Ch 14 Revision

1
Ch 14 Revision

• Identifying Business Opportunities

2
Internally (own strengths weaknesses)

• Personality
• Skills
• Hobbies/ interests
• Experiences
• Age
• Unexpected occurences
• Brainstorming
• Market trends
• Customer feedback
• RD
• Import Substitution

3
Externally( opportunites threats)

• Home
• Neighbourhood
• The media
• Networking
• Golden pages
• Internet
• Foreign countries- send reps abroad copy ideas
• State agencies- Enterprise Ireland provides info
  on products being imported that could be made
  domestically

4
Stages of a new product idea

• 1) Idea generation
• 2) Product screening
• 3) Concept development- USP- ensure idea will
  appeal to consumers
• 4) Conduct feasibility study- preliminary report
  into profit potential of the idea (demand,
  marketing mix, skills, training, finance, cost,
  price)
• 5) Prototype development- sample product made to
  see if the idea work in practice
• 6) Test marketing- reaction of sample market to
  prototype
• 7) Production- if result of test marketing is
  positive begin production
• 8) Launch of product on the market

5
Market Research

• Collecting, recording detailed analysis of
  information needed to accurately identify needs
  future needs of potential customers in order to
  provide a product to satisfy these needs
  profitably.
• Tells info about
• Market size, Competitors, Consumer needs, buying
  influences, consumer reaction, predict sales,
  helps determine price

6
Types of Market Research

• Desk
• State agencies
• Magazines, reports
• Internet
• Commercial databases
• CSO- Census
• Trade associations

• Field
• Surveys
• Interviews
• Work experience
• Observation
• Consumer panels
• Competitors

7
Pros Cons

• Desk
• Quick
• Vast amts of info
• Cheap
• Doesnt reveal deeper consumer motivations eg why
  they buy certain brands

• Field
• Slow
• Expensive
• More accurate
• Detailed info

8
Selecting a sample

• Random- no specific criteria
• Cluster- area live in
• Quota- chosen because of some criteria

9
Break Even Point
10
Break Even Point Formula

• Fixed Costs
• Sales Price Per Unit- Variable Cost per unit

11
Agencies

• Enerprise Ireland- info on mkts grants
• County Enterprise Boards- mkt info grants
• FAS- training prototype development
• Teagasc-mkt info in food ag business
• First Step- research advice finance to
  entrepreneurs in deprived areas
• Commerical Market Research Companies- Lansdowne