NVC Chapter 4: Structuring Your Business Model

Changing your business model and/or strategy.

An approach to decision making that is not based solely on deductive reasoning.

Strategy development that is characterized by reactive solutions to existing problems.

The maximum loss you are willing to accept should the venture fail.

The marketing benefits offered to each target market segment.

A generic business model that provides a pictorial structure to aid understanding and development of business models.

The ‘five Ps’ that define your marketing strategy: Product/service, Price, Promotion/communication, People (service) and Place (distribution channels etc.).

Using the elements of the marketing mix to make your product/ service as different as possible from competitors’. When valued by customers this usually leads to being able to charge a higher price.

Having a clear understanding of all aspects of customer needs so that customers are satisfied with all aspects of the product/service offering. Usually involves having a close relationship with customers.

The term used when less of a resource is used because it is spread across multiple activities. Often referred to as ‘1 + 1 = 3’.

The term used when less of a resource is used because it is spread across multiple activities. Often referred to as ‘1 + 1 = 3’.

The key customers or groups of customers you are targeting with your marketing mix.

The most important key activities. They may become critical success factors.

The activities upon which the success of the venture critically depend.

The strategies of low cost, differentiation and/or customer focus that form the basis of developing sustainable competitive advantage. Also called ‘value disciplines’.