Entrepreneurship Module 2.1: Market Factors for New Entrepreneurs

Study Notes

Recognizing Potential Market Factors

To succeed in business, it's essential to know your product or service and its customers, who want to try new products that are better than existing ones.
Analyzing market potential is crucial, as it determines the success of a business venture; the wider the market potential, the more chances of growth and success.
An effective marketing strategy is necessary to reach customers and satisfy their needs.
Knowing your competitors is vital, as it allows you to develop new products and marketing strategies that turn their weaknesses into opportunities for your product.

Developing a Business Plan

Tangible products have a physical appearance, can be a service or idea, and have precise specifications.
Augmented products include image and service features, offering intangible benefits to customers.
Generic products emphasize the impact of the product on the consumer, not the seller.

Types of Products

Tangible products can be durable goods (used over a long period) or non-durable goods (quickly consumed or worn out).
Services can be rented-goods services, owned-goods services, or non-goods services.

Consumer Products

Consumer products are goods and services destined for the final consumer for personal, family, or household use.
Examples include products routinely used by consumers, such as bread and soft drinks.

Types of Consumer Products

Convenience products require minimal effort to purchase, such as bread and coffee.
Shopping products require further knowledge and information to make a purchase decision, such as airline tickets and electronics.
Specialty products have particular brands and stores that consumers are loyal to, such as luxury cars and professional photographic equipment.
Unsought products are those that consumers are not aware of or do not usually consider buying, such as funeral services and encyclopedias.

Industrial Products

Industrial products are goods or services purchased for use in the production of other goods or services, in the operation of a business, or for resale to other customers.

Channel of Distribution

A channel of distribution consists of people or organizations involved in the distribution process.
Channel members can be manufacturers, service providers, wholesalers, retailers, or consumers.
Types of channel distribution include direct channel distribution, indirect channel distribution, exclusive distribution, selective distribution, and intensive distribution.

Physical Distribution

Physical distribution covers activities related to the efficient delivery of raw materials, parts, semi-finished items, and finished products to designated places and times.
Physical distribution involves transportation, inventory management, warehousing, and retailing.

Branding

A brand is a name or mark that identifies a seller's product and differentiates it from competitors.
Branding strategies include producer's strategy and middleman's strategy (co-branding).
Advantages of branding include easy identification, assured quality, and reduced price comparison.
Selecting a good brand name involves suggesting the product or service, being easy to pronounce and remember, being simple and short, and being distinct from others.

Description

Learn about recognizing potential market factors to consider as a new entrepreneur. Explore topics such as knowing your product or service, analyzing market potentials, and determining customer needs and wants.