Central Idea: Creation and Management of Startups – Understanding Your Market

What is the first step in understanding your market?

Identifying who your customers are.

What defines an ideal customer?

Someone who perfectly fits your product or service based on their needs, preferences, and behavior.

Why is it important to understand customer needs?

Because understanding their pain points and desires helps create solutions that truly satisfy them.

What is a customer segment?

A group of customers with shared needs, behaviors, or characteristics.

Give some examples of customer segments.

Busy professionals, parents, students, etc.

What is the goal of segmentation?

To identify key groups so you can target them effectively with the right marketing and products.

What are the four main types of market segmentation?

Demographic, Behavioral, Geographic, and Psychographic.

What does demographic segmentation include?

Age, gender, income, education, and occupation.

What is behavioral segmentation based on?

Buying habits, product usage patterns, and brand loyalty.

What is geographic segmentation?

Dividing the market by location or climate.

What does psychographic segmentation consider?

Customers’ values, lifestyles, interests, and personalities.

What is a buyer persona?

A semi-fictional representation of your ideal customer based on data and insights.

What are the key elements of a buyer persona?

Name, background, goals, pain points, and buying behavior.

How can you create a buyer persona?

Choose a product, build a persona (e.g., in pairs for an eco-friendly water bottle), and share key traits.

What does TAM stand for?

Total Addressable Market – 100% of potential customers, including all possible new products or services.

What does SAM stand for?

Serviceable Available Market – the portion of the market that your business can actually reach or serve.

What does SOM stand for?

Serviceable Obtainable Market – the realistic share of the market your business can capture.

Give an example of TAM, SAM, and SOM in action.

For a language-learning app:

• TAM: Everyone worldwide interested in learning a language

• SAM: Young professionals in selected countries

• SOM: 2% of that professional demographic