Applying Business Model Canvas

Osterwald and Pigneur (2010) developed a Business Model Canvas, which is a framework for online business and particularly start-ups for summarising the key aspects of digital marketing that they need to consider.

It includes the following:

• Value proposition: The value that the businesses offer to the customer through products and services, eg convenience and quality.

• Customer segments: Consider what value proposition will appeal to which customer and which segmentation you want to focus on.

• Customer relationships: The relationships that will be formed with customers through automated services, communities or personal assistance.

• Channels: Which channels are suitable for the company to reach its customer segments. How the organisation delivers its value proposition in order to maximise its reach.

• Key partners: Forming partnerships with online and offline networks, including existing organisations and online influencers.

• Activities: The activities that need to be carried out in order to deliver the value proposition to customers.

• Resources: How to allocate people and resources to carry out the digital marketing activities and to create and deliver the value proposition.

• Cost structure: Consider the available resources and how to evaluate the costs of each digital marketing activity.

References

_{Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. Locate link Available for fee paying students.}