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🎓 Market Research, Validation & Business Model Canvas

"Turning an idea into a validated business opportunity."

Prepared by: Dr. Resham Raj Shivwanshi

Course: Entrepreneurship / Innovation & Startup Development
Lecture No.: 4 | Duration: 1 Hour

📚 Learning Objectives

By the end of this lecture, students will be able to:

  • Understand the role of market research in startups
  • Conduct basic validation for their ideas
  • Design and interpret a Business Model Canvas (BMC)
  • Identify the target market and customer segments

🔄 Recap – From Mindset to Market

Last Class:

Entrepreneurial Mindset & Opportunity Identification

Today:

How to research, validate, and model that opportunity

Key Transition:

Idea → Opportunity → Business Model

🧠 What is Market Research?

Systematic collection and analysis of information about your target market, customers, and competitors.

Primary Research

  • Surveys
  • Interviews
  • Focus groups
  • Observations

Secondary Research

  • Industry reports
  • Online data
  • Publications
  • Market studies

💡 Why Market Research Matters

  • 🛡️Reduces business risk
  • 🔍Identifies market gaps
  • 🎯Helps define your target audience
  • 💰Informs pricing and positioning strategy
  • ✅Validates customer need

❓ Key Market Research Questions

👥 Who are your target customers?

❗ What problems are they facing?

📊 How big is the market (TAM, SAM, SOM)?

🏢 Who are your competitors?

🛒 What are the customer preferences & buying behavior?

📱 Example – Zomato

Research Aspect Example Insight
Problem People struggle to find reliable restaurant reviews
Target Audience Urban smartphone users
Competitors Swiggy, UberEats
Market Size Rapidly growing online food delivery market

🛠️ Tools for Market Research

📈 Google Trends
📊 Statista, IBISWorld
📱 Social Media Analytics
📝 Google Forms, Typeform
💬 Customer Interviews

🔍 What is Validation?

Testing if your idea solves a real problem for real people who are willing to pay for it.

✅ Validation Techniques

  • Customer Interviews – Talk to 10–20 potential users
  • Landing Page Test – Create a simple page & track interest
  • MVP (Minimum Viable Product) – Launch a basic version
  • Pre-orders / Sign-ups – Check real willingness to pay
  • A/B Testing – Compare two versions of your idea

🎯 Validation Funnel

💡 Idea
❗ Problem Validation
💡 Solution Validation
📊 Market Validation
💼 Business Model Validation

🏠 Example – Airbnb Validation

Step 1: Start Small

Started by renting out air mattresses in an apartment

Step 2: Test the Hypothesis

Validated that strangers were willing to pay for shared stays

Step 3: Scale

Expanded after real-world feedback confirmed the need

💼 Introduction to Business Model Canvas

A visual framework to describe, design, and analyze a business model.

Developed by Alexander Osterwalder

🧩 The 9 Building Blocks

👥 Customer Segments
💎 Value Propositions
📢 Channels
🤝 Customer Relationships
💰 Revenue Streams
🔑 Key Resources
⚙️ Key Activities
🤝 Key Partnerships
💸 Cost Structure

📋 Business Model Canvas Template

🤝
Key Partners
⚙️
Key Activities
💎
Value Propositions
🤝
Customer Relationships
👥
Customer Segments
🔑
Key Resources
📢
Channels
💸 Cost Structure
💰 Revenue Streams

🚗 Example – Ola / Uber

BMC Component Example
Value Proposition Affordable, quick rides on-demand
Customer Segments Daily commuters, travelers
Channels Mobile App
Revenue Stream Commission per ride
Key Partners Drivers, payment gateways
Key Resources App platform, algorithms

📝 How to Use BMC

  • Start with Customer Segments & Value Proposition
  • Fill others logically — what resources, partners, and costs support your offering
  • Keep updating as your idea evolves
  • Use sticky notes or digital tools (Canva, Miro, Strategyzer)

⚠️ Common Mistakes

❌ Building around features, not customer needs

❌ Ignoring cost structure

❌ Copying competitors' model without understanding

❌ Not revisiting the BMC after feedback

🧩 Group Activity – Build Your BMC

🕒 Time: 10 minutes

Task:

  1. Form groups of 3–4
  2. Choose any startup idea (real or imaginary)
  3. Fill out a basic Business Model Canvas on paper
  4. Present your Value Proposition & Customer Segment in 1 minute

💬 Discussion & Reflection

Question 1:

What was hardest to define?

Question 2:

How did market research guide your choices?

Question 3:

What assumptions need testing?

📌 Summary

✅ Market research gives data-driven insights

✅ Validation tests assumptions before scaling

✅ Business Model Canvas helps structure your business idea

📚 Assignment

Homework:

  1. Pick one startup idea
  2. Conduct basic secondary research
  3. Prepare a one-page Business Model Canvas (hand-drawn or digital)
  4. Submit in next class

💭 Final Thought

"Get out of the building and talk to your customers."
– Steve Blank