Chapter 2 Flashcards
1
Q
New craft economy is distinguished by:
A
- quality
- small customized quantities
- technology
- service
2
Q
To successfully recognize opportunities, you must…
A
- conduct market research
- constantly respond to the changing needs of the marketplace
3
Q
Best business ventures:
A
- do what you enjoy
- use your unique experiences, skills, and aptitudes
- serve a market need
4
Q
Brainstorming is:
A
- a free and open exchange of ideas
- used to help identify market trends and opportunities
- a record of ideas
- successful when generated through an open, non-threatening environment that stimulates creative juices
5
Q
5 trends that help identify growth opportunities (5 major trends small business must embrace):
A
- Globalization
- Technology
- Internet and E-commerce
- The boomers
- Splintering of the mass market
6
Q
5 key factors that have splintered the mass market:
A
- Shrinking middle class
- Shifting sizes of age groups
- New living arrangements
- Ethnic groups are shifting and growing
- Improved information access (“mass customization”)
7
Q
4 social media trends:
A
- Connected society
- Global awareness
- Growth in vertical markets and local markets
- Brand-driven social media
8
Q
6 major environmental categories:
A
- SEPTIC
1. Social and cultural
2. Economic
3. People
4. Technology
5. International
6. Competition
9
Q
Name the life-cycle stages and examples for each:
A
- embryo (birth): ex. Genetic screening clinics
- growth: ex. Senior-adult care
- maturity: ex. Microwave ovens
- decline: ex. Tobacco products
10
Q
Market segmentation involves:
A
- breaking down potential markets into as many similar sub-segments as possible
- identifying opportunity gaps and seeing combinations of gaps that may constitute markets
11
Q
What answers should you answer with your elevator pitch?
A
- what is the market need?
- how does your business satisfy this market need?
- how do you, the business, and the target market benefit from this venture?
