APPM2MARKETINGINNOVA - Knowledge

Marketing & Innovation

Session 02:
Business Model Canvas

Marcos LIMA, PhD
Skema Business School

Knowledge Management,
Innovation and New Products
 How

are these concepts
related?
Do we

Business Model
Positioning
Process
Marketing Mix

Market
Results

Innovation

Knowledge
Management

Technology

New Products
& Services

have an
innovatio
n
strategy?

Do we have an
innovative

Organization?

Targeted
Segments

Business Models are ‘Iterative’!
 Structure

of ‘The BM
Generatio
n’
Textbook

Business Models Are not New!
 Examples

of Innovative BM

 Diners Club, 1950
 Xerox pay-per-copy, 1959

What is a Business Model
 Your

Definition?
 Alex
Osterwalder’
s Definition
 A business
model
describes the
rationale of
how an

Strategic Marketing
and Value Creation
 Physical

Process: What is
wrong here?

Source: Lannings & Michaels 1988 apud Kotler, 2009

Strategic Marketing
 Physical

Process x Value
Creation Process

Source: Lannings & Michaels 1988 apud Kotler, 2009

Marketing Planning Process
Technologic
al
Forces
Economic
Forces Product/Br
and
Positioning

Cultural
Forces
Segmentati
on
Place/
/Targeting
Distributio
n

Product

Marketing
Environement

Marketing
Positioning
Marketing
Mix
Customer
Needs

Social
Forces

Promotion

Price

Competitiv
e
Advantage
Competitiv
e
Forces

Legal/
Political
Forces

Marketing Planning Process

Technologic
al
Forces
Economic
Forces

Social
Forces

Marketing
Positioning
Marketing
Mix
Customer
Needs

Cultural
Forces

Place/ Segmentati

Product Distributio
on
n
/Targeting

Choosing
the Value
Marketing
Environement

Market /
Product
Positioning

Promotion
Promotion

Price

Competitiv

e
Advantage

Providing
the Value

Competitiv
e
Forces

Communicating the Value

Legal/Politi
cal
Forces

Strategic Marketing
 Choosing

the Value

A. Segmentation

B. Targeting

C. Positioning
Differentiation
attribute
A

Differentiation
attribute
B

Strategic Marketing

Segmentation

Video-Case: The Strategy

Targeting

Targeting

Positioning
Image
Identity
: The
:

way the public
perceives
The way the
a company or its
products
company
aims to
identify or
position
Positioning
Brand
itself

Source: http://www.slideshare.net/madhusudanpartani/segmentation-targeting-and-positioning

Positioning Map

Positioning:
The Mountain Dew Case
 What

do you think is this brand’s
positioning?

Positioning
 Positioning

Statement draft
for Mountain Dew:
 To young, active softdrink consumers who
have little time for
sleep, Mountain Dew
is the soft drink that
gives you more
energy than any other
because it has
Source: brand
http://www.slideshare.net/madhusudanpartani/segmentation-targeting-and-positioning

Positioning Map
Sugar

Caffeine

Positioning Value Proposition

Positioning & the Mix

The BM CANVAS

https://www.youtube.com/watch?v=QoAOzMTLP5s

9 Blocks of BMC
 WHO

do
you help?
 WHO do
you
deliver
value to?
 Choose to
serve
segments
whose

9 Blocks of BMC
 How

do
you help?
 What
value are
customer
s getting?
 Seek to
solve
customer
problems

9 Blocks of BMC
 How

do
they know
you?
 How do
you
deliver
value?
 Communica
tion,
distribution

9 Blocks of BMC
 Channel

Phases

9 Blocks of BMC
 How

do

you
interact
with
customers
?
 Can you earn
their
loyalty?

9 Blocks of BMC
CRM tools
• Personal
assistance
• Dedicated
personal
assistance
• Self-service
• Automated
services
• Communities
• Co-creation

9 Blocks of BMC
 What

to
you get
from the
relationshi
ps you
build?
 Revenue
(and other
benefits!)

9 Blocks of BMC
 Main

Revenue
Types
Asset sale
Usage fee
Subscription fee
Lending/ Renting /
Leasing
 Licensing
 Brokerage fees
(credit card model)





9 Blocks of BMC
 What

you

are
 Your
organization
 What

you

have
 Your
resources

9 Blocks of BMC
 What

you

do
 Critical
competence
s

9 Blocks of BMC
 Examples

of Key
Activities:
 Production
 Problem
solving
 Platform /
Network

9 Blocks of BMC
 Who

helps

you
 Outsourced
activities?
 Outside
resources?

9 Blocks of BMC
 Types

of
Partnerships:
 1. Strategic
alliances between
non-competitors
 2. Coopetition:
strategic
partnerships
between
competitors
 3. Joint ventures to

9 Blocks of BMC
 What

you

give
 Financially
or
otherwise…

9 Blocks of BMC
 Cost






structures

Fixed
Variable
Economies of scale
Economies of scope

BMC Overview

 Competencies

Required by the
BMC

Brainstorming with the BMC

‘Long Tail’ Business Models

http://thefinanser.co.uk/fsclub/2013/08/sibos-2013-the-long-tail-model-is-coming-to-banking-part-two.html

‘Long Tail’ Business Models

‘Long Tail’ Business Models

Lego Factory:
A Case of ‘Long Tail’ BM Failure

‘Long Tail’ Business Models

Multi-Sided Platforms
 Platform

BM Pattern

Multi-Sided Platforms
 Multi-sided

Google

Platforms:

Multi-Sided Platforms
 Wii

x PSP / Xbox

Multi-Sided Platforms
 Apple’s

Evolution into a
Platform

‘Free’ or ‘Freemium’ Models
 Freemium

BM Pattern

‘Free’ or ‘Freemium’ Models
 Metro,

Free Newspaper

‘Free’ or ‘Freemium’ Models
 Flickr

‘Free’ or ‘Freemium’ Models
 Skype

Good Luck!

Marcos Lima
limamarcos@gmail.com