Chapter 2: Finding and Evaluating the Right Marketing Opportunity

What leads to entrepreneurial success?
Recognizing, discovering or creating the right opportunities and exploiting it effectively
Opportunity Recognition
the entrepreneur recognizes (deduces) that supply and demand are known to exist. Match up supple and demand through an existing firm or new firm.
Opportunity Discover
the entrepreneurial inductively determines that either supply or demand exist (not both) and the other side has to be discovered
Opportunity Creation
The process used by the entrepreneur is adductive (inference) and neither supply nor demand exist in any obvious manner and one or both may have to be created
5 Characteristics of a Good Opportunity
1. It creates significant value for customers by solving a significant problem or filling a significant unmet need for what the customers is willing to pay a premium price.
2. It offers significant profit potential to the entrepreneur and his or her investors- enough to meet their rick/reward expectations
3. It represents a good fit with the capabilities of the entrepreneur and the management team-that is, you have the experience and skills to pursue it
4. It offers sustainability over time-it is not based on a fad.
5. It can obtain financing
Ecopreneurs
Entrepreneurs who see opportunities through an environmental lens
Economic Change
-global
-too often young entrepreneurs only with in america and this this is myopic thinking in new economy
-structural change in our economy is the shift from a manufacturing economy to a services, even experience-based economy.
3 things aspiring entrepreneurs must do when assessing technological change and possible opportunities it provides are:
1. determine the magnitude of the change
2. examine he generality of the change
3. assess the commercial viability of the change
Competitive change
-there is both intense local and globalized competition in almost every industry sector
-mergers and acquisitions have also changed the competition dynamic by either opening up or closing down opportunities for entrepreneurial firms
-another shift is toward intertype competition
Veiled Opportunity
Is often uncovered (discovered) by smart entrepreneurs who stay in tough with the market place
Niche Opportunity
Is one that many large corporations deem simply to small to invest in
two ways to access to customers through dimensional contruct
Physical or communication access
Sustainable Competitive Advantage
a unique strength relative to your customer
-can come in the form or high-quality products, higher-quality customer service, speed of performance, lowest-cost or customer intimacy
Branding
an activity in which an enterprise uses a name, phrase, design, symbols or combinations of these and other intangible elements to identify the products or services of one marketer and to differentiate them from those of competition
Name Brand
a name, sign, symbol, design or combo of these elements to identify the products or services of one marketer and to differentiate them from those of competition
Why is name brand is important
because everything else (price, product quality etc) can be matched that will separate you from everyone else
Intellectual Property (IP)
defined as creations of the mind: inventions, itinerary and artistic works and symbols, names, images and designs used in commerce
2 categories of IP
1. Industrial property which include patents, trademarks, industrial design, geographic indications of source.
2. Copyright which includes literary and artistic work such as novels, poems and plays, films, musical works, artist work, architectural design
Patent
an exclusive right to an invention which can be PRODUCT or a PROCESS that a new way of something or offers a new technical solution to a problem
To receive a patent your invention must meet certain criterias example
must be of practical use, show an element of novelty, an inventive step which would not deduced by average person
Patents provides what?
provides protection for the invention to the owner of the patent for 20 years
trademark
a distinctive sign which identifies certain goods or services as those produced or provided by a specific person or enterprise. provides protection for a period of time an can be renewed
Red ocean
characterized by existing markets with established competition where the goal is typically crowded and profit/growth is difficult to achieve
Blue ocean
new market space where demand is being creative and not fought over
Voice of Consumer (VOC)
a research technique that is designed to uncover customer wants/needs; assess customer satisfaction w/ existing product/service solution; obtain feedback on new adventure concepts and the products/services offered by the ventures including likelihood of purchases; and other key input regarding the nature, scope and configuration of proposed venture and or its new product/service
How does the entrepreneurs determine the extent of the opportunity
typically and entrepreneur discovers the aggregate size of a given market and then makes a revenue projection on capturing a particle % of market share.
three different levers of marketing opportunity
pessimistic, realistic and optimistic
Business model decision
-framework for making money.
-outlines business opportunities and how they perform them
Business Models should answer these 5 questions
1. How will the enterprise make money?
2. How will the enterprise create value?
3. For whom will the enterprise create value?
4. What is the enterprises internal source of sustainable competitive advantage?
5. How will the enterprise position themselves in the market?
7 things business models should also ask after the 5 questions
1. Where is the money?
2. Who has the money?
3. How do I get the money?
4. What do I need to provide to get money?
5. How do I get it faster then anyone else?
6. How do I get in times and time again from the same customers?
7. How can I add other revenue streams later?