TRENDS

 Green Trend
 Today customers are very conscious about their
spending habits, an increasing number is willing to pay
more for green products
 E.g. Water; providing opportunities in areas of
irrigation, such as replacement programs for golf
courses and parks, smart irrigation systems and
consulting firms that increase water use efficiency.
 Other business areas include eco-friendly printing,
recycling and green janitorial services.
 Clean Energy Trend
 One of the most pressing environmental concern is
clean energy
 Solar, wind and geothermal sources
 Smaller businesses and home owners are a significant
untapped market in this area
 Organic-Orientation Trend
 Increasingly significantly particularly in food sector
 Includes meat, dairy, fruits, vegetables, breads and
snack foods
 Non foods includes apparel (particularly baby clothing)
 Economic Trend
 Impact of credit crunch, bank failures and housing slide
and foreclousures have forced consumers to be more
careful in their spending
 Opportunities come in sectors as garden products,
business coaching, discount retailing, credit and debit
management, virtual meetings, outsourcing and entire
do it yourself movement.
 Social Trend
 Arising from networking events such as face book,
MySpace, LinkedIn and other social networks
 Other opportunities includes financial planning and
travel
 Health Trend
 Biggest trend as world population ages
 Opportunities include cosmetic procedures, personal
health care portals, point of care testing facilities, fitness
centers, fitness toys, fit food, convenient care clinics and
wellness coaches.
 Web Trend
 Creating many new forms of communication and
purchasing.
 Opportunities with low cost barriers to entry includes
blogging, online video, mobile application (apps) and
wifi apps.
SOURCES OF NEW IDEAS
 i) Consumer:
The Potential Customers and idea can be
Developed Through Informal Monitoring or
providing them a chance to express their ideas

ii) Existing Products And Services:

Arrange a formal method to monitor and evaluate
competitive products and services.
iii) Distribution Channels:
They can help due to their familiarity with market
needs and also help by a suggestions in changes
required in the products.

iv) Government:
There are two ways of idea generation by Govt.:
1- Files of PTO Office (Patent & Trademark Office)
2- Idea Coming in response to some government
Regulation

v) Research and Development:

This is the largest sources and can be formal or
informal.
METHODS OF GENERATING IDEAS:

1- FOCUS GROUP:

Group of 8-14 people having open in depth

discussion in presence of a Moderator and
discussion is stimulated by Comments of other
group members to come up with an idea. It is also
used for screening of ideas (Evaluation purpose)
Discussion is kept focused
2- BRAINSTORMING
A self managed group without a moderator and
based on the fact that people can stimulate greater
creativity by meeting with others and participate in
organized experience.
RULES:
Four rules should be followed
1. No Criticism.
2. Freewheeling(disregard of Rules) is encouraged
3. Quantity of ideas is desired
4. Combinations and improvements of ideas are
encouraged
3- PROBLEM INVENTORY ANALYSIS:

It is like focus group but the difference is that the

focus is on problem and a list of problems is
provided.
A Careful analysis of results is required
CREATIVE PROBLEM SOLVING
1- BRAINSTORMING:
Most well known and widely used, unstructured,
spontaneous contribution and generate all possible
ideas within limited time.
Process involves declaration of problem statement,
then selection of group, discuss and record all
possible ideas with no criticism.

2- REVERSE BRAINSTORMING:
Criticism is allowed and focus is on negative.
Identify everything wrong with idea followed by
discussion how to overcome it.
3- BRAINWRITING:
Written brainstorming (Silent method of brainstorming)
Also called as 635 method, Six group members each
writing down Three ideas in Five minutes time period.

4- GORDON METHOD:
Method for developing new ideas when the group
members are unaware of the problem.

Entrepreneur starts by a general concept related to the

problem, the group responds, concept developed, then
actual problems is disclosed enabling suggestions for
implementation or Refinement of solution.
5- CHECKLIST METHOD:
Developing the new idea through a list of related
issues

6- FREE ASSOCIATION:
A word or phrase related to the problem is written
then another, then another where each new word
attempting to add something new to on going
Thought process (Creating a chain of words)
7- FORCED RELATIOSHIP:
Developing a new idea by looking at product combinations
and forcing relationships among them
Use of DFD’s and ERD’S
DFD’s (Data Flow Diagram)
ERD’s (Entity relationship diagram)

8- COLLECTIVE NOTEBOOK METHOD:

A small Notebook with blank papers and data. Consider
problems and its all possible solutions and record ideas
accordingly.
These notebooks are then handed over to a Central
Coordinator who summarize the material and summary
becomes topic of final creative focus group discussion
9- ATTRIBUTE LISTING:
List the attribute of items and look at each from a
variety of view points i.e. positives and negatives

10- BIG DREAM APPROACH:

Developing a new idea by thinking without Constraints
(Thinking Big)
11) PARAMETER ANALYSIS:
Two Aspects
a) Parameter Identification: that involves analyzing
the variables and determine their importance.
b) Creative Synthesis: Develop the relationship
and evaluate parameter and relationships and then
develop solutions

12- ROOT CAUSE ANALYSIS:

Keep on asking question “WHY” till you reach at
the root of the problem.
INNOVATION
Improvement in an existing product

Inventions and Innovation are building blocks to

the future of any economic unit.
 Types of Innovation
 Breakthrough
 Fewest number of innovations.
 Establishes the platform on which future innovations
in an area are developed.
 Should be protected by patents, trademarks, and
copyrights.
 Technological
 Occurs more frequently; not at the same level of
breakthrough inventions.
 Offers advancements in the product/market area.
 Needs to be protected.
Innovation (cont.)

 Ordinary
 Occurs most frequently.
 Extends a technological innovation into a better
product or service or one that has a different market
appeal.
 Usually come from market analysis and pull, not
technology push.
Innovation (cont.)

 Defining a New Innovation (Product or Service)

 Newness can be:
 In the consumer concept (Decaffeinated Coffee)
 A change in the package or container.
 Slight changes or modifications in the appearance of
the product. (Industrial market)
 Companies also add products to their product
line that are already marketed by other
companies; products are new to the
manufacturer but not the consumer.
Innovation (cont.)

 Classification of New Products

 Consumer’s Viewpoint
 The continuum proposed by Thomas Robertson is
based on the disrupting influence that use of the
product has on established consumption patterns.
 Continuous innovations.

 Dynamically continuous.

 Discontinuous innovations.

 This approach is consistent with the marketing

philosophy that “satisfaction of consumer needs” is
fundamental to a venture’s existence.
Figure 4.3 - Continuum for
Classifying New Products
Innovation (cont.)

 Firm’s Viewpoint
 Distinction can be made between new products
and new markets.
 Situations with a new technology and a new
market are the most complicated and pose the
highest degree of risk.
Figure 4.4 - New Product
Classification System
OPPORTUNITY RECOGNITION:
Business Opportunity represents a possibility for
entrepreneur to successfully fill a large enough
unsatisfied need that may results in enough sales
and profits.

Education and experience makes the entrepreneur

knowledgeable who then becomes alert and use
networks resulting in successful opportunity
Recognition (Fig 5.5 Page 153)
OPPORTUNITY ANALYSIS PLAN:
SECTIONS:
THE IDEA AND ITS COMPETITION:
Description of product and service and identify and list all
competitions
The product differentiation features (found out after matching)
THE MARKET AND THE OPPORTUNITY:
The size and characteristics of market (3 years data) from
secondary data sources whether the market and opportunity
are large enough and worth spending time and effort
ENTREPRENEUR AND TEAM ASSESSMENT:
Assess entrepreneur and his team and have at least one
person having experience in industry area of new idea.
THE NEXT STEPS: Make the idea a reality in market place,
Time and money required, Sources of Capital
Figure 4.5 - A Model of the
Opportunity Recognition Process
PRODUCT PLANNING AND
DEVELOPMENT PROCESS
IDEA CONCEPT PRODUCT TEST COMMERCIA
STAGE STAGE DEVELOPMENT MARKETING -LISATION
STAGE STAGE STAGE
Idea

Evaluate

development
Laboratory

Evaluate

Run
Pilot production

Evaluate

Commercialization
Semi

Evaluate
ESTABLISHING EVALUATION CTERIA:
Evaluation is needed at every stage and it shall be
broad yet quantitative

a- Market Opportunity:
It is far most important and must exist.
Elements include characteristics and attitudes of
Potential buyers, size of potential market in dollar
and unit terms, nature of market with respect to
product life cycle and the market share it may get
b- Current Competition:
Evaluation of competitors marketing mix, their market
share and product differentiation features.

c- Marketing System:
Compatibility with existing system, degree of sales Force
adaptability, distribution and promotion

d- Financial Factors:
Manufacturing cost per unit, Sales cost per unit, Capital
And Inventory required, Break-even point and long term
profits

e- Production Factors.
In relation to existing plant, machinery and personnel
1) IDEA STAGE:
Prepare a systematic market evaluation checklist where
new product idea is expressed in terms of its chief
values, merits and benefits
Elements for need assessment includes timing, satisfaction,
alternatives, benefits and risks, future expectations, price
vs product performance, market structure and size and
economics condition

2) CONCEPT STAGE:
The defined product idea is tested to determine consumer
acceptance without incurring manufacturing cost.
Methods include Conversational Interviews and
Questionnaires
3) PRODUCT DEVELOPMENT STAGE
Assess the consumer reaction to a physical product
Use of consumer panel and provide samples of yours
and competing products

4) TEST MARKETING STAGE:

This increases certainty, a limited scale production and
Sale activity of the new product (e.g. up to 5-8%)

5) COMMERCIALIZATION STAGE:
The product goes through its natural Life Cycle Stages
Introduction, Growth, Maturity and Decline where every
stage requires different strategies
 E COMMERCE AND BUSINESS START UP:
E. Business:-
The business conducted through computer Mediated
networks
It can be B 2 B, B to C and Within Company
(intranet) e.g. Sales, purchase, training sessions etc.

E-Commerce:
Transfer of ownership through computer mediated
networks
FACTORS FOR GROWTH
 Increased use of Personal Computers (PC’s)
 Wide Spread of Internet facilities
 Acceptance of internet as a business communication
platform
 Access to broader customer base
 Low cost of communication
 Low Transaction Cost
 Interactivity (Two way communication b/w buyer &
Seller)
USING E-COMMERCE CREATIVITY:
It Can be done by existing companies/start ups and suitable
for small, medium and/or large companies.
STARTING

In House Out sourcing

IN HOUSE: Servers, Routers, telephones, website, soft
Wares
OUT SOURCING: Through some web development and
Updating company
COMPONENTS:
Front End Operations:
Functionality, Search, shopping cart and secure payments
Back End Operations:
Distribution Channels, Manufacturing capabilities, delivery
WEB SITES:-
Verifiers:-

They provide authentication, validation and payment

Services e.g. Pay Pal , Verisign, GTE Cybertrust

Search:-

It shall be easy, user friendly and have an email

Response System (3 click formula)
Use of subject browsing, site map and advance search
Secure Servers https:// and Merchant Accounts
Speed:

 Dial up or Broad Band

 Early download
 Navigational Clarity
 Easy to use, customized and Compatibility with
the browsers.
 Website Promotion can be done through search
engines, banner advertisement, email and
classified ads
Tracking Customer Information:
Data base Marketing or Direct Marketing through
Electronic data bases.
Customer information can be obtained through Membership
programs, Offering free services, Websites Statistics,
Internet Cookies, Hit Counters

Doing E Commerce as an Entrepreneurial

Company:
 Decision shall be made on case to case basis
 Economic delivery of products
 Product shall get interests of large enough people
 Online operations shall be cost – efficient significantly
 Attract customers through websites.
The End