Chapter 19 - Identifying Business Ideas

• market research - the process of collecting and analysing information about the target market
• primary (field) research - involves gathering first-hand information from the marketplace
• secondary (desk) research - involves gathering and reviewing information that has already been collected by others
• development process of a new product - idea generation, product screening, concept development, feasibility, prototype development and test marketing
• Step 1 - Idea Generation - ideas for new products can come from internal sources such as a firms r&d department or brainstorming sessions. External sources such as suggestions from friends and family or customers feedback can also provide ideas
• Step 2 - Product Screening - all ideas generated are vetted and those deemed to be impractical or unworkable are dropped. The ides most likely to be successful are chose for further development. This saves the business time and money developing a product that consumers will not buy
• Stage 3 - Concept Development - This is when the ide is turned into an actual product to meet the needs of consumers. The USP of the product is identified and this differentiates it from other products on the market
• USP - Unique Selling Point - the features that make a product stand out from its competitors
• Stage 4 - Feasibility Study - carried out to investigate whether the product is commercially viable
• Stage 5 - Prototype Development - can be used to test the product to see if it meets standards and to determine whether any adjustments or improvements can be made
• Stage 6 - test marketing - the product is launched into a small section of the market - the business can evaluate how consumers react to the product and whether further changes are needed
• Stage 7 - Product launch - the product is launched into the entire market and full-scale production begins - a strong marketing campaign is needed to raise consumer awareness of the product