ENTREPRENEURSHIP

Three types of innovation

Breakthrough innovation Technological innovation Ordinary innovation

Product or Service Planning and Development Process

Idea Stage Concept Stage Product Development Stage Test Marketing Stage

Opportunity Seeking

Involves the development of new ideas from various sources

Market Segmentation

Is the process of grouping similar or homogeneous customer according to demographic, psychographic, geographic (location) and behavior.

Wants

Recognize when a customer believes that there is a specific product or service that can perfectly suit his/her need

Needs

Recognized when a customer believes that there is a difference between his/her current situation versus his/her desired condition

Opportunity Seizing

The "pushing through" with the chosen opportunity

Risk Appetite

The entrepreneur's tolerance of business risk

Internal Intent

The main objective that the business will accomplish in the entrepreneur's life

Opportunity Screening

The process of cautiously selecting the best opportunity

Innovation

The process of positively improving the product or service

Opportunity

An entrepreneur's business idea can potentially become a commercial product or service in the future

Target Marketing

involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments consisting of the customers whose needs and desires most closely match your product or service offerings.

Seeking the Opportunity

is the first step and is the most difficult process of all due to the number of options that the entrepreneur will have to choose from.

3S of Opportunity Spotting and Assessment

is the framework that most of the promising entrepreneurs use to finally come up with the ultimate product or service suited for specific opportunity.

Idea Stage

•A market evaluation is conducted by the entrepreneur to assess whether the new product or service ideas will be accepted by the market using values and benefits to consumers as metrics

Opportunity Attractiveness Test (OAT)

•Aims to assist entrepreneur in ensuring that the opportunity that they will venture into is an attractive and feasible prospect •Designed to detail each entrepreneurial aspect into small chunks to come up with a sound decision •The entrepreneur must answer this test realistically and avoid overestimation or underestimation

Micromarket

•Consumer preferences, interest and perception •Competitors •Unexpected opportunities from customers •Talents, hobbies, skills and expertise •Irritants in the market place •Location

Product Development Stage

•Entrepreneur leverage on the information generated from the prospective customers via concept stage •Entrepreneur will conduct a consumer panel

Business Opportunity Elements

•Has superior value to customers •Solves a compelling problem, issue, a need or a want •Matches with the entrepreneur's skills, resources and risk appetite

How to Create an Effective Unique Selling Proposition

•Identify and rank the uniqueness of the product or service attribute •Be very specific •KISS (keep it short and simple)

Macroenvironmental Sources

•Industry •New discovery or knowledge •Futuristic opportunities •S T E E P L E D

Breakthrough innovation

•Inventions occur infrequently as these establish the platform on which future innovations in an area are developed •Protected by a patent, a trade secret or a copyright •Examples are internet, computer and airplane

Marketing Research

•Is a comprehensive process of understanding the customers' intricacies and the industry they revolve in. •Aims to scrutinize the target market, their specific requirements and the market size where the business operates.

Technological innovation

•Occur more frequently than breakthrough innovations •Technological advancements of an existing product or service •Examples are wireless fidelity or wi-fi, laptop and jet airplane

Ordinary innovation

•Originating from market analysis and technology pull instead of a technology push •Examples are unlimited internet plans of telecommunications companies, wireless mouse and airbus for economical travelers

Unique Selling Proposition

•Refers to how you will sell the product or service to your customers. •It addresses customers' wants •You can do this in the form of product or service characteristics, promotion strategies and tactics, distribution centers and supply chains, pricing, physical attributes or physical evidence, human resources or human capital and market positioning strategies.

Market Share

•Represents the percentage of an industry or market's total sales that is earned by a particular company over a specified time period •This metric is used to give a general idea of the size of a company in relation to its market and its competitors.

Value Proposition

•States why a customer should buy a certain product or service. •Value proposition has to be direct in addressing the problems of the customers, should have quantifiable benefits and should differentiate itself from the competitors. •Major driver in customer purchase or service availment.

Opportunity Seizing

•The last step in opportunity spotting and assessment •"pushing through" with the chosen opportunity •Innovation- process of positively improving an existing product or service

Market Size

•The size of the arena where the entrepreneur's business will play. •It is also the approximation of the number of buyers and sellers in a particular market.

Concept Stage

•Undergo consumer acceptance test •Getting the initial reactions of the primary target market •Conversational interviews are conducted to understand the consumer preference

Test Marketing Stage

•Validates the work done from the first three stages to measure success in the commercialization of the product or service •Actual sales results will be the foundation of the consumers' acceptance level and will be the basis in commercializing the product or service

CUSTOMER REQUIREMENTS

•are specific features and characteristics that the customers need from a product or service. •Used to formulate the value proposition and the unique selling proposition. •Entrepreneurs must be vigilant with the constant change in customer requirements.

Screening the Opportunity

•is the process of cautiously selecting the best opportunity •Depends on the entrepreneur's internal intent and external intent •Eliminate those opportunities that are not within the scope of the entrepreneur's risk appetite

Business Plan

A comprehensive paper that details the marketing, operational, human resource, financial, strategic direction and tactics of the business