Module 2 (SIGHHH) Flashcards
Reasons for Marketing Research :)
Market research provides avenues of insight for the entrepreneur into the demand for the product and the challenges which may be encountered during the entrepreneurial process and increase of sales.
What is Market Research?
Market research involves the collection and analysing of information need to make business decisions regarding potential customers and identifying their preferences.
Benefits of Marketing Research?
Minimizes the business risk (Enables them to see if it will succeed or not)
Identifies trends
New opportunities
Gives them a competitive advantage
Steps in Market Research
- Problem identification/ Identify research objectives
- Determine the research design
- Identify data types and sources
- Collect data
- Organise/collate data
- Analyse data
- Report findings
KEY ELEMENTS OF MARKET RESEARCH
Product characteristics:
The product features valued by the potential consumer must be clearly identified
Definition of market:
The size of the market helps the entrepreneur to decide whether he will operate in a mass market or choose niche marketing.
Expected sales trends
Market research provides the entrepreneur with information in
understanding consumer patterns and behaviour.
Customer analysis
Market campaigns can be designed to suit the target market when the entrepreneur obtains information from the research. New strategies can be evolved for ways to improve customer satisfaction and reduce wastage of resources and maximize the marketing plan.
Promotional strategy
The market research will allow the entrepreneur to create a customer profile and learn about what influences behaviour and spending power. Once the entrepreneur identifies the target market, a promotional strategy can be developed to launch information on the communications and product information that will be used to create product awareness.
Nature and level of competition
Competitors may already be present in the market. The entrepreneur should observe and become knowledgeable of competitors. This will assist the organisation in decision making in developing sustainable business strategies.
Cost-benefit analysis approach to market research
In this instance, the entrepreneurs assess the expected benefits of an opportunity and detract the expected costs. Once
What is Cost Benefit Analysis Approach?
A cost-benefit analysis is the process used to measure the benefits of a decision or taking action minus the costs associated with taking that action.
Feasibility Analysis, what it be?
The process of determining whether or not an Entrepreneurship idea is a viable foundation for creating a successful business
AKA
The process of making sure the risks in entering a business are worth it
Benefits of a FEASIBILITY ANALYSIS
Helps to avoid unnecessary risks being taken
New business opportunities may be discovered
Can convince investors
Preparing the business plan gon be easier
What are the ELEMENTS of the Feasibility Analysis
Personality: The entrepreneurs personality matters, since workers respond positively to their attitude.
Management: Will show if there are parts of the management team missing
Operation: Refers to the willingness of the employees, customers, and suppliers to follow the proposed system
Financial: This will decide if the Capital (Start-up) is enough to to start the business, and where u getting it from
Technical: Determines if there are enough physical resources
Marketing: Includes target market, sales trends, future market potential, examines competitors etc.
Time: How much time they have to complete the project
Industry: Determines the attractiveness, size, and how fast the industry is going
Cultural: How it is influenced by local culture
Market Research VS Feasibility Analysis??? :0
Market research provides information about the market, while feasibility analysis determines if a project is viable
What is Start up Capital
Startup capital is what entrepreneurs use to pay for any or all of the required expenses involved in creating a new business. This includes paying for the initial hires, obtaining office space, permits, licenses, inventory, research and market testing, product manufacturing, marketing, or any other operational expense.
What is EQUITY FINANCING? and DEBT FINANCING?
Equity financing is the personal investment of the owners and Debt financing involves borrowing money that must be repaid over time, usually with interest. Common forms of debt financing include loans, bonds, and lines of credit.
What are some sources of funding?
Angel Funding: Rich mfs investing in the business in exchange for equity or convertible debt
Gifts: Assets that are transferred voluntarily from one party to another, dawg its genuinely a gift
Grants: Money received by the business for a specific purpose, theres no obligation to reciprocate
Crowd Funding: It enables fundraisers to collect money from a large number of people via online platforms
Bequests: A bequest is a financial term describing the act of giving assets such as stocks, bonds, jewelry, and cash, to individuals or organizations, through the provisions of a will or an estate plan.
Steps in the ACCOUNTING CYCLE
(a) collect source/business documents;
(b) prepare journal entries;
(c) post to ledgers;
(d) extract trial balance; and,
(e) prepare financial statements.
What is Book-keeping
This deals with record keeping
