ISB PM Class 3

Market Structure,
Personas and
Consumer Journeys
 Agenda/Topics To be Covered

1. Market Structure

2. Opportunity Assessment/Market Sizing

3. User Personas

4. Consumer Journeys
 Markets | How to define it ?

What is the market size for this hypothetical product?

Traditionally, the process would look like the below.

Bottom-up analysis:
(number of cars in country) * (repairs per car per year) * (average cost of repair per car) + (cost of spare parts)
= Big number 1 / bottom up analysis.
Then, you take a percentage of this value and assume that this is your market size.

Top-down analysis:
Find some statistics of the revenue of car repair shops. Make an assumptions on the margin through spare
parts. Make an assumption on what you could gather from this. Big number 2 / top down analysis
 Online App for booking Car service or repair

Bottom Up Top Down

Total cars sold in India in last 10 years = 10 Cr (Secondary Data)

Assumption = Cars older than 5 years

require servicing/repair once per year

Total cars older than 5 years in India = 4.5 Crs (assumption)

Metro Rest
Per car 500
servicing/repair =
1 brick = size of market in one city
2000 Top 20 cities
Mumbai = 20 block
Bandra West = 1 block 1000
BW = 10,000 cars
Car requiring servicing every year = 50%
BW Car for Servicing = 5,000
Charges spent per service/repair visit : 2000
Total Car servicing market per year in BW = 5000 X 2000 = 1 Cr.
 Markets | How to define it ?
• Definition of market –

• By Consumer segment (Individual, Enterprises, Small

business, Government, NGO……)

• By Value Proposition (delivered via product)

• By Channel type – Motorola and OnePlus

• Creating a new market, expanding existing market or trying to get

market share in same market – Porter 5 forces market

framework

• Market Sizing Case – Product Interviews – 4P approach

https://avada.io/resources/market-segmentation- • Tyre example

examples.html
• ETF Savings App
 TMO – 30 Cr

TAM – 6 Cr

TSM – 2 Cr
Segmentation, which refers to the process of categorizing a broad consumer base

into smaller groups with similar preferences and needs, is emerging as a potent

tool in comprehending consumer behavior and enhancing marketing strategies.

A customer at an organic food online brand is likely to have some or

all of these characteristics:

1. Gender: Male or Female

2. Age: 25-44

3. Income: $100,000+

4. Life stage: Home owner, no children

5. Interests: Healthy eating, sustainability, sport

Why should product managers segment users?

1. Deliver a personalized onboarding experience

2. Increase product adoption rate

3. Boost user retention

4. Deliver better product offerings – Upsell

5. Drive product growth

 Market Segmentation
• Segment - Marketers divide the market into categories based on shared traits.
• Target - They choose the market or target, who are most likely to buy their products.
• Position - Marketers research what product, price, promotion, and place combinations will attract
customers to buy their products.

• Why Segmentation ?
• To understand current competition and consumer behavior
• By customer demographics (Age, gender, geography and education level)
• Prioritize your value proposition and features
• Communication plan
• Channel strategy
• Resource optimization
https://userpilot.com/blog/user-segmentation/
 •Personality
•Hobbies •Spending habits
•Social status •Purchasing habits
•Opinions •Browsing habits
•Life goals •Interactions with your brand
•Values and beliefs •Loyalty to your brand
•Lifestyle •Product feedback
WHO?
•Value based segment WHERE?

FIRMOGRAPHICS

WHAT ?
•Age WHY & HOW? •Type of firm
•Gender •Climate
•Culture •Industry
•Income •Specific issues/use cases
•Level of education •Language
•Population density – (urban vs rural) •Employee count
•Religion •Revenue
•Profession/role in a company
https://www.yieldify.com/blog/types-of-market-segmentation/
Market Segmentation
Consumer Personas
Consumer Personas
Consumer Personas
B2C B2B

Persona A
Persona A
(Customer)

Product X Product Y
Persona B
(User/
Persona B Testing Consumer)
Automation
Tool – Cloud
Based
Consumer Personas
 Consumer Journeys
What is the consumer journey?

• The consumer journey is a detailed representation of the consumer buying process which are the steps

customers take on their way to making a purchase. It sets out all every interaction they have with your

brand - from awareness to research and even advocacy.

• In the world of eCommerce the consumer journey includes all the digital touchpoints that your brand has

with a customer. These could take place across websites social media online marketplaces search engines

apps or other channels as shoppers use their desktop mobile or other smart device.

• Creating a customer journey map allows businesses to understand the experiences and needs of their

target audience. These insights also empower marketers to target consumers with tailored content and

remove any barriers to conversion.

https://hbr.org/2015/11/competing-on-customer-journeys
 Consumer Journey Phases

Churn & Move Out

Usage
Support –
Discovery Consideration Purchase (First time &
Customer Care
Repeat)

• Google Search Continue to use

• Comparison
• Reviews on
Youtube Advocacy – Refer
• Check with others
friends
• Short of product
version
Consumer Journeys
Consumer Journeys
 Tech
Platforms
https://uxpressia.com/

28
Created by : www.skillspedia.org (Satinder Singh) 29
Top 3 mistakes
1. Guesses instead of data

The User Journey Map is worthless without talking to users. How else can you understand what they think and
feel?

One helpful method is "thinking aloud." Start by defining a series of tasks. Next, ask the first-time user to discuss
their thought processes as they interact with your product.

2. Mapping only the top-level phases

It's tempting to just focus on the big phases for a neat user story map.

But those little steps matter, too. Each one can spark different thoughts and emotions. Balance is key here.

3. Ignoring variations

Not every user journey will look the same. For example, before publishing the first product, the user might want to
add a custom domain.

So try to capture all these different paths.

Tasks for all
1. HRB article on consumer journeys
https://hbr.org/2015/11/competing-on-customer-journeys

2. Go through Qualtrics consumer journey course

https://www.qualtrics.com/lp/customer-journey-course/

3. Go through ISB content and create consumer persona and get it reviewed on Tuesday Q&A

4. Amazon App and First time Product Ordering – Go through all steps, actions and emotions and list them
down in consumer journey template – Excel or ppt
Consumer Journeys
Consumer Journeys
Consumer Journeys
It enables you to assess:

•Insights – from your existing customer journey, how to

understand it better

•Impact – how to optimize budgets and effort for changes we

want to make to the customer experiences

•Issues/opportunities – Diagnose the existing customer journey

•Innovation – where you might want to completely change the

existing customer experience

Example
If you’re buying a car, then the greatest moment of emotional load is
when you go to pick the car up because it’s yours, after picking the
color, choosing the model, and waiting for it to be ready.
 How to define Segments ?

• Descriptors or Dimensions -> Like Age, Demographics or specific aspect for specific industry

• Matrix 2X2 or 2X3 or 3X3 etc.

• Value-based segmentation groups customers based on economic value, such as if they’re free users,

trial users, or paid users. It helps you prioritize certain segments to increase revenue.

• Needs-based segmentation groups customers based on pain points, problems, needs, or

motivation. Collect customer data about product use cases or roles to build these segments.

• Behavioral segmentation involves grouping customers based on how they interact with your products.

To create these segments, track in-app events and group users based on their shared activity.
Market Segmentation