organization understands that defects are intolerable in products that are designed to keep people alive. Incomea€”a socioeconomic factora€”is clearly important: Hummers are expensive to buy, maintain, and run.
Where ita€™s appropriate, be sure to include at least one characteristic from each category. After gaining copyright for the portal it is important to register with the Copyright Office to gain the ability to sue companies for infringement. Thus, committing employees to the goal of zero defects is vital to both Medtronica€™s customer base and its bottom line.
If youa€™re selling yachts, youa€™ll want to find people with lots of money; so income is an important variable. If you prefer to sit on your couch and watch TV, you might show up on the radar screen of a TiVo provider. As for psychographics, potential Hummer owners could be people who value prestige and the material rewards of success.
Absolutely: the purpose of every job in the theater is satisfying customer needs, and as wea€™ve seen, identifying and satisfying customer needs is what marketing is all about.
If youa€™re the publisher of Nurses magazine, you want to reach people in the nursing profession.
If youa€™re compulsive or a risk taker, you might catch the attention of a gambling casino. If youa€™re thrifty and uncomfortable with debt, Citibank might want to issue you a debit card.



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