As was simulated, the value proposition includes all the features of your product but also the pains and gains you're solving for the customer segment and that's where the market goes.

Do you have some insight about technology and, again, the gains and pains that that will provide for customers?

And in value proposition, the goal of this is to find out that minimum viable product.

Instead of pricing based on cost,

Customers can name the market. Customers want or need better performance.

So the impact of all this has been essentially one of growing the market, because it focused on the non customer, and then by reaching the unreached, we're able to significantly grow the market.

And we said, Well, there's another option.

But in most teams if they are technology driven, they tend to start on value prop and most teams if they happen to be marketers or business people, happen to start with the customer segments.

And so now you could kind of see the power of the canvass.

JU That's a good question, and we ask ourselves that every day.

This was a startup killer for decades.

And product market fit just simply says what is the match between what you are building and what customers need and want, and who are those customers.

By now, you're intimately familiar with the business model canvass.

So on day one, these were their initial hypothesis coming into the class.

In customer relationships all the get keep grow metrics, some of which we talked about, some of which you'll discover, what were the customer acquistion costs?

Now if you remember we started here on the left. We didn't earn and paid media.

And competitors, there's many if you're wrong but very few if you're right, and your risk is that you get the market and product redefinition just wrong.

There is a type of startup in what we call a new market, and we'll be describing new markets in the Customer Segments lecture.

This test between problem and solution and your features and customers is actually sometimes called product market fit.

Now we finally come to the last part of the business model canvas.

So, if we take a look at the Jersey² team was worrying about, it's what most start ups worry about on day 1, is does my value prop match my customer segment, and do I have product market fit?

At clone market, the customers are possibly known because you copied an existing market

But the next step is you get out of the building.

You're taking market share from incumbents from day one.

Many companies have huge databases of customer information.

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

They could tell you that I want bigger, faster, cheaper status quo.

You cater an event where the cost to you was 200

I have no idea where my husband is.

So in our last lectures we talked about value proposition, customer segments, distribution channels, customer relationships get, keeping and growing customers.

In an existing market, you actually might need these guys, but in a resegment and in certainly a new market, these are needed for early evangelist and so you need to think through.

Because no one, and that was a constant problem...

It's a big idea.

Apple is one of the few, truly cares.

That's your job as the facilitator and coach.

We've got customers.

Who do you do that for?

Defense department's largest contractor.

He's not the client.

What are the costs of jerseys and warehousing and shipping and cleaning,

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

I mean how do they hear of our products, how do they know about you, and as we'll see later one of the interesting things is there are some customers that are users like in Google

And Moore postulated that there was a gap, a chasm, between visionaries and the mainstream and pragmatic and conservative market.

What's most important to us when we make a video is what the customer sees.