Markiting

 

In today’s lecture I learned that a business model is very important to develop a success business. There was a time when marketing specialist don’t play a vital role in promotions and selling of product and service, because the demand is already exist in market. Ford earlier automobile manufacture company was having the technology in his hand and demand for car was a craze.

Now there is a high competition in the field on automobile. There numerous companies who manufacture millions of automobile. When there is a competition in the market, companies work hard to develop a good business model & returning maximum profits. In case a business model fails, then the company have to face huge losses in future.

A synthesis of literature shows that there are mainly 9 building blocks to help us describe a business model:

1. The value proposition of what is offered to the market;
2. The target customer segments addressed by the value proposition;
3. The communication and distribution channels to reach customers and offer the value proposition;
4. The relationships established with customers;
5. The core capabilities needed to make the business model possible;
6. The configuration of activities to implement the business model;
7. The partners and their motivations of coming together to make a business model happen;
8. The revenue streams generated by the business model constituting the revenue model;
9. The cost structure resulting of the business model.

 These nine points are followed by any enterprise to run a profitable business.

Firstly a Business decide what is to be offered to the clients / customers.

Secondly, Business do the segmentation of its targeted customers. Its important to focus on customer who are interested in your product and services. We should not waste much time on those customers who just visit and don’t make a purchase again and again. But we should even ignore them, because they could be our customers in future, depend upon the economic situation / purchasing power of the customers.

Before we start any business its important to know the amount of revenue generation by the business model depending upon the cost structure. 

We should not target that segment of the country where there is zero for product and services. A brief analysis/ market research should be done over the demand of the product and service will be offered to the customers.

I hope you enjoyed reading my post, stay tune friends…….

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