Stage 3 - Market feasibility study Flashcards
What are the 6 areas a feasibility study considers?
1) The concept for your venture
2) An assessment of your market
3) The technical feasibility of your idea
4) The supply situation
5) Cost–profit analysis
6) Your plans for future action
Describe the 5 degrees of innovation
1) New invention – created for the first time
2) Highly innovative – product is somewhat new but not widely known or used.
3) Moderately innovative – existing product has been modified significantly.
4) Slightly innovative – a small but significant modification is made to establish product
5) Copycatting – someone else’s idea
Who is your customer? Consider these five types of markets:
1) (B2C) The consumer market - Business to consumer, individual users of products and services like you and me
2) (B2B) The institutional market - Organizations (hospitals, schools etc’)
3) (B2B) The industrial market - Other firms and businesses
4) (B2B) The government
5) (B2B) The international market
What is the market? State 5 questions.
1) Who is your customer?
2) How big is the market?
3) Where is it located geographically?
4) How fast is it growing?
5) Who buys it? Why do they buy it?
6) Where and how do they buy it? How often?
7) What are their principal requirements?
What are the 3 market segments?
1) Geographic - part of a city or town, county, province, region, or country.
2) Demographics - age, gender, marital status, family size, race, religion, education level, income, and occupation.
3) Psychographic (or sociological) - lifestyle, status, timing and means of purchasing, and reasons for buying products or services similar to yours.
Which four steps the market research process involves :
1) Define the need for information
2) Search for secondary data
3) Gather primary data
4) Interpret the information
How to gather primary data?
1) Observational Methods – observing people in particular situations
2) Questioning Methods – Survey research and Experimentation
Name the 6 ways to market testing your idea
1) Developing a Prototype
2) Obtaining Opinions from Prospective Distributors
3) Comparing with Competitors’ Products
4) One-Store Test
5) Trade Shows
6) Conducting a Customer Survey
What questions do you ask yourself while researching your market?
1) Who should be your target customer? Your product?
2) What is the total size of your potential market and how can it be broken down?
3) Who are your competitors and what are their strengths and weaknesses?
4) What is your estimated sales forecast?
5) Where should you locate your business?
6) How should you promote, price, and distribute your product?
What is S.W.O.T Analysis?
1) Strengths - What distinct advantages does your company offer?
2) Weaknesses - What does your company do now that has room for improvement?
3) Opportunities - What and where are the interesting opportunities in your marketplace?
4) Threats - What are the current obstacles that your business faces?
What are the 4 competitive strategies?
1) Cost Advantage: A significantly lower cost permits lower prices. Cost savings can come from lower variable costs, lower marketing costs, lower overhead, lower operating costs.
2) Differentiation Advantage: Having a meaningful difference between your products and those of the competition. Might be in the product itself, services provided, reputation. Allows higher prices and higher profits
3) Marketing Advantage: marketing effort dominates the competition. You might choose to focus on a specific region/channel to dominate. Such businesses can often attract new customers more easily and maintain their presence with existing ones.
4) Focus on a Market Niche: identify a position in the market that has been overlooked/neglected by one or more of your competitors
What are top-down and bottom-up approaches?
Top-Down Approach – uses Total Canadian market
Bottom-Up Approach – uses data on a smaller scale (ex. product usage per household)
