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Identifying Business ideas - Coggle Diagram
Identifying Business ideas
internal sources of business ideas
for entreprenurs
Interests and hobbies
Unexpected events
Frustration
Skills and knowledge
for existing firms
brainstorming
intrapreneurship
research and development R&D
primary research
observation
-learn from behavoir/reactions
consumer pannels/focus group-
potenital consumers discuss firms products . consumer habits and opinions
surveys-
interview with potential consumers -face to face,phone ,online
mystery shoppers
- anonymous shoppers evaluate customer service and store operations
Reasons For Conducting Market Research
To find out the size of the market
To Identify competitors
To find out consumer needs and wants
To Identify trends
Benefits of Market Research
Identify the target market
Reduce costs
Evaluate an advertising campaign
Forecast future trends
Identify problems
secondary research
gov publications- gov departments- useful info on markets at home and abroad
internet- search engines
business reports - increase knowledge of competition or other markets
commercial reserch agencys - business conduct reserch
media
Development Process of a New Product
Idea Generation
Product Screening
Concept Development
Feasibility Study
Prototype Development
Test Marketing
Product Launch
external sources
for entrepreneurs:
family and friends
networking
for both
media
market trends
state agencies
import substitutions
for existing businesses
compeditors
customer feedback
Margin of Safety
Difference between a firm's forecast output (sales) and its break even point.
Margin of Safety = Forecast Output (Sales) - Break Even Point