Chapter 13 Identifying Opportunities Flashcards
Examples of Internal sources of ideas
Research and development - a department staffed with technical experts such as scientists and engineeees.
Employees- idea generation and brainstorming can be encouraged by rewarding employees who come up with ideas with cash bonuses.
Hobbies
What is market research?
The gathering of important and relevant information about markets and trends.
Why businesses carry out market research
Market: it provides information about the size of the market and whether it is growing
Competitors: it reveals info about competition in the market, their products and their strengths and weaknesses
Consumer reaction
Reduces risk
Internal sources are done by?
By examining their own strengths and weaknesses
External sources are done by?
By looking at the opportunities and threats in the market place
Examples of external sources
Customers- they can often suggest ideas for improvements in a product and innovative ideas may come from customer feedback
Market research- carry out surveys
Products in other countries that aren’t already yet available in Ireland
Market research techniques
Desk research
Field research
What is desk research
It’s based on secondary sources of information, research that has already been conducted by others. Internal and external sources may be used.
Internal sources of desk research
Company reports
Customer feedback
Sales figures
External sources of desk research
Websites
Trade associations such as (SIMI)
Household budget surveys
What is field research
Based on primary sources of information. It seeks to discover new information about a target market
Methods include :
Surveys
Questionnaires
Observation
Field research method : survey?
It is used to determine from the responses how consumers will react to a new product or services
Postal surveys
Online surveys
Telephone interviews
Field research observation
This requires a researcher to observe and watch the reactions and behaviours of individuals
Ex. A researcher in a bank observing the average queue length for each hour of the day
New product and service development stages
- Idea generation
- Product screening
- Concept development
- Feasibility study
- Prototype development
- Test marketing
- Production and launch
Research and development
Investing in the development of new and improved products
