ABSTRACT
This chapter compares radical innovations to incremental innovations and discusses the need for changes in customer behaviour. It defines marketing and sales and explains the effectual marketing approach. A business model works if three requirements are met: the start-up's new product has positive customer value; a certain group of customers is convinced that the new product outperforms alternatives in the marketplace; and this group is willing to engage in exchange at a price that compares favourably to the development, production and distribution cost involved. Different business models can be developed for similar situations or new products. Many entrepreneurs, particularly high-tech entrepreneurs, are sceptical about the value of marketing and stereotypes about it prevail. Marketing should be included in the list of essential tasks for any entrepreneur. Specifically, customer development as a process should complement the start-up's new product development and help identify and secure its business model.
