2. Recognize a Potential Market Flashcards
is the part of the market you can capture in the future.
potential market
includes the groups that do not currently your customers but could become customers in the future.
potential market
They might become your customers because you expand your available products or services, or because you begin marketing your current products and services in a new way and to new groups of buyers.
potential market
This could refer to existing inefficiencies, awkward workflows or non-optimal solutions.
Market problems
are the target market’s stated or silent problems.
Market problems
The key to finding a market problem is to ………
listen for frustrations, or “if only” statements, that arise during interviews.
Market needs a ____________ that relates to the functional or emotional needs or desires of a target market.
marketing concept
In identifying market problem, the following can be considered:
- Existing customers
- Target market users
- Prospects
The entrepreneurial process of creating a new venture is presented in the diagram below.
- Creation of Entrepreneurial Ideas
- Creation of Entrepreneurial Ideas
- Creation of Entrepreneurial Ideas
is the process of spotting, evaluating, and pursuing relevant and sustainable revenue and profit generating activities in the market place
opportunity seeker
SEEKING THE OPPORTUNITY
1.Changes in the environment
2. Technological Industry and Advancement
3. Government thrust programs, and policies.
4. People’s interest
5. Past experiences
It is also known as the “five forces of competition,”
forces competition model
it is the act or process of trying to get or win something
competition
These are the five forces competing within the industry:
Buyers
Potential new entrants
Rivalry among existing firms
Substitute products
Supplier
are the one that pays cash in exchange to your goods and services.
buyers
has a strong and magnified bargaining power.
buyer
The threat of its bargaining power will be less if the following factors notice:
a. There are several suppliers available in the market.
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.
is defined as the one who enters something.
potential new entrants
or example, the level of capital requirements, if the business requires huge capital, new entrants should decline to join the business. This gives a threat to the business. This can be notice if there is the presence of the following factors:
a. Substantial capital requirement.
b. Strict government policy.
c. Difficulty in accessing distribution channels.
d. Economies of scale. (savings in costs gained by increase in production)
e. High cost of product differentiation(what makes your product more attractive to consumers)
is a state or situation in which people or groups are competing with each other. For example it depends on the Marketing strategy of your competitor, like giving freebies and special offers.
Rivalry among Existing Firms
means anything that takes the place or function of another
substitute products
A substitute product can give a big threat in the industry environment if the following factors are notice:
a. Switching cost is low.
b. Preferences and tastes of the customers easily change.
c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically improves.
e. The price of substitute product is substantially lower.
are the one that provide something that is needed or wanted
suppliers
