Recognizing a Potential Market Q3-L3 PDF

LESSON 3 RECOGNIZING A POTENTIAL MARKET  OBJECTIVES Identify the market problem to be solved or the need of the market to be met. Propose solutions in terms of products and services that will meet the need using techniques on seeking, screening, and seizing opportunities  The Ent...

LESSON 3 RECOGNIZING A POTENTIAL MARKET  OBJECTIVES Identify the market problem to be solved or the need of the market to be met. Propose solutions in terms of products and services that will meet the need using techniques on seeking, screening, and seizing opportunities  The Entrepreneurial 02 Process Opportunity Spotting and Assessment Developing Business Plan Determining the Capital Needed Running the Business The Entrepreneurial Process 1. Opportunity spotting and assessment Entrepreneurs at this point take note of interesting trends in their environment. Entrepreneurs should also assess if the opportunity is aligned with their personal goals and attributes. The Entrepreneurial Process 2. Developing a business plan Business plan – a comprehensive paper that details marketing, operational, human resource, financial, strategic direction, and tactics of the business. - The business plan will be the core guide and direction of the entrepreneur in calculating the resources needed, assessing how to obtain these resources efficiently, and running the business sustainably. The Entrepreneurial Process 3. Determining the capital needed - Capital refers to money invested in a business to purchase assets. - In this part, the entrepreneur should have enough capital to translate the idea or plan into reality. The Entrepreneurial Process 4. Running the business The entrepreneur should have a control and monitoring system to serve as a check and balance of the formulated plans. Entrepreneural Mindset Scanning the Marketing Environment Scanning the marketing environment is the starting point of any new venture that involves understanding and knowing the intricacies of the macroenvironment, microenvironment, and internal environment. With this process of scanning the general environment, an entrepreneur can recognize various opportunities and at the same time understand thoroughly the arena where the future business will operate. Seeking, Screening, and Seizing The 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 a specific opportunity. OPPORTUNITY - Is an entrepreneur’s business idea that can potentially become a commercial product or service in the future.  S1 SEEKING THE OPPORTUNITY  OPPORTUNITY SEEKING Opportunity seeking 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. 02 These are the basic foundation that the entrepreneur must have in seeking opportunities: Macroenvironment Sources STEEPLED - This is a mnemonic for sociocultural, technological, economic, environmental, political, legal, ethical, and demographic factors. Industry - This is the source of current trend on what is happening in the industry where the future business will belong to. New discovery or knowledge - These are new trends that can be the core business model of a new venture. Futuristic opportunities - These are projected new opportunities that can possibly affect the new business while it is running. Micromarket Consumer preferences, interests, and perception - These are the current needs and wants of potential customers that should be discovered right away by a budding entrepreneur. Competitors - Recognizing and understanding potential competitors will aid the entrepreneur to develop a product or service that is unique and will surely stand out from the competition. Unexpected opportunities from customers - It may happen in unlikely situations, unlikely places, and with unlikely people. Talents, hobbie, skills, and expertise - The entrepreneur’s talents, hobbies, skills, or expertise can be a source of business opportunity. Irritants in the marketplace such as deterrents, problems, complaints, and delays - Generally, entrepreneurs see opportunities in situations where there is a recurring problem or sometimes when there is no more hope in solving the problem. Location - Often, entrepreneurs just have to look at their ecosystem and they will be able to spot a business opportunity right away. Methods of Generating Ideas 1.Focus Group Discussion 2.Brainstorming 3.Brainwriting or Internet Brainstorming 4.Problem Inventory Analysis  S2 SCREENING THE OPPORTUNITY SCREENING THE OPPORTUNITY Is the process of cautiously selecting the best opportunity.  The selection will depend on the entrepreneur’s Internal intent (i.e., the main objective that the business will accomplish in the entrepreneur’s life External intent, which will address the compelling needs of the target market. Risk appetite Refers to the entrepreneur’s tolerance of business risks. TIME Should only be devoted to worthwhile opportunities. Therefore, entrepreneur’s must always be sharp- eyed for real opportunities. The entrepreneur should say NO to an opportunity if it does not contain any of these business opportunity elements: 1. Has superior value to customers 2. Solves a compelling problem, issue, a need, or a want 3. Is a potential cash cow 4. Matches with the entrepreneur’s skills, resources, and risk appetite.  S2 SEIZING THE OPPORTUNITY  SEIZING THE OPPORTUNITY Opportunity seeking is the last step in opportunity spotting and assessment. This is the “pushing through” with the chosen opportunity.  INNOVATION Is the process of positively improving an existing product or service. It is the key driver for economic growth. THREE TYPES OF INNOVATION 1. BREAKTHROUGH INNOVATION - these innovations, which may also include inventions, occur infrequently as these establish the platform on which future innovations in an area are developed. These must be Protected by a patent, a trade, secret, Or a copyright. EXAMPLES 2. TECHNOLOGICAL INNOVATION - these innovations are technological advancements of an existing product or service. These innovations need to be protected, too. Jet Airplane 3. ORDINARY INNOVATION - these innovations are commonly originating from market analysis and technology pull instead of a technology push. Airbus for Economical Internet Plan Travelers  The bottom line in innovation is that the product or service should improve the lives of its users. Thank You Very Much