Questions and Answers
A product can only be either heterogeneous or homogeneous.
False
Entrepreneurial ventures that produce heterogeneous products include soft drink manufacturers.
False
Product description aims to provide customers with details about the price of the product.
False
Using power words in product descriptions is not recommended.
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Product description should focus on the product benefits to encourage customers to purchase.
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Knowing the target market is not essential when creating a product description.
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A prototype is created after the massive production of a product.
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One of the important early steps in the inventing process is making a prototype.
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Features of a product or service include reasons why customers decide to buy the product.
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Pretesting a product is giving a free sample to consumers before they commit to a purchase.
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The main goal of value chain analysis is to eliminate competitive advantage.
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Supply chain management systems help coordinate planning, production, and logistics among supply chain members by automating information flow.
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Match the following phases in developing a business model with their descriptions:
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Match the following components of a business plan with their purposes:
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Match the following components of a Business Plan with their descriptions:
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Match the following sections of a Business Plan with their functions:
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Match the following terms related to a Business Plan with their meanings:
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Study Notes
Product Development
- A prototype is a duplicate of a product, including details like color, graphics, packaging, and directions, created before mass production to test and refine the product.
- Prototyping is an essential step in the inventing process to meet customers' needs and expectations.
- Pretesting involves giving a sample of the product or service to consumers to try before committing to a purchase.
Suppliers and Supply Chain Management
- Suppliers play a vital role in a manufacturing venture, and entrepreneurs need to choose a reliable partner who shares their business objectives.
- Supply chain management systems automate the flow of information among members to make informed decisions about purchasing, production, and shipping.
- Value chain analysis aims to identify competitive benefits in a company's production, marketing, and after-sales service.
Product Characteristics
- A product is the physical output of the production process and should be valuable and beneficial to consumers.
- Products can be heterogeneous (dissimilar characteristics) or homogeneous (hardly distinguishable from others).
- Examples of heterogeneous products include furniture, bags, and home decors, while homogeneous products include soft drinks and medicines.
Product Description
- A product description promotes and explains the product's features and benefits to customers.
- Effective product descriptions should target the right market, focus on benefits, use natural language, and include good images.
Business Model
- A business model describes how an organization creates, delivers, and captures value in economic, social, cultural, or other contexts.
- It outlines the company's plan for revenue generation, product/service manufacturing, and marketing, as well as expenses.
- Developing a business model involves identifying the target audience, establishing business processes, recording resources, and creating a strong value proposition.
Business Plan
- A business plan is a guide for entrepreneurs to successfully complete a business venture.
- Different business plans are prepared for different purposes, such as convincing investors or setting up a new enterprise.
- Components of a business plan include an introduction, executive summary, management section, marketing section, financial section, production section, competitive analysis, and market analysis.
