Week 2 (chapter 3)

Question 1

How to come up with good ideas?

Answer 1

• Find your passion
• Idea multiplication:
  1) Gather stimuli 2) Multiply stimuli 3) Create customer concept 4) Optimise practically

Question 2

The customer

Answer 2

Who is the customer? 1) Primary target audience (PTA) 2) Secondary target audience (STA) 3) Tertiary target audience (TTA)

Know your customers:
1) Demographic (e.g age income, ethnicity, gender)
2) Psychographic (e.g. attributes, beliefs, interests and life choices.)

Watch out for different trends

Question 3

The market

Answer 3

Total available market —> Serviceable available market—> Serviceable obtainable market

Question 4

Pricing strategies

Answer 4

1) Penetration pricing: low cost to gain attention quick
2) Price skimming: just below competitors
3) Cost-plus: cost of manufacturing + cost of next production
4) Market value: selling at market value

Question 5

The competition

Answer 5

Indirect competition: companies that sell different types of goods that target the same customer group and satisfy the same needs.

Stealth competitors: hard to detect

Question 6

Other forces

Answer 6

Vendors/suppliers
- market power may fluctuate
- low/high market power

The government
- taxation and government regulations

The global environment
- international competitors
- opportunities to grow / outsource